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Waverley Council
Draft Waverley Affordable
Housing Program Policy 2007
(Amendment No. 1)
Acknowledgements
On 6 November 2006, Waverley Council
commissioned Connell Wagner, as
supported by Hill PDA and Lindsay Taylor
Lawyers to independently review the
Waverley Affordable Housing Program
(WAHP). Council’s Project Control Group
(PCG), comprising Council delegates
from Planning and Environmental
Services (P&ES), Recreation, Customer
and Community Services (RCCS) and
Corporate and Technical Services (CTS)
have overseen this project.
The Waverley Affordable Housing
Program Policy 2007 (WAHPP 2007) and
associated documents provide the basis
to the operation, management and
delivery of the WAHP.
Waverley Affordable Housing Program Policy 2007
Amendments to the Policy
Amendment No. 1
Amendments to the Waverley Affordable Housing Program (WAHP) Policy 2007 came into
force on 20 July 2010. Any DA lodged, but not finally determined prior to the appointed day will
continue to be assessed and determined under the provisions that were in force immediately
before the commencement of this policy.
PAGE i
Waverley Affordable Housing Program Policy 2007
Abbreviations
AHM Affordable Housing Manager
BJLEP Bondi Junction Local Environmental Plan 1991
BJCLEP Draft Bondi Junction Centre Local Environmental Plan
2007
CC Construction Certificate
DA Development Application
DBU Development and Building Unit
DCP Development Control Plan
DESS 2007 Draft East Subregional Strategy 2007
DOH Department of Housing
DOP Department of Planning
EP&A Act Environmental Planning and Assessment Act 1979
FSR Floor Space Ratio
IHAP Independent Hearing and Assessment Panel
LEP Local Environmental Plan
LGA Local Government Area
LG Act Local Government Act 1993
MDP Metropolitan Development Program 2006
OC Occupation Certificate
PDTM Public Domain Technical Manual (Bondi Junction)
SEE Statement of Environmental Effects
VPA Voluntary Planning Agreement
WAHPC Waverley Affordable Housing Program Calculator
WAHP Waverley Affordable Housing Program
WAHPP Waverley Affordable Housing Program Policy 2007
WAHPR Waverley Affordable Housing Program Register
WCLP Waverley Community Living Program
WDCP 2006 Waverley Development Control Plan 2006
WHOP Waverley Housing for Older People
WLEP 1996 Waverley Local Environmental Plan 1996
WVPAR Waverley Voluntary Planning Agreement Register
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Waverley Affordable Housing Program Policy 2007
Definitions
Affordable housing means “housing which by virtue of its location, style
of accommodation, levels of parking and dwelling
size would sell at a price or rent at a rate which is
comparable to or less than the existing median sale
price of median rent level in the Council’s area”
(WLEP 1996)
Floor Space Ratio means “the ratio of the gross floor area of the
building to the total area of the site on which the
building is located or proposed to be located”
(WDCP 2006 - Definitions).
Gross Floor Area means “the sum of the areas of each floor of a
building where the area of each floor is taken to be
the area within the outer face of the external
enclosing walls as measured at a height of 1400mm
above each floor level excluding:
(1) columns, fin walls, sun control devices and
any elements,
projections or works outside the general lines
of the outer face of the external wall;
(2) lift towers, cooling towers, machinery and
plant rooms and ancillary storage space and
vertical air-conditioning ducts.
(3) car parking needed to meet any
requirements of the Council and any internal
access thereto; and
(4) space for the loading and unloading of
goods” (WDCP 2006 - Definitions).
Housing crisis means “when households pay more than 50% of
their income on rent or mortgage repayments”
(Public Bodies Review Legislative Assembly, 2006).
Housing stress means “when households pay more than 30% of
their income on rent or mortgage repayments”
(Public Bodies Review Legislative Assembly, 2006).
Public housing means “long term affordable housing managed by
the state government through the NSW Department
of Housing” (Public Bodies Review Legislative
Assembly, 2006).
Social housing means “public, community and Aboriginal housing”
(Public Bodies Review Legislative Assembly, 2006).
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Waverley Affordable Housing Program Policy 2007
1. Introduction
1.1 Outline and purpose of the policy
Waverley Affordable Housing Program Policy 2007 (“WAHPP”) has been adopted by
Waverley Municipal Council (“Council”) to provide the Council, community, and
applicants for development the policy direction, guidelines and procedures involved in
the delivery, operation and management of the Waverley Affordable Housing Program
(“WAHP”).
