Affordable Rental Housing Troy Daly Greater Sydney Commission AFFORDABLE HOUSING FORUM An initiative of SSROC, Planning Institute of Australia & Community Housing Providers Aerial Function Centre UTS, 24 July 2017, 8.30am to 4.30pm #ahf2017
Affordable Rental Housing Targets – base funding model Development feasibility and • The 5-10% Target range consideration of other essential local allows flexibility to tailor and state infrastructure costs will Targets to localised viability 30 shape the viability test Unearned planning gains are Capped local and 25 often substantial The requirement to amalgamate land state ‘value • share’ will require that a major component of Case by case 20 extraordinary windfall land gains remain with the site costs land owner – but room remains for Majority share of 15 value share 15 windfall gain with land owner Land owner – A successful outcome will be an land price • 10 10 received has ‘institutionalised’ approach to contributions embedded including Affordable Rental Housing in 5 5 major housing projects – with the underlying cost embedded in lower 0 0 land prices Upzoned value Current value #ahf2017
Key principles to set an Affordable Rental Housing Target 1. Existing land owners need an average price gain factored into viability to support amalgamation 2. A full development project margin is used to calculate value share decisions 3. The total of all local and state charges cannot exceed 50% of land value gains from rezoning decisions #ahf2017
What the perfect project looks like Support for longer tenure, lower rates, reasonable ICRs through bond Debt aggregator vehicle Construction costs ‘Quasi equity’ cos Density De ty - ARH SEPP Co bonus s sale - 50% of dwellings as compact apartments? Compa Co pact va value - S94 exemption apa partment oppor op ortunity Section 9 94 Exem Ex emption 5-10 10% Equity ARHT AR value/cost Land La va $$ f from Potential for other equity sources with partners including government initiatives ARHT i in p precinct
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