Compliance Comes Due on Rotorua’s Lakes

Ready or not, here it comes – resource management law and resource consenting is on the move. The RMA’s replacement Planning and Natural Environment Bills are expected to be enacted as early as September 2026. Below, we delve into some of the Select Committee’s recommendations on transitional provisions. The RMA law transition period The new regime will be introduced in stages through a “transition period”. The transition period will begin with amendments to the RMA, and the amended RMA will continue to operate while the transition occurs. The RMA amendments will be in force one month after enactment – around October 2026. The rest of the transition period will progress in three tranches: 2026: National direction changes (and RMA amendments). 2027: Early application of new Initial National Rules. Mid 2027: Establishment of the Planning Tribunal. Resource consents lodged prior to the start of the transition period will be processed under the RMA as it was just prior to the Planning Bill becoming law, whereas resource consents lodged during the transition period will be processed under the RMA as in force at the time the application is lodged – which will include the new Initial National Rules (discussed below). What changes for resource consent applicants? One of the most immediate and practical changes is to the factors councils must assess when deciding resource consent applications. From October 2026, the new s 104 RMA will prevent consent authorities from considering certain matters, including: Views from private property; The financial viability of or demand for a project; Internal (and certain external) layouts of a building; The type of residents to be housed in a new development; Negative trade and competition effects; and Effects on retail distribution. Councils may amend their district and regional plans to remove or modify these ‘out of scope’ matters, but this is not a requirement. Alongside this, a new alternative permitted activity pathway will be introduced for land use activities. Projects with marginal or temporary non-compliances with a rule or standard relating to an ‘out of scope’ matter will be a permitted activity. From October 2026, Councils will also be expected to apply new procedural principles when processing applications — they must take all practicable steps to operate in a timely, cost-efficient, proportionate and pragmatic manner. From 2027 Initial National Rules will apply across the country. The Initial National Rules will introduce new ‘system standards’ which can be applied early under the RMA. Where there is a conflict, the Initial National Rules will override existing National Environmental Standards. Also of note are changes to the RMA to prevent private plan changes from being notified by local authorities between 1 January 2028 and the end of the transition period (i.e. after 2030), unless exempt by application to the Minister. The return of the Planning Tribunal From mid 2027 the Planning Tribunal will be live as a division of the Environment Court. The Tribunal will become the decision maker for lower level disputes and matters, such as reviewing local authorities’ decisions on application completeness and strike out of submissions, as well as decision making on existing use rights and declarations on conditions interpretation. Substantive appeals on plans and consent applications and significant matters will continue to be heard by the Environment Court. Enforcement provisions roll through Existing compliance and enforcement provisions will carry on through the transition period. Of note is the new adverse publicity order tool, which is on track to come into force from September 2026. The adverse publicity order is a ‘name and shame’ tool, and gives the Environment Court the power to require a person convicted of an offence to publicise the offence, the impact on the environment or health, and any penalties imposed. These changes will be of interest to businesses, landowners, planners and developers alike. At Holland Beckett we are closely monitoring the progress of these reforms and their implications. However these reforms affect you, our specialist environment and planning team is available to assist.

