Amendments to the Affordable Rental Housing SEPP: E-Alert May 2011

Changes announced by the NSW Government in relation to Affordable Rental Housing affect new and existing applications for in-fill development, boarding houses and social housing.

Amendments to the Affordable Rental Housing SEPP

On 20 May 2011, the NSW Government announced changes to the State Environmental Planning Policy (Affordable Rental Housing) 2009 (AHSEPP).  These changes will be implemented over two stages:

Stage One – Amendments to the AHSEPP.  These amendments are effective as of 20 May 2011.

Stage Two – Formation of an Affordable Housing Taskforce and development and implementation of a new Affordable Housing Choice SEPP.  This will occur at a later date.

Stage One – Amendments to the AHSEPP

The State Environmental Planning Policy (Affordable Rental Housing) Amendment 2011 (Amending SEPP) includes amendments to the following areas of the AHSEPP: in-fill development, boarding houses and social housing.  Provisions in the AHSEPP concerning other types of affordable rental housing, such as granny flats, group homes and supportive housing remain unchanged.  The key changes contained in the Amending SEPP are:

In-fill development

• In-fill development (dual occupancies, multi dwelling housing or residential flat buildings) will now not be permitted in low-density residential areas.
• In areas where in-fill development is permitted, proposals will need to be compatible with the design character of the area.
• Proposals will need to provide at least 20 per cent of the gross floor area of the development to be used for the purposes of affordable housing (rather than a specified number of units).
• Developments must be located within an accessible area, defined (for developments in Sydney) as: within 800 metres of rail or ferry transport, within 400 metres of light rail or bus transport operating seven days a week.  For developments outside the Sydney region, the development must be within 400 metres of a local centre or mixed use zone.
• Developments will also need to meet higher parking requirements.

Boarding Houses

• Boarding houses will need to be compatible with the design character of the area.
• Boarding houses must be located within an accessible area, as defined above.
• Boarding houses will need to meet higher parking requirements.

Social housing

• Housing NSW will continue to self-assess proposals which are of a maximum height of 8.5 metres, a maximum size of 20 units and are close to public transport.
• Housing NSW will now be required to meet council notification requirements and also meet parking standards similar to boarding houses.

Existing Development Applications

• Local character: where an existing application has been lodged prior to the amendments, the consent authority must not consent to the development unless it has considered whether the design is compatible with the character of the local area.
• Development applications made before the commencement of the Amending SEPP may be determined as if the Amending SEPP had not been made.  It should be noted that this is a discretionary provision – that is, applications may be determined under the repealed and amended provisions subject to the new local character test and total floor space requirement.  As this is a discretionary provision, it follows that development applications can also be determined in accordance with the provisions of the Amending SEPP.
• Housing NSW can continue to progress proposals it was working on prior to the Amending SEPP, provided that those proposals are commenced by 20 May 2013.

Stage Two – Affordable Housing Taskforce

At a later date, the Government will establish an Affordable Housing Taskforce and develop a new Affordable Housing Choices SEPP.

Maddocks are experts in the area of Local Government and Planning Law.  If you require further information or insights into how this may affect your council, our team is well placed to assist.