Affordable Housing Options Paper: Part A

Transcription

1 Byron Shire Council Affordable Housing Options Paper: Part A June 2009 This report has been prepared for Byron Shire Council by The Old Post Office 231 Princes Hwy, Bulli NSW 2516 Ph: Fax: info@judithstubbs.com.au

2 This Report has been prepared by: Judith Stubbs BSW UNSW PhD RMIT John Storer BE (Civil) UNSW Grad Dip (Econ) UNE James Flinn BA (Human Geography) Disclaimer Judith Stubbs & Associates All Rights Reserved. No part of this document may be reproduced, transmitted, stored in a retrieval system, or translated into any language in any form by any means without the written permission of Judith Stubbs & Associates. Intellectual Property Rights All Rights Reserved. All methods, processes, commercial proposals and other contents described in this document are the confidential intellectual property of Judith Stubbs & Associates and may not be used or disclosed to any party without the written permission of Judith Stubbs & Associates.

3 Table of Contents PART A: BYRON AFFORDABLE HOUSING OPTIONS PAPER Introduction Background to the Options Paper Structure of this Paper Study Area Strategic Approach to Housing Need Overview Rationale for Proposed Strategic options Significant Net Increase in Older Smaller Households Affordable Housing: a Serious Issue for Byron Anyone Could Need Affordable Housing Affordability in the Context of Byron Shire Recommended Strategies List of Maps Map 1.1 Urban Settlements Map... 3 Map 3.1: Floor space ratio map - Bangalow Map 3.2: Floor space ratio map Brunswick Heads Map 3.3: Floor space ratio map Byron Bay Map 3.4: Floor space ratio map - Mullumbimby List of Figures Figure 3.1: Sustainable Practices in Residential Development Attachments Attachment A Options for LEP AH Provisions and Maps Attachment B Draft Planning Agreement Template Attachment C Draft Planning Agreement Policy Attachment D Comparison of Proposed AH Strategy (JSA 2008) Recommendations With Those From Council s 2002 AH Strategy Attachment E Affordable Housing Policy Continuum BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER I

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5 PART A: BYRON AFFORDABLE HOUSING OPTIONS PAPER 1. Introduction 1.1. Background to the Options Paper In January 2008, Judith Stubbs & Associates was commissioned by Byron Shire Council to undertake an Affordable Housing Options Paper, and related work including input to its forthcoming Draft Local Environmental Plan, 1 Affordable Housing Development Control Plan, and Planning Agreement Policy and Template. This Options Paper is the second document in this project. The first document, Byron Affordable Housing Strategy: Background Report, was provided to Council in March The Background Report provided detailed information and research to inform the recommended strategies for responding effectively to housing needs and issues in Byron Shire to 2031 that are contained in the current report. The Options Paper is based on extensive fieldwork by JSA between January and May 2008, desktop analysis, and consultation with Byron Shire Councillors and staff during a number of special workshops on affordable housing held during this time. It also took into account previous community consultation conducted by Council and earlier strategic planning undertaken by Council and its Affordable Housing Committee. 2 This Paper should be read in conjunction with the Background Report. 1 In accordance with the Standard Instrument (Local Environmental Plans) Order See for example Byron Affordable Housing Strategy for Urban Centres 2002 and related Implementation Plan. BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 1

6 1.2. Structure of this Paper The Byron Affordable Housing Options Paper is provided in two parts: PART A (Proposed Strategies) sets out a brief overview of the main findings contained in the Background Paper (Section 2), and the 19 key strategies for maintaining and increasing the supply of Affordable Housing in Byron Shire (Section 3); and PART B (Supporting Site and Precinct Analysis) - supports the strategies set out at Section 3 with an analysis of site work (Section 4). This provides a detailed examination of precincts and sites in the main urban settlements of Byron Shire that are proposed for particular housing purposes, e.g. Council affordable housing partnership sites, precincts or sites suited to density bonuses, and for special housing purposes including larger SEPP Seniors Living developments (retirement villages) and Caravan Parks or Manufactured Housing Estates. Strategies 5, 6 and 7 are also supported by materials provided in the following: Attachment A Options for LEP AH Provisions and Maps; Attachment B Planning Agreement Template; Attachment C Planning Agreement Policy; Attachment E Affordable Housing Policy Continuum. A comparison of Council s previously adopted Affordable Housing Strategy for Urban Centres (BSC 2002) with recommendations in Section 2 of the current Strategy is set out at Attachment D Study Area The following map sets out the main urban settlement areas used as the basis for strategies proposed in this Paper. 2

7 Map 1.1 Urban Settlements Map Source: Judith Stubbs & Associates (2008) BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 3