Council is committed to addressing housing affordability in the Waverley local
government area (“LGA”), establishing the WAHP to achieve Council’s suite of
housing policies. It is Council’s intention to ensure the WAHP achieves transparency,
integrity and legality in all aspects of the program’s implementation and management.
The purpose as that set out in this policy includes the means and manner:
• Council will increase the supply of affordable housing;
• Those interested in participating in the WAHP will proceed;
• Council will negotiate and enter into Voluntary Planning Agreements (“VPA”) for
the provision of affordable housing. Council will apply and follow this policy in
relation to all offers to enter into VPAs for the provision of affordable housing;
and
• The process and procedures by which affordable housing is provided and
managed.
1.2 General content of the policy
The content of this policy is structured into the following sections:
Section 1 outlines the basis and application of this policy.
Section 2 provides background on the need for affordable housing and the policies
that Council has adopted in addressing housing affordability.
Section 3 provides details to the operation and mechanisms to deliver WAHP.
Section 4 sets out accountability, management and reporting systems associated with
the WAHP.
1.3 Key measures to increase the supply of affordable housing
1.3.1 Waverley Development Control Plan 2006 (WDCP 2006)
The Waverley Development Control Plan 2006 (“WDCP 2006”) – Part D2 Multi-Unit
Housing contains the provisions and means enabling Council to receive an affordable
housing contribution in the form of a new dwelling (either rent capped or transferred to
Council in perpetuity) or a monetary contribution. The WDCP 2006 permits additional
floor space to be achieved on sites conditional to an applicant’s voluntary participation
in the WAHP. Should an applicant not be willing to participate in the program, no
additional floor space will apply to any site (or combination of sites) under the terms of
this policy. Whereby an applicant is willing to participate in the WAHP, the proposal
must achieve an acceptable environmental impact.
In permitting additional floor space, Council has made a policy decision to share
benefits occurring from the grant of additional floor space in a development (or any
rezoning) and direct the public share of that benefit to increasing the provision of
affordable housing. The contribution is generally based on an equal public/private
share of the value of the additional floor space.
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Waverley Affordable Housing Program Policy 2007
In order to receive the additional floor space via a Development Application (“DA”), an
applicant must explicitly state the intention to participate in the WAHP by way of a
Voluntary Planning Agreement (“VPA”) in accordance with Section 93F of
Environmental Planning and Assessment Act 1979 (NSW) (“EP&A Act”). The choice
to enter the WAHP is voluntary however; Council will not permit additional floor space
in the manner envisaged by this policy unless the offer is consistent with this policy. In
the instances where a rezoning application is made, Council will consider how this
policy should be applied.
The value of the additional floor space to be shared through a DA is determined by the
Waverley Affordable Housing Program Calculator (“WAHPC”). This method of sharing
is viewed as an equitable, consistent and appropriate arrangement for the community
and developer(s) to share benefits occurring from this additional floor space. The
WAHPC is available on Council’s website.
It is stressed that Council has made the WAHP publicly available to ensure
transparency, allowing an applicant to estimate the value of the additional floor space
and calculate the estimated WAHP contributions themselves. Council will not
necessarily be bound by a value generated by an applicant using the calculator. The
use of the WAHPC requires appropriate land values to be inserted and the calculator
be operated in the manner in which it is designed. Only the results that are calculated
by the Council will be used to determine the value of the additional floor space
proposed by any applicant.
Draft Bondi Junction Local Environmental Plan 2007
At present, Council is in the process of undertaking the Bondi Junction Planning
Review. The objective of this project is to prepare the Bondi Junction Centre Local
Environmental Plan 2007 (“BJCLEP 2007”), Waverley Development Control Plan 2006
(“WDCP 2006”) draft Part F1 – Bondi Junction Centre and draft Public Domain
Technical Manual (“PDTM”) for the Bondi Junction Commercial Centre. DoP Officers
have indicated a willingness to meet with Council officers, in order to consider how
best to incorporate new affordable housing mechanisms in the future plans.
