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Southern Sydney Regional Organisation of Councils (SSROC) Inc. 139-145 Beamish Street CAMPSIE NSW 2194 PO Box 176, CAMPSIE NSW 2194 T 02 8396 3800 F 02 8396 3816 E [email protected] 19 December 2018 Director, Housing Policy Department of Planning and Environment GPO Box 39 SYDNEY NSW 2001 Dear Director Re: Proposed Amendment to Environmental Planning Policy No 70 (State-wide application) Thank you for the opportunity to comment on the proposed state-wide expansion of the State Environmental Planning Policy No 70 - Affordable Housing (Revised Schemes) to all of NSW and the related amendments. This submission is also providing comments on the draft Guideline for Developing an Affordable Housing Contribution Scheme. The Southern Sydney Regional Organisation of Councils (SSROC) is an association of 11 councils spanning Sydney’s southern suburbs, eastern suburbs, CBD, and inner west and covering a third of the Greater Sydney’s population, or 1.7 million people. SSROC provides a forum through which our member councils can interact, exchange ideas and work collaboratively to solve regional issues and contribute to the future sustainability of the region. We advocate on behalf of our region to ensure that the major issues are addressed by all levels of government. Our current focus includes the environment, transport, procurement, waste, and planning. SSROC member councils are: Bayside Council, Burwood Council, Canterbury-Bankstown Council, City of Canada Bay, City of Sydney, Georges River Council, Inner West Council, Randwick City Council, Sutherland Shire, Waverley Council and Woollahra Council. SSROC recognises that affordable rental housing is an important contributor to the NSW housing market and offers many benefits to the households assisted and their communities. It can help workers, including key workers, find a home closer to where they work. Currently four of our member Councils, the City of Sydney, Canada Bay, Inner West and City of Randwick are included in SEPP 70. Many of these Councils are still developing their affordable housing contribution schemes and support the goal of putting in place a clear, consistent and well- articulated process.
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  • Southern Sydney Regional Organisation of Councils (SSROC) Inc.

    139-145 Beamish Street CAMPSIE NSW 2194

    PO Box 176, CAMPSIE NSW 2194

    T 02 8396 3800F 02 8396 3816E [email protected]

    19 December 2018 Director, Housing Policy Department of Planning and Environment GPO Box 39 SYDNEY NSW 2001 Dear Director Re: Proposed Amendment to Environmental Planning Policy No 70 (State-wide

    application) Thank you for the opportunity to comment on the proposed state-wide expansion of the State Environmental Planning Policy No 70 - Affordable Housing (Revised Schemes) to all of NSW and the related amendments. This submission is also providing comments on the draft Guideline for Developing an Affordable Housing Contribution Scheme. The Southern Sydney Regional Organisation of Councils (SSROC) is an association of 11 councils spanning Sydney’s southern suburbs, eastern suburbs, CBD, and inner west and covering a third of the Greater Sydney’s population, or 1.7 million people. SSROC provides a forum through which our member councils can interact, exchange ideas and work collaboratively to solve regional issues and contribute to the future sustainability of the region. We advocate on behalf of our region to ensure that the major issues are addressed by all levels of government. Our current focus includes the environment, transport, procurement, waste, and planning. SSROC member councils are: Bayside Council, Burwood Council, Canterbury-Bankstown Council, City of Canada Bay, City of Sydney, Georges River Council, Inner West Council, Randwick City Council, Sutherland Shire, Waverley Council and Woollahra Council. SSROC recognises that affordable rental housing is an important contributor to the NSW housing market and offers many benefits to the households assisted and their communities. It can help workers, including key workers, find a home closer to where they work. Currently four of our member Councils, the City of Sydney, Canada Bay, Inner West and City of Randwick are included in SEPP 70. Many of these Councils are still developing their affordable housing contribution schemes and support the goal of putting in place a clear, consistent and well-articulated process.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

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    SSROC welcomes the proposal to give all NSW councils the option to develop an affordable housing contribution scheme, without seeking the Minister’s approval to be included in SEPP 70. The proposed amendment to SEPP 70 will remove an administrative step in the process of levying development contributions. This should make it easier for Councils to meet the Greater Sydney Commission’s Affordable Rental Housing Targets set in the Greater Sydney Region Plan - A Metropolis of Three Cities and the District Plans. Similarly the provision of the Draft Guidelines for developing an Affordable Housing Contribution Scheme will help facilitate Councils to more effectively prepare affordable housing contributions schemes that fulfil the requirements of the Environmental Planning and Assessment Act. 1 Background The Department has exhibited an Explanation of Intended Effect (EIE) to amend SEPP 70 to include all local government areas of in SEPP 70 on 30 November 2018. The EIE is on exhibition until 19 December 2018. The changes aim to ensure a consistent approach to developing affordable housing contributions schemes and provide certainty to councils and the development industry. It is proposed to:

    • Expand SEPP 70 to all local government areas • Amend the definition of affordable housing, so that the definition of household

    income for the rest of NSW will also apply to LGAs outside of Sydney: and • Amend one of the affordable housing principles in SEPP 70 to clarify that affordable

    housing is to be made available to very low, low and moderate-income households or any combination of these households.

