Affordable Housing Strategy for the City of Sydney
March 2nd, 2009In 2006 I put forward a proposal to develop a strategy for the City of Sydney Council to encourage and provide affordable housing in its local government area. I followed up regularly with suggestions on strategic direction and Questions on Notice urging the CEO and the Lord Mayor to get on with developing a plan.
Finally, this month, February 2009, we have a draft strategy endorsed by the Council going on public exhibition for an extended period to allow for maximum public input.
The draft strategy outlines a range of possibilities for the provision of affordable housing, but most importantly the City has set a target that requires 15% of housing in the city to be affordable by 2030. This is made up of 7.5% of social housing (principally supplied by the state government) and 7.5% affordable housing which is defined as accommodation which will cost no more than 30% of the resident’s income. The City has also employed a specialist Affordable Housing Officer.
In 2008 some councillors were very concerned about proposals to sell off two pieces of strategically located real estate – The Reg Murphy Centre in Elizabeth Bay and the old South Sydney Hospital.
The Reg Murphy Centre was a well-loved community centre that could have development potential above it that would not compromise the amenity of the surrounding residents. This site and undoubtedly others, may have potential for the construction of affordable apartments that could be owned and managed by the City. As well as supplying low cost housing, these apartments would be an ongoing source of income for council.
The South Sydney Hospital site is ideal for larger scale affordable housing as well as being of sufficient size to co-locate other community infrastructure such as a school or an aged care facility. This is an ideal joint venture prospect with state or federal government.
The draft strategy identifies thirteen possible sources of affordable housing supply. It would seem that council could progress at least five of those now with its current powers and resources. These include working with community housing organisations, developing council’s own land, using developer incentives in voluntary planning agreements and working with student housing groups.
Many of the ideas in the draft strategy require legislative change or agreement with state government authorities to partner in a project. The Greens urge the City of Sydney to begin identifying projects that can be implemented quickly using its existing powers and resources while advocating to other levels of government on other models of affordable housing.
Other councils in Sydney are already providing affordable housing. Canada Bay and Waverley Councils are working with developers to obtain ownership of affordable housing properties. So it can be done, there is no reason the City cannot do this as well.
The City can also work with student housing cooperatives (such as STUCCO in Newtown) and community housing organisations to deliver innovative projects. There are existing examples of successful schemes that the City can duplicate.
Housing is a basic need that must be affordable. It has become an important social justice issue that affects large sections of the community faced by prohibitive property prices that have been driven up through property speculation and low interest rates over the past decade. It is imperative that council use its influence and large resources to increase the supply of low cost accommodation.
Below is my original motion and a pdf file of media coverage I received in the Australian Financial Review
Extract from Council Minutes - My motion of April 10th 2006
AFFORDABLE HOUSING (S044431)
1. Moved by Councillor Harris, seconded by Councillor Lee -
Council resolves:
That staff prepare a report on options available to the City of Sydney to increase the stock of affordable housing in the City’s Local Government area. This report should recognize the current lack of legislative support to levy developers but should focus on other options that the City might pursue.
Whilst not limiting the scope of the report the study should:
(a) identify any surplus City of Sydney property or land that could be used for
affordable housing;
(b) examine the cost to have Council staff assist those seeking to establish a
housing cooperative to undertake a feasibility study, identify property and
secure finance;
(c) examine the cost for the City to guarantee loans for cooperative ventures
that have already been through a feasibility process;
(d) identify alternatives for managing a stock of affordable housing;
(e) identify opportunities to work with other affordable housing providers eg City West;
(f) examine international schemes that are effectively providing affordable
housing.
Carried unanimously.
Below are the Financial Review article and the link to the City of Sydney Draft Strategy
