Develop affordable rental housing

Many councils have identified the need for affordable housing in their communities and have been working in partnership with CHPs and the NSW Government on development projects. A range of mechanisms are being used, including:

• Gifting land or selling it at discount to market rates
• Raising funds through contribution schemes
• Using Planning Agreements

The following examples demonstrate how some of these mechanisms are being used.

Gifted land - Lismore Affordable Housing

• DCJ worked in partnership with Council and Landcom, providing part funding for the
• development of around 60 affordable housing dwellings on a site in Lismore.
• Council provided land at no cost.
• Landcom will develop the land
• The remaining cost of construction will be borne by the CHP.
• Units are planned to be available for rent in 2025.

Gifted land - Bomaderry Affordable Housing

• In the Bomaderry Affordable Housing Project, DCJ worked with Shoalhaven City Council and Southern Cross Community Housing to deliver an affordable housing development.
• Shoalhaven City Council transferred land (14.1% of the project cost) to Southern Cross CHP for a cost of $1 subject to the value of the land being used for long term affordable housing in the LGA.
• Southern Cross is contributing 55.5% of the project cost, sharing the cost of the construction with DCJ which provided 30.4% of the project cost for the development of 39 affordable housing dwellings.

Land at discount to market - City of Sydney and St George Community Housing

• Landmark urban renewal in inner city Redfern
• City of Sydney sold land to St George Community Housing (a not-for-profit CHP) at discount
• St George Community Housing debt funding and DCJ grant funds supported the build
• Completed June 2021. Total of 162 units - 40 social and 120 affordable housing units, including 27 units for people with disabilities
• 45% of units allocated to Aboriginal households

Land at discount to market – City of Sydney

• The City of Sydney sold land at Green Square at a discount to City West Community Housing to develop 200 affordable housing units on Botany Road Alexandria.
• Council also sold the adjacent lot to St George Community Housing at a discount to develop an extra 80 affordable housing dwellings.
• The housing is rented at below-market rates to low-income workers.
• The subsidised sale of both sections of land represents a $5 million discount on market value.
• In total, the council has offered almost $20 million in discounts to community housing providers through subsidised land sales.

Contribution Scheme - City of Sydney - City West

Mechanism: Developers contribute .8% of residential and 1.1% of non-residential floor space, or monetary equivalent, to City of Sydney Council.  The scheme was later expanded to other locations in the LGA, with a higher contribution requirement.

CHP partner: contributions transferred to City West Housing (a not-for-profit CHP), which owns and manages the properties

Outcome: 900 affordable housing units for key workers and low income households

Contribution Scheme - City of Sydney - Southern Employment Lands

Mechanism: rezoning of land and resulting contribution scheme raised funds for affordable housing

State government partner: DCJ held the funds and jointly conducted tender with Council to select CHP partner

CHP partner: contributions transferred to Bridge Housing (a not-for-profit CHP), which contributed its own funds to purchase and renovate 20 units

Outcome: 20 affordable housing units for working Aboriginal women on very low to moderate incomes

Planning Agreements - St Marys Affordable Housing

Mechanism: Voluntary Planning Agreement requires developer (Lendlease) to transfer 120 lots for affordable housing

State government partner: DCJ tendered for CHP partner and contributed grant funding

CHP partner: ownership of lots transferred to BlueCHP (a not-for-profit CHP), which leveraged the land and contributed funds

Outcome: 168 affordable housing properties being delivered

Planning Agreements - Rouse Hill Affordable Housing

Mechanism: Voluntary Planning Agreement requires developer to transfer 3% of lots for affordable housing

CHP partner: ownership of lots transferred to Link Wentworth Community Housing (a not-for-profit CHP)

State government partner: DCJ tendered for CHP partner and contributed funds

Outcome: 38 affordable housing properties developed

Planning Agreements – Affordable Housing – Leichhardt Project

Mechanism: Voluntary Planning Agreement required developer to provide 7 units of affordable housing

State government partner: DCJ tendered for CHP partner

CHP partner: Bridge Housing, which leveraged ownership to develop 4 additional units of affordable housing

Outcome: 11 affordable housing properties developed

More examples are available on the NSW CHIA website in their report Local Councils taking action on affordable housing.

For more information about affordable housing, or if you have a question, contact us at CAH@homes.nsw.gov.au.