Another five Sydney councils will be able to more easily require property developers to provide affordable rental housing, under changes to planning laws to be put on exhibition this week.
The five councils - Randwick, Inner West, Northern Beaches, City of Ryde and the City of Canada Bay - will be included in State Environmental Planning Policy 70 (SEPP 70), which enables councils to levy for affordable housing across their areas.
"This program has already proven to be a success, and it's clear that new developments, in areas such as Rhodes East, should also support affordable housing," said Planning Minister Anthony Roberts.
Councils can currently require developers to make contributions for affordable housing through individual agreements. The inclusion in SEPP 70, however, allows them to require developers to help deliver affordable rental properties on a more systematic basis.
The scheme is currently being used only by the City of Sydney Council for developments in Ultimo, Pyrmont and Green Square.
But the five councils to be included in the planning policy have all pushed for powers to make it easier to create rental properties that can be leased to tenants at below-market rates. The Greater Sydney Commission, meanwhile, has proposed that 5-10 per cent of the increased value of rezoned land be used for affordable rental housing, subject to feasibility.
"Inclusion in SEPP70 will simplify the process for development in these local government areas, meaning there is a consistent approach to providing affordable rental homes," Mr Roberts said.
Affordable housing advocates have been frustrated by the government's lack of policies to create affordable rental properties. When the Premier, Gladys Berejiklian, launched her affordable housing policy in June, she included no measures targeted at renters.
But the chief executive of the NSW Federation of Housing Associations, Wendy Hayhurst, said the inclusion of the five councils in SEPP70 was a "sign of movement" by the planning minister.
"We would certainly be happy about that," said Ms Hayhurst.
Randwick Council's inclusion in the policy had previously been agreed to by former planning minister Rob Stokes, but not placed on exhibition.
As well as the affordable housing scheme, Mr Roberts will also place on exhibition this week a "Special Infrastructure Contribution" scheme to apply to a new planned precinct at Rhodes East. Under this scheme, developers will have to pay almost $22,000 per dwelling, to help fund land for schools, cycling and pedestrian facilities, and other open spaces.
The Member for Drummoyne, John Sidoti, said the extension of the infrastructure contribution and affordable housing policies to the Rhodes East development was "an absolute no-brainer".
