Greens Introduce 25% Affordable Housing Bill

“Recent statistics rate Sydney as the 7th least affordable city in the world. Housing affordability indicators have deteriorated to historically low levels. Rents are going up year on year and there are very low vacancy rates”, said Ms Hale.

“While one generation is enjoying the benefit of increased housing prices, the next generation is suffering the consequences by being forced out of Sydney to find somewhere they can afford to live.”

“Where will Sydney be when key workers like teachers, nurses, police and aged and child care workers can’t afford to live here?

“What The Greens are suggesting is in no way radical. Similar schemes have been implemented in both the UK and the USA. The Greens Bill is based on existing practice in other global cities such as London, Tokyo, Paris and New York.

“We already have limited schemes operating in NSW - one success story is the affordable housing run by City West Housing Company in inner Sydney. The Greens’ Bill removes the obstacles to the expansion of these types of schemes.

“Councils are currently hamstrung by the requirement that a scheme be listed by the Minister in a State Environment Planning Policy. The previous and current Planning Ministers have not approved any new schemes, and when a Council has asked, it has been refused.

“No doubt the property industry will oppose this Greens initiative, but similar schemes work overseas and developers still build houses and make profits, so it can work in NSW.

 “If the Government and the Opposition do not support the Greens’ bill they are not serious about affordable housing,” concluded Ms Hale.

Further information: Chris Holley 0437779546 / 02 9230 3030

The Bill – Key Features

·         The Bill will allow councils to ask for a developer contribution for affordable housing purposes from private developers or government agencies.

·         Councils will have the say how much the levy will be and to which areas the affordable housing levy should apply. Councils must have a contributions plan and the housing levy areas must appear in the Local Environment Plan.

·         Councils that choose to use the levy can stipulate a requirement of between 1%-25%.

·         The Bill will define affordable housing as community or public infrastructure within the planning law.

·         Affordable housing will be targeted towards those on low to median incomes (the lowest 40% of income) and tenants would pay no more than 30% of income in rent.

·         Tenants would be a mix of young people, the elderly, workers, and those on pensions or other Centrelink payments. The ideal mix is a third low income, a third low to medium income and a third moderate income to ensure positive returns that would underwrite maintenance costs.

·         Some of the housing could be earmarked for ‘key workers’ such as nurses, bus drivers, etc. as in London. 

·         The housing contribution can be monetary or in the form of housing units.

·         The contribution has to be used for affordable housing within a reasonable time.

·         The housing will be owned by a council, a not-for-profit housing organization or by Housing NSW.

·        The levy can only be applied to new multi-unit residential developments for 10 units or more.