1.3.2 Future directions – Waverley Local Environmental Plan 2010
Council is soon to begin the process of preparing the Waverley Local Environmental
Plan 2010 (“WLEP 2010”). The WLEP 2010 will repeal all existing planning
instruments and provide a comprehensive LEP for the entire Waverley LGA. At this
stage it is envisaged that all relevant provisions contained within the WDCP 2006, for
affordable housing will be subsumed within the WLEP 2010. The content of WLEP
2010 is yet to be detailed and is likely to result in future amendments to the WAHP and
associated policy framework.
1.4 Legislative framework
Local government can play a key role in achieving affordable housing outcomes. The
powers of local government to address matters relating to affordable housing include:
• Object 5(a)(viii) of the EP&A Act is to encourage the provision and maintenance of
affordable housing.
• Section 79C(1)(b) of the EP&A Act requires a consent authority take into account
the likely social and economic impact of any development in determining a
development application.
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Waverley Affordable Housing Program Policy 2007
• State Environmental Planning Policy (Affordable Rental Housing) 2009 – “SEPP
(Affordable Rental Housing) 2009” aims to provide incentives for new infill
development, as well as protect and retain low cost rental housing.
• State Environmental Planning Policy No. 70 – Affordable Housing (Revised
Scheme) (“SEPP 70”) allows nominated Councils to impose a housing contribution
for certain developments pursuant to section 94 of the EP&A Act. The aim of this
policy was to reinstitute policy provisions into certain environmental planning
instruments because of the expiry of savings made by the Environmental Planning
and Assessment Amendment (Affordable Housing) Act 2000. Whilst this does not
apply to the Waverley LGA, the policy nevertheless contains principles and
provisions that are relevant to WAHPP 2007. Importantly, it was Councils’
exclusion from this policy that has largely driven the commitment to WAHP.
• The Local Government Act 1993 (“LG Act”) requires Council prepare social plans
to promote the well being of their communities including the provision of housing.
Council’s Social Plan 2005-2010 demonstrates a strong commitment and
mechanisms by way of the WAHP to generate affordable housing.
• Clauses 3 and 18 of the Waverley Local Environmental Plan 1996 (“WLEP 1996”)
specifically address housing affordability issues regarding the retention of low-cost
rental accommodation.
The abovementioned legislative provisions and schemes underpinning Councils
housing policy are discussed in the following sections:
1.4.1 Environmental Planning and Assessment Act 1979 (EP&A Act)
There are three key considerations within the EP&A Act significant to WAHPP 2007:
Under clause 5 of the EP&A Act, object (viii) is to encourage:
“the provision and maintenance of affordable housing.”
In exercising its planning functions, Council has an obligation to consider this object.
This policy has been prepared and adopted to specifically address this object of the
EP&A Act.
Sections 79C(1)(a) and (1)(b) of the EP&A Act, respectively requires a consent
authority to take into consideration any LEP, DCP or VPA in the assessment of any DA
including the likely social and economic impact of any development.
Thus, Council must consider relevant provisions of the WLEP 1996 and WDCP 2006
in assessing any DA. These instruments include requirements to consider the impacts
of development of, and include means to increase the supply of affordable housing.
Under Part 4, Division 6, Subdivision 2 (Planning Agreements) EP&A Act Council may
enter into a VPA for any purpose. Within the WAHPP 2007, a VPA is the appropriate
means of participation in the affordable housing program. Consequently, the WAHPP
2007 is a direct means by which Council will address the relevant provisions of the
EP&A Act and the various Waverley planning policies and instruments in relation to the
impacts of an offer to provide affordable housing benefits.
1.4.2 Waverley Local Environmental Plan 1996 (WLEP 1996)
Waverley Local Environmental Plan 1996 (“WLEP 1996”) was gazetted on 6
December 1996 and applies to all land within the Waverley LGA with the exception of
land to which the Bondi Junction Local Environmental Plan (“BJLEP 1991”) and draft
BJCLEP 2007.
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Waverley Affordable Housing Program Policy 2007
Clause 3 – Specific aims
The WLEP 1996 encourages and promotes a wide range of housing in terms of form,
tenure and social mix. Specific aims relating to affordable housing under clause 3 of
the WLEP are:
“(a) to encourage the retention of existing affordable housing, including boarding
houses and rental housing provided by residential flat buildings,
(b) to encourage the development of new affordable housing in a variety of types
and tenures for all income groups,
(c) to facilitate the expansion of the Council’s role in the provision of affordable
housing in the public and private sectors, and
(d) to promote the development of a broader and more appropriate range of
affordable housing types in the private sector.”