    The Department of Planning and Environment is seeking feedback on proposed changes to State Environmental Planning Policy No. 70 – Affordable Housing (Revised Schemes) (SEPP 70). The Department has also exhibited a draft Guideline for Developing an Affordable Housing Contribution Scheme. The draft Guideline is intended to assist councils by clearly identifying the requirements for developing an affordable housing contribution scheme. SEPP 70 currently allows councils named in the SEPP to prepare an affordable housing contribution scheme (AHCS) for precincts, areas or developments within their local government area. The NSW Government is responding to requests from local government to reduce red tape by proposing to include all councils across the State in SEPP 70. This will make it easier and potentially quicker for councils to prepare AHCS and increase affordable housing across NSW. The proposed amendment to expand SEPP 70 state-wide reflects the commitment the NSW Government has made increasing housing affordability, including affordable rental housing supply. In the Greater Sydney region, the proposed expansion of SEPP 70 will assist councils in meeting affordable housing targets set by the Greater Sydney Commission in the Greater Sydney Region Plan- A Metropolis of Three Cities (action five) and the District Plans.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

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    2 SSROC response 2.1 Expand SEPP 70 to all local government areas Affordable housing is a major issue in both the Eastern City and South Districts. SSROC has a long standing commitment to establishing affordable housing targets and using planning mechanisms and policies to address affordable housing in the region. At the Cities for Us Summit, hosted by SSROC on 25 July 2018, the delegates identified affordable housing as crucial community infrastructure. The Summit Communique (Attachment 1) made ‘strategically extending SEPP 70 to all Sydney councils’ as one of its key recommendations. ‘A comprehensive, transparent and streamlined approach will ensure value sharing includes renters, mitigates risks to the most vulnerable residents and provides consistency and certainty to investors, development proponents and assessment bodies.’ An online survey of local governments across Australia on the respondents’ attitudes, programs, policies and actions with respect to housing, included 17 Councils in the Sydney Metropolitan Area. The Australian Research Council report (October 2018) on the Sydney Metropolitan Area council survey results found that Councils’ limited statutory ability to affect change was seen to be the biggest impediment to addressing housing affordability1. These proposed amendments now go to the crux of this issue. The amendment to Clause 9, SEPP 70, helpfully removes the first administrative step in the process of developing an affordable housing contribution scheme for all NSW councils. Accordingly SSROC welcomes and supports the proposal to give all NSW councils the option to develop an affordable housing contribution scheme, without seeking the Minister’s approval to be included in SEPP70. The requirement for individual local government areas to be separately listed will thereby be removed. This requirement has acted as a constraint on many councils in pursuing inclusion in SEPP 70. SSROC welcomes the greater certainty this action affords while still giving councils the flexibility around the timing of developing an affordable housing contribution scheme. If adopted, all councils outside SEPP 70 will have the option to develop an affordable housing contribution scheme in their own timing, without seeking the Minister’s approval to be included in the SEPP 70. The proposed amendment will also permit councils to immediately commence investigating how an affordable housing contribution scheme can work in specific areas of their local government area. Other Councils may prefer to first develop their Local Housing Strategy to gain a strategic perspective of their local housing needs and housing market gaps. By removing an administrative step, it further demonstrates the NSW Government’s support for the delivery of affordable housing.

    1 ARC Linkage Project: LP150100160 Local Government and Housing in the 21st Century: A report on the Local Government and Housing Linkage Project national survey: Sydney Metropolitan results Andrew Beer, Catherine Davis, Alan Morris, John Martin, Trevor Budge, Chris Paris and Sandy Horne 8 October 2018 ISBN: 978-0-9953829-5-4 https://localgovernmentandhousingproject.files.wordpress.com/2018/10/local-government-and-housing-linkage-project-national-survey_sydney-m

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

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    2.2 Amend the definition of affordable housing, so that the definition of household income for the rest of NSW will also apply to LGAs outside of Sydney It is proposed to amend Clause 8, SEPP 70 so that for areas outside Greater Sydney (Greater Capital City Statistical Area), the median household income for the ‘Rest of NSW’ (according to the Australian Bureau of Statistics) will apply. This amendment will support and complement the proposed amendment to Clause 9 to help enable the provisions of SEPP 70 to apply effectively to all local government areas in NSW. This will help to ensure that the policy is appropriately applied across the State. SSROC supports the proposal to amend the definition of household income for the rest of NSW to apply to LGAs outside of Sydney. This will help to ensure housing price and income differences between the Sydney Metropolitan Region and the rest of New South Wales are taken into account when determining housing affordability, household eligibility for assistance and the development of contribution schemes. The plan to encourage affordable housing supply across the State will better share housing responsibilities across all councils and help to assist all NSW citizens equitably. 2.3 Clarify that affordable housing is to be made available to very low, low and moderate-income households or any combination of these households Currently, Principle 3 of Schedule 2 of SEPP 70 sets out that ‘Affordable housing is to be made available to a mix of very low, low and moderate-income households.’ However the Greater Sydney District Plans identify only the most vulnerable households (the low to very low-income households) as being eligible for housing secured by Affordable Rental Housing Targets. It is proposed to amend Principle 3 to clarify that affordable housing can be made available to very low, low and moderate income households or any combination of these households. SSROC supports this amendment and the added flexibility and clarity it affords councils when responding to the needs of their communities. SSROC has consistently advocated for the inclusion of moderate income households within the mix of those who could be assisted. This will help workers who keep our city functioning to live nearer to where they work. There is strong evidence of households experiencing housing stress impacting households in many SSROC council areas. Particularly in high cost rental areas, housing stress is being experienced across the very low, low and moderate income range. Ensuring a diverse labour force of nurses, police, teachers, cleaners and hospitality workers etc. near to their place of employment is crucial to maintaining the life and productivity of our local communities in the Eastern City and South Districts. At June 2017, there were over 38,719 pensioners and beneficiaries (DSS recipients) who were experiencing housing stress paying more than 30% of their income as rent in the private market and residing in the SSROC region. Of these over 17,836 were in severe rental stress paying more than 50% of their income as rent (Please refer to Attachment 3). The process of developing an affordable housing contribution plan, including the identification of existing social and affordable housing supply, the affordable housing need in LGA, and projections for population growth will enable individual councils to flexibly tailor their responses to address their specific community needs, plans and context.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

