This article is from the Australian Property Journal archive
THE NSW government is changing the state’s planning system by incentivising residential developers that include at least 15% affordable housing in their plans.
Residential developments with a capital investment value exceeding $75 million, that allocate this of 15% of the total gross floor area at a minimum, be able to access to the State Significant Development (SSD) planning approval pathway.
Such developments will also gain access to a 30% floor space ratio boost, and a height bonus of 30% above local environment plans.
“Granting State Significant Development status to developments that include affordable housing will allow faster decisions on these important projects. This commitment is in addition to our promise to deliver a minimum of 30% of social and affordable housing on surplus government land,” said Rose Jackson, minister for housing and homelessness.
The existing SSD pathway sees proposals assessed by the Department of Planning and Environment and often allows faster planning decisions.
“We are looking at ways we can help address the housing supply crisis, this is one of them,” said Chris Minns, premier.
“These reforms will provide more homes and more affordable housing in places where people want to live. It is an important step, but we know our work to improve housing supply does not stop here.”
The government has announced these changes in response to development approval processing times having blown out from 69 days on average in July 2021 to 116 days in March 2023.
In addition to a state projected housing construction shortfall of 134,000 dwellings over 5 years.
These changes provide incentives to build more affordable housing with the new pathway providing greater certainty and delivering the government more control of the decision-making process,” said Paul Scully, minister for planning and public spaces.
“This plan helps with housing affordability and with meeting our commitments under the National Housing Accord for new dwellings.”
This also comes after the government made a pre-election commitment to ensuring developments on surplus public land include a minimum of 30% affordable, social and universal housing.
“Every day the housing crisis gets worse, our government is removing the red tape that slows down the process from getting people into homes,” added Jackson.
“We need more affordable housing and we’re not wasting any time in delivering solutions to building more homes for the people of NSW.”