8 2. Strategic Approach to Housing Need 2.1. Overview This section provides an overview of information provided in the Background Report (JSA March 2008). Two key housing issues were identified: The need to significantly diversify housing opportunities and stock in order to meet changing demographic needs, including a strong increase in demand for smaller, more manageable dwellings for older households; and The serious current and projected shortfall in affordable housing, particularly affordable rental housing, to meet the needs of local low to moderate income families in housing stress and housing need. This includes long-term older asset-poor residents, younger families in the process of household formation and low to moderate income key workers in industries such as education, health and hospitality. Each of these issues is looked at briefly below, and in more detail in the Background Report Rationale for Proposed Strategic options Significant Net Increase in Older Smaller Households The Far North Coast Regional Strategy forecasts the provision of 2,600 additional dwellings in Byron Shire in However, on current NSW Department of Planning projections, adjusted for actual population at the 2006 Census, JSA has calculated that there may be demand for as many as 5,000 additional dwellings to accommodate projected demand over the next 25 years for the Shire if Byron were to accommodate its projected increase in population. Future demand probably sits somewhere between these two figures. Supply is likely to be provided within 4 broad development scenarios. In order to contain urban expansion, the bulk of development would need to be accommodated on existing vacant zoned land and through urban consolidation (e.g. redevelopment of older areas to accommodate increased density). To a lesser extent, demand is likely to be met through small amounts of rezoning of Greenfield and Brownfield sites. This supports State 4

9 Government planning objectives in the Regional Strategy for 40% of housing to be multi-unit dwellings close to existing town centres and 60% detached dwellings. This also supports sustainability objectives, including reduced car dependency, walkability, and increased urban efficiency. Importantly, our research indicates that by 2031: Around 80% of net increase in demand will be from 1 and 2 person households, the vast majority of which will be older households needing a mix of dwelling types including smaller, more manageable dwellings. It is strongly preferred that these be well located in terms of shops, transport and services, and be supplied within or adjoining the major urban centres. A lesser number of smaller multi-unit dwellings will be required for younger families and singles, particularly those working within the area and who have not yet had children. Rental and purchase options are important to attract and retain this group. Around 20% of new net demand will be from households of 3 or more people, including younger and more mature families with children, and shared households. The population is ageing. The median age is projected to rise from 41 in 2006 to 47 in As such, there is also likely to be increasing demand for various forms of age-appropriate or age-restricted housing, including an additional: 203 high care places (Nursing Home places) by 2031; 176 low care places (Hostel places) by 2031; 1,800 smaller more manageable dwellings for older people well-located and preferably walkable to transport, shops and services. These include small clusters of villas, townhouses, lifted apartments, granny flats and small attached dual occupancies in conventional residential areas, a higher proportion of which need to be adaptable per AS4299; 460 Self Care Units/Independent Living Units in age-restricted developments, for example, retirement villages developed under SEPP Senior Living. There appears to be a shortfall in high care and slight oversupply in low care places in Byron currently. There also appears to be an undersupply in selfcare units for seniors living. BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 5

10 2.3. Affordable Housing: a Serious Issue for Byron Anyone Could Need Affordable Housing There is a common misconception that affordable housing means public or social housing. However, many of the residents facing affordability problems in Byron Shire would fall outside the eligibility criteria for public housing, or would be unlikely to meet criteria for priority housing allocation. Given the serious and growing affordability issues facing the Shire, the need for affordable housing could affect most people in the Byron community at some stage in their lives. This could be a young adult who wants to live near where they grew up, an aging parent who needs to move closer to their family, or through an unexpected change in life circumstances like an accident, illness or divorce. Even a good single wage or salary is not enough to buy or rent affordably for most residents in Byron Shire who are not already homeowners. Housing affordability thus affects our ability to maintain social diversity in our communities. However, lack of affordable housing to rent or buy not only affects the quality of life of individual families, who may be sacrificing basic necessities to pay for their housing. It also has a serious impact on employment growth and regional economic development. The loss of young families and workers in lower paid essential service jobs is bad for local economies, and is contributing to labour shortages in Byron Shire. This is contributing to a lack of labour supply among key workers who are essential to various services including childcare, aged services, health care and hospitality, but whose wage does not allow them to access rental or purchase housing close to where they work Affordability in the Context of Byron Shire Affordability is a critical issue in Byron Shire, and likely to become far more serious over the next 25 years. Over the past decade, higher income families from Sydney and to a lesser extent Victoria have displaced younger people and lower income Bryon residents, who typically move to other more affordable areas of the Far North Coast and to Queensland. There has been a steep increase in rental and purchase prices in the Shire over the past 5 years 6

