Development contribution

The cost outside the builder’s quote

A granny flat can add another household using water, wastewater, stormwater, transport, reserves or other community infrastructure. A council may charge a development contribution under its policy even when the dwelling uses the Schedule 1A building-consent exemption.

The charge is separate from rates, a PIM application fee and any building or resource consent fees. Different councils, catchments, dwelling sizes and service arrangements can produce different results.

Form 3A puts the amount into the project

When one applies to a Schedule 1A proposal, the council issues Form 3A with the PIM. The notice states the amount and payment instructions. It should immediately enter the project budget and cash-flow plan.

For a non-consented small stand-alone dwelling, the amount is payable within 20 working days after the building work is complete. Design or service changes may affect the assessment, so discuss material changes with the council before completion.

Get the answer in writing

Ask which policy and catchment apply, whether dwelling size or network connections affect the amount, when it will be confirmed and how a changed design will be handled. Keep the notice with the finance and completion records.