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    2.4 Draft Guideline for Developing an Affordable Housing Contribution Scheme Overview The Department of Planning and Environment is also exhibiting a draft Guideline for Developing an Affordable Housing Contribution Scheme. An affordable housing contribution scheme must be prepared in accordance with the Department’s guideline for Developing an affordable housing contribution scheme2. The draft Guideline aims to assist councils by clearly identifying the requirements for developing an affordable housing contribution scheme. It seeks to provide a consistent and transparent approach to developing an affordable housing contribution plan. The Guideline addresses three topics:

    • The process for preparing an affordable housing contribution scheme; • The process for establishing and then implementing an affordable housing

    contribution scheme; • Components of an affordable housing contribution scheme.

    This advice aims to provide an enabling framework that helps Councils to optimise the delivery of affordable housing and the means to expeditiously embed inclusionary zoning scheme within their local planning framework. SSROC welcomes the provision of the draft Guideline and the opportunity to provide detailed comments on the content of this document and key issues affecting implementation (Please refer to Attachment 2). This discussion highlights the growing need for affordable rental housing within Greater Sydney region, and the implications for expediting the implementation process. Many councils have expressed disappointment about the missed opportunity to provide affordable housing in areas where there has been rezoning and significant residential development. This part of the submission also canvasses the necessity for aligning the timing of processes to rezone land and the development of the contribution scheme to maximise affordable housing outcomes. The draft Guideline helpfully provides clarity about what councils need to include in their contribution schemes and provides practical a mechanism for councils to comply with the Greater Sydney Commission’s Affordable Rental Housing Targets. The Affordable Housing Forum (24 July 2017) Communique, an initiative of SSROC, the Planning Institute of Australia and the NSW Federation of Housing Associations, recommended the establishment of a Model Code for a single statutory framework for the application of inclusionary zoning measures. The Guideline, while not a Model Code addresses some of the intent of this recommendation by providing a detailed outline of how to effectively prepare and implement an affordable housing contribution scheme and a template to assist with this purpose. SSROC welcomes that the processes are aimed to help ensure the draft scheme progresses smoothly and viability issues for developments are addressed early on. The EIE notes (page 6) that the aims of SEPP 70 are to identify the need for affordable housing in a local government area, describe the kinds of households that affordable housing who can be assisted and provide the mechanism for the imposition of affordable housing provisions.

    2EIE, Proposed amendment to State Environmental Planning Policy No 70 -Affordable housing (revised Schemes) - State-wide application, page 5

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

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    As councils must comply with the Guideline, it would be helpful if the draft Guideline provided some greater clarity and definition to the areas and elements that are mandated and distinguish those where there is flexibility for councils to respond to local conditions and meet community expectations. SSROC commissioned a report (June 2018) by the City Futures Research Centre, UNSW Sydney that found that the State Environmental Planning Policy (Affordable Rental Housing) 2009 (ARHSEPP) in Central and Southern Sydney was delivering little genuinely affordable rental housing, particularly for very-low and low-income households since it was introduced despite having the supply of affordable housing as a key rationale. To maintain public confidence in the SEPP 70 arrangements, it is important that some key affordable housing outcomes for tenants are mandated to ensure that genuine affordable rental housing continues to be delivered and that the community can expect that the strategic intent of the SEPP will not be compromised. The mandatory affordable housing elements could potentially include: that eligible households will pay an affordable rent; the affordable housing is made available in perpetuity so that growing local housing needs continue to be addressed: and secure, well managed housing is the norm3. Key mandatory requirements will provide certainty, transparency and consistency for councils, consumers, local communities and the development industry. 3 Conclusion SSROC supports the central proposal to give all NSW councils the option to develop an affordable housing contribution scheme, without seeking the Minister’s approval to be included in SEPP 70. It recognises that Sydney continues to face a major challenge as a rapidly growing global city to house all its population affordably. These proposed amendments will help Councils currently outside of SEPP 70 to more readily develop their own local affordable housing contribution schemes to increase affordable rental housing supply. We thank you for the opportunity to comment on the proposed state-wide expansion of the State Environmental Planning Policy No 70 - Affordable Housing (Revised Schemes) to all of NSW the related amendments and the draft Guidelines and trust you find these contributions useful and constructive.

    3 Disrupted; the consumer experience of renting in Australia December 2018, is a report commissioned by CHOICE, National Shelter, and the National Association of Tenant Organisations (NATO), that examines the renting experiences of private renters. https://shelternsw.org.au/sites/shelternsw.org.au/files/public/documents/Disrupted_Report_Renting_in_Australia_joint_TUNSW_ShelterNSW_media_statement.pdf

    “Disrupted” reveals that there are three common issues facing renters:

    • living in a poor quality home and afraid to request repairs; • insecure tenancies; and • struggling with rental affordability and other cost of living pressures.

    For renters in NSW, the report showed that renting can be especially insecure, more renters are living in properties that need repair and they struggle with rental affordability and cost of living pressures.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

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    In order to make this submission within the timeframe for receiving comments, it has not been possible for it to be reviewed by councils or to be endorsed by the SSROC. I will contact you further if any issues arise as it is reviewed. If you have any queries please do not hesitate to contact me or Mark Nutting, SSROC’s Strategic Planning Manager, on 02 8396 3803.