11 - 18% in real terms compared with only 5-6% for NSW, with the latter being heavily influenced by the Sydney Market. It is important to draw a distinction between low cost housing and affordable housing. The former relates to the relative price of housing (e.g. compared with other areas in absolute terms), whereas affordability relates to the ability of residents of a particular area to rent or purchase housing without compromising their ability to afford other essentials, like clothing, transport, food, costs associated with schooling and the like. Low cost will not always mean affordable. The term housing stress is generally used to describe low- to moderateincome households who are at risk of after housing poverty as a result of meeting the cost of their housing. Such a low- to moderate-income household is said to be in housing stress when it is spending more than 30% of gross household income on housing costs, and in housing crisis when paying more than 50% of income on housing. Some key trends in housing cost and affordability are summarised below and provided in detail in the Background Report. Housing costs in Byron Shire are significantly greater than the NSW average, particularly for housing being purchased. This is despite the strong influence of Sydney on the NSW housing market. o o The median purchase price of a home in Byron Shire was much higher than the NSW median in 2007 ($515,000 compared with $357,000 for NSW); Rental costs were also higher than average in Byron Shire, with median rental for a 3 bedroom home $350 for per week compared with $311 for NSW. Housing affordability is a far more serious issue in Byron Shire than in NSW, and particularly compared with surrounding LGAs. o o 559 low-income purchasers were in housing stress (62% of all low-income purchasers compared to 43% for NSW). Of these 30% were paying more than 50% of gross household weekly income on their mortgage (21% for NSW), and so could be seen as being in housing crisis. A further 295 moderate income purchasing households were in housing stress (49% compared with 46% for NSW); BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 7

12 o o 1,188 low-income renting households were in housing stress (63% of all low-income rental households compared with 43% for NSW), with almost one-quarter paying more than 50% of their income on rent; A further 136 moderate-income renting households were in housing stress (21% compared with 11% for NSW). Further, only 1.8% of Byron Shire households are in public housing compared with around 5% for NSW. There is significant competition for public housing in the Shire, particularly among lone person households and older single people and couples. Importantly, a total of 1,324 low to moderate-income renting households in the Shire are in housing stress, but only 295 households are on the waiting list for public housing. This means that over 1,000 low- to moderate-income renting households in serious housing need are not on the waiting list. It is likely that many of these households would fall just above the income threshold for public housing and thus be ineligible, or be aware that they would be unlikely to be allocated a home for some years (at least 5 years and more likely 10 years depending on housing type). Modelling carried out by JSA also indicates that home purchase and rental are generally very unaffordable to a majority of existing residents of Byron Shire. o o Purchase of a first quartile dwelling (those in lowest 25% price range) would result in housing stress for around 80% of all households in Byron. If 50% of household income 3 is taken as the outer limit of ability to pay off housing, then around 70% of all households in Byron would be excluded from the purchase market as first home buyers, even if they were to purchase a first quartile dwelling. Low to moderate-income households would be generally excluded from affordable purchase in Byron Shire unless they already had substantial capital. In another measure, based on spending 30% of household income on housing, purchase of a median priced dwelling in Byron would be accessible to the upper 5% of households only. 3 As wealthier households have higher levels of disposable income after purchase of necessities. 8

13 Using 50% of household income in repayments as the benchmark, a median dwelling would be accessible to the upper 25% of households only. Again, low- to moderate-income households would be excluded from purchasing a median priced dwelling. o o o Similarly, rental of a first quartile one bedroom flat or unit would result in housing stress to the bottom 15% of households when housing stress is defined as spending more than 30% of household income on housing. For a median two bedroom house, rental would be generally unaffordable to around two thirds of households in Byron, and would place all households in low to moderate incomes in housing stress. Using 50% of income spent on housing costs as a measure of severe housing stress or housing crisis, rental of a first quartile three-bedroom house would be inaccessible to around 40% of households in Byron (ie. to all low-income earners in Byron). Affordability is thus a very serious and growing issue for the Byron community. Those most affected are likely to be: Older, asset poor renters; Young people in the process of household formation; Low to moderate income workers, including key workers in sectors including health, education, community services and hospitality; Sole parent families; People on fixed incomes including residents with a disability and those with special needs; People whose life circumstances change unexpectedly including those who face divorce or unemployment/underemployment. BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 9

14 3. Recommended Strategies Overview It is recommended that: 0.1 Council adopt the 19 key strategies to diversify housing stock to meet changing needs, and to maintain and increase affordable housing supply. Rationale These strategies have been developed with reference to Council s earlier Affordable Housing Strategy for Urban Areas (BSC 2002), additional research conducted in the preparation of Council s Affordable Housing Strategy: Background Report (JSA 2008), and consultation with Council staff and elected representatives throughout June 2008, as well as review of previous community consultation and other documents. Note that a matrix that shows the alignment between the previous Strategy and the current Paper is provided at Attachment D. Many of the strategies proposed here from the 2002 Strategy have been included and developed further. However, upon review, some strategies have been found to be less effective compared with other measures or no longer relevant (e.g. they refer to legislative provisions or policies that are outdated). Strategy 1 Continue to Implement a Sustainability Framework 1.1 It is recommended that Council confirm its commitment to sustainable development, socially, environmentally and economically, including to supporting social diversity through actively seeking to increase housing choice in well-located areas close to transport, services and retail opportunities. 10

