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.
Council has set a target of 1,884 new social and affordable housing dwellings by 2036 in the Local Housing Strategy, which will primarily be achieved through Council’s Affordable Housing Contribution Scheme.
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. It currently applies to the Frenches Forest precinct and to a site in Narrabeen (1294-1300 Pittwater Road and 2-4 Albert Street, Narrabeen).
The scheme does not currently apply to development in other areas on land that has not been rezoned.
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 and consequently limited the contributions developers are making towards affordable housing,” Mayor Heins said.
“The rate of new development is simply too slow to meet our affordable housing targets.
“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.
“By broadening the reach of our affordable housing contributions scheme, we have a better chance of reaching our targets and ensuring there is enough affordable and social housing available for current and future residents.
“We have seen this approach work in other local government areas, including the City of Sydney and Willoughby, and other councils like Newcastle and Waverley are also looking at broadening their contribution schemes, with planning proposals currently before the state government.”
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.
“We will continue to raise our concerns with the state government, but in the meantime, we must find a way to ensure that at least some of these new developments include a provision for affordable housing. A broad-based affordable housing contributions scheme will help us achieve that.”
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.
This follows independent advice from SGS Economics that Council should consider a more broad-based affordable housing contributions scheme, applying to land other than that which has been ‘up-zoned’.
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 apply and the most appropriate contribution rates to be introduced.
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.