    Kind regards

    Namoi Dougall General Manager Southern Sydney Regional Organisations of Councils

  • SUPPORTED BY: IN COLLABORATION WITH:

    CITIES FOR US COMMUNIQUÉ DENSITY, LOCAL INFRASTRUCTURE AND LIVEABILITY

    25 JULY 2018 DOLTONE HOUSE, HYDE PARK

    Attachment 1

  • The Cities for Us Summit was organised by the Southern Sydney Regional Organisation of Councils (SSROC) and Shelter NSW, supported by the Committee for Sydney and Planning Institute Australia. It was delivered in collaboration with UNSW City Futures with sponsorship from Mirvac, SGCH and City West Housing.

    Presenters and participants were from the State and Local Governments sectors, community housing providers, non-government organisations, the development industry, research, and planning professionals. This communique highlights the key points emerging from the Summit.

    BACKGROUNDSSROC’s interest in the Summit originated from it growing increasingly concerned that rapid development was not delivering any benefit to local communities. The missing element was essentially“liveability”, this intangible quality was articulated as a series of benchmarks, mapped spatially and analysed in Liveability Indicator Mapping1. The work highlighted that some suburbs lack key characteristics of liveability, and some are at risk of losing them.

    Shelter NSW’s interest in the summit stemmed from concern that, even in an environment of fast-tracked housing supply intended to relieve affordability pressures, increasing the density of housing can have adverse impacts on already disadvantaged households. Researchers considering Equitable Density2 found that when density is not done well, vulnerable and low income households are disproportionately affected by a range of factors that other households may be better equipped to adapt to. These include a changing neighbourhood composition, loss of accessible and affordable services, and displacement.

    1 Liveability Indicator Mapping, Final Report, SGS Economics and Planning, February 2017. Available: www.ssroc.nsw.gov.au/publications

    2 Shelter Brief 61: Equitable Density – the place for lower income and disadvantaged households in a dense city at the Building, Neighbourhood and Metrololitan Scales, July 2017. Available: https://shelternsw.org.au/publications/urban-policy-%26-planning

    THEME 1 – Implementation: integration, collaboration, governanceRAPID CHANGE

    • Major emphasis on the need for collaboration, and commitment to collaboration in the future – State agencies, Greater Sydney Commission, Commonwealth and Local Governments, as well as local communities and those typically not heard.

    • Dramatic and fast changes are occurring to strategic planning approaches in urban areas, with increasing neighbourhood density driving the need to accommodate this change – we need to reverse this so that the desired change drives the development.

    • The shared vision of a place must be central to planning – jobs close to home, strengthening local communities, participation that engenders enthusiasm for change – our statutory controls need to implement the vision.

    • Local agencies & authorities should take on more leading roles in strategic planning as well as in the delivery of change – local agencies and local communities want to realise their own shared vision, within an agreed city-wide framework.

    A FRAGILE OPPORTUNITY

    • We have a great opportunity to develop our community: with housing affordability concerns driving new supply at increasing levels of density we have the chance to catch up; to create liveable, place-based cities with good amenity. Local community infrastructure – parks, libraries, playgrounds – are essential to good places, particularly in higher density neighbourhoods.

    • But our community is under stress: extensive rejection of development is an expression of pain, a clear sign that the process is not working for everyone. Existing infrastructure faces increased pressure.

    • Social outcomes are as important as economic ones, and we now have a starting point for achieving them with the Greater Sydney Commission and larger Local Government Areas. As well as investment, we need active participation in genuine processes, consensus and long-term partnerships built on trust; and champions for this approach to change, to help maintain its focus and impetus.

  • THEME 2 – Who pays, who benefits?FUNDING FOR COMMUNITY INFRASTRUCTURE IS ESSENTIAL

    • We need a way to fund local community infrastructure, so that we can balance economic and social outcomes with commercial outcomes, without negatively affecting housing supply.

    • Local Government’s fiscal power is severely limited, with capped rates, a restricted and opaque local contributions regime, and ad hoc Voluntary Planning Agreements. There is no clear path for using these to implement the District Plans, and they send no clear price signal to investors. The current approach is complicated and lacks consistency, falling far short of what is needed.

    • To successfully fund necessary community infrastructure, we need good place-based strategic planning to develop a justification that is costed, and the financial feasibility demonstrated. Local communities need to benefit from growth through improved amenity.

    • Councils are critical to local development. We need robust local structures and authorities. Councils could lead Local Renewal Agencies, and work with a Sydney Metropolitan Authority.

    CONFIDENCE AND FAIRNESS IN FUNDING MECHANISMS

    • Inclusionary zoning for affordable housing is mandatory in some places – why not for all development? Why limit SEPP 70 to just a few Councils? Alternatives are beneficiary pays, impact mitigation, value sharing and licensing fees.

    • Current arrangements are not transparent, consistent or comprehensive: this needs to change. Whichever mechanism is used, it must be transparent, consistent and applied to all development, not limited to particular precincts. Industry and the community need certainty.

    • Like affordable housing, funding for local infrastructure to make great and liveable places will fall through the gaps without such funding mechanisms being made available to council for a broader range of purposes.

    THEME 3 – who wins, who loses?A NEW NARRATIVE TO REPLACE THE OLD WAYS

    • The new challenge of growing our city quickly and fairly requires a new narrative, listening to all different voices, as everyone has different needs and expectations of amenity. This means a two-way narrative, not the “tick-the-consultation-box” approach that so many communities have experienced.

    • Build trust. Seek a social licence. Build confidence that the result has not been decided, that voices will be heard, and the planning process will respond. Make decisions locally wherever possible, with the community’s active participation.

    • Recognise and manage displacement and its flow-on effects that can destroy an existing community. Our current approach is transferring the risks of urban development to the most vulnerable, and this must stop. Offer existing residents the opportunity to rent or buy into lower cost housing in new development, and ensure affordable rental housing is always produced as part of an urban renewal project.