15 Rationale Council has demonstrated an awareness of and commitment to principles of sustainability for some years, and has taken a leadership role in this regard. The following framework presents a way of thinking about sustainability in the context of urban development. This encompasses social, economic and environmental considerations, the so-called three-legged stool of social sustainability. 4 These considerations are highly relevant to the strategies recommended later. Simply stated, social sustainability is concerned with meeting agreed social goals in an environmentally and economically efficient way, balancing the needs of current and futures populations. Concepts related to ESD regarding humans in their diverse environments are highly relevant to Council s consideration of the Public Interest. Figure 3.1: Sustainable Practices in Residential Development 5 Source: JSA Adapted from Yip (2005) 4 See for example S. McKenzie (2004), Social Sustainability: Toward Some Definitions, Hawke Institute for Sustainable Societies. 5 Adapted from Sustainable Development: A Diffusion of Innovation Perspective, Asian Planning Schools Association Conference Paper 2005, Emily Yip Wai Leng, PhD Candidate. BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 11

16 Strategy 2 Confirm Council s Level of Involvement in Affordable Housing and Develop an Affordable Housing Program Byron Council has demonstrated a clear commitment to affordable housing, and it is further recommended that: 2.1 Council adopt the strategies recommended in this Affordable Housing Options Paper and progressively implement these strategies in the short, medium and long term. 2.2 Council develop an Affordable Housing Program and implement appropriate strategies, mechanisms, administrative arrangements and management partnerships set out in the strategies below. Rationale Local government s involvement in affordable housing can be thought of as a continuum, where it chooses from a suite of options. As such, Byron Council needs to make some decisions about what level of involvement it considers to be appropriate and feasible over the next 25 years. This ranges from: A less direct level of engagement with issues this will include Council involvement in activities like research, awareness raising and advocacy; A facilitative role in affordable housing - including using planning and regulatory functions to increase supply and/or limit the loss of stocks of affordable housing; A more direct level of Council involvement - including entering into partnerships to create affordable housing on Council-owned land, use of Council resources to leverage affordable housing resources, etc. Byron Shire Council has already shown its commitment to affordable housing at each of these levels: It has committed to prepare this and previous affordable housing strategies, and has supported an active Affordable Housing Committee for some years. It has decided to take a facilitative role by including affordable housing provisions in its LEP and preparing relevant DCP provisions. Council has recently decided to take a more active or direct role in the provision of affordable housing by resolving to dedicate Council-owned 12

17 land to the development of affordable housing at Station Street Mullumbimby and retain its Suffolk Park Caravan Park for long-term residential uses. A range of strategies are recommended below for Council s adoption. The continuum of policy options shown at Attachment E provides examples of different levels of involvement that Councils can have in affordable housing at the local level. Strategy 3 Inclusion of Appropriate Objectives into Revised LEP It is recommended that Council: 3.1 Include additional aims for affordable housing and aged and disability housing in the new LEP as set out in Attachment A. These aims are related to increasing housing choice in terms of type, tenure and price point. They focus the two key housing issues identified for Byron Shire - the needs of an aging population over the next 25 years and significant problems associated with housing affordability that is unlikely to be addressed by the private market. 3.2 Include related objectives and housing types in relevant zones under the new LEP. These are recommended to be included in residential zones (R2 Low Density Residential and R3 Medium Density Residential) and those where residential development (particularly multi-unit dwellings) is permitted (B2 Local Centre and B4 Mixed Use), also set out at Attachment A. Strategy 4 Actively Seek to Diversify Type of Stock to Meet Changing Demand It is recommended that: 4.1 Council include objectives in the new LEP that strongly encourage diversification of housing type, tenure and price point through appropriate zoning and development controls. 4.2 Council, through its zoning and development controls, support the development of smaller more manageable dwellings close to transport, services and facilities in major urban centres, and within localities with a flat to moderate topography, and that allow for social and physical integration with the surrounding urban areas. Such dwellings include BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 13

18 villas, dual occupancies, low-rise apartments, shop-top housing, secondary dwellings and townhouses. 4.3 Council give priority to urban consolidation through redevelopment and in-fill development that facilitates efficient use of existing community, health and support services, retail opportunities and physical infrastructure. This includes appropriate use of R3 Medium Density Residential, B2 Local Centre and B4 Mixed Use zones to encourage well-located multi-dwelling housing stock to meet the needs of an aging population; 4.4 Council note JSA s identification of precincts suitable for smaller, more manageable dwellings and sites for age-restricted development (within 400 metres of the main commercial hubs ) including smaller SEPP (Senior Living) 2004 developments included in Sections 4.2, 4.4 and 4.5 in Part B of this Paper, and endorse related strategies set out below; 4.5 Council note JSA s identification of sites that have the potential to accommodate larger SEPPSL developments (Retirement Villages and Aged Care Facilities) with multi-level care set out in Section in Part B of this Paper, and endorse related strategies set out below; 4.6 Council include the sites identified below in Schedule 1 of its revised LEP and subsequent LEPs for the purpose of Retirement Villages and Aged Care Facilities: Short-term sites (0-5 years or current revision of LEP) Lot 7 DP Broken Head Rd Suffolk Park (Suffolk Park Site 5 per Map 4.19 in Annexure 1); Lot 60 DP Beech Drive Suffolk Park (Suffolk Park Site 2 per Map 4.20 in Annexure 1) note that this is vacant Department of Education site; Lot 4 DP (un-named access road to the Sewerage Treatment Plant) (Byron Bay Site 1 per Map 4.5 in Annexure 1) note that this is a Council-owned site. 14

