The government of Victoria recently announced that they are allocating $500,000 to provide affordable housing in the state, and industry group Urban Taskforce deemed this as a positive move.
While the implications on the current condition of the housing market were not discussed, Urban Taskforce commended the idea that the government is working with different councils to deliver a successful project.
“The Victorian Government approach to delivering affordable housing seems to be based on councils and developers working together to achieve outcomes,” said Urban Taskforce CEO Chris Johnson.
“The government has allocated half a million dollars to help councils improve skills in negotiating a pathway for councils and developers to lock in affordable housing delivery as part of a project,” he added.
Further, it was emphasised how the approach allows individual project based agreements. This way, a developer can get a boost to increase affordable housing in the area. “A case by case approach is much better than a top down mandatory levy that can undermine the economic feasibility of a development project.”
Having said this, Urban Taskforce suggested that the New South Wales (NSW) government should adopt the same tactic.
“The Urban Taskforce believes that the NSW Government should also support an approach to the provision of affordable housing that allows a case-by-case approach where a reasonable uplift in floor space could be provided to support the provision of affordable housing.”
Proposing a way to effectively carry this over to NSW, Urban Taskforce brought up the Affordable Rental Housing State Environmental Planning Policy. This legislation gives a floor space bonus if the developer includes a component of affordable housing that can be rented for a 10 year period.
According to the group, The NSW Government’s Landcom agency is using this method for the provision of affordable housing at Tallawong Station Precinct.
Related stories:
The Eight Month Home Loan Downturn
Property Market: A Slowly Deflating Bubble
