Affordable Rental Housing Network
CITY OF PARRAMATTA Affordable Rental Housing Network
264 City of Parramatta Affordable Rental Housing Network
Having enough affordable rental housing ensures that people can afford to live close to places that contain employment, education, services and recreational opportunities.
Defining our Affordable Rental Housing Network:
Affordable rental housing is rental housing that is managed by an accredited Community Housing Provider (CHP) on behalf of government, a non- government organisation or a private owner, and is provided to people on very low to moderate incomes at an affordable rent. Regulations around how rent is set can vary, but most offer rent at 80% of the market- valued rent of the property.
CommunityCommunity InfrastructureInfrastructure StrategyStrategy 20192019 265 Affordable Rental Housing Network
AFFORDABLE RENTAL HOUSING NETWORK
Current What is provided Situation now? 8 Council owned Affordable Rental Dwellings 690 Non-Council owned Affordable Rental Dwellings
KEY: Council owned Non-Council owned Note: Council's 8 affordable rental dwellings are all located in the Parramatta CBD.
Across City of Parramatta, there were 698 affordable rental dwellings in 2016. This figure includes dwellings owned or managed by Community Housing Providers (CHPs), dwellings provided via the Affordable Rental Housing SEPP 2009, and dwellings owned by Council.
City of Parramatta Council Local governments have not Councils have responsibility for (Council) owns eight affordable traditionally played a large role the “maintenance and provision rental dwellings that are in the provision of affordable of affordable housing” under managed by a CHP and rented housing prior to the last decade. the Environmental Planning and at subsidised rates to eligible However, as housing has become Assessment Act 1979. This part community members. All of these progressively less affordable, of the Act is increasingly being dwellings have been acquired by a number of leading councils cited by councils as a mandate Council from private developers have begun to operate in this for their decision to provide through Voluntary Planning area, seeking to take action that affordable rental housing for their Agreements (VPAs). increases housing affordability for communities. their communities.
266 City of Parramatta Affordable Rental Housing Network
2019 City of Parramatta Affordable Rental Housing Network
Catchment Catchment 3 2 Catchment 1
Catchment 4
Catchment 5
Catchment Council's 8 affordable 6 rental dwellings are all located in the Parramatta CBD.
Community Infrastructure Strategy 2019 267 Affordable Rental Housing Network
Council’s Current Affordable Rental Housing Network
All of Council’s affordable rental dwellings are located in the Parramatta CBD.
The following table demonstrates the characteristics of Council’s affordable rental dwellings. While other types of community infrastructure require relatively even distribution across the LGA, affordable housing is best located in highly amenable locations close to public transport, employment, services and recreational opportunities.
CATCHMENT 4
Affordable rental housing dwelling location Bedrooms Bathrooms Car spaces
Parramatta CBD 2 2 1
Parramatta CBD 3 2 1
Parramatta CBD 1 1 0
Parramatta CBD 1 1 0
Parramatta CBD 2 2 0
Parramatta CBD 1 1 0
Parramatta CBD 1 1 0
Parramatta CBD 2 2 1
268 City of Parramatta Affordable Rental Housing Network
Community Infrastructure Strategy 2019 269 Affordable Rental Housing Network
Rates of Provision
Affordable Rental The Greater Sydney City of Parramatta’s Affordable Housing Target Commission’s 'A Metropolis of Rental Housing Policy builds on Three Cities' sets a provision the greater Sydney Commission’s City of Parramatta’s Affordable rate of 5-10% of the uplift value Sydney-wide provision rate. In Rental Housing Policy identifies created in new growth precincts the short term, it seeks 10% of that the City needs 9,500 to be allocated as affordable the total floor space generated affordable rental dwellings by rental housing, subject to through uplift value in the form 2036 in order to address the viability. of affordable rental dwellings projected number of households to be dedicated to Council, or that will be experiencing rental as a financial contribution of stress. This outcome cannot be equivalent value. achieved by Council alone, but In the long term, the Policy seeks requires the efforts and resources to insitute inclusionary zoning in of the other tiers of government, key high growth areas to achieve the community housing sector, more affordable rental housing. and the private sector.
270 City of Parramatta Affordable Rental Housing Network
How well positioned is our current Affordable Rental Housing Network?
The strengths of our Affordable Despite some strengths, the Rental Housing Network include: network of Affordable Rental
• The affordable rental dwellings that Housing has weaknesses: Council currently owns are concentrated • Our existing network is very limited in quantum. in the Parramatta CBD, which has good public transport access, jobs, services and • It does not extend to other key employment recreational opportunities. centres such as Westmead, where a significant cohort of key workers are required now and in future. • A significant increase in affordable rental housing stock is required in order to make an impact on housing stress levels in City of Parramatta.