From 15 January 2026, New Zealanders can build one small, standalone, single‑storey dwelling up to 70 m² (often called a “granny flat”) without a building consent, provided every condition of the new national exemption is met and the required process is followed. At the same time, a new National Environmental Standard allows one detached minor residential unit per site in most zones without a resource consent, provided the relevant planning standards are met. These two regimes operate side by side and you must comply with both. What changed for granny flats in 2026? Two separate legal changes now apply. 1. Building consent exemption (Building Act 2004) You may build a small, standalone dwelling up to 70 m² without a building consent if: the design and construction meet all exemption conditions; and the work is done or supervised by licensed building professionals (“LBPs”), and licensed plumbers, drainlayers, gasfitters and electrical workers. Before work begins, you must obtain a Project Information Memorandum (“PIM”) from your council. When the build is completed, you must submit final documentation to the council for its records. Councils do not inspect exempt work and do not issue a Code Compliance Certificate, but they will hold your documents on the property file. 2. Planning rules: National Environmental Standards for Detached Minor Residential Units (“NES DMRU”) The Resource Management (National Environmental Standards for Detached Minor Residential Units) Regulations 2025 make one detached minor residential unit per site a permitted activity in most residential, rural, mixed use and Māori purpose zones, provided national standards are met. These national standards cover: maximum size (≤70 m²); boundary setbacks; site coverage; and compliance with relevant district and regional plan rules (for example, natural hazards or infrastructure constraints). Councils may be more lenient than the national standards, but cannot be stricter. If any national standard or district/regional plan rule is not complied with, a resource consent is required. Why this matters? MBIE estimates that the 2026 changes can: save around $5,650 in direct consenting costs; and reduce build timelines by approximately four weeks. However, owners and professionals now carry greater responsibility for Building Code compliance, documentation and quality assurance. Councils may still collect development contributions at the PIM or notification stage. What conditions must be met to be eligible for the exemption? 1. Form & size The dwelling must: be new, detached and single storey; be no more than 70 m² internal floor area (an internal garage is allowed); not have a mezzanine floor. 2. Siting & placement (planning rules) Under the NES DMRU, one unit per site is permitted if the national standards are satisfied. These typically include: a maximum size of 70 m²; site coverage caps (often no more than 50% in residential zones); and boundary setbacks (commonly at least 2 metres in residential zones). District Plans may allow more generous rules, so always check your council’s website and your PIM for site specific requirements, overlays and hazards. 3. Structure & materials Construction must be simple and lightweight (e.g. timber or light gauge steel framing, lightweight roof, wall claddings within weight limits). Heavy, complex or experimental systems will usually trigger the need for a full building consent. 4. Building Code still applies The NZ Building Code applies in full. There are no waivers under the building consent exemption. All restricted building work must be carried out or supervised by LBPs, and designers must provide a certificate of work and builders and trades must provide records of work. 5. Process & paperwork Before construction: Apply for and receive a PIM using Form 2AA (a new prescribed form). During construction: LBPs must build to the plans and specifications, supervise unlicensed workers and keep records. On completion: Within 20 working days, submit final plans, certificates of work, records of work and trade certificates to the council. These documents are added to the property file and LIM. No code compliance certificate is issued for an exempt build. Common mistakes and compliance risks Skipping the PIM: starting work without one disqualifies you from the building consent exemption. Failing NES DMRU standards: breaching setbacks or coverage rules means a resource consent is required. Failing to meet Council standards: compliance with the NES DMRU permitted activity standards on its own is not enough. You need to ensure compliance with district/regional plan rules. Over‑complex design: features such as wet‑room tiled showers, level‑entry detailing or solid‑fuel burners may fall outside the “simple build” intent and trigger consent. Poor documentation: missing certificates or records of work can affect insurance, financing, valuation and resale. Unexpected fees: councils may still charge costs at the PIM or notification stage. How we can help 1. Site due diligence (before design) We review titles, easements, covenants, encumbrances, cross‑leases and unit titles to identify restrictions on a second dwelling. We also check LIM notices and assess NES DMRU standards alongside district plan rules, including natural hazard constraints. 2. Planning strategy and NES DMRU compliance If a proposal does not meet a national standard or a rule in a district plan (for example, a boundary setback), our environment and planning team can advise on consent pathways and available options. 3. Contracts with designers/builders (and LBPs) We review contracts to ensure risk is allocated appropriately and ensure: quality assurance checkpoints; delivery of all certificates and records of work; insurance, warranties and variation controls; and contract terms reflect the no inspection exemption pathway. 4. Wider advice: tax/tenancy, ownership, asset planning For family occupation, we can document occupancy arrangements and advise on trusts, companies, co‑ownership arrangements, property development issues or future subdivision pathways (noting subdivision rules are separate).

Environment & Resource Management We are pleased to share that our specialist resource management team has once again been recognised in the Doyle’s Guide rankings for Environment & Resource Management. Vanessa Hamm, Partner, was recognised as a Recommended Leading Environment & Resource Management Lawyer in this years list. Holland Beckett was also recommended in the Leading Environment & Resource Management Law Firms list. Family & Relationship Property Rebecca Savage, Partner, has been listed as a Recommended Leading Family & Relationship Property Lawyer in this year\'s rankings. Congratulations to Vanessa and her team, and to Rebecca, on this recognition. Doyles is the \'premier rankings of Leading Lawyers, Law Firms & Barristers across Asia-Pacific, the UK & the UAE\'. We\'re honoured to be included in these listings, which pull together New Zealand based solicitors and firms who have been identified by clients and peers for their expertise and abilities in each area.