[Greens-Media] (Sylvia Hale MLC) Greens Introduce 25% Affordable Housing Bill

[Christopher Holley]

30 October 2008
Greens Introduce 25% Affordable Housing Bill 
 
Greens MP and Housing spokesperson Sylvia Hale today introduced the
Greens Affordable Housing Bill in the NSW Parliament.
 
The Bill is aimed at providing more affordable housing for low and
moderate income earners by allowing local councils to require new
housing developments to provide up to 25% of homes for people on low and
moderate incomes. Rents for these units will be limited to no more than
30% of the tenants' income. Councils can set their own target based on
housing needs. The affordable housing will be managed by councils,
non-profit housing organisations, or the government.  
 
“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 hamstring 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.