Friday 15 December 2023
MEDIA RELEASE
NSW Government hears the call on affordable housing bonus
The Property Council of Australia has backed the NSW Government’s major changes to the social and affordable bonus provisions under the Housing State Environment Planning Policy (SEPP).
NSW Executive Director Katie Stevenson said the NSW Government has responded to industry feedback and introduced major changes to the design and scope of the planning policy.
“We congratulate the NSW Government for taking on board industry input and introducing these commonsense changes to ensure the social and affordable housing bonus scheme delivers for the community,” said Ms Stevenson.
In a major win for the sector, residential developments, including Build-to-Rent projects, which allocate between 10 and 15 per cent of total gross floor area to affordable housing will now receive a height and FSR bonus of between 20 and 30 per cent based on a sliding scale, and gain access to the State Significant Development assessment pathway.
“The NSW Government has worked in good faith with the Property Council and other stakeholders to get keys in doors as soon as possible for those in our community struggling to find a home they can afford.
“Industry will welcome the adoption of our recommendation of a pro rata approach, which scales the affordable housing requirement based on achievable FSR and height bonuses.
Ms Stevenson also welcomed changes to the Housing SEPP that will apply the affordable housing bonus scheme to BTR developments, including in E2 zones, even where residential accommodation is currently prohibited.
“The Property Council has been clear that we need to deepen the pool of affordable rental housing providers in the market to meet our ambitious Housing Accord targets.
“These policy changes now allow the Build-to-Rent sector to put its shoulder to the wheel on contributing to the stock of affordable housing.”
Ms Stevenson noted that the scheme does not override Local Environment Plan (LEP) provisions that conflict with the new policy controls and its intent, and that local affordable housing contribution schemes will not be turned off under this proposal.
“The Property Council has provided consistent feedback that stacking local and state affordable housing contributions will put the success of this bonus scheme at risk by making the very homes we are trying to deliver unviable and unable to be built.
“Not removing the local requirements could led to a proliferation of new affordable housing contribution plans within council areas that don’t wish to see an increase in the height and density of dwellings.
“We encourage the NSW Government to reconsider this provision to ensure councils don’t block progress of the state’s housing agenda, particularly as we move towards local government elections in 2024,” said Ms Stevenson.
ENDS
Media Contact: Michael Player | 0424 698 189 | [email protected]