Innovation using housing charges to fund and finance bulk infrastructure

Abstract

The principal aim of the research is to provide a critical discussion on the use of housing charges to fund and finance bulk infrastructure. In doing so, we provide a literature review of similar financing models, as set in the infrastructure-housing landscape – particularly theory and concepts on innovation. The methodology includes key stakeholder interviews on the policy development of a pilot infrastructure-housing charge. The focus of the pilot is a new build site case study, characterised as a large-scale greenfield site. The site sits contextually in the city-region of Auckland (New Zealand) that is dealing with problems of funding and financing infrastructure. Findings highlight that the funding model takes on innovation characteristics that are evolutionary and new. In shaping these innovations we see the realisation of bulk funding born out of a focus on bulk infrastructure requirements. Although this realisation is focussed on economic value and largely via a top-down ‘forced’ negotiation process. Pressures for innovation are also generated from a wider move to decentralised resource control, but one that defers risk away from the public funds to a partnership. Further, costs appear to be on a myopic focus on growth, and a perceived benefit generated from a traditional ring-fenced approach to a project. Finally we find that the model holds practical innovation, but the limits tend to be as a new and applied innovation to a domestic context.