Insights
Three ways local government can bolster affordable housing
Posted July 09, 2019
Planning levers to provide resources
Voluntary and mandatory contributions via the planning system under ‘Tier 2’ activities in the above typology can play an important part in contributing assets to the development of social housing. In Victoria at least, using the planning system to bolster social housing delivery was once steadfastly opposed by industry peak bodies and avoided by governments of all political persuasions. Voluntary contributions are now effectively ‘institutionalised’ with several councils seeking to emulate the floor area uplift principles (additional development capacity in return for public benefit of equivalent value, including social housing) pioneered in AmC270 to the Melbourne Planning Scheme. The Fishermans Bend Framework Plan, released by the State Government in October 2018 reaffirms the application of value capture, via density uplift, as a means of securing social housing.
A move towards mandatory contributions might also be anticipated because of the great gulf between what Homes for Victorians can deliver and the level of need.
The role and potential contribution of these various planning levers need to be well defined. Risk-based scenarios might be required to establish the targets that are achievable by council action, pending changes in the external policy environment.
Key questions for local councils to consider
- To develop an effective local affordable housing response, Councils typically need to address five key questions:
- How will the statutory planning framework contribute to social housing?
- How can this framework be applied: on major redevelopment sites, activity centres and the like; across all development in the LGA; or some combination of the two?
- How should the contributions framework be calibrated to ensure that social housing is generated without dampening development investment in general?
- What partnership models and blending of resources can be applied, together with planning requirements, to optimise social housing generation?
- What role will State Government programs (such as the Social Housing Futures Fund in Victoria) play in both resourcing and orchestrating the optimum blending of inputs to achieve successful social housing projects?