Let’s make more new homes affordable – proposed changes to developer contribution scheme
With a shortfall in affordable housing on the Northern Beaches, Council is considering options for a flat rate affordable housing contribution to apply across the local government area. This will see, Council set a target of 1,884 new social and affordable housing dwellings by 2036 in the Local Housing Strategy.
The current scheme requires developers to make contributions towards affordable housing, either as new dwellings or monetary contributions, but only on land that has been rezoned for higher density development.
Northern Beaches Mayor Sue Heins said the current policy needs to change if Council is to meet its target for greater social and affordable housing.
“In recent years we have seen building activity subdued, primarily due to the pandemic, high interest rates and rising building costs. This has reduced the amount of development in places like Frenchs Forest.” Mayor Heins said.
“In some places where development is charging ahead, developers are not required to contribute to affordable housing. New developments in Dee Why Town Centre, for example, are not subject to the affordable housing contributions scheme as the land was rezoned for higher density development before the current controls were introduced.”
Concerningly, the state government’s proposed “low and mid-rise” housing reforms will permit higher density development across the LGA without any requirements for affordable housing to be provided.
“If these housing reforms proceed, thousands of additional dwellings will be constructed but none will be affordable or social housing,” Mayor Heins said.
Council has endorsed the preparation of a feasibility study, draft amendments to Council’s Affordable Housing Policy and Affordable Housing Contributions Scheme and the preparation of a draft Planning Proposal to amend Council’s current Local Environment Plans, to introduce a flat rate affordable housing contribution for development not subject to a rezoning proposal.
Council will undertake further research and financial viability testing to determine the types of development applications to which the broad-based affordable housing contribution scheme would to.
Once this work is complete, Council will draft amendments to the Affordable Housing Contributions Scheme and prepare a Planning Proposal for the consideration of Council prior to sending to the NSW Department of Planning. Any proposed changes will be placed on public exhibition and changes will not come into effect until submissions have been considered by Council and Ministerial/Departmental approval has been given.