    ENGAGEMENT REQUIRES TRUST AND RESPECT ON ALL SIDES

    • Poor engagement is currently rife. Communities want to, and should, set agendas for change. Urban redevelopment without a community’s support risks destroying that community and all the social benefits that go with it.

    • Confidence is destroyed when promises are not delivered: we are not always seeing the design excellence that should be delivered. Community confidence needs to be restored before there will be trust and respect.

    • There will be winners and losers. All views are valid and tell us a great deal about expectations and pain. All concerns must be respected.

    • Plans that will create a good city must combine liveability and productivity while actively working to reduce vulnerability and strengthen resilience.

  • THE FUTURE All levels of government work together with real participation and influence from local communities to achieve development that delivers a shared vision, and that benefits existing and well as new residents. The whole process is governed by an enabling set of statutory controls.

    Local community infrastructure is funded through a new, universal and transparent mechanism that shares the increase in value created through changes in zoning and density controls. Developer risk continues to be rewarded, but it also delivers for all. Councils lead Local Renewal Agencies, and Sydney Metropolitan Authority enables them to deliver.

    Affordable rental housing is treated as a component of community infrastructure as part of good place – based planning and managing the inevitable displacement of vulnerable households that arise from rapid redevelopment processes. Along with other essential community infrastructure – parks, libraries and playgrounds – it will help restore trust and keep our communities as inclusive, welcoming places to live.

    Plans are collaboratively developed between trusted partners in government, community and industry. They are delivered to a high standard of design excellence, with housing to meet multiple different needs, a strong local economy, community identity and healthy environment.

    THE PATH• Move to establish a Growth Infrastructure Compact by District and key Precincts

    between the Greater Sydney Commission, Infrastructure NSW, Department of Planning and Environment and Sydney councils. This long-term partnership would assure councils access to a dedicated funding mechanism geared to their housing supply targets to make sure local community infrastructure keeps pace with growth. With understanding across all parties of the elements needed to make communities liveable, funding mechanisms could tailored to ensure the necessary investment is in fact delivered.

    • Seek transparent, holistic reform to local and state development contributions and VPA regimes – to both ensure that contributions for a place are predictable and that they reflect the different purposes that they serve (i.e. value capture, inclusionary requirements, meeting demands for infrastructure and impact mitigation).

    • Strategically extend SEPP 70 to all Sydney councils to consistently and more fairly meet Sydney’s pressing problem of housing unaffordability. A comprehensive, transparent and streamlined approach will ensure that value sharing includes renters, mitigates risks to the most vulnerable residents and provides consistency and certainty to investors, development proponents and assessment bodies.

    • Pilot Local Renewal Agencies in neighbourhoods undergoing intensive redevelopment, not currently being led by a State agency. These council led pilots would endeavour to deliver place sensitive models characterised by grassroots collaboration and strong community engagement.

    CITIES FOR US INCLUSIVENESS. AFFORDABILITY. ENGAGEMENT. SUBSIDIARITY. VALUE-SHARING.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

    Attachment 2

    More detailed comments and feedback on the draft Guideline for Developing an Affordable Housing Contribution Scheme

    1 The process for preparing an affordable housing contribution scheme

    The Guideline outlines how councils can prepare affordable housing contribution schemes by: • identifying area(s) for future rezoning• analysing affordable housing conditions in the area(s)• developing an affordable housing contribution rate using the correct methodology• producing a scheme using the template.

    As the Government is committed to ensuring that affordable housing contribution rates set by council do not impact on development viability, the method of testing viability will be of critical importance. The Department of Planning and Environment Frequently asked question fact sheet released with the EIE notes (page 2) that the Department is developing a tool to assist councils to an affordable contribution scheme rate. It will be important that this tool is also consulted upon as its impacts could be far reaching.

    2 The process for establishing and then implementing an affordable housing contribution scheme

    The Guideline also articulates the process that councils need to navigate, and the criteria to be met, to progress a contribution scheme through to the amendment of an LEP.

    The proposed process includes ten sequential steps. A council’s responsibilities in this process are summarised below:

    • Initial advice of a council’s intention to prepare an affordable housing contributionscheme is sent to DPE

    • Initial meeting with the Department to discuss the preparation of an affordablehousing scheme

    • Council prepares an affordable housing contribution scheme• Council tests the proposed scheme through public consultation (optional)• Council submits the planning proposal (the contribution scheme) for Gateway

    Determination, including public exhibition and potentially additional studies andinformation, changes to the proposed scheme and or changes to ensure theamendment is consistent with strategic planning documents.

    • Finalisation of the LEP amendment.

    SSROC strongly supports efforts to ensure the process progresses smoothly and viability issues are addressed early.

    SSROC acknowledges the need for a robust process for developing contribution schemes, however the Guideline articulates 10 steps many of which could take some indeterminant periods of time.

    Councils would benefit from some further consideration of ways to accelerate an otherwise very lengthy scheme development and assessment process, provide indicative target timeframes that reduce the intensity of effort where possible without compromising the rigor and capacity to achieve a favourable Gateway determination. A long process increases the risk of undermining the potential value capture implicit in a contribution scheme framed around rezoning of significant areas or precincts.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

    The Department of Planning and Environment is assigned a key role in the progressing process and ensuring alignments with strategies and policies as well as the provision of a viability tool. It would be helpful if the Department established benchmarks for undertaking its normal assessment activities and indicative timeframes, assuming all the requisite steps are followed to guide expectations.