Community Infrastructure Strategy 2019 271 Affordable Rental Housing Network
Facts at a Glance
In City of Parramatta in 2018, we have
8 100% Affordable rental tenanted by key workers dwellings owned by connected to the Parramatta Council local government area
272 City of Parramatta Affordable Rental Housing Network
Green Square, CASE City of Sydney STUDY
City of Sydney’s Sustainable Sydney 2030 establishes the target that 7.5% of all housing will be affordable housing by 2030.
In the suburb of Green This program has already seen * This information and image has been sourced Square, this target is being the development of more than from City of Sydney pursued through inclusionary 100 affordable rental units in https://www.cityofsydney.nsw.gov.au/vision/ zoning as part of the Green Green Square, with the target towards-2030/communities-and-culture/ Square Affordable Housing being 330 affordable rental affordable-housing Program. These inclusionary units to meet growing demand https://www.cityofsydney.nsw.gov.au/ zoning provisions require all over the next 15 to 20 years. The development/planning-controls/affordable- housing-contributions/green-square-affordable- developments in Green Square development of Green Square housing to provide affordable housing, as a town centre ensures that with the exception of specified these affordable rental housing https://www.cityofsydney.nsw.gov. au/__data/assets/pdf_file/0014/133160/ development categories. dwellings are located within GreenSquareAffordableHousingProgram.pdf close proximity to transport, The Sydney Local Environment community infrastructure and (Sydney Local Environmental Plan 2012, the Plan 2012 establishes that, for Environmental Planning and Assessment Act 1979 employment centres. developments in the Green and the State Environmental Planning Policy No. 70 – Affordable Housing (Revised Schemes).) Square Urban Renewal Area, The provision of affordable 3% of the total residential rental housing in Green Square floor area must be provided as is expected to increase as a affordable housing. Alternatively, result of inclusionary zoning and the developer can opt to pay ongoing development in the $244.99 per square metre of total urban renewal area. residential floor area to fund the development of affordable housing elsewhere in the suburb.
The Green Square Affordable Housing Program aims to increase the supply of affordable rental housing to ensure that urban renewal does not erode social diversity in the area.
Community Infrastructure Strategy 2019 273 Affordable Rental Housing Network
The Impact of Affordable
Rental Housing: Affordable Housing CASE STUDY Bank Case Study
Lyn* was the first tenant to live After arriving in Australia in 2000, The biggest and most successful in one of City of Parramatta’s Lyn lived in over ten different aspect with renting this affordable affordable rental housing units, private rental properties that housing property for Lyn was which was dedicated through a were significantly beyond her that it gave her the opportunity voluntary planning agreement means. However, her priority was to save money to purchase her (VPA) with a developer. Lyn works to try and make ends meet and own home. It also allowed her to in the community services sector. provide for herself and her son. be exempt from paying stamp She recalls seeing a block of At times this was very difficult duty on a new home, saving her units being built and remembers and Lyn was always worried thousands of dollars. thinking “one day I want to live about long-term security in the “This would not have been in one of those units, but I could private rental market. Wanting possible if I was still in the never afford that”. to live close to her work in private rental market. This Parramatta, and also having In early 2016, Lyn saw an property has allowed me to consider her son’s schooling, advertisement asking for to purchase my own home, Lyn wanted to find a property potential affordable housing something I can call my own that would free up some of her tenants to apply to live in City and never have to leave. I income and allow her to save of Parramatta’s affordable cannot thank you and the money to purchase her own housing unit. Even though Lyn Council enough for providing home. doubted herself and never me with this opportunity.” expected anyone to get back to City of Parramatta’s affordable *note: (name changed to protect privacy) her, she made an online enquiry rental housing property provided and submitted her application her with all of these opportunities to the community housing and more. Lyn was able to walk to provider managing the unit and work instead of paying for petrol tenancy on behalf of Council. and no longer had the stress of Lyn recalls the day she received parking and dealing with any the call to advise she had been wear and tear on her car. In her successful with her application new property, public transport as a moment to cherish and was also easily accessible for her remember. son and Lyn was able to walk to the shops and engage in other social activities.
