The NSW Government has delivered a new State Environmental Planning Policy (SEPP) to the built environment, which will see new powers delivered to state-owned housing agencies to increase affordable housing supply quickly.

The consultation process was extensive, but in order to get a wide range of opinions the likes of industry bodies, councils and community housing providers were sought across 15 feedback sessions. The widely reported Floor Space Ratio (FSR) – where the height of a building can be extended by 30 percent as long as 15 percent of a building’s gross floor area (GFA) is dedicated to affordable housing – has been confirmed, as has concessions made to build-to-rent developers.

"These reforms build on our recent housing announcements by making sure affordable housing is maximised so key workers who are the engine room of our cities can afford to live close to their jobs,” says NSW Minister for Planning and Public Spaces, Paul Scully.

"While we want to maximise the amount of social and affordable housing in new developments, developers also need incentives to include these homes in future projects.

"The provision of affordable housing is a shared responsibility which is why the changes we have made from the consultation have tried to achieve balance, to get the best outcome for all rather than any single group.

The consultation process resulted in key modifications to the proposed policy. One significant change involves making bonuses for affordable housing scalable based on site limitations, ensuring flexibility when the full 30 percent bonus cannot be achieved.

The bonus will now apply to the entire development, not just the residential component, addressing concerns from stakeholders, including councils and developers. Additionally, the threshold for State Significant Development (SSD) consideration has been adjusted to $50 million in Greater Sydney and $30 million in regional NSW, encouraging more affordable housing in regional areas.

Notably, amendments have been introduced to extend bonuses to Build to Rent developments, allowing their application in commercial zones, even if residential accommodation is restricted by the Local Environmental Plan. These modifications aim to enhance the effectiveness and applicability of the policy, garnering support from both developers and councils.

"Affordability and availability are at their lowest levels in decades. This announcement builds on our commitment to working across all levels of Government and industry to confront the housing crisis,” says Minister for Housing and Homelessness Rose Jackson.

"We are cutting the red tape for Government owned agencies such as Land and Housing Corporation, (LAHC) Aboriginal Housing Office (AHO) and Landcom to expedite the delivery of more homes.

"These reforms are about bringing together all key delivery partners while making sure we consider the views of councils and communities, so we get high quality homes supported by the right infrastructure and amenity."

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Jarrod Reedie

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