The WLEP 1996 clearly provides Council with a mandate to ensure that affordable
housing is retained and increased.
Clause 18 – Affordable Rental Housing
Clause 18 of WLEP 1996 relates to affordable rental housing providing a control on the
demolition or change of use of a residential flat building which may contain low-rental
accommodation. Sub-clause 18(4) of WLEP 1996 requires the Council consider the
following matters when assessing a DA affecting a low-rental residential flat building:
“a) whether there is likely to be a major reduction in the number of households or
units of low-rental accommodation on the land to which the application relates,
b) whether there is available sufficient comparable accommodation in the locality
to satisfy the demand for such accommodation in that locality,
c) whether the development, if carried out, is likely to cause adverse social and
economic effects on the general community,
d) whether adequate arrangements have been made to assist the residents (if
any) of the building likely to be displaced to find alternative comparable
accommodation in the locality,
e) whether the cumulative impact of the loss of low-rental residential
accommodation in the Council’s area will result in a significant reduction in the
stock of that accommodation,
f) the structural soundness of the building, the extent to which the building
complies with any relevant fire safety requirements and the estimated cost of
carrying out work necessary to ensure the structural soundness of the building
and the compliance of the building with the fire safety requirements.”
Specifically, clause 18(4) of WLEP 1996 addresses whether adequate arrangements
for alternative accommodation are offset by the loss of affordable housing. The
application of this policy in that regard may be a circumstance by which the Council will
address the provisions of clause 18(4).
Note: Clause 18 of WLEP 1996 or SEPP (Affordable Rental Housing) 2009
(as applicable), may be applied concurrent to the provisions of the WAHP.
For this reason, applicants are required to consider all housing aspects in
the preparation of a DA.
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Waverley Affordable Housing Program Policy 2007
1.4.3 Waverley Development Control Plan 2006 (WDCP 2006)
The Waverley Development Control Plan 2006 (“WDCP 2006”) was adopted by
Council on 19 December 2006 and came into force on 31 January 2007. WDCP 2006
Part D2 – Multi-Unit Housing provides the means for entry into the WAHP.
In section 4.12.1 of WDCP 2006 Part D2 – Multi-Unit Housing, a set of objectives are
specified that relate to the achievement of the WAHP through FSR allowances. The
objective of this clause is:
“To encourage the development of new affordable housing units whilst upholding
the environmental objectives of this Part.”
The WDCP 2006 sets specific FSR limits for each zone in which the WAHP applies.
The WAHP is prompted whereby a given DA in a residential or mixed use
development (comprising of residential development), exceeds the prescribed FSR
provisions.
Note: Exceeding permissible FSR limits are not “as of right” controls. The
achievement of the maximum FSR will be dependant on compliance with
other building envelope controls in WDCP 2006 and an acceptable
environmental impact.
All offers to access affordable housing provisions in WDCP 2006 – Part D2
must be made at time of DA lodgement pursuant to Section 93F of the
EP&A Act (planning agreements). Satisfaction of affordable housing
provisions will be contained within a condition of development consent
relating to an agreed VPA.
Council’s primary intention in accordance with this policy is to provide affordable
housing within each proposed multi-unit and mixed use development containing a
residential component. Alternate arrangements may be made such as the provision of
affordable housing elsewhere of a comparable values to the equivalent unit in the
proposed development by an applicant or an in lieu monetary contribution for the
provision of affordable housing elsewhere. Other satisfactory arrangements may be
made however, these must be agreed with Council before a DA is made and must be
detailed in the Statement of Environmental Effects (“SEE”).
The satisfaction of affordable housing provisions by an applicant is in recognition of
allowances that Council may grant. Any offer that is made must recognise that Council
will be allowed to deal and tenant freely with the units that are so dedicated or made
available for a defined rental cap period.
1.5 Sydney Metropolitan Strategy - Draft East
Subregional Strategy
The draft East Subregional Strategy (“DESS”) prepared by the DoP was placed on
public exhibition from 18 July 2007. When finalised, the Subregional Strategy will guide
land-use planning until 2031 in the Botany Bay, Randwick, Waverley and Woollahra
LGAs.
The draft East Subregional Strategy outlines a number of key housing directions which
seek to:
• improve housing choice;
• plan for 20,000 new dwellings;
• enable communities to ‘age in place; and
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Waverley Affordable Housing Program Policy 2007
• provide more housing opportunities to support a diverse workforce and
population.
