Page 1 Page 2 Page 3 Page 4  The Policy will provide long term, sustainable supply of affordable housing renewed on a regular basis  With suitable incentives the property industry can provide up to 40,000 affordable houses in the Sydney Metropolitan Area in the first 10 years of operation.  The policy is simple to implement through an amendment to the 2009 State Environmental Planning Policy (Affordable Rental Housing)  The State Environmental Planning Policy (Affordable Rental Housing) 2009 should be updated to allow 20% extra floor space and / or associated height to existing maximums in planning instruments, enabling greater stock delivery. The 20% target would apply to any development of over 20 dwellings and apply to any residential or mixed use zone.  An additional 20% height and floor space area is a simple and reasonable incentive   Clause 13(2) of the SEPP should be amended to: ‘’The maximum floor space ratio and height for the development to which the clause applies is the existing maximum floor space ratio and height for any form of residential accommodation permitted on the land on which the development is to occur, plus 20%.’’   Currently the formula contained in the ARHSEPP is worded in such a way that the portion of affordable housing required to gain the uplift begins to ‘’eat away’’ at the portion of regular ‘market’ housing, often making the development unviable.  The definition of affordable housing must be updated  The definition of ‘’Affordable Housing’’ is inconsistent across local, state and federal government. The National Rental Assistance Scheme (NRAS) definition “… which provides people on low to moderate incomes with an opportunity to rent homes at a rate that is at least 20 per cent below market value rent."  The National Rental Affordability Scheme definition is considered to be the most appropriate definition. •  NRAS is a Commonwealth affordable housing scheme which provides people on low to moderate incomes with an opportunity to rent homes at a rate at least 20% below market value rent. •   NRAS dwellings may remain in the scheme for up to 10 years.  The 10 year tenure period can be applied via a caveat on the property. The property can be sold to other parties but must be used for affordable housing until the 10 years is up, when the owned may renew the property or on-sell.  Eligibility requirements are identified in an existing government program – the National Rental Assistance Scheme  The ‘initial household income limit’ eligibility requirements should the NRAS Sydney Only requirements that set household income limits related to household composition (see table).  NRAS income eligibility requirements are outlined below. These are updated on an annual basis. The Sydney Only income eligibility requirements are considered the most suitable.  Note: The income threshold should be indexed annually to the Sydney average salary growth index.  This approach will ensure a large number of affordable dwellings will be brought to market sooner  The potential provision of new Affordable Homes each year in the Sydney Metro in both infill and greenfield locations could result in up to 40,000 homes over 10 years.  The scale of housing delivery will attract Institutional investment  The scale of the housing delivery and the guaranteed 10 year rental income is likely to establish a new asset class for institutional investors like superannuation organisations. Many countries in the world including United Kingdom, United States, Japan and Germany have developed this approach.  Attracting investment of this type is essential to ensure the sustainable, long-term success of this program.  Provision of affordable housing through inclusionary zoning or additional developer levies do not attract long- term institutional investment, are not financially sustainable in the long term and deter growth and investment in the property development industry as they drive up the cost of housing production.  Management of stock and tenants can be undertaken by Registered Community Housing Providers  The affordable housing would be managed by Registered Community Housing Providers and prequalified property managers. Management would be assessed by credentialed independent auditors.  The Policy should be operational from 1 January 2018 to minimise impacts upon existing projects and rezoning proposals  The amended ARHSEPP should become operational from 1 January 2018 after the District Plans are finalised and new amalgamated councils have been elected. The ARHSEPP should only apply to Development Applications lodged after the commencement date and must not apply retrospectively.  Industry and government must run a trial program and government sites must include 30% affordable housing  A trial across various private and government sites in different locations across Sydney should be identified to enable SEPP modifications to be tested.  Clear leadership from government is needed, through mandating a minimum 30% affordable housing target for all redevelopment of government-owned sites. Household composition Initial household income limit ($) 2016–2017 One adult $59,900 Sole parent with one child $77,900 Sole parent with two children $95,900 Sole parent with three children $113,900 Couple $79,400 Couple with one child $95,300 Couple with two children $111,200 Couple with three children $127,100 10 POINT PLAN 1 5 8 9 10 6 7 2 3 4