Review of Affordable Housing contribution rates

The City of Sydney Council (the City) requires developer contributions for Affordable Housing on an inclusionary zoning basis. Affordable Housing contribution requirements are set out in the Sydney Local Environmental Plan (LEP) 2012. In 2023 the City resolved to commence a comprehensive review of the Sydney Affordable Housing Program to identify if there were changes that could deliver more Affordable Housing.

What we did

The Atlas team has a long history of advising the City of Sydney on the Sydney Affordable Housing Program.  

In 2024 Atlas undertook a comprehensive review of the Sydney Affordable Housing Program (the Program), specifically reviewing if current contribution percentage (%) rates and equivalent dollar ($) rates were congruent with the Program’s delivery objectives.  

The review examined the current Affordable Housing contribution requirements which are:

• Broad-based contribution rates required under clause 7.13 of the Sydney LEP.  

• Contribution requirements required under clause 7.13B of the Sydney LEP in circumstances of a planning proposal where new floor area is created following a rezoning.  

The review made a series of recommendations, including that the City consider new equivalent dollar ($) rates to reflect the difference in the cost of housing delivery across the local government area (LGA). Four equivalent dollar rates were suggested (one in each sub-precinct of the LGA) to be phased-in over several years.  

The review additionally recommended a standardisation of the clause 7.13B contribution (%) rates across the sub-precincts.  

The outcome

The City’s Equity and Housing Committee considered the Planning Proposal - Affordable Housing Contributions Review and resolved to approve the planning proposal for submission to the NSW Department of Planning, Housing and Infrastructure with a request for a gateway determination, and for public consultation and exhibition.