The DESS outlines the manner in which Council will contribute to the achievement of
the Sydney Metropolitan Strategy 2005. The housing target identified in the draft
strategy for the Waverley LGA is 2,200 new dwellings to 2031, equating to 96 new
dwellings annually. It is noted that the target for new dwellings from 2001-2006
identified in the Metropolitan Development Program 2006 (“MDP”) is 260 new
dwellings for the Waverley LGA or 52 dwellings per annum. The Council will be
addressing ways to achieve the DESS housing targets.
Council’s planning framework and WAHP are consistent with the State Government’s
approach and objectives to achieving successful regional housing goals.
1.6 Probity issues and Council dealings
Public probity is an important consideration for Council with regard to the WAHP,
Council will ensure that the systems for increasing affordable housing in the LGA are
fair, transparent and directed at achieving public benefits in an appropriate manner
free of corruption. This includes the negotiation of an agreement prior to, and part of
the lodgment of a DA by way of a VPA.
In this regard, Council will:
• Inform any applicant about Council values and business ethics – specifically, about
ethical behaviour appropriate to business dealings.
• Ensure that the community understands the system of increasing affordable
housing and the Council’s role – specifically, how the VPA system operates and
how Council will deal with developments objectively.
• Notify planning agreements to ensure they are open and transparent – specifically,
achieving maximum public awareness of the matters contained in a planning
agreement(s) and the potential benefits of an agreement.
• Ensure appropriate delegation and separation of responsibilities in considering
DAs. Specifically, processes adequately addressing the level of risk of corruption
while being appropriate to the likely level of risk.
• Ensure that modifications to approved development be subject to the same
scrutiny as the original DA and not jeopardise affordable housing components.
• Ensure that Councillors and Council staff understand their varied roles, some of
which have potential to conflict.
• Ensure conflicts of interest are avoided to the greatest extent possible.
• Council will ensure that its consent role and housing management responsibilities
are appropriately separated to ensure that any DA is assessed fairly and
transparently. The grant of any related consent will be within a defined system as
set out in this policy but is not guaranteed if an applicant complies with this policy.
1.7 Adoption
Waverley Council adopted this policy on 15 April 2008 and it came into force on 16
April 2008.
1.8 Land to which this policy applies
The WAHP and associated policy framework applies to all multi-unit housing
development in land zoned Residential 2(b), 2(c1) and 2(c2) under WLEP 1996.
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Waverley Affordable Housing Program Policy 2007
1.9 Types of development applicable to WAHP
The types and nature of development in which the WAHP may be applicable pursuant
to this policy include:
New multi-unit development;
Alterations and additions to multi-unit development which exceeds by
more than 50m² the greater of:
o the maximum permissible floor space ratio for the zone, or
o the current building’s existing floor space ratio.
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Waverley Affordable Housing Program Policy 2007
2. Waverley Affordable Housing Program Policy
2007 (WAHPP 2007)
2.1 Background to the policy
The WAHPP 2007 has been developed within an environment where housing stress is
on the rise: high land costs, decreasing rates of home ownership and increasing rent
levels challenge housing affordability within the Waverley LGA and beyond.
The importance of affordable housing should not be underestimated. Secure,
appropriate and affordable housing is central to our standard of living and way of life.
Housing affordability strongly influences housing choice, tenure and location, which
results in broad social and economic implications. Council is determined to play a
significant role in addressing housing affordability in the LGA, seeking to mitigate
impacts of future development on housing affordability through increasing affordable
housing supply. In other words, Council seeks to offset the impacts of future
development on the affordability of housing within the Waverley LGA through the
implementation of this policy.
2.2 Housing affordability in the Waverley LGA
The attractive location and features of the Waverley LGA is a significant factor in
housing and rental prices being amongst the highest in Australia. This has resulted in
a low level of housing affordability for low to moderate income households largely
unable to afford to stay within the area.
Waverley’s population comprises of a large transient cross section including short and
long stay tourists, backpackers on working holidays and business migrants. These
groups largely seek lower cost accommodation. A once thriving, now rapidly depleting
stock of boarding houses provided much of the affordable housing. Home ownership in
the Waverley LGA is low (45.8% of dwellings compared to 63% overall in Sydney) with
over 40% of dwellings being rented (a significant feature compared to 29% in the
Sydney Statistical Division). Additionally, lower cost accommodation in the form of
semi-detached dwellings, shop top units, two and three floor walk up units are being
redeveloped into residences well beyond the affordable category.
