More affordable homes to be delivered faster

The Minns Labor Government is removing unnecessary roadblocks to the delivery of more affordable homes in NSW with changes to the threshold for Infill Affordable Housing projects being sent to the Independent Planning Commission.

The Infill Affordable Housing Bonus scheme was introduced in December 2023 and offers developers additional building height and floor space, if 10 per cent of the building is retained as affordable housing for at least 15 years.

The scheme has received strong interest with 70 Secretary Environmental Assessment Requirements (SEARs) having been issued already.

If all of these proposals were approved, they would produce over 20,000 homes, of which 4,600 would be affordable.

As the scheme falls under a State Significant Development pathway, one objection from a local council automatically sends the project to the IPC, a re-assessment process that can add up to nearly 130 days.

The IPC was established to make decisions on large and contentious development applications, not to reassess a proposal for a residential development.

As the state works towards the ambitious targets under the National Housing Accord and to boost affordable housing, we cannot afford to potentially add more than four months to the planning assessment timeframes.

Delivering more well-located and affordable homes close to transport, jobs and community amenity has been a priority for the Minns Government, so young people, families and workers have somewhere to live.

Following the changes, projects will still be placed on public exhibition, communities and councils will have their say and they will be thoroughly assessed through a merit-based process.

Infill Affordable Housing projects that are deemed highly contentious and those with a declared political donation will still be referred to the IPC and other existing thresholds still apply.

The projects that are already sitting with the IPC will continue through that process, however from today, no further infill affordable housing project will be referred to the IPC following an objection from a council.

For more information on the Infill Affordable Housing Bonus Scheme, visit In-fill affordable housing.

Minister for Planning and Public Spaces Paul Scully said:

“Housing should not be controversial– it should be the bread and butter of our planning system.

“Almost a year later to the day, since we introduced the Infill Affordable Housing Scheme, we’re going a step further to make sure that planning system is working as quickly as it should be.

“In an environment where we need to get more market homes and more affordable homes into our housing mix, I don’t believe these projects warrant referral and I don’t believe that the public is better served by having them referred.”