19 Medium-term sites (5+ years or subsequent revisions of LEP) Lot 188 DP Azalea St (Mullumbimby Site 3 per Map 4.20 in Annexure 1). Note this is the hospital that is likely to become redundant to its current use in the next 5 years. 4.7 Council note that such sites or portions of sites need to have sufficient land take to allow for development of an Aged Care Facility, at least 70 self-care units and associated recreational and community facilities. Again, the recommended sites are well-located in terms of services, shops and facilities (within 400 metres), topography, and ability to have a positive interface with the existing urban areas. 4.8 Council include the sites identified below in Schedule 1 of its revised LEP and subsequent LEPs for the purpose of including Manufactured Housing Estates /Caravan Parks: Short-term sites (0-5 years or current revision of LEP) Lot 100 DP (Suffolk Park Site 12 per Map 4.5 in Annexure 1) existing caravan park that requires existing caravans and mobile homes and facilities to be upgraded for long-term use as affordable housing; Lot 22 DP (Mullumbimby Site 7 per Map 4.5 in Annexure 1) site at the end of Stuart St (playing fields site) note this is a Council owned site and thus favoured. A portion could be used for this purpose and a portion for other affordable housing development as noted below; Lot 1 DP (portion of Showground Site) (Bangalow Site 1 per Map 4.20 in Annexure 1) appears to be Crown Land, so only appropriate with covenants and long-term leases for residents to protect tenure; Medium-term sites (5+ years or subsequent revisions of LEP) Lot 1 DP (portion of the new Sewage Treatment Site (Mullumbimby Site 9 per Map 4.5 in Annexure 1) Lot 1 DP (Old Sewage Treatment Site) (Byron Bay Site 5 per Map 4.5 in Annexure 1) BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 15

20 4.9 Council ensure that at least 50% of sites in these caravan parks or MHEs are allocated to long-term/permanent residents; 4.10 Council require that 10% of new dwellings across Byron Shire be adaptable per AS4299 in R3, B2 and B4 zones in developments of more than 10 dwellings Provide for 20% of all medium-density dwellings within R3, B2 and B4 zones to be adaptable per AS4299 in multi-unit developments of 5 dwellings or more Council investigate development partnerships with a not-for-profit provider on Council-owned land including under SEPPSL to encourage the development of more affordable housing options for older, frail aged people as well younger people with disabilities Council significantly increase opportunities for the development of attached and detached granny flats/garden flats, dual occupancies, secondary dwellings and other more innovative housing forms, including LEP proposals set out at Attachment A. Rationale The projected aging of the population of Byron Shire over the next 25 years and the likelihood that most of the net increase will be in smaller and largely older households, provides a strong imperative for Council to encourage the development of a mix of dwelling types including well-located multi-unit housing and well-located smaller, more manageable dwellings as a significant proportion of new urban development. In particular, increasing densities around the main urban centres close to retail and services is an environmentally efficient way of achieving important social outcomes. Also recommendations about increasing affordable housing stock through offering developers opportunities for density bonuses below should be noted. These strategies meet the twin objectives of diversifying housing stock to meet the needs of older people and those with a disability as well as increasing resources for Council s proposed Affordable Rental Housing Program. 16

21 Strategy 5 Increase Affordable Rental Housing through Development Partnerships on Council and Other Publicly Owned Land 5.1 It is recommended that Council include the sites identified below in Schedule 1 of its revised LEP and subsequent LEPs to include provision for affordable rental housing: Short-term sites (0-5 years or current revision of LEP) Lot 10 DP Station Street (Mullumbimby Site 10 at Map 4.5 in Annexure 1) - note that this is Council-owned land that Council has already resolved to allocate as an Affordable Housing Partnership Site (a recipient site where housing is constructed) pending more detailed more detailed feasibility work. Lot 2 DP Bayshore Drive (Byron Bay Site 2 at Map 4.5 in Annexure 1). Note that this site is zoned industrial and should be investigated for mixed use on a portion of the site (e.g. some light industrial, home business/studios), and would also be ideally suited to aged accommodation due to its proximity to a shopping centres with GP and pharmacist. Council may also investigate selling this site, with a portion of the proceeds dedicated to construction of affordable housing on a recipient site. Medium-term sites (5+ years or subsequent revisions of LEP) Lot 468 DP Coolamon Scenic Drive (Mullumbimby Site 8 at Map 4.5 in Annexure 1) note that this is the current Council Depot that may be considered if it becomes redundant to its current use. A Department of Lands site adjacent to this may also be considered. However, these sites are steep and may not be suited to residential development. Longer-term sites Lot 1 DP Valances Rd (Mullumbimby Site 9 at Map 4.5 in Annexure 1) this is a large site where a portion will be used for the new Sewage Treatment Plant. However, it would be highly suited to residential development in the longer-term, when the provision of infrastructure to connect the site to the existing town will be more feasible. BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 17