Council has, and continues to be at the forefront of innovative housing policy for the
retention, replacement and increased provision of affordable rental housing. In 1999,
Council established the WAHP, a social initiative to encourage the provision of new
affordable rental accommodation to target and retain low to moderate income
households which have a connection to the Waverley area. The overall aim of the
program is to maintain social diversity and a sustainable community in Waverley LGA.
To date, Council continues to expand the WAHP portfolio acquiring units in mixed
tenures.
2.3 What is Affordable Housing?
‘Affordable housing’ is a term used to convey the notion of reasonable housing costs in
relation to income (National Housing Strategy) within the context of the Waverley area.
Affordable housing is distinguished from social housing, traditional public and
community housing models comprising a host of social housing initiatives seeking to
provide for certain disadvantaged groups (such as those groups HNSW typically
targets). Within the Waverley LGA, affordable housing is calculated at 25% of the
median weekly rental, in accordance with information prepared by HNSW.
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Waverley Affordable Housing Program Policy 2007
2.4 Waverley Social Plan 2005-2010
The Waverley Council Social Plan 2005-2010 forms part of the suite of policies aimed
at ensuring planning and decision making reflects the four key principles of equity,
access, participation and rights. The Social Plan 2005-2010 covers many housing
related issues and programs including:
• Waverley Affordable Housing Program (WAHP);
• Waverley Housing for Older People (WHOP);
• Waverley Community Living Program (WCLP);
• Homeless Strategies; and
• Boarding House Rebate Scheme.
In respect of the WAHP, this includes actions to:
• retain existing and replace low rental accommodation;
• research and advocacy;
• management of affordable housing stock; and
• a planning mechanism by which new affordable housing stock can be continually
created through planning incentives.
2.5 Waverley Affordable Housing Program (WAHP)
The Waverley Affordable Housing Program (WAHP) is a social initiative seeking to
maintain social diversity and improve sustainability through the promotion of equitable,
secure and accessible affordable housing. The WAHP also seeks to assist households
on low and moderate incomes who are unable to secure rental housing and who can
demonstrate a strong connection to Waverley LGA and are otherwise unable to secure
long term local affordable housing.
2.6 WAHP objectives
The objectives of the WAHP and WAHPP 2007 have been derived pursuant to the
aims contained within clause 3(1) of WLEP 1996 which seek in the assessment of any
DA:
“a) to encourage the retention of existing affordable housing, including boarding
houses and rental housing provided by residential flat buildings;
b) to encourage the development of new affordable housing in a variety of types
and tenures for all income groups;
c) to facilitate the expansion of the Council’s role in the provision of affordable
housing in the public and private sectors; and
d) to promote the development of a broader and more appropriate range of
affordable housing types in the private sectors.”
2.7 Achieving the WAHP objectives
The WAHP objectives will be met where by an applicant decides to enter into the
program and seek additional floor space via a DA for the provision of affordable
housing (either through dedication of unit(s) or through rental arrangements) or
through a monetary contribution. All monetary contributions generated through the
WAHP will be used to increase the supply of affordable housing or to assist in
maintaining the current/future stock of affordable housing.
Council stresses that the decision to enter into the WAHP is entirely voluntary. If
an applicant does not wish to enter the program there is no compulsion to do
so. Council will only grant additional floor space in the manner detailed in this
policy where the impacts of this additional floor space are offset by sharing the
planning gain and the environmental impacts are deemed acceptable.
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Waverley Affordable Housing Program Policy 2007
3. Implementation of WAHPP 2007 objectives
3.1 Introduction
WAHPP 2007 is designed to address housing affordability issues through direct action.
This includes seeking to increase the supply of affordable housing through planning
provisions by way of Council’s planning policy framework. This section outlines how
Council will achieve this objective by way of roles, responsibilities and procedures.
3.2 Roles and responsibilities
3.2.1 Waverley Council’s responsibilities
In applying the WAHP, Council seeks:
• To provide the opportunity for additional floor space on development sites through
floor space allowances as set out in the WDCP 2006 – Part D2 Multi-Unit Housing
only where affordable housing provisions are met. This additional floor space
allowance will also only be permitted where environmental impacts and outcomes
are considered acceptable.
