DRAFT PARRAMATTA AFFORDABLE HOUSING SCHEME
1.0INTRODUCTION
1.1About this scheme
1.2Aims of this scheme
1.3Relationship to other planning instruments......
1.4Definitions
1.5How to use this scheme
1.6Development applications
2.0 PRINCIPLES
2.1 Principles of affordable housing......
2.2The affordable housing scheme
2.3The need for affordable housing......
2.4What is affordable housing
2.5An appropriate proportion of affordable housing......
2.6Types of development and exemptions......
3.0PROVISION OF AFFORDABLE HOUSING
3.1“Inclusionary zoning”......
3.2On-site contribution where title is transferred to the Department of Housing......
3.3Monetary or in lieu contributions......
3.4Process for making affordable housing contributions......
3.5Release of funds for purchase of Affordable Housing Dwellings
3.6How often will the affordable housing scheme be reviewed and updated......
4.0ADMINISTRATION AND MANAGEMENT
4.1Administration and management of affordable housing contributions......
4.2Affordable Housing Providers for Management and Maintenance of Properties......
4.3Accountability
4.4Management of affordable housing provided under the program......
Draft Parramatta Affordable Housing DCP
1.0INTRODUCTION
1.1About this scheme
This Parramatta Affordable Housing Scheme applies to land which is subject to Parramatta Local Environmental Plan 2001 and Sydney Regional Environmental Plan No. 28 – Parramatta.
The Scheme provides more detailed planning provisions relating to affordable housing than those contained within the LEP and REP. It was adopted by Council on [date] and came into force on [date].
1.2Aims of this scheme
This Scheme sets out the requirements for the provision of affordable housing within Parramatta, and outlines the matters that the Council will take into consideration when assessing development applications.
It implements the aims of Parramatta LEP 2001 and SREP No. 28 - Parramatta, and the objectives of the Environmental Planning and Assessment Act 1979.
The aims of this Scheme are:
(a) to enable Parramatta to maintain a socially diverse community, specifically through the provision of rental housing that is affordable to households on low to moderate incomes;
(b) to provide clear guidance to the community and developers about the provision of affordable housing in Parramatta; and
(c) to set out the obligations for the on-going management of affordable housing.
1.3Relationship to other planning instruments
Where there is an inconsistency between this Scheme and any environmental planning instrument applying to the same land, the provisions of the environmental planning instrument shall prevail.
An environmental planning instrument includes a State Environmental Planning Policy (SEPP), Regional Environmental Plan (REP) or a Local Environmental Plan (LEP).
1.4Definitions
Parramatta Affordable Housing Stock
Affordable housing means rented housing occupied by households on very low, low or moderate incomes, provided and managed in accordance with this Scheme and the affordable housing principles for Parramatta.
Eligible income groups
The gross incomes of households eligible for affordable housing fall within the following ranges of percentages of the median household income for the time being for Parramatta LGA Statistical Division, according to the Australian Bureau of Statistics:
Very low income household / less than 50% of the medianLow income household / more than 50%, but less than 80% of the median
Moderate income household / more than 80% but less than 120% of the median
Floor space area
In the LEP floor space area of a building means the sum of the gross horizontal areas of each floor of the building contained within the inner faces of the outer walls measured at a height of 1.5 metres above the floor, including the space occupied by internal walls, staircases, lobbies, corridors and toilets, but not including:
(a)the horizontal cross section of lift shafts and vertical service ducts measured between the wall faces internal to the lift shaft or duct, or
(b)any space permanently set aside within the building for underground parking, other than spaces used for public car parking which is more than 1 metre above natural ground level, and for the unloading or loading of vehicles, including ramps or other means of access to it, or
(c)any space for the accommodation of mechanical or electrical plant or equipment servicing the building, or
(d)any terraces and balconies with walls less than 1.5 metres high, or
(e)attic rooms.
In the REP floor space area of a building means the sum of the gross horizontal areas of each floor of the building contained within the inner faces of the outer walls measured at a height of 1.5 metres above the floor, including the space occupied by internal walls, staircases, lobbies, corridors and toilets, and above ground parking (for above ground parking, the floor space areas is measured at the inner side of the car safety barrier at the perimeter of the building), but not including:
(a)the horizontal cross section of lift shafts and vertical service ducts measured between the wall faces internal the lift shaft or duct, or
(b)any space permanently set aside within the building for underground parking (other than spaces used for public car parking(, and for the unloading of vehicles, including ramps or other means of access to it, or
(c)any space for the accommodation of mechanical or electrical plant or equipment servicing the building, or
(d)any terraces and balconies with walls less than 1.5 metres high.
1.5How to use this scheme
This Scheme should be read in conjunction with Parramatta LEP 2001 and SREP 28 - Parramatta. Part 4 of the LEP, Special provisions applying to certain land, and Part 12 of the REP Affordable Housing contain the specific clauses for the provision of affordable housing by the private sector.
The Scheme should also be read in conjunction with other relevant environmental planning instruments and development control plans applying to housing development and mixed use development in the Parramatta Council area.
