Council offers ‘in-principle’ support for Ratepayer Assistance Scheme

Kāpiti Coast District Council has joined 23 other councils nationwide in giving in-principle support to Local Government New Zealand’s proposed Ratepayer Assistance Scheme (RAS). 

The proposed RAS is effectively a low-interest loan scheme that has been developed to help address cost-of-living pressures for ratepayers, support housing development, and deliver broader public benefits, such as energy efficiency improvements, without impacting council finances. 

Mayor Janet Holborow says Council’s position is a reflection of the times and the need to explore innovative ways to support housing development, build resilience, and support our communities to thrive. 

“Our community is facing significant cost pressures and this scheme will be another way we can help our community to meet everyday costs in challenging times,” says Mayor Holborow 

Ratepayers who qualify for the scheme would be given the flexibility to decide when to pay their rates, for example they could choose to defer paying until they sell their property. The scheme also allows the cost of development contributions to be spread over 30 years removing a major barrier to building new homes.  

The RAS would also provide low interest finance for homeowners or landlords to undertake property improvements that provide public benefits like solar panels and heat pumps. It is estimated that these energy improvements could save an average household over $1,000 a year, after loan repayments. 

Mayor Holborow says Council’s commitment is non-binding at this stage, but it does provide Local Government New Zealand with the confidence that we are potentially interested in the benefits of the scheme and would like to see it further developed. 

To progress further, the RAS requires central government support and enabling legislation. It is currently being considered by the Minister for Local Government, Simon Watts.  

Local Government New Zealand proposes the new RAS entity will be a Council Controlled Organisation co-owned by central government (20%), the Local Government Funding Agency (20%), and participating councils (60%). 

As more concrete details emerge, councils will be able to engage with their communities to update ratepayers about the scheme and how it will work. Each council will then make final decisions about whether to offer RAS loans to their ratepayers and invest in the RAS as a shareholder.   

For more information about the scheme and how it could work, see: www.lgnz.co.nz/policy-advocacy/ratepayer-assistance-scheme/