More Affordable Housing disappears in Glebe
November 9th, 2007
As the Greens Councillor on the City of Sydney Council, I believe the proposed eviction of 8 residents from a Glebe boarding house to make way for a harbour side residential development is an indication of the shameful lack of commitment by Labor governments to provide affordable housing in Sydney. This is at odds with the election material of the Sydney Federal Labor candidate Tanya Plibersek who talks about being concerned about the lack of affordable housing.
The Department of Planning has stated that this development will result in a significant loss of low-cost rental accommodation and a cumulative loss of boarding house accommodation in the area, but has nevertheless given it the go-ahead.
This property, described by the Department as ‘economically unviable’, is covered by SEPP 10, which is the State Environment Planning Policy for the Retention of Low-Cost Rental Accommodation.
SEPP 10 has a ‘get out’ provision that allows the Minister to exempt a boarding house if it is ‘economically unviable’. In very simple terms if the rental yield - which is the rental return in a twelve month period divided by the current market value – is less than 6% then the property is considered economically unviable for affordable housing and may be redeveloped.
With the dramatic escalation of real estate prices since the year 2000 I’d be surprised if you could find any residential real estate for rent in Sydney, affordable or not, that would yield 6%. Given this, it seems that SEPP 10 is pretty well useless for protecting affordable housing in Sydney.
The Department has said that the residents will be given assistance to find alternative accommodation - note this is in no way a guarantee – they will get extended notice of eviction (60 days) and will be given a $500 one-off payment to assist with relocation expenses. However this hardly a commitment to affordable housing and the residents will find themselves evicted at Christmas time in a tight and increasingly expensive rental market.
At the last council meeting (Monday October 29th,2007) I introduced an amendment to the development approval which requires that City staff contact the residents affected by the eviction and offer them assistance in finding alternative accommodation and if necessary advocate for them with public housing authorities. My amendment was supported by all councillors.
The Greens believe that state and federal governments need to make a real and ongoing commitment to building affordable accommodation particularly for the low-to-average wage workers and young people. This will have the environmental benefits of placing workers close to their place of work and reducing car travel plus it will provide equitable support to the millions of people (half the population) who have had no benefit from the real estate boom over the past decade.
Childcare is the biggest issue for working women with children. The question is whether the City of Sydney council wants to or is prepared to deal with this issue.