This Scheme consists of four Parts:
Part 1 Introduction, sets out the title of the Scheme, its relationship to other plans and lists of definitions used;
Part 2 Principles, introduces the concept of affordable housing, outlines the principles and aims of this Scheme and establishes how to calculate the affordable housing contribution;
Part 3 Provision of Affordable Housing sets out the processes for providing affordable housing; and
Part 4 Administration and Management details how the affordable housing will be administered and managed by an “affordable housing provider”.
1.6Development applications
Where a development application is lodged for certain housing and mixed use development on land affected by this plan, Council will consider the application on its merits having regard to the provisions of this Scheme in determining the application.
In addition to the relevant plans listed above, Council must take into consideration those matters listed under Section 79C of the Environmental Planning and Assessment Act, 1979, and the relevant provisions of the Local Government Act.
Council’s development application form sets out instructions for completing a development application.
2.0PRINCIPLES
2.1Principles of affordable housing
This Scheme sets out the detailed requirements for the provision of affordable rental housing in Parramatta in accordance with the planning principles established in Parramatta LEP 2001, and Sydney REP No. 28 – Parramatta.
An important principle for both the LEP and REP is to provide for modern working and living environment containing a wide range of housing opportunities.
The LEP and REP encourage and promote a range of housing in terms of dwelling types, tenure and social mix.
The above principles reflect the affordable housing provisions of the Environmental Planning and Assessment Act 1979 (EPA Act) as amended.
2.2The affordable housing scheme
To achieve the objectives outlined in the LEP and REP, the Parramatta affordable housing Scheme aims to provide an appropriate level of stock of affordable rental housing for very low to moderate income households.
This is to enable a balanced, vibrant and inclusive community with a wide range of housing for a cross section of socio-economic groups. It also manages new development within Parramatta LGA so as to minimise the dislocation of residents when development pressure occurs and that existing residents are able to remain in the area.
2.3The need for affordable housing
In recent years Parramatta has commenced a period of substantial change, emanating from changes to the planning controls across the LGA, and as a result of market changes which have recognised the benefits of living in higher density housing close to the public transport, employment and other opportunities which accompany a regional centre.
The LGA is clearly in transition from its traditional low density residential to more compact, higher density residential uses as the second CBD in Sydney.
Improvements to public transport services and planning changes initiated by the State Government and Council have resulted in the further transformation of the CBD into a mixed-use centre comprising employment, retail, entertainment and residential uses. These changes have resulted in Parramatta becoming increasingly attractive as a place to live.
Over the past few years the cost of land for most land uses within Parramatta, and in particular land for residential development has increased significantly.
The demand for dwellings in the Parramatta LGA has been forecast to grow by 5,770 in the next five years which is 4% of the increase in Sydney and ranks Parramatta as the seventh fastest growing LGA in the Sydney region.
While land owners have benefited from increases in land value from the upzoning of land for higher density residential development, the increases in land value have clearly had (and will continue to have) an impact on the affordability of housing, especially for very low to moderate income households.
As a result of the rapid residential price increases, Council is concerned that the social diversity of Parramatta is diminishing, and that action is required to ensure that a suitable socio-economic mix of households is maintained, particularly for households in the private rental market.
Based on the number of lots that have been up-zoned in the LEP and REP in 2001, the opportunity for the development of additional dwellings has been estimated to be more than 17,250.
Data from the 2001 Census indicate that approximately 5,000 households in private rental accommodation are paying more than 30% of their gross income on rent, and as a result are under housing stress. The data also indicate that of these households 53% moved into the Parramatta Local Government Area (LGA) since the 1996 Census.
Without measures to provide more affordable housing, Council is concerned that the market will continue to produce more expensive housing, so that housing will only be affordable to households on relatively high incomes. This would result in existing lower income groups having to move out of Parramatta, and further away from the significant range of services provided in the LGA. Current and new lower income households would clearly be prevented from finding reasonably priced rental accommodation.
Section 94F(1) of the EP&A Act
The State Government commitment to affordable housing in the EP&A Act specifies that at least one of the requirements in Section 94F(1)(a)-(d) of the Act is to be satisfied in order for Council to implement affordable housing conditions in granting consent to a development application. These provisions will be satisfied in the circumstances described above and as follows:
(a) The consent authority is satisfied that the proposed development will or is likely to reduce the availability of affordable housing within the area.
Redevelopment has, and is likely to, reduce the availability of lower cost housing by replacing older housing stock with new dwellings that are likely to lead to significant increases in rent.
(b) The consent authority is satisfied that the proposed development will create a need for affordable housing within the area.
Development will provide new housing with rents that are not affordable for low to moderate income earners in Parramatta. It will also remove the older more affordable housing. This will create a need for affordable housing within the area.
(c) The proposed development is allowed only because of the initial zoning of a site, or the rezoning of a site.
Redevelopment is allowed primarily because of the increase in zoning under Parramatta LEP 2001 and Sydney REP No.28 – Parramatta.
(d) The regulations provide for this section to apply to the application. (Not applicable).