    Councils are required to demonstrate that the proposed affordable housing contribution rate is viable. Central to the development of a contributions plan is the need for a contribution rate to be set at a level which will not impact on development viability.

    SSROC appreciates that the process is a complex one and recommends that there are more detailed technical workshops provided to clarify and streamline the process when the Department’s viability tool is released.

    Key issues requiring further consideration arising from implementing a contribution scheme

    The urgent need for increasing the supply of affordable rental housing, especially in Greater Sydney region.

    There is a strong body of research into the scale of the unmet demand for affordable rental housing in NSW. An AHURI report (May 2018) into affordable housing supply found in New South Wales the ARHSEPP, a planning incentive scheme introduced in 2009 has yielded around 2,000 affordable rental dwellings in Sydney, equivalent to less than 1 per cent of the city’s total supply over the period4.

    In the Greater Sydney Commission’s Information Note 4 regarding the (then) Affordable Housing Targets (revised October 2017) prepared in conjunction with the draft District Plans, identified that there is a need for an additional 4,000 to 8,000 affordable rental homes each year to meet the needs of low and very low-income households in Greater Sydney5.

    In view of the size of the challenge, SSROC recommends that consideration be given to the Department of Planning and Environment further promoting the local social and economic benefits of SEPP 70 to all Sydney councils and investigating ways of further supporting and streamlining the rigorous assessment process for contribution schemes to best optimise the amount of affordable housing supply they deliver.

    Consideration should also be given to the Department ensuring adequate resourcing for the Gateway process so that the assessment of councils’ proposed housing contribution schemes are dealt with expeditiously to promote timely determinations. This should help to ensure robust contribution plans are established quickly and that potential affordable housing provision is maximised.

    The draft Guideline itself draws attention to this specific problem. ‘Councils must ensure all information in planning proposals is as up to date as possible. It is recognised that housing and construction markets change rapidly, and councils may be asked to provide revised inputs when there have been significant changes or time periods between preparation, submission and assessment stages of a proposed scheme’6.

    4 Gurran, N., Rowley, S., Milligan, V., Randolph, B., Phibbs, P., Gilbert, C., James, A., Troy, L. and van den Nouwelant, R. (2018) Inquiry into increasing affordable housing supply: Evidence-based principles and strategies for Australianpolicy and practice, AHURI Final Report 300, Australian Housing and Urban Research Institute Limited, Melbourne,http://www.ahuri.edu.au/research/final-reports/300 , page 3

    5 https://gsc-public-1.s3.amazonaws.com 6 DPE Draft Guideline for Developing an Affordable Housing Contribution Scheme, November 2018, page 12

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

    A lengthy process is both costly and wasteful to the Department and council and serves the public poorly. It may also deter some councils.

    The alignment of processes and decisions for rezoning land and the development of the contribution scheme

    A council under the Guideline cannot apply a contribution scheme to areas that have been rezoned. ‘It is not proposed to apply an affordable housing scheme retrospectively to land that has already been rezoned.’7

    For a council to levy contributions an affordable housing contributions scheme must be referenced in a council’s Local Environmental Plan.

    It is therefore critical to have an aligned, expeditious process so that area re-zonings are not delayed while Gateway determinations are made regarding a related affordable housing contribution scheme.

    SSROC recommends that further work is undertaken to revise the draft Guideline to demonstrate how the affordable contribution scheme assessment and implementation processes (described in the EIE and the Guideline) and rezoning Gateway processes can intermesh and be align so that when the LEP is amended it gives force to a contribution plan for rezoned land or land on exhibition for rezoning.

    Infrastructure Australia notes in its report Capturing Value (2016) that the timing of a value capture mechanism is a key determinant of its effectiveness. Land and property values change on the basis of expectations, so if value capture is implemented after an announcement, government may miss the opportunity to capture some value uplift. It recommends that mechanisms should be in place before infrastructure projects (and rezoning) announcements in order to capture the uplift effectively8.

    Accordingly the proposed rezoning and the proposed affordable housing contribution plan could be publicly exhibited simultaneously once they had received independent determinations to proceed.

    Some consideration could be given to encouraging Councils to use their Local Strategic Planning Statement (LSPS) to signal their intention to make affordable housing provision a local housing priority. Furthermore, the LSPS could indicate a Council’s intention to introduce affordable housing contribution schemes on all future significant re-zonings of land in the LGA, wherever this was deemed appropriate. This will help to ensure a consistent, transparent and strategic approach could be taken by councils (across NSW) whilst giving effect to the Greater Sydney Commission directions around affordable rental housing targets.

    If this approach is supported it is recommended that some standard model clauses are developed for this purpose for insertion in their LSPS.

    This use of LSPS would have the clear benefit of publicly announcing to all property purchasers and developers (including any land speculators) the need to allow in the purchase price of land a provision for a future affordable housing contribution that will be developed by council, if a rezoning occurs. All stakeholders would know as early as possible so that no unanticipated costs are imposed on developers or home purchasers.

    7DPE EIE, page 8 8Infrastructure Australia, Capturing Value, Advice on making value capture work in Australia, December 2016, pages 26-27 https://infrastructureaustralia.gov.au/policy-publications/publications/files/Capturing_Value-Advice_on_making_value_capture_work_in_Australia-acc.pdf

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

    In some instances involving state-led planned precincts, and where Council is not the submitting the planning proposal, it could help facilitate the introduction of a local affordable housing contributions scheme. In such circumstances councils would work with the Department to determine the appropriate affordable housing contribution rate9.