274 City of Parramatta Affordable Rental Housing Network
Council's Affordable Rental Housing Policy 2019
The 2016 Census revealed that Voluntary Planning Agreements Inclusionary zoning. 24.3% of households in City of (VPAs). Councils can also establish Parramatta were experiencing VPAs are voluntary planning affordable housing contribution rental stress. With the population agreements between developers schemes that set a specific expected to increase to 466,000 and planning authorities which affordable housing contribution people over the next 20 years, allow developers to exceed rate for a particular growth area. the challenge of housing planning controls in exchange Council will apply to the NSW affordability will likely be for providing community benefit Government to seek approval exacerbated by growing demand. as an agreed share of the to apply inclusionary zoning so Council's Affordable Rental uplift value that is created. To that it can set affordable housing Housing Policy (February 2019) maximise positive outcomes for contribution rates in growth seeks to increase the number the community, VPAs should be areas across City of Parramatta. of affordable housing dwellings based on needs assessments This will provide more clarity using two planning mechanisms: with a long-term outlook for regarding the requirements infrastructure planning. Council’s for developers, and provide a policy position is to seek 10% more reliable supply of future of the total uplift value created affordable rental housing for through rezoning in the form the community. Any application of affordable rental housing of inclusionary zoning to a dwellings that are dedicated specified growth area or location to Council, or the financial will replace the use of VPAs, as equivalent where the value is less outlined previously. than that of a single dwelling.
Community Infrastructure Strategy 2019 275 Affordable Rental Housing Network
City of San CASE Francisco STUDY
City of San Francisco’s Inclusionary Housing Program seeks to increase the supply of affordable housing to meet growing demand and ensure that social diversity is maintained.
Under this program, developers Since being established in 2002, This program is complemented that propose residential projects the Inclusionary Housing Program by HOME-SF, an optional with 10 or more units are required has been successful in increasing program which incentivises the to either: the supply of affordable housing, delivery of affordable housing for with the program resulting in the low to moderate income earners. • Reserve a percentage of units construction of 3,000 affordable Developers that opt to provide for affordable housing in housing units throughout the City 20-30% affordable housing units the new building or another of San Francisco. under this program are eligible building that they are for density bonuses and zoning developing. These units are to modifications to accommodate be rented or sold at a below additional units. market rate. * This information has been sourced from City • Pay a fee, which is charged of San Francisco https://sf-planning.org/ on a per-unit size basis and inclusionary-affordable-housing-program https:// adjusted annually to account sf-planning.org/home-sf for changes in the cost of construction.
276 City of Parramatta Affordable Rental Housing Network
Community Infrastructure Strategy 2019 277 Affordable Rental Housing Network
AFFORDABLE RENTAL HOUSING NETWORK
Future What are the gaps and challenges Needs we face?
City of Parramatta 2011 & 2016: Housing Tenure Types
34.1% 31.7% 29.0% 28.4% 26.7% 23.4%
% % 7.0 6.0 5.2% 5.8% 0.9% 1.0%
Mortgage Owned outright Private rent Social housing Other Not stated
KEY: 2011 2016
City of Parramatta released an Affordable The Discussion Paper identified a potential need Housing Discussion Paper in May 2017. This for an additional 8,790 affordable rental dwellings discussion paper considered the future need for by 2036 in order to alleviate rental stress at the affordable rental housing based on the following: levels experienced by residents in 2016.
• Current levels of housing stress Since the release of the Affordable Housing Discussion Paper 2017, 2016 Census data has • The proportion of residents who rented in the confirmed an increase in the proportion of private market households in City of Parramatta renting in the • Research on housing stress, and the fact that private market (see table above). This trend around 70% of housing stress is experienced in exposes a larger proportion of the community to the private rental market the risk of housing stress. • Projected population growth in City of Parramatta
278 City of Parramatta Affordable Rental Housing Network
Community Infrastructure Strategy 2019 279 Affordable Rental Housing Network
What Our Community Has Told Us…
Between August – October 2017, the draft Community Infrastructure Strategy was on public exhibition
This period of engagement Through this consultation Our community would allowed Council to better process, we heard that: like to see: understand the needs and Our community values: • Enactment and enforcement expectations of our community of formal requirements and we were able to use this • Service and facilities that for developers to provide information to strengthen the are affordable, accessible affordable housing within their draft Strategy. and responsive to local developments. community needs. • Co-location of affordable rental housing accommodation and community services. • Council advocates to the NSW Government to adopt precinct level affordable housing targets and increase the supply of social housing. “…There is a need to • Increased collaboration produce a mix of social, between Council and affordable and private Community Housing Providers property developments.” to improve opportunities for - Resident, public submission affordable rental housing.