• To negotiate VPAs in circumstances where additional floor space is being
proposed in accordance with the WDCP 2006 – Part D2 Multi-Unit Housing. The
negotiation of VPAs is not to be taken as approval of any DA but rather it forms
part of a process of discussion over possible outcomes if a DA proceeds.
• In the case of an application for rezoning of any land (whether or not concurrently
made with a DA), Council will seek to use VPAs to increase the supply of
affordable housing in conformity with the Voluntary Planning Agreement Policy
2007.
In promoting increased affordable housing opportunities through the WAHP, Council
endeavours to:
deal consistently and equitably with all applicants in the application of WAHP;
• ensure the highest levels of probity within the process;
• publish policies and procedures concerning the use of VPAs in accordance with
relevant statutory guidelines and any relevant Council policy;
• provide opportunities to convene a pre-DA meeting with the applicant and provide
written feedback on the proposal discussed at the meeting;
• advertise the application in accordance with this policy and any relevant legislative
requirements.
• process the applications in a timely manner subject to any requirements for public
advertising, liaison and/or concurrence with government agencies and assessment
of public submissions;
• notify the applicant of the outcome within a reasonable time;
• prepare any necessary legal documentation that is not the responsibility of the
applicant;
• respond to any legal documentation in a timely manner provided that this
documentation is prepared in a correct and acceptable form;
• undertake necessary inspections and complete necessary documentation for the
handover of any affordable housing subject to the applicant fulfilling all required
processes and completing all necessary documentation;
• make available the affordable housing in a reasonable time subject to the
availability of appropriate tenants and the completion of the housing to Council’s
satisfaction in accordance with this plan and all supporting material; and
• manage and protect the affordable housing portfolio in a manner that ensures that
the portfolio addresses the needs of those in housing stress as identified by this
policy.
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Waverley Affordable Housing Program Policy 2007
3.2.2 Applicants’ responsibilities
In seeking to enter into the WAHP, every applicant will be expected to:
• deal fairly and equitably with Council over any proposed method of increasing
affordable housing;
• ensure the highest levels of probity within the process;
• meet the requirements for entering the WAHP through specific offers of entry;
• attend a pre-DA meeting with Council to enable both parties to fully explain and
understand the offer to be made as part of the DA;
• complete and submit all necessary documentation in full at the time of the DA;
• provide any necessary supplementary information as requested by Council;
• prepare all necessary legal documentation for the VPA and other legal documents
as required;
• make affordable housing contributions in accordance with all relevant conditions
prescribed within the VPA and in conjunction with all conditions of consent;
• construct affordable housing unit(s) according to Councils requirements including
the conditions of consent and the respective VPA; and
• make available at the time of the Occupation Certificate (“OC”) and in accordance
with the Councils requirements, the affordable housing stock.
3.3 Achieving the WAHP Provisions
The provisions relating to affordable housing are designed by Council to offset the
wider impacts of residential and other development in the Waverley LGA regardless of
whether a proposed development itself has a direct adverse impact on housing
affordability or otherwise. The grant of the additional floor space (or rezoning if
proposed) is also contingent on an applicant indicating to Council that they wish to
enter into the WAHP.
Council will only grant consent for additional floor space where an applicant wishes to
exceed provisions within the WDCP 2006 Part D2 – Multi-Unit Housing as
accompanied by an offer to meet affordable housing provisions in accordance with the
WAHP. Such an offer may be made by way of:
1. the dedication of a unit(s) within the proposed development (or within another
development of an equal or greater value of the proposed development) in
perpetuity to the Council pursuant to the WAHPC; or
2. the provision of a unit(s) within the proposed development (or within another
development of an equal or greater value of the proposed development) for a
defined period with a rental level that is capped at a certain rate (“a rental unit”)
pursuant to the WAHPC; or
3. a monetary contribution in lieu of the value of a unit in perpetuity or a rental unit
pursuant to the WAHPC; or
4. another method contributing to the WAHP that is of equal value of a unit in
perpetuity or a rental unit as determined in accordance with the WAHPC.
Council permits a combination of physical and monetary contributions no a given
application. It is noted that the minimum rental term for a capped unit is 3 years. The
specification of which method is satisfactory will be determined at the time of the
consent but the offer must be made within the draft VPA outlining the proposed
method. Applicants are strongly advised to discuss such methods during the Pre-DA
meeting before an offer is to be made.