22 Lot 1 DP (Old Sewage Treatment Site) (Byron Bay Site 5 per Map 4.5 in Annexure 1) as noted above, part could be developed as a caravan park in the medium-term and part for affordable housing in the longer-term. 5.2 Council consider sale of Lots 3 & 7 DP 1623 Manfred St Belongil Beach (Byron Bay Site 6 at Map 4.5 in Annexure 1) to fund affordable housing construction on other Council-owned sites (e.g. the designated Station Street affordable housing site). 5.3 Council actively seek to enter into beneficial development partnerships with appropriate private, public and/or communitysector partners to develop affordable housing units on Council-owned land identified for affordable housing, particularly those which allow for the best use of Council resources including leverage through debtequity financing. 5.4 Council also note other public land identified by JSA as part of its land audit that may be suitable for affordable housing in the short-, medium- or long-term, and determine which site are most feasible for use taking into account recommendations in Section at Table 4.4 in Part B of this Paper. Note that some of these are identified as suitable to caravan parks, MHEs and aged accommodation above. 5.5 Council actively explore affordable housing partnerships with owners of government land identified, including: Discussions with these agencies on potential development, redevelopment or reuse of sites identified; Consider rezoning to allow for some form of residential development, accompanied by a dedication of proportion of housing units created as affordable housing that captures additional private benefit or where a planning incentive may apply through a Planning Agreement (see below); Note that preliminary analysis indicates that potential sites include the following, and that these may be included in Schedule 1 of the revised LEP for inclusion of affordable rental housing: Short-term sites (0-5 years or current revision of LEP) Department of Housing Sites in Browning St Byron Bay and Morrison Ave Mullumbimby; 18

23 Bangalow Site 1 and Suffolk Park Site 2 discussed above (Refer Map 4.20 in Annexure 1). Medium-term sites (5+ years or subsequent revisions of LEP) Department of Housing Sites in Booyun St Brunswick Heads, Gordon St Byron Bay and Collins St Bangalow. Mullumbimby Site 3 as discussed above (refer Map 4.20 in Annexure 1). 5.6 Council note sites that have been identified by JSA as potentially suitable for special uses including MHEs/Caravan Parks and Seniors Living above, and actively pursue development and management/service partnerships with government, community and/pr private sector partners. Rationale Sections and of Part B of this Paper report on the outcomes of JSA s audit of Council land and other publicly owned land that would be suitable to the inclusion of affordable rental housing. Due to the limited impact that Council can realistically have on affordable purchase housing in the context of macro-economic and other factors noted in the Background Report, it is proposed that Council s strategies are mainly directed toward maintaining and increasing the amount of affordable rental stock for very low-, low- and moderate-income earners in Byron Shire. A range of targeted mechanisms to achieve a modest but important increase in affordable rental stock form the cornerstone of strategies proposed in this Paper. One of the most effective ways of guaranteeing an increase in the supply of affordable rental housing is through identifying surplus Council land that can be used for this purpose, and dedicating this land for use as affordable rental housing (e.g. through as Council resolution or inclusion in Schedule 1 of the LEP). This also provides evidence of Council s commitment and leadership in this area, particularly when dealing with the private sector and potential public sector partners/funders. Council can resolve to dedicate all or part of the land identified to affordable housing, or can decide to sell some of the land or units developed to fund the development of affordable housing units on the site. Land owned by other BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 19

24 government agencies that is redundant for its current use or likely to become so is also a potential source of land for affordable housing partnerships. Development can be carried out by Council acting alone, or in partnership with a private sector developer and/or with a local or regional Community Housing Association. This requires a feasibility study on cost, yield, design etc according to a preferred Masterplan. Council may also consider putting out an expression of interest to look for an appropriate community and/or private sector development partner following consideration of development options. Affordable housing units created will generally be managed on behalf of Council by a registered Community Housing provider, who may also raise debt finance to leverage public land dedicated and/or units created, increasing the number of units that can be built and thus making the most effective use of Council resources. Potential providers include North Coast Community Housing, who already manages affordable housing dwellings in the Shire. Importantly, Council can also use this land as a recipient site where funding obtained through other strategies such as planning incentives and benefits capture set out in strategies below can be used to develop land and build affordable housing units. Byron Shire Council has recently decided to take a more active or direct role in the provision of affordable housing by resolving to dedicate Council-owned land to the development of affordable housing at Station Street Mullumbimby. JSA has also conducted an audit of land owned by Council and other government agencies in the Byron Shire. We have recommended suitable sites in consultation with Council staff and elected representatives, and through detailed site and desktop analysis to examine current uses, suitability for future residential development, etc. As well as the Stations Street site, JSA has identified a number of other parcels with potential for short-, mediumand long-term use as affordable housing, as noted above. Council has commenced preliminary design and feasibility work in relation to several of these sites, with Station Street site likely to be the first dedicated to affordable housing. 20