    3 Components of an affordable housing contribution scheme

    This section outlines the core elements of an affordable housing contribution scheme:

    • Affordable housing needs analysis• Descriptors of the area and type of development covered• How the affordable housing contribution rate was set and tested• Implementation of the delivery program monitoring and review

    Some further consideration could be given to including within the Guideline and/or the Template some model clauses and data sets that councils could use or modify to their own context to address the requirements. It is noted that considerable work is required by individual councils to prepare an affordable housing contribution scheme, as part of a Local Housing Strategy, and accordingly amend their LEP. Model clauses from existing schemes could help councils to confidently move quickly through the contribution scheme development process.

    Section 3.4 of the draft Guideline specifies that councils should nominate a community housing provider to manage the affordable rental housing for each scheme. It would be helpful if the Guideline specified that these housing providers were to be registered community housing providers (as indicated in the template, section 3.4). The Registrar of Community Housing is responsible for registering, monitoring and regulating community housing providers in NSW. Registration will give councils and other stakeholders comfort about a housing provider’s governance, operational capacity and accountabilities.

    Some further consideration in the draft Guideline (or good practice notes) could canvass the benefits to councils and their communities of employing a pool of registered housing providers that are used on a project by project basis under a scheme. Potentially this could help drive good performance in the supply and management of affordable housing and so reduce the risks associated with monopoly provision through an independent organisation.

    In view of the large and growing gap in the supply of affordable housing, and the requirements to comply with the GSC Affordable Rental Housing Targets, the draft Guideline could consider proactively promoting contribution scheme arrangements and options that maximise the amount of good quality affordable housing that can be derived from affordable housing contributions, while mitigating risks to council.

    Potentially this could include one or more of the following: • Enabling layering of different forms of finance and subsidy as well as the

    contributions to fund affordable housing projects• Using the assignment the property title to the affordable housing to registered

    community housing providers, as an incentive to attract additional equity and orfinance to create more affordable housing

    • Using a prequalified list10 or a selected pool of registered community housingproviders to tender for new affordable housing projects based on the merit of their

    9 DPE Draft Guideline, page 11 10 The Community Housing Providers Prequalification Scheme is an online tool managed by Landcom that gathers information about registered Community Housing Providers so that Councils and any private or government organisation wanting to procure affordable housing development and/or management services can easily locate

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

    proposals, capacity to undertake affordable housing developments, housing management performance, and customer satisfaction

    • Using financial contributions to make use of CHPs’ GST tax advantaged status toget better value for money from constructing the affordable housing.

    suitable Community Housing Providers. Registered Tier 1 providers operate at a large scale and have ongoing development activities at scale.

    https://www.landcom.com.au/assets/Our-approach/1803-Affordable-housing-prequal-scheme-fact-sheet.pdf

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

    Attachment 3

    SSROC DSS Data on Rental Stress in the Private Market

    The following information was provided by the Department of Social Security to the SSROC Secretariat in response to a detailed data request concerning DSS recipients receiving Commonwealth Rent Assistance in the SSROC region.

    Topic: Rent Assistance (RA)

    Area: Southern Sydney Regional Organisation of Councils (SSROC) LGA 2017 code: 10500 (Bayside Council), 11300 (Burwood Council), 11520 (Canada Bay, City of), 11570 (Canterbury-Bankstown Council), 12930 (Georges River Council), 14170 (Inner West Council), 16550 (Randwick, City of), 17100 (Strathfield, Municipality of), 17150 (Sutherland Shire), 17200 (Sydney, City of), 18050 (Waverley Council), 18500 (Woollahra, Municipality of)

    Question: For the financial year 2016-17, provide a breakdown of the number and percentage of Rent Assistance (RA) recipients by:

    a. Payment type and paying over 30% of income in rent;b. Payment type and paying over 50% of income in rent;c. Gender and paying over 30% of income in rent;d. Gender and paying over 50% of income in rent;e. Indigenous/non-Indigenous status and paying over 30% of income in rent;f. Indigenous/non-Indigenous status and paying over 50% of income in rent;g. Marital status and paying over 30% of income in rent;h. Marital status and paying over 50% of income in rent;i. Age and paying over 30% of income in rent;j. Age and paying over 50% of income in rent;

    k. Average rent paid by Newstart Allowance recipients;l. Average RA received by Newstart Allowance recipients;m. Average RA received by Age Pension recipients;n. Average RA received by Parenting Payment Single recipients;o. Average RA received by YA (other),p. Average RA received by YA (apprentice) recipients;q. Average RA received by YA (student) recipients.

    Answer: The following tables are based on the Housing Dataset (HDS) that the Department of Social Services uses to monitor the Rent Assistance (RA) program. HDS is a snapshot for a reference fortnight in June (the fortnight ending on the last Friday of June). It does not cover the entire financial year.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

    Parts a and b of the question

    Table 1 - Number and percentage of RA recipients by payment type in SSROC LGAs, paying over 30 per cent and 50 per cent of income in rent as at fortnight ending 30 June 2017

    Primary payment type Recipients1 paying over 30 per

    cent of income in rent (RA included)

    Recipients1 paying over 50 per cent of income in rent (RA included)

    Number Per cent

    Number Per cent

    Disability Support Pension 4,795 42.4 1,657 14.7 Age Pension 6,722 46.8 2,663 18.5 Carer Payment 1,814 50.0 654 18.0 Parenting Payment (single) 2,568 61.9 1,109 26.7 Newstart Allowance 9,639 76.0 5,540 43.7 Youth Allowance (student) 3,447 89.5 2,525 65.5 Youth Allowance (other) 210 81.7 127 49.4 Youth Allowance (apprentice)

    33 82.5 13 32.5

    Austudy 1,337 87.8 907 59.6 Parenting Payment 1,976 80.4 992 40.4 FTB (only) 5,621 46.7 1,358 11.3 Other2 557 65.0 291 34.0 Total3 38,719 57.7 17,836 26.6

    Footnotes: 1. The term recipient refers to an income unit comprising a single person (with or without dependent children)

    or a couple (with or without dependent children). One member of a couple is treated as the referenceperson based on the type of payment they receive. The general order of priority is: Pensions; Allowances;Family Tax Benefit (FTB) Part A. Parenting Payment (Partnered) will be reported for recipients where onemember receives Parenting Payment and their partner is not receiving any other income support payment.They will only be reported as receiving FTB Part A if neither receives a social security payment.

