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SGS Economics and Planning Marcus Spiller infrastructure costs article image

Are development contributions to blame for housing affordability woes?



Calls by the National Housing Finance and Investment Corporation for greater transparency and accountability in the use of development contributions to fund urban infrastructure are well justified. But arguments for a return to traditional funding models based on taxes and recurrent user charges should be treated with caution. They could simply transfer wealth to development site owners with no gain in housing affordability, said Dr Marcus Spiller.