The funding will be available for infrastructure-related capital and operating expenditure in areas such as roading, but not for water infrastructure or costs chargeable to developers via development contributions or levies.
The government says that councils will receive payments based on a proportion of the national average new dwelling consent value. Payments under the fund will be higher for councils that enable higher rates of growth.
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For each new home consented up to an equivalent of 1.0% of their existing dwellings, councils will receive a payment of 0.25% of the national average consent value.
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For consents between 1.0 and 2.0% of existing dwellings, councils will receive a higher payment of 0.5% of the national average consent value.
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Beyond 2.0% of existing dwellings, each new consent will generate a payment of 1.25% of the national average consent value.
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Payments will start from 1 April 2027 for consents granted in the year to January 31 2027.