280 City of Parramatta Affordable Rental Housing Network
Between March and April 2017, Through this survey, The survey also asked Council conducted an Affordable we heard that: questions about the Housing Survey on-line and in- community’s perception of • 85% of respondents agreed person at Centenary Square and housing affordability now or strongly agreed with the the Western Sydney University and into the future: statement “affordable rental Rydalmere Campus. housing is important for the • While 85% of respondents This survey sought views on community” believed it was important to whether or not affordable own their own home, only 57% • There was strong support housing was important to the believed it was likely that they given for Council to take action community, and if so, whether would be able to do so to increase the supply of or not Council should act, and affordable rental housing, • Approximately one quarter of in what manner. with 93% agreeing Council respondents believed they were should act currently experiencing housing stress, while another quarter • Of the 93% who agreed Council believed they were at risk of should act, about half of these falling into housing stress believed Council should seek affordable housing contributions • Respondents generally believed from developers when they it was harder for those on lower develop apartment buildings incomes to afford to buy a home in City of Parramatta, and there was little confidence that the situation would improve over time • Only 14% considered City of Parramatta to be affordable for first home buyers
Community Infrastructure Strategy 2019 281 Affordable Rental Housing Network
Strategic Challenges We Face Together
The issue of housing affordability is a complex one, and for this reason, is not easily solved. As housing affordability continues to impact all parts of Greater Sydney, all tiers of government as well as the non-government and private sector, must work together to address it.
City of Parramatta continues to undergo In the face of increasingly unaffordable transformational change. Housing Q. housing, how can we ensure that City of affordability is likely to trend downwards Parramatta is a place that is affordable for families as the City becomes a more attractive, and individuals who want to live, work and recreate connected and well-serviced place to live. here?
Council can play a significant role in decreasing How can we ensure that key workers are housing stress by providing and facilitating more Q. able to afford to live close to employment affordable rental housing. centres located in City of Parramatta?
We will need to collaborate, partner, advocate, How can Council support community plan and prioritise our resources to find solutions Q. housing providers (CHPs) and the private to the following challenges: sector to find innovative solutions to the problem of housing affordability?
If the Sydney housing market contracts, Q.how can we ensure a sustainable increase in affordable rental housing without negatively affecting the viability of private development?
282 City of Parramatta Affordable Rental Housing Network
Community Infrastructure Strategy 2019 283 Affordable Rental Housing Network
AFFORDABLE RENTAL HOUSING NETWORK Future Directions
284 City of Parramatta Affordable Rental Housing Network
Strategic Directions
Council’s Affordable Rental Housing Policy 2019 outlines its strategic direction for increasing the provision of affordable rental housing across the City as follows:
Council adopts the following actions ii. In the interim, pending approval that, taken together, form Council’s for inclusion in SEPP 70, continue policy position on Affordable Rental to utilise Voluntary Planning Housing in the City of Parramatta: Agreements (VPAs) to secure future affordable rental housing, and: i. Pursue Inclusionary Zoning by applying to the Department of (a1) That Council prioritises the Planning and Environment (DPE) for contribution of affordable inclusion under SEPP 70 to enable housing units (the physical asset) Council to prepare an affordable as part of any VPA related to rental housing contributions plan; affordable rental housing.
(a2) That Council accepts monetary contributions towards affordable rental housing as part of a VPA where the agreed value of the contribution is less than the value of a unit, or where there is a need to provide an additional monetary payment on top of the dedication of the physical asset(s) to meet the agreed value of the contribution.
Community Infrastructure Strategy 2019 285 Affordable Rental Housing Network
Criteria to Guide Decision Making for New Affordable Rental Housing Dwellings
The following criteria complement and are to be used in conjunction with City of Parramatta’s stated principles for community infrastructure planning found on pages 61-63.
These criteria will be used to guide negotiations and conditions set when Council is seeking the dedication of affordable rental housing from developers.
For all Represent the total mix of dwellings in the development in terms of the affordable mix of one, two and three bedroom dwellings? housing Include features required to allow the unit to be tenanted, including proposed to dishwasher, washing machine and dryer? be dedicated
to Council Provide good solar access? through VPAs or inclusionary Provide good cross-ventilation? zoning, does the dedicated housing: Meet universal design guidelines for access?
Give due consideration to safety in terms of location of the proposed dwellings?
286 City of Parramatta Affordable Rental Housing Network
For More Information:
This Community Infrastructure Strategy draws • City of Parramatta's "Affordable Rental Housing on the knowledge and experience of many Policy 2019" staff from across Council who have a passion for enabling socially sustainable communities. • “Sharing the Opportunities of Growth for All – Together with feedback from our community, Socially Sustainable Parramatta Framework” and our key stakeholders, this document has • City of Parramatta Council’s Website: been a shared effort. www.cityofparramatta.nsw.gov.au
For further information on City of Parramatta’s • City of Parramatta Customer Contact Centre: Affordable Rental Housing Network, or Council’s 9806 5050 key strategic directions, the following resources • For access to demographic data log onto: are available: http://profile.id.com.au/parramatta
CommunityCommunity InfrastructureInfrastructure StrategyStrategy 20192019 287