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The NSW government is going back to the drawing board on a flagship policy meant to spur on high-density development while increasing affordable housing.
NSW Premier Chris Minns announced the initiative six weeks earlier, introducing fast-track incentives for developers who agree to apportion at least 15 per cent of builds over $75 million to affordable housing.
Doing so will give them access to the “State Significant Development” planning approval pathway, set up by the Coalition government, which will allow “faster planning decisions” by bypassing local council approval processes.
These developments are also given allowances to access a 30 per cent floor space ratio boost – meaning that developers could exceed the maximum floor area they would generally be able to build compared to the total area of the block – and a height bonus of 30 per cent above local environment plans.
Now, the Department of Planning and Environment will backtrack to consultation, potentially redrafting some of the measures, following feedback in the weeks since the policy’s announcement that developers are unlikely to go for the incentives.
The issues largely revolve around the fact that the government has not been able to provide the distance from council processes that have been originally touted.
For example, affordable housing requirements are ultimately needed to be added on to any council requirements, meaning that some developments will have to devote up to 25 per cent of the build to affordable housing.
Additionally, the government has not been able to guarantee that the floor space and height bonuses will supersede council development requirements as initially stated.
And if developers do not – or can not – use the bonus space, there is no flexibility in the affordable housing percentage so long as they are seeking approval through the pathway.
Urban Taskforce chief executive Tom Forrest told the Sydney Morning Herald that proposed rules would fail to entice developers to buy into the system, meanwhile Mr Minns failed to win support of the proposal from the heads of the Fairfield, Liverpool and Campbelltown councils during a visit last week.
Fairfield mayor Frank Carbone accused the Premier of “dumping” population growth in Sydney’s western suburbs, given that the city of Sydney council area has been made exempt from the reforms.
Concurrently, Liverpool mayor Ned Mannoun said he’s open to increased housing targets, but needs assurances the government will boost infrastructure investment in the region to accommodate the added population.
The government, meanwhile, has described the ongoing consultation as always part of the plan for this reform package.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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