Govt Incentives for Developers

On December 14, 2023, the NSW Government introduced in-fill affordable housing reforms, creating compelling incentives for private developers to enhance the supply of affordable housing.

Key Highlights

Bonus Incentives:

Projects incorporating 10-15% of gross floor area (GFA) as affordable housing qualify for a floor space ratio (FSR) bonus of 20-30% and a height bonus of 20-30%. These bonuses are proportional to the affordable housing component, benefiting developers with increased flexibility.

Continued Opportunities:

Developers working with specified agencies and Community Housing Providers (CHPs) on sites with a maximum allowable FSR of 2:1 or lower can still leverage previous in-fill affordable housing bonuses. Now, they can choose a more favourable formula for calculating the FSR bonus, ensuring continued opportunities for growth.

Expanded Accessible Area:

The definition of an “accessible area” has been increased to 800m walking distance from a light rail or metro station. This expansion broadens potential development locations and aligns with transit-oriented development principles.

Applicability and Requirements:

Developers in specified land within the Six Cities Region and areas within 800 m walking distance of designated zones must allocate 10-15% of the development to affordable housing. The reforms include:

• Built-form bonuses.
• Non-discretionary development standards.
• The affordable housing portion of the development is to remain affordable for 15 years and be managed by a registered community housing provider during this period.

Consideration of Local Character:

Consent authorities will now consider the characteristics of the local area or the desired future character for transitioning areas. This will promote a balanced approach to development that respects community identity.

These reforms provide property developers practical benefits, offering clear guidelines, incentives, and continued opportunities to contribute to affordable housing in specified regions.

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For affordable housing solutions tailored to your development, contact the HomeGround Sydney team on 0413 817 380 or via email at info@homegroundsydney.com.au.

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