25 Strategy 6 Developer Incentives in Selected Localities, Precincts and Sites a) Increase Affordable Rental Housing Through Developer Incentives in Council s Planning Agreement Policy 6.1 Council note the developer incentive mechanisms provided for in its Planning Agreement Policy (Attachment C), adopted by Council at its meeting of 26 March 2009, and specifically: Provision for developer incentives in the form of density bonuses in precincts identified in Maps 3.1, 3.2, 3.3 and 3.4 below (NOTE: Alternative presentations of Maps 3.1, 3.2, 3.3 and 3.4 below are provided in Option 2 at Attachment A); Provision for the capture of a reasonable and feasible proportion of additional private benefit ( windfall profit ) created through the rezoning and/or approvals process on Greenfield, Brownfield and larger residential sites in order to meet current and projected housing need that in part arises from development and redevelopment; Provision for developer incentives in other appropriate locations per Council s adopted Planning Agreement Policy. (It is noted that in addition to any such voluntary Planning Agreement, contributions under Section 64 of the Act will also be required). 6.2 Council note that a contributions for this purpose may be in the form of land dedicated free of cost, payment of a monetary contribution, the provision of any other material public benefit (for example dwellings dedicated free of cost to Council for use as Affordable Housing and where Council holds title to the land or units so dedicated), or any combination of these, and that the form of the contribution is ultimately at the discretion of Council (see Attachment B for the adopted Planning Agreement Template). Such contribution will be in addition to any contribution required under Section 64 of the Act. 6.3 Council note the methods of calculation for contributions set out in the Planning Agreement Policy and ensure that these are implemented and monitored so as to allow for fairness, reasonableness, feasibility and transparency in its negotiations with developers and a high standard of public accountability in the development of Planning Agreements. BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 21

26 6.4 Council put in place stringent and transparent accountability mechanisms regarding the continued use of such contributions for the purpose of Affordable Housing, including separate accounting procedures and annual monitoring and public reporting processes as detailed in the proposed Planning Agreement Policy (Attachment C). 6.5 Council retain title to or ownership of land, dwellings or other material benefits in perpetuity for use as Affordable Housing under its Affordable Housing Program. b) Inclusion of Developer Incentives in Future EPIs 6.6 It is recommended that Council also include provision for developer incentives in the form of density bonuses in future LEPs as set out in Attachment A of this Paper, including: In the revised LEP as set out in Maps 3.1, 3.2, 3.3 and 3.4; Within four zones more generally in the medium-to long-term following review of the impact of the initial implementation of this mechanism: R2 Low density Residential R3 Medium Density Residential B2 Local Centre B4 Mixed Use Council also consider other precincts or sites not identified in the Maps 3.1, 3.2, 3.3 and 3.4 below and at Attachment A, where such sites or precincts are consistent with its adopted Planning Agreement Policy. 6.7 Council develop detailed controls within the Affordable Housing section of its new DCP to support developer incentives in relevant precincts. These should include controls related to protection of amenity, environmental and cultural values, and desired future character, as well as those discouraging over-capitalisation in a single dwelling when taking up a density bonus (i.e. building an overly large principle dwelling rather than smaller multi-unit dwellings with the additional FSR negotiated). Examples of how case study sites or precincts may be developed should also be provided. 22

27 Map 3.1: Floor space ratio map - Bangalow BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 23

28 Map 3.2: Floor space ratio map Brunswick Heads 24

29 Map 3.3: Floor space ratio map Byron Bay BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 25

30 Map 3.4: Floor space ratio map - Mullumbimby 26

31 c) Provision for Benefits Capture in Greenfield Sites, Brownfield Sites and Larger Developments 6.8 Council note provisions for developer incentives in relation to large-scale developments or redevelopments in its Planning Agreement Policy (Attachment C), adopted by Council at its meeting of 26 March 2009, and specifically: Implementation of such incentives in Greenfield and Brownfield sites currently under investigation for rezoning, where a rezoning is proposed by a developer, or which are otherwise subject to large-scale development so as to capture a reasonable proportion of windfall profit created through the planning and approval process; That this will principally apply in R2 Low Density Residential, R3 Medium Density Residential zones and B4 Mixed Use, and in other zones at Council s discretion; That Council note the sites identified as appropriate for such benefit capture in Section 4.4 and maps at Annexure 1 of Part B of this Paper; 6.9 That Council not be limited to these sites, but consider other sites on a case by case basis where a developer proposes a Planning Agreement that provides for a contribution to Affordable Housing provided these are consistent with its Planning Agreement Policy; 6.10 That larger sites already zoned for urban purposes or in zones where multi-unit housing is permitted (i.e. sites with a yield of 20 or more dwellings or an area of at least 4,000 m 2, whichever is the least) may also be the subject of a Planning Agreement under Council s adopted Policy d) Developer Incentives (Density Bonuses) in Greenfield, Brownfield and Larger Sites Council also note that the following provision apply under its adopted Planning Agreement Policy: 6.11 reenfield, Brownfield and larger sites currently under investigation for rezoning or where a rezoning is proposed BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 27

