The state housing provider is being criticised by the opposition and taken to court by a private developer, after refusing to use its special powers under the Urban Development Act to fast-track a new development.
Property developer Winton Land wants to build more than 4000 homes and three retirement villages, a project which would create 11,000 permanent jobs in South Auckland as part of its Sunfield development.
Winton Land chief executive Chris Meehan said it would create a new 250,000sqm hub of employment, education, and healthcare buildings, along with a 4ha town centre with a renewable solar energy network, 22.8 hectares of open spaces, and an autonomous electric shuttle fleet.
"It enables a more sustainable and more affordable lifestyle with 90 percent fewer cars, localised renewable energy within the community and therefore collectively significantly lower emissions. In short, a sustainable, inclusive and thriving community at zero cost to the taxpayer," Meehan said.
Winton claimed Kāinga Ora said it was "too busy" to process private sector applications.
However, Kāinga Ora general manager Katja Lietz denied that was the reason given.
In the decision, released in November 2021, Lietz said it could add no value to the project by using its powers - in fact, it "may add unnecessary complexity and uncertainty to this project", she said.
"The proposer is a capable and well-funded developer seeking reduced timeframes and complexity for this development. We do not consider partnering with Kāinga Ora under the UDA will achieve that."
Lietz said Kāinga Ora also had concerns about the project.
"For example, proposed infrastructure to address the risk of flooding would only be feasible in willing partnership with Auckland Council. We proposed discussions with council to explore this and the proposer declined," she said.
Meehan told Morning Report the issues Kāinga Ora highlighted with flood-risk were not true. "They don't know that, because they never agreed to process the application," he said.
"They've never looked it, so they wouldn't know if the stormwater is good or bad."
In taking Kāinga Ora to court, Winton was not seeking money - it was simply asking the housing agency to process its application to fast-track the project.
National housing spokesperson Chris Bishop said, in the midst of an escalating housing crisis, the government should be doing all it could encourage the private sector to build more houses.
"It's no wonder Winton thinks this is anti-competitive behaviour, particularly when Kāinga Ora repeatedly outbids the private sector," Bishop said.
Winton also claimed Kāinga Ora was overpaying for land and excluding private developers, a claim the housing agency rejected, saying it did work with the private sector, including Winton, and the company should provide evidence for its claims.
Meehan later told Morning Report "In the example of Ferncliff Farm, it was an open market tender, run by Bayleys, there were 11 bidders, they were one of them and they won the bid. So how do you read that?"
Kāinga Ora has been approached for further comment.
RNZ
