Waverley Council has embarked on an initiative aimed at addressing the most pressing issue facing its community today – the acute shortage of affordable housing.

The introduction of Waverley Affordable Housing Contributions Scheme, which is in the final stages of planning, outlines a dual-contributions framework designed to capitalise on the development process for the public good. The new policy mandates a 1% levy on the gross floor area of new residential flat buildings, independent living units, multi-dwelling housing and shop-top housing developments.

Additionally, for sites benefiting from planning uplift, a tailored contribution towards affordable housing will be calculated at the planning proposal assessment stage. This mechanism aims to ensure that the benefits of development are equitably shared, allowing lower-income households to live and work within the LGA.

The scheme promises significant public benefits by directly addressing the shortage of affordable housing in one of Sydney’s most prestigious areas. By leveraging development activity to fund affordable housing, the scheme aims to prevent the displacement of low-to-moderate income households.

The genesis of this scheme can be traced back to the recognition of the growing disparity in housing affordability within Waverley LGA. The policy follows the NSW planning department’s announcement in early 2019 that all councils are eligible to impose a condition of consent on new development for contributions to affordable housing under the Affordable Housing SEPP, now replaced by the Housing SEPP.

The new policy is informed by the Waverley Local Housing Strategy. This indicated that while current controls could meet housing supply targets, they did not address the affordability issue, often exacerbating it by reducing existing affordable housing stock. The LHS recommended a 1-3% contribution on all new residential developments and a 10-15% contribution on sites receiving uplift, with feasibility testing indicating a 1% levy as a viable starting point.

An additional 600 affordable dwellings are allegedly required by 2036 in Waverley LGA to address the current proportion of households in rental stress.