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In the quest to address urban housing challenges, in-fill affordable housing has emerged as a beacon of hope, offering practical incentives to developers while fostering sustainable community growth. The State Environmental Planning Policy (Housing) 2021, also known as the Housing SEPP, introduces critical measures to incentivise the inclusion of affordable housing in residential projects. This initiative aims not just to increase housing supply but to make affordability an integral part of urban development.
What Is In-Fill Affordable Housing and Why Does It Matter?
In-fill affordable housing refers to the strategic development of underused urban areas to create affordable housing options. By leveraging existing infrastructure and optimising land use, this approach mitigates urban sprawl and enhances community resilience. The Housing SEPP lays down a framework that allows developers to benefit from floor space ratio (FSR) and building height incentives, ensuring that affordable homes are not an afterthought but a cornerstone of residential projects.
FSR Incentives Unpacked
Developers embarking on residential ventures can tap into an FSR bonus of up to 30% if they dedicate a minimum of 10% of the gross floor area to affordable housing. Notably, at least half of the gained FSR must fuel the affordable housing quota. These provisions encourage developers to exceed the minimum threshold, offering a tangible pathway to access the lucrative 30% FSR bonus.
Additional FSR bonuses beckon for developments undertaken by or in partnership with organisations like the Land and Housing Corporation, the Aboriginal Housing Office, Landcom, or registered community housing providers. For projects on lands with a maximum FSR of 2:1 or below, these entities can avail of further FSR bonuses, scaling from 0.5:1 to 0.2:1, depending on the affordable housing component.
Height of Building Incentives
The height of building incentives parallel the FSR bonuses, enabling developers of residential flats or shop top housing to pursue height increases corresponding to their FSR enhancements. This provision is especially advantageous in locales lacking maximum FSR controls, offering additional flexibility and creative freedom in design.
Impact on Development Applications and Consents
To leverage the aforementioned incentives, developers must identify the registered community housing provider tasked with managing the affordable housing units. Approval hinges on the stipulation that a restriction to safeguard the affordable housing section will be recorded against the property title, ensuring compliance with the NSW Government’s Affordable Housing Guidelines.
Conclusion
As urban areas continue to evolve, the emphasis on sustainable and affordable housing solutions has never been more critical. In-fill affordable housing offers an actionable blueprint for developers and community housing providers alike, promising not just incentives but a commitment to enhancing livelihoods and strengthening communities.
For developers and stakeholders looking to navigate the in-fill affordable housing landscape, further guidance and expert advice are just a consultation away. Contact us at pdclaw.au or dial 02 4288 0150 for a deep dive into optimising your development strategies for a better tomorrow.
More information is available at the NSW Planning website.
Lorri is a director of PDC Law. Lorri combines excellent technical expertise with a common-sense approach to best represent her clients. She is one of few Accredited Specialists in Commercial Litigation in the Illawarra and Shoalhaven. This accreditation is testament to Lorri’s expert knowledge and skill in dealing with commercial disputes. In 2019 Lorri was awarded Regional Lawyer of the Year by Women Lawyers Achievement Awards.