32 by a developer or larger zoned sites can also be considered for a density bonus (additional FSR) in addition to any other contribution agreed; 6.12 Sites identified as appropriate for such benefit capture in Section 4.4 and maps at Annexure 1 of Part B of this Paper. Strategy 7 Implementation of Developer Incentives and Benefits Share through Voluntary Planning Agreements 7.1 It is noted that Council adopted the Planning Agreement Policy and Planning Agreement Template at its meeting of 26 March 2009 (see Attachments B and C). Strategy 8 Set Up Appropriate Accountability Procedures 8.1 It is recommended that Council set up an Affordable Housing Program with a range of appropriate accountability structures and processes in accordance with the Act, and as set out in its Planning Agreement Policy at Attachment C; 8.2 Council hold any monetary contribution paid in accordance with a Planning Agreement for the purpose of Affordable Housing, together with any additional amount earned from its investment, for the purpose for which the payment was required and apply it towards the provision of Affordable Housing within a reasonable time. Such administrative provisions also apply with respect to land dedicated or any material public benefit contributed toward Affordable Housing in accordance with a Planning Agreement, and in compliance with relevant provisions of the Act as set out in the adopted Planning Agreement Policy at Attachment C. 8.3 That cash, land or material public benefits contributed under a Planning Agreement be separately accounted for by Council, and be the subject of annual public reporting as to 28

33 the status of all contributions received by Council under Planning Agreements. 8.4 The public purpose to which all contributions have been made be subject to a separate accounting and reporting process. 8.5 Council develop a Plan for the expenditure or use of contributions made to its Affordable Housing Fund, reviewed annually, which will identify priorities for the expenditure and ensure that contributions collected are applied against these public purposes within a reasonable time. 8.6 That the status of works and regular review of this Plan will be the subject of annual public reporting by Council. Strategy 9 Monitor Outcomes of Proposed Strategies It is recommended that: 9.1 Council regularly review and update the needs analysis contained in its Affordable Housing Strategy: Background Report to ensure that it stays informed about housing needs and issues in the LGA. 9.2 Council establish KPIs to monitor progress and evaluate effectiveness of policies (e.g. changes in affordability, housing stress, more manageable dwellings, the creation of affordable rental stock through its planning instruments, etc); 9.3 Council monitor the outcomes of strategies as they are implemented from this Affordable Housing Options Paper and related Affordable Housing Program on an annual basis and refine the strategies contained in this Paper as appropriate; 9.4 Incorporate these KPIs into formal Council reporting processes including its Annual Report, review of strategic plans and structure plans and State of Environment Report. BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 29

34 Strategy 10 Actively Pursue Best Use of Resources Through Development and Funding Partnerships It is recommended that: 10.1 Council enter into strategic development partnerships with the private, community and public sector where feasibility studies indicate that this is appropriate, ensuring that the full range of options are explored to make best use of Council s scarce resources Council give priority to development partnerships involving a local or regional Community Housing Association where appropriate, including taking advantage of such organisations charitable status and ability to leverage Council resources through debt-equity financing Council actively explore and, where appropriate, make or support applications for government funding for affordable housing projects, including the NSW Community Housing Growth Strategy and the National Rental Affordability Scheme Council where appropriate consider proposals for increased density involving designated affordable housing projects, including those put forward by the NSW Department of Housing, Community Housing providers, and other public, community and private sector approved affordable housing projects Council investigate the feasibility and costs of a Council fee waiver, reduction or deferral for designated affordable housing projects. Strategy 11 Develop Management Partnerships It is recommended that Council: 11.1 Create an Affordable Housing Management Partnership with a local or regional registered Community Housing Association to ensure effective and efficient 30

35 management of Affordable Housing stock created through the strategies proposed above In conjunction with this Community Housing Association, Council negotiate and develop the following: Appropriate arrangements for the management of stock created including lease agreements, memoranda of understanding, etc; Appropriate development and financing models for the use of resources dedicated by Council and/or achieved from implementations of mechanisms outlined above. Strategy 12 Negotiate an Affordable Housing Allocations Policy for Stock Created It is recommended that Council: 12.1 Negotiate an appropriate Affordable Housing Allocations Policy in consultation with its tenancy manager (preferably a registered Community Housing Association) in relation to stock created through its Affordable Housing Program Adopt the following income benchmarks for two sub-groups within the affordable housing target groups: o o For households within the lowest two income quintiles (lowest 40% of household income), rental would be set such that no more than 30% of gross household income is spent on rent; For households earning between the 40 th decile and up to 120% of median household income, affordable housing rental would be set at a discount market rent that would keep the household under the housing stress threshold Consider the negotiation of Local Allocations Criteria in addition to those normally applied by the preferred Community Housing Associations, for example key worker status, age, special needs, or priority to residents with a long term association with Byron Shire. BYRON SHIRE COUNCIL AFFORDABLE HOUSING OPTIONS PAPER 31