NOOSA PLAN 2020 PROPOSED AMENDMENT NO. 2 - POST PUBLIC NOTIFICATION FOR FINAL STATE GOVERNMENT MINISTERIAL APPROVAL · Report

SPECIAL MEETING                                                                  12 DECEMBER 2024


A Community Housing Provider also identified the proposed 30 years for long term affordable rental
time was not consistent with capital funding agreements which is 20 years.

Submissions were varied on the proposed building height bonuses allowed on key sites, some
objecting to increased height, others supporting the proposed height increase and others indicated
the allowable height wasn't high enough.

Response
The proposed amendments sought to create a pathway for developers to provide much needed
affordable housing by providing development incentives and a framework for long term affordable
housing to meet the needs of key workers and lower income residents. The framework relied on the
ability for developers to access recurrent funding to bridge the gap between what the tenant pays
and what the property owner / developer gets. However recent completion of the National Rental
Affordability Scheme (NRAS) has left a gap in funding for affordable housing and alternatives for this
funding is currently not clear.

It is acknowledged the rising costs of land and construction make it difficult for affordable housing to
be feasible in Noosa Shire, unless the land has been owned for some time. It is noted affordable
housing will not be delivered by the private sector if it is not feasible and there is limiting funding
available to bridge the rental gap and provide a return to developers.

Notwithstanding this, the larger site such as the former Bowls Club site at Noosa Junction and Noosa
Business Centre have the potential to deliver the scale of development which may be feasible with
scope for these sites to seek other forms of funding for the construction costs. Likewise, properties
within Noosa Junction Major Centre and Doonella Street Tewantin, where amalgamation of lots is
possible, may be of a feasible scale to deliver affordable housing. These sites should therefore retain
the opt-in bonus provisions for affordable housing.

The proposed bonus height provisions for an additional storey (2m) on these key sites should also
remain as an incentive. It should be noted that it is likely that few property developers will chose to
deliver affordable housing and opt-in to the incentive provisions, so the majority of sites will only
develop to the current height limit of 3 storeys across Noosa Junction centre.

The proposed opt-in affordable housing provisions in the Medium Density and High Density
Residential zones (outside of the key sites mentioned above) are no longconsidered feasible and
are recommended for removal. These zones will provide for small dwellings and housing diversity,
rather than affordable housing.

Recommendations
It is recommended that a change be made to the proposed amendments in response to submissions
to:
   •   amend the affordable rental premises definition to reduce the long term affordable rental time
       to 20 years;
   •   remove the affordable rental bonus provisions from the Medium and High Density Residential
       zones except on the key sites being the former Noosa Bowls Club site and Noosa Business
       Centre;
   •   retain the affordable rental bonus provisions over the Major Centre zone at Noosa Junction
       and Village Mixed Use Precinct at Noosa Business Centre and District Centre zone at
       Doonella Street, Tewantin; and
   •   amend the PSP11 Provision of Affordable Rental Premises to reflect the changes that the
       affordable rental premises are applicable in some centre zones and selected High Density
       Residential Zones sites.