Under the proposed changes, the city will implement a uniform 20 per cent contribution requirement for newly created residential floor space across rezoned sites, replacing the current variable rate of 12-21 per cent.
The reforms also introduce a new 2 per cent contribution rate for rezoned non-residential space in the city centre, while maintaining the existing 3 per cent contribution for residential developments and 1 per cent for non-residential developments across the local government area.
Lord Mayor Clover Moore AO said there was an urgent need for action.
“We are in the middle of a housing affordability crisis, and more housing stock does not automatically mean more affordable housing stock,” Mr Moore said.
The city has already facilitated the creation of 3,388 affordable homes, with an additional 1,950 in the pipeline under the current scheme.
The proposed changes are expected to deliver at least 320 more affordable homes through adjustments to the dollar rate alone.
Recent developments have highlighted the scheme’s effectiveness, with two new projects approved in Green Square set to deliver 366 affordable housing units through discounted land sales to Community Housing Providers.
John Engeler, CEO of Shelter NSW, said the initiative is a step in the right direction.
“The current planning reform proposed by the City of Sydney will make a significant increase on that number indeed over time it will likely double.” Mr Engeler said.
The Lord Mayor is also calling on the NSW Government to adopt the City’s definition of affordable housing, which requires properties to be affordable in perpetuity, managed by registered not-for-profit Community Housing Providers, and rent-capped at 30 per cent of gross household income.
“The high cost of housing poses a serious economic and social risk, with low-income earners, often essential workers who help to keep our city running, unable to remain living here,” Mr Moore said.
“Every level of government needs to work together to fix this problem so that people can live and work close to their community and the communities they serve.”
