Council sets affordable housing target

by Emma Rugg
Housing costs in Inner Sydney continue to rise, prompting Council to release its most ambitious affordable housing targets to date.

In the 1970s, the cost of an average home was three times the annual average household income, but today it is seven times as much, provoking a mass exodus of low- to middle-income earners from the inner city to cheaper outer suburbs.

Besides the problem of maintaining a diverse workforce in the city, Council says polarisation between communities undermines social cohesion and may lead to community breakdown, loss of connectedness and a potential increase in anti-social behaviour,”

By 2030, Council is now promising that 7,959 more affordable dwellings ‘ rental property that is subsidised below market rates for low income earners ‘ will be built around the city, making up 7.5% of the total housing stock.

Originally slated for release in 2006, the plan has been a long time coming, sparking fears that similar delays will cloud its implementation.

There are already affordable housing developments in Pyrmont, Ultimo and Green Square, which were funded by developer levies of 3% which went to City West Housing.

The State Government forbids affordable housing levies on development outside these areas, so spreading affordable housing to new areas and reaching the new targets will depend on how successfully Council can court the private sector.

Possible incentives to convince developers to build affordable housing include rate rebates, spreading charges to reduce upfront costs, and providing land by donation or deferred payment.

However Greens Councillor Chris Harris said the only thing developers were interested in was extra floor space. He also questions Council’s enthusiasm, pointing out that release of the plan had been promised in 2006, then again in 2007.

He said City West had produced only 600 housing units in 10 years, a token.
‘It needs to be 3% Sydney wide, then in the next upturn raise it to 5% et cetera.’

Greens MLC Sylvia Hale has introduced a Bill specifying 10%.

Fellow Greens Councillor and public housing tenant Irene Doutney is also worried about the new targets for social housing ‘ defined as Aboriginal, Crisis and Public housing ‘ which is set to increase by just 633 dwellings by 2030, to make up only 1% of total housing stock.

Liberal Councillor Shayne Mallard thinks Council should leave all the costs to the private sector. ‘Council should put in place policy controls that support affordable housing in development,’ he said.

But CEO of Wesley Mission, Rev. Keith Garner thinks Council is taking the best road for the long term. ‘Crisis accommodation in these difficult financial times is always important but without affordable housing there are no exit points for people in emergency accommodation. This creates a log-jam of people moving out of crisis,’ he said.