Blackstone Waterhouse
28 October 2024
The NSW Government has introduced important changes to the State Environmental Planning Policy (Housing) 2021, providing new opportunities for developers to benefit from incentives when including affordable housing in their projects. These amendments aim to address the ongoing housing affordability crisis by encouraging more developers to incorporate affordable housing into significant residential developments. If you’re a developer working on large projects, especially in Greater Sydney or regional NSW, these changes could significantly impact your next project.
What Are the New Bonuses for Affordable Housing?
The recent amendments to the State Environmental Planning Policy (Housing) 2021 create significant opportunities for developers who include at least 10% affordable housing in their projects. For state-significant residential developments with an estimated development cost of over $75 million in Greater Sydney, or $30 million outside of Sydney, developers can now access bonuses, such as:
- Increased density allowances
- Height concessions
- Potential floor space ratio (FSR) incentives
These bonuses are designed to make it more financially viable for developers to contribute to affordable housing supply in both metropolitan and regional areas. The policy amendments recognize the need for collaboration between the public and private sectors to address the state’s housing crisis while maintaining high standards of urban planning and sustainability.
Securing the Bonus: Case Study of a West Ryde Development
At Blackstone Waterhouse Lawyers, we have recently worked on a project where Billbergia secured this affordable housing bonus for their West Parade Development in West Ryde. This project, developed in partnership with the Land and Housing Corporation (now known as Homes NSW), involved the construction of 150 apartments in an area experiencing high demand for affordable housing.
By incorporating at least 10% affordable housing into the project, Billbergia was able to take advantage of the incentives provided by the amended SEPP (Housing) 2021. This allowed the development to proceed with increased viability while contributing to much-needed affordable housing in the area.
The West Parade Development is an excellent example of how developers can leverage these bonuses to enhance the viability of their projects while meeting social housing needs.
Why This Matters for Developers
These legislative amendments present a significant opportunity for developers to incorporate affordable housing into their portfolios while benefiting from planning concessions. Whether you’re working in Greater Sydney or regional NSW, incorporating affordable housing into your development plans could unlock valuable bonuses, making your projects more financially feasible while helping to meet the state’s growing demand for housing affordability.
As a developer, it’s essential to be aware of the thresholds for these bonuses—$75 million in Greater Sydney and $30 million in regional NSW—and how you can structure your projects to meet the 10% affordable housing requirement. By doing so, you can not only make a positive social impact but also gain access to important financial and planning incentives.
How We Can Help
At Blackstone Waterhouse Lawyers, we specialise in navigating complex property and planning laws, and we have extensive experience securing affordable housing bonuses for developers. Our team understands the intricacies of the State Environmental Planning Policy (Housing) 2021 and can guide you through the process to ensure your development qualifies for these valuable bonuses.
If you’re a developer with affordable housing in your future portfolio, talk to Blackstone Waterhouse Lawyers today. We can help you secure the bonuses that will make your next project a success.
For more information on the legislation and how it might affect your projects, visit the NSW Planning website here.