    2. ‘Other’ includes payments such as Bereavement Allowance, Sickness Allowance, Special Benefit, WidowAllowance, etc. Other also includes recipients with regular care for children between 14 per cent and lessthan 35 per cent of the time and renting in the private rental market or community housing.

    3. Totals may vary due to rounding.

    Parts c and d of the question

    Table 2 - Number and percentage of RA recipients by gender in SSROC LGAs, paying over 30 per cent and 50 per cent of income in rent as at fortnight ending 30 June 2017

    Gender Recipients1 paying over 30 per

    cent of income in rent (RA included)

    Recipients1 paying over 50 per cent of income in rent (RA included)

    Number

    Per cent

    Number

    Per cent

    Females 22,568 58.2 10,391 26.8 Males 16,151 56.9 7,445 26.2 Total2 38,719 57.7 17,836 26.6

    Footnotes: 1. The term recipient refers to an income unit comprising a single person (with or without dependent children)

    or a couple (with or without dependent children).2. Totals may vary due to rounding.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application)

    Parts e and f of the question

    Table 3 - Number and percentage of RA recipients by Indigenous status in SSROC LGAs, paying over 30 per cent and 50 per cent of income in rent as at fortnight ending 30 June 2017

    Indigenous indicator1

    Recipients2 paying over 30 per cent of income in rent (RA included)

    Recipients2 paying over 50 per cent of income in rent (RA included)

    Number Per cent Number Per cent

    Indigenous 590 38.7 242 15.9 Non-Indigenous 38,129 58.1 17,594 26.8 Total3 38,719 57.7 17,836 26.6

    Footnotes: 1. ItisoptionalforindividualstoidentifyasIndigenous.Thesedatamaythereforerepresentanundercount.2. Thetermrecipientreferstoanincomeunitcomprisingasingleperson(withorwithoutdependentchildren)or

    acouple(withorwithoutdependentchildren).ArecipientisclassifiedasIndigenousifatleastonepartnerintheunithasindicatedtoCentrelinkthathe/sheidentifiesasanAboriginalorTorresStraitIslander.

    3. Totalsmayvaryduetorounding.

    Parts g and h of the question

    Table 4 - Number and percentage of RA recipients by relationship status in SSROC LGAs, paying over 30 per cent and 50 per cent of income in rent as at fortnight ending 30 June 2017

    Relationship status1

    Recipients2 paying over 30 per cent of income in rent (RA included)

    Recipients2 paying over 50 per cent of income in rent (RA included)

    Number Per cent Number Per cent Couples 11,878 58.1 4,623 22.6 Singles 26,841 57.4 13,213 28.3 Total3 38,719 57.7 17,836 26.6

    Footnotes: 1. The data on RA recipients only contain relationship, not marital status.2. The term recipient refers to an income unit comprising a single person (with or without dependent children)

    or a couple (with or without dependent children).3. Totals may vary due to rounding.

  • SSROC Submission – Proposed Amendment to Environmental Planning Policy No 70 (State-wide application

    Parts i and j of the question

    Table 5 - Number and percentage of RA recipients by age in SSROC LGAs, paying over 30 per cent and 50 per cent of income in rent as at fortnight ending 30 June 2017

    Age range Recipients1 paying over 30 per cent of

    income in rent (RA included) Recipients1 paying over 50 per cent of

    income in rent (RA included)

    Number Per cent Number Per cent 0 to 17 years 38 67.9 22 39.3 18 to 24 years 4,195 80.9 2,807 54.1 25 to 34 years 7,531 62.2 3,504 28.9 35 to 44 years 8,358 57.4 3,363 23.1 45 to 54 years 6,524 58.2 2,982 26.6 55 to 64 years 4,742 56.9 2,302 27.6 65 to 74 years 4,725 53.0 1,913 21.5 75 to 84 years 2,038 40.7 768 15.3 85 years and over 568 32.2 175 9.9 Total2 38,719 57.7 17,836 26.6

    Footnotes: 1. Thetermrecipientreferstoanincomeunitcomprisingasingleperson(withorwithoutdependentchildren)ora

    couple(withorwithoutdependentchildren).2. Totalsmayvaryduetorounding.

    Parts k and l of the question

    As at 30 June 2017, 13,042 Newstart Allowance recipients who received RA were paying an average of $550.85 a fortnight in rent. The average amount of RA paid to these Newstart Allowance recipients was $114.71 per fortnight.

    Parts m, n, o, p and q of the question

    Table 6 - Average RA received by Age Pension, Parenting Payment Single, Youth Allowance (other), Youth Allowance (apprentice) and Youth Allowance (student) recipients in SSROC LGAs, as at fortnight ending 30 June 2017. Payment type Fortnightly average RA

    Age Pension $112.72 Parenting Payment (single) $133.45 Youth Allowance (other) $92.92 Youth Allowance (apprentice) $101.28 Youth Allowance (student) $102.12

    The relevant data on average rent paid and RA received by payment type are published in the DSS Payment Demographic Data section of data.gov.au. A web link is provided below: https://data.gov.au/dataset/dss-payment-demographic-data.


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