City of Sydney affordable rental housing changes

The Property Council last week submitted a response to the proposed changes to the City of Sydney affordable rental housing policy.

The City of Sydney Council are proposing significant amendments to the affordable housing framework, Changes will include expansion of the affordable housing contributions to all land in the Sydney LEP, including Central Sydney.

Among the changes, the policy includes establishment of a universal monetary contribution amount per square metre (nominated as $9,788.00 per square metre). Contribution rates will be phased in over a four-year period, applying to DAs determined from 1 June 2020 onwards

In the submission, the Property Council acknowledged that there is a shortage of affordable housing within the City of Sydney (CoS) LGA and requirements under the recently released Region and Eastern City District Plan to improve the supply of affordable rental housing.

However, more work is required for the changes to the affordable rental housing planning controls proposed by CoS to achieve the stated intentions. In their proposed form, the proposed changes risk undermining stated objectives of improving housing affordability and will ultimately lead to a reduction in affordability.

The proposed changes to the affordable rental housing levies and planning controls will have an impact on the supply of much needed residential development in CoS and also threatens the viability of commercial development throughout the LGA.

The Property Council will continue to work with our members and the City of Sydney on the proposed changes