Bedroom based approach for residential developments

​​Under the 2018/19 Development Contributions Policy or later, residential developments are assessed for development contributions based on the number of bedrooms a dwelling contains.

Development contributions for larger dwellings are higher compared to smaller dwellings, noting that all dwellings with four or more bedrooms pay the same rate (large residential).

The four residential dwelling types are:  
  • One-bedroom dwelling (not more than one bedroom in total)
  • Two-bedroom dwelling (not more than two bedrooms in total)
  • Standard residential dwelling (not more than three bedrooms in total) 
  • Large residential dwelling (four or more bedrooms)

How to identify a bedroom 

For the purposes of development contributions, a bedroom is defined as an area of a residential unit that is not: ​

a)   the kitchen, bathroom(s), laundry and toilet(s), 

b)   the dining room or living room (but not both) whether open plan with the kitchen or not, 

c)   entrance hall or passageways, 

d)   garage, and 

e)   any other room smaller than 6sqm. 

That is, the kitchen, bathroom, laundry, toilet, entrance hall, passageway, garage and any other room smaller than 6sqm will not be counted as a bedroom. Also excluded from the definition of a bedroom is one of either a dining or living room. The exception to this is where the dining and living area are open plan with the kitchen (one room). In this case only, the dining/living room will not be counted as a bedroom. 

The following examples may assist in counting the number of bedrooms in your proposed dwelling:


 
​Example floor plan​Number of Bedrooms​Residential Dwelling type
​No bedrooms​One-bedroom dwelling
​Two bedrooms​Two-bedroom dwelling
​Three bedrooms​Standard residential dwelling
​Four bedrooms​Large residential dwelling


 
Residential subdivision

Development contributions will be charged on a subdivision consent based on the number of bedrooms a proposed dwelling has or as one standard residential dwelling (one residential HUE) where sufficient information is not available to determine the residential demand type when the consent was approved. ​

If prior to the date when payment is required the Council establishes to its satisfaction that the number of bedrooms differs from a standard residential dwelling (for example a land use consent or building consent showing either one, two or four bedrooms), the Council will use this information to reassess that residential unit according to the development types stated above and set out in the Policy. Where a development contribution has been paid, no refund will be given if the actual number of bedrooms is less than the standard residential dwelling assumes, but rather, a credit will be retained for the development contributions paid.

Where a standard residential unit was paid on a subdivision consent under the 2018/19 Development Contributions Policy or later, and a building consent is lodged for a large residential dwelling, an additional development contribution charge will be incurred on the building consent.

Residential renovations​​

Where a residential dwelling existed on a site prior to 1 July 2018, no additional development contribution will be required for adding additional bedrooms to the dwelling.  Areas of a renovation that are deemed to be self-contained will be subject to a development contribution charge based on the number of bedrooms within the self-contained area.

Additional development contributions will be required where additional bedroom(s) are added to residential units that were assessed under the 2018/19 Development Contributions Policy or later.  ​

Residential Credits

Under the 2018/19 Development Contributions Policy or later, if you are demolishing an existing residential dwelling on site or have paid a development contribution previously then you will be eligible for a credit against the proposed development contribution charge.

Where information in relation to a demolished dwelling is practicably available (for example, historical building consent plans), this information will be used to determine the number of bedrooms in the dwelling and the type of residential credit applicable.

The following minimum classifications shall apply to all demolitions unless there is information demonstrating that the dwelling had more bedrooms:

a) detached dwellings are credited as standard residential dwellings
b) attached dwellings are credited as two-bedroom dwellings
c) ancillary units are credited as one-bedroom dwellings.

Where a residential development contribution has been paid under a Policy prior to the 2018/19 Development Contributions Policy and a consent has been lodged for one single residential dwelling then no additional development contribution charge will be incurred.

 

Working Examples

​Example​​Development contributions assessment:
One detached residential dwelling is being demolished and plans from a historical building consent show the dwelling has three bedrooms.  Building consent lodged for one four-bedroom dwelling.
One standard residential credit applied for dwelling to be demolished and development contributions charged on the demand for one large residential dwelling at the 2019/20 development contribution rate.
One residential dwelling paid on subdivision under the 2016/17 Development Contributions Policy.  Building consent lodged for one four-bedroom dwelling.
No development contributions payable.
One residential dwelling paid on subdivision under the 2016/17 Development Contributions Policy.  Building consent lodged for one duplex comprising of two bedrooms in each dwelling.
​One standard residential credit applied for the development contribution paid on subdivision and development contributions charged on the demand for two two-bedroom dwellings at the 2019/20 development contribution rate.
One detached residential dwelling is being demolished and plans provided by the applicant shows the dwelling had four bedrooms. Building consent lodged for one two-bedroom dwelling.No development contributions payable. Applicant may add up to two bedrooms to dwelling in future and incur no additional development contribution charge due to residual credit from large residential dwelling that was demolished.
​​One standard residential dwelling paid on subdivision under 2018/19 Development Contributions Policy.  Building consent proposing one four-bedroom dwelling. ​
One standard residential credit applied for the development contributions paid on subdivision and development contributions charged on the demand for one large residential dwelling at the 2019/20 development contributions rate. ​
Page reviewed: 01 Jul 2019 1:17pm