Original motion moved by Councillor Ellsmore,
seconded by Councillor Weldon.
It is
resolved that:
(A)
Council
note:
(i)
Sydney is one of the most expensive cities to
live in the world; with Sydney housing now estimated to be the second most
expensive in the world, after Hong Kong;
(ii)
despite
the City of Sydney having one of the most comprehensive affordable housing
strategies of any council in Australia, housing affordability in the Local
Government Area (LGA) is projected to worsen unless there are major changes:
(a)
to how
existing public, social and affordable housing is protected; and
(b)
to the
planning and funding systems which determine what kinds of new housing is
built, and whether any of it is public, community, affordable, or otherwise
accessible to people on low and middle incomes;
(iii)
the NSW
Government largely controls whether and how local councils can require
affordable housing to be built in new developments;
(iv)
the
City of Sydney has provisions in its Sydney Local Environment Plan 2012 (Sydney
LEP), and the LEPs that apply to Green Square Town Centre, which allow an
affordable housing levy to be imposed on development. This is one per cent of
floor space for non-residential development, and three per cent of floor space
for residential development;
(v)
the
provisions in the local environmental plans give developers the choice to meet
their affordable housing contribution requirements by dedicating built housing
or making a monetary contribution;
(vi)
monetary
affordable housing contributions paid by developers are passed to community
housing providers to build or buy new, permanent affordable housing within the
Local Government Area;
(vii) the City is on track to contribute to 5,213
Affordable and diverse housing dwellings in our area (in perpetuity) by 2036;
and
(i) to June 2023, the City has contributed to 3,263 Affordable Housing dwellings, either built, in the pipeline or expected, including:
(a)
1,429
dwellings from $399 million in levies,
(b)
238
dwellings from $24 million in subsidised City-owned land sales,
(c)
483
dwellings from $10 million in City grants to not-for-profit housing providers
from our Affordable and Diverse Housing Fund; and
(d)
1,113
dwellings through Voluntary Planning Agreements and our planning controls and
by other means;
(B)
Council
further note:
(i)
to
date, only one Voluntary Planning Agreement has been entered into, in which a
developer has committed to deliver their affordable housing contributions in
the form of housing – that is, to build affordable housing on site;
(ii)
the
City has entered into other Voluntary Planning Agreements for affordable
housing delivery at Harold Park (land only) and on Bay Street, Glebe (now built
housing), however this housing was not associated with any requirement in the
LEPs at that time;
(iii)
in
2023, Meriton made a commitment to the community and to Council that it would build
an affordable housing building on site, at 118-130 Epsom Road and 905 South
Dowling Street, Zetland in partial satisfaction of the affordable housing
requirement under the LEP;
(iv)
Council
approved the planning proposal to rezone the Suttons site, subject to Meriton’s
last minute offer to deliver affordable housing on site. Meriton later withdrew
its offer, and advised it won’t be building any affordable housing, and instead
will provide a financial affordable housing contribution, estimated to be $29
million; and
(v)
Council
cannot require the developer to deliver affordable housing on site, under the
City’s current planning rules;
(C)
in June
2023, Council resolved to request the Chief Executive Officer to review the
City’s Affordable Housing contribution rates, including what changes could
deliver more Affordable Housing in our area such as rate increases, changes to
City policies, planning controls and rezoning proposals. Staff have commenced
this review; and
(D)
the
Chief Executive Officer be requested to:
(i)
as a
priority, report back on the findings of the City’s review and advise Council
of options, including drafting a planning proposal to amend the City of
Sydney’s Local Environment Plan 2012, and related documents as needed, to give
the City of Sydney the ability to require that affordable housing contributions
be delivered in the form of land or buildings on site, in appropriate
developments; and
(ii)
provide
advice to Council as to stakeholders and others which the Council should seek
advice, or otherwise consult with, about the proposed changes including
Community Housing Providers.
The
substantive motion was carried on the following show of hands –
Ayes (8) The
Chair (the Lord Mayor), Councillors Chan, Davis, Ellsmore, Kok, Scott, Weldon
and Worling
Noes (2) Councillors
Gannon and Jarrett.
Amended
motion carried.
X086659