The NSW Government has announced the establishment of the Housing Delivery Authority (HDA) as a ‘panel’ under the Environmental Planning and Assessment Act (1979). The HDA will lead a new streamlined State Significant Development (SSD) pathway for greater assessment of large-scale Development Applications. This new assessment pathway will reduce the number of complex Development Applications that councils are required to assess each year, freeing up resources for councils to promote a more streamlined assessment process for less complex development applications.
Considering the Housing Delivery Authority was established as a panel and does not have its own act of parliament, it appears that the authority will maintain a more limited degree of independence, remaining closely aligned with the Department of Planning, Housing and Infrastructure. This suggests that the Housing Delivery Authority will act as an arm of the NSW Planning Department rather than an independent authority.
Application Process
Eligibility and Expression of interest criteria
From 8 January 2025, developers can submit an Expression of interest to the Housing Delivery Authority for major housing developments. Projects eligible for consideration include:
- Anything valued at approximately over $30 million in Regional NSW; and
- Anything valued at approximately over $60 million In Greater Sydney.
Before a proposal is lodged for a formal review, the HDA will take control of reviewing whether the enquiry of interest adequately addresses the following criteria based on 4 objectives:
- Objective 1 – identify high-yield housing proposals:
- Development is a type to deliver high yield housing: this criteria focuses on whether the development will deliver high-yield housing, which includes multi dwelling housing, residential flat buildings, seniors housing and shop top housing.
- Development is State significant: the size of the development is also reviewed based on the estimated development cost ranges listed above.
- Objective 2 – Identify housing projects that can be assessed and constructed quickly:
- Consistent with development standards: within this objective, a development must not exceed applicable development standards by more than 20%.
- Positive commitment to commence: the party responsible for the development application must demonstrate capability to lodge the application within 9 months of SEARs issued and commence development within 12 months of approval.
- Land tenure is secure: the developer must demonstrate ownership of the property or option to purchase all the relevant land.
- Utilises existing contribution schemes: the proposal must pay contributions as per council’s existing contribution plans.
- Has addressed previously refused proposal: the applicant must have positively addressed any issues in previous refusals from council.
- Objective 3 – Drive quality and affordable housing:
- Well-located: the proposed site must have good access to transport and services, and must be free of environmental hazards and constraints, including fire prone land and flood planning areas.
- Well services: there must be adequate infrastructure associated with the development, including capacity of water, sewer and access.
- Positive commitment to affordable housing: proposal must contribute to the supply of affordable housing.
- Objective 4 – Optional Concurrent Spot Rezonings:
- Concurrent rezoning proposal: a rezoning proposal will need to be lodged in conjunction with the application for a proposal that exceeds applicable development standards by more than 20%.
Next Steps
Once an enquiry is reviewed by the Housing Delivery Authority, they have the power to recommend to the Minister that the proposal proceed as State Significant Development (SSD), and the application will be eligible to be lodged through one of the following pathways:
- SSD major residential; and
- SSD with a concurrent rezoning.
What this means for Developers
Moving forward, state significant projects will become a fast-tracked process for developers. The introduction of the Housing Delivery Authority will help applications be considered in a more streamlined and structured process.
If you require any guidance through this new system and your development may be impacted, please contact our office.