Auckland developer fined $ 74,000 for overcharging affordable housing in Hobsonville Point

An Auckland home developer has been fined $ 74,000 for charging affordable home buyers extra for landscaping and driveways at Hobsonville Point.

Imperial Norwest was fined $ 30,000 and Imperial Garden $ 44,000 by District Court Judge David Kirkpatrick after the companies pleaded guilty to charges of violation of the Resource Management Act, brought by Auckland Council .

They were given consent to build affordable housing at no more than $ 636,000 under the rules of the special housing area, but then early home buyers were charged extra for things like landscaping and driveways.

That pushed the houses well beyond the criteria for affordability.

The companies have also reimbursed nearly $ 400,000 to home buyers at the request of the council and separately from the court action.

READ MORE
• An Auckland couple’s legal dispute over entry, fencing and landscaping with ‘affordable home’
• Additional billing for ‘affordable’ home driveways – Auckland real estate developer prosecuted

Auckland Mayor Phil Goff was pleased with the ruling, saying the goal of the affordable housing legislation was to bring more affordable housing to the market to address housing challenges.

“These companies have deliberately tried to circumvent the rules and have admitted their guilt, so it is appropriate that this sentence was handed down,” he said.

Councilmember Chris Darby, who was approached by owners about pricing, said the ruling serves as a warning to unscrupulous developers that the council will throw the book at them.

In September last year, a director, Andy Zhu, said he wanted to avoid court and that he planned to reimburse affected homeowners.

The company had been acting with legal advice that “affordable” applied only to the house itself, nothing more, so it thought it was entitled to charge more, he said.

The first complaints were made about two years ago.

Special Housing Zones were created by the previous national government to increase the supply of homes, and developers received expedited consents in exchange for providing some affordable housing for first-time home buyers.