2017-04-11 P&E Agenda Attachment 1 to Item 1 Housing Needs Assessment

dwelling is considered to be an affordable home if:

       it is offered for sale at or below the appropriate price;
       it is offered for sale to eligible buyers; and
       the development is subject to a legally binding agreement to ensure these requirements are met.


More information is available at https://www.sa.gov.au/topics/property-and-land/land-and-property-
development/planning-professionals/developer-responsibilities-for-affordable-housing




NSW

In NSW, as a result of a court case, the Department of Urban Affairs and Planning (now ‘Department of
Planning’) created State Environmental Planning Policy No 70 (Affordable Housing Revised Schemes) to
support Local Government in requiring a proportion of affordable housing in developments. This SEPP allows
Councils with affordable housing provisions within their environmental planning instruments and plans to
continue affordable housing provisions.

As a result, Clause 25B of the Willoughby Local Environmental Plan 1995 includes provision for Local
Housing Precincts where affordable housing is to be provided. Clause 25B applies to precincts selected by
Council. The mechanism states that a four percent contribution to affordable housing out of the entire
development must be made by the applicant carrying out development within one of the precincts. The
applicant can contribute in two ways – a monetary contribution equalling a four percent levy on the total
cost of development, or via dwelling contribution equalling four percent of the total number of dwellings the
development creates. These dwellings are rented at a cap rate for 10 years at 30 percent of the tenant’s
weekly income.



It has however been noted that Noosa Shire operates in an unusual context. It is a highly
desirable coastal location in a unique environmental setting where market conditions have
favoured the affluent and the development of large, high standard dwellings compared to many
other coastal settlements. Maintaining good planning standards, combined with a defined
population/ development capacity, has led to relatively high priced real estate, and the situation
where for some groups in the community, housing is unaffordable.

This situation is likely to only be exacerbated over time as land stocks decrease and the
development capacity is approached. Hence regardless of measures undertaken to increase
affordability, there can be no guarantee that new small dwellings on the private market will
actually be ‘affordable’ by low income households relative to other areas, nor occupied by
existing Noosa Shire residents who require them to remain in the area (such as key workers)
rather than attracting new residents. What can be anticipated is that such dwellings will be more
affordable than much of the existing housing stock of Noosa Shire.

There will continue to be households who cannot compete on the private dwelling market, and
will require assistance either temporary or longer term. It was recognised in the Queensland
Government Discussion Paper, Working Together for Better Housing and Sustainable Communities
(2016d), that there is a growing shortage of affordable housing for rent and purchase in many
markets across the State, and the housing system overall is struggling to respond to people’s
changing needs. It was found that Noosa Shire was much less affordable than comparative LGA’s,
Brisbane and the State in terms of its level of either rental or purchase housing affordability.




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