2.4What is affordable housing
“Affordable housing” relates to reasonable housing costs relative to household income (National Housing Strategy).
For the Parramatta affordable housing Scheme, the aim is to provide accommodation for very low, low to moderate, and moderate income households at a reasonable rental cost. Reasonable housing costs for these households are defined as no more than 30% of gross household income.
The gross household income for these groups based on median incomes for Parramatta are in Schedule 1 attached to this Scheme which is updated from time to time in line with ABS figures.
The standard of dwellings, envisaged for the Parramatta Affordable Housing Scheme, is to be consistent with the average standard of contemporary development in Parramatta.
2.5An appropriate proportion of affordable housing
To achieve the social, planning and housing principles that Council has established for Parramatta, this Scheme aims to acquire the equivalent of 3% of the residential floor space area of medium to high density residential and mixed use development in Parramatta to be provided as affordable rental housing available to households on very low, low to moderate or moderate incomes.
Contributions towards the provision of affordable housing will be made by the dedication of completed dwellings and/or payment of a monetary contribution at the discretion of the consent authority and having regard to the principles outlined in the part of the Parramatta Affordable Housing Scheme.
As the consent authority Council has a preference for affordable housing to be provided and dedicated within each proposed residential development.
Payment of the contribution would enable affordable housing to be provided elsewhere in Parramatta.
The amount of the monetary contribution is equivalent to the market value of the total floor space area that would otherwise be required to be dedicated as affordable housing. The market value is calculated using the current median sales price of similar dwellings in the Parramatta local government area as documented in the Rent and Sales Report NSW published by the NSW Department of Housing or another document approved by the Director-General for that purpose.
Given the variable costs of dwelling construction for medium density and high density developments, where variable costs relate to such aspects as more complex construction methods, and car parking construction costs different costs apply depending on the style of development.
The requirement to provide either an on site or in lieu contribution will be a condition of development consent (See Part 3 of this Scheme Provision of Affordable Housing).
2.6Types of developments and Exemptions
Development of any of the following types must contribute to the provision of affordable housing:
(a)multi-unit housing;
(b)residential flat buildings;
(c)mixed-use development; and
(d)high density housing.
3.0PROVISION OF AFFORDABLE HOUSING
3.1“Inclusionary zoning”
Development of any of the following types is required to contribute to the provision of affordable housing:
(a)multi-unit housing;
(b)residential flat buildings
(c)mixed-use development; and
(d)high density housing.
Development is not required to contribute to the provision of affordable housing in any of the following circumstances:
(a)the proposed development will result in the creation of less than 200 square metres of additional floor space area;
(b)the development is for the purpose of public housing; or
(c)the applicant is a community housing or non-profit organisation
The requirement for affordable housing will be implemented in a condition of development consent and may be in the form of providing and dedicating dwellings on site or payment of a monetary contribution according to the consent authority.
3.2On-site contribution where title is transferred to the Department of Housing
Where affordable housing dwelling(s) is provided and dedicated on-site, the applicant transfers title of the affordable housing unit(s) to the Department of Housing (Land and Housing Corporation).
A legal agreement to transfer title to the Department of Housing (Land and Housing Corporation) must be finalised to the satisfaction of the Council, and evidence provided to Council prior to the granting of a construction certificate.
The Council must be satisfied that the nominated units will fulfil the affordable housing principles for Parramatta and will have sought comment from the Office of Community Housing and or selected Community Housing Providers on the suitability of the units.
The affordable housing contribution will have been satisfied when the title to the unit(s) is transferred to the Department of Housing (Land and Housing Corporation).
Evidence that the transfer of title has occurred will be required by Council or the Principal Certifying Authority before any occupancy certificate is issued.
3.3Monetary or in lieu contributions
Where an applicant pays a monetary contribution, the amount of the contribution will be nominated in the condition of development consent. Before any construction certificate is issued, Council will require evidence of payment of the contribution. Payment will be by unendorsed bank cheque to the Parramatta Affordable Housing Scheme in the Centre for Affordable Housing in the Department of Housing.
As an alternative, the applicant may provide evidence that a satisfactory bank guarantee, to the value of the required contribution has been lodged with the Parramatta Affordable Housing Scheme in the Centre for Affordable Housing in the Department of Housing.
Monetary contributions are indexed to ensure that the contribution reflect the costs associated with the provision of affordable housing over time.
The contribution will be indexed quarterly on the basis of the Established House Price Index: All Groups Index for Sydney published by the Australian Bureau of Statistics (ABS) (Cat No. 6416.0).
In lieu contributions will be indexed quarterly in accordance with the Established House Prices Index: All Sydney Index as described in Section 2.7 of this Scheme.
The affordable housing condition of consent will have been satisfied when payment of the monetary contribution has been made. Council will need evidence that this has occurred before it grants an occupation certificate. The contribution will be transferred to the Parramatta Affordable Housing Scheme Operating Account in the Centre for Affordable Housing in the Department of Housing who will release the affordable housing funds to the Office of Community Housing for construction or purchase of affordable housing.