In meeting the affordable housing provisions, units that are provided shall be in the
following minimum configuration and standard:
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Waverley Affordable Housing Program Policy 2007
• Bedroom type to conform with Councils WAHPC;
• Be of a similar standard of finishes to the other units in the development; and
• Be supplied with parking and storage to a similar standard and rate to other units in
the development.
Council may, from time to time, provide more detailed guidance and set out more
specific policies with regard to the standard and provision of units.
Note: Council encourages units dedicated to WAHP are of an adaptable nature.
3.4 Voluntary Planning Agreements Policy 2007
3.4.1 Voluntary Planning Agreements (VPA)
Recent amendments to the EP&A Act permit VPAs to be entered into for a wide variety
of public purposes. In accordance with WAHPP 2007, Council uses VPAs for the
provision of procuring and securing affordable housing contributions.
VPAs are voluntary and binding agreements between Council and another party(ies) to
fund or deliver an agreed set of facilities, dedicate land or make appropriate monetary
contributions. A number of procedural requirements exist for the preparation and
adoption of VPAs. The preparation of VPAs requires considerable planning and legal
effort that should be understood by an applicant.
The legislative system for VPAs imposes certain safeguards which:
• provide for a generally applicable test to determine the acceptability and
reasonableness of a VPA;
• contain specific measures to protect the public interest;
• are open and transparent;
• provide for effective public participation; and
• maintain the independence of the planning authority.
There are certain mandatory requirements for VPAs as compiled by Council set out in
sections 93F and 93G of the EP&A Act (refer to DoP Practice Note on Planning
Agreements).
3.4.2 The use of VPAs within the WAHP
The application and use of VPAs seek to ensure a high level of transparency, legality
and probity for greater understanding to the manner in which Council attain and secure
affordable housing stock within the WAHP.
It is noted that this policy covers all forms of VPAs not just those relating to affordable
housing. Consequently, there may be some areas of the VPA policy that are less
relevant to a VPA for affordable housing.
3.4.3 Public Notification of VPAs/Explanatory Statements
In accordance with section 93G(1) of the EP&A Act, a VPA cannot be entered into,
and a VPA cannot be amended or revoked, unless public notice has been given of the
proposed agreement, amendment or revocation, and a copy of the proposed
agreement, amendment or revocation has been available for inspection by the public
for a period of not less than 28 days. The Council may decide to notify a planning
agreement for a longer period as permitted by the Act.
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Waverley Affordable Housing Program Policy 2007
The EP&A Regulation has the following requirements in relation to public notice:
“25D Public notice of planning agreements
(1) If a planning authority proposes to enter into a planning agreement, or an
agreement to amend or revoke a planning agreement, in connection with a
development application, the planning authority is to ensure that public
notice of the proposed agreement, amendment or revocation is given as
part of and contemporaneously with, and in the same manner as, any notice
of the development application that is required to be given by the planning
authority by or under the Act.”
Clause 25E(5) of the Regulation also requires that a copy of the explanatory note must
be exhibited with the copy of the VPA (or amendment or revocation) when the VPA is
made available for inspection by the public in accordance with the EP&A Act. The VPA
Policy 2007 contains a template explanatory note which will be amended each time a
VPA is proposed to be entered into.
It should be noted that the DA should be placed on notification from the first day the
proposed VPA is notified. However, the DA notification can be the normal length of
notification or Council may wish to extend the notification to 28 days to match the
statutory requirement of the VPA notification.
3.4.4 Mandatory contents of VPAs
Section 93F of the EP&A Act requires planning agreements to include provisions
specifying:
a) a description of the land to which the VPA applies;
b) a description of the change to the environmental planning instrument, or the
development, to which the VPA applies;
c) the nature and extent of the provision to be made by the developer under the VPA,
and when and how the contributions are to be made;
d) whether the VPA excludes (wholly or in part) the application of s94 or s94A to
particular development;
e) if the VPA does not exclude the application of s94 to a development, whether
benefits under the VPA may or may not be considered by the consent authority in
determining a contribution in relation to that development under s94;
f) a dispute resolution mechanism; and
g) the enforcement of the VPA by a suitable means, such as the provision of a bond
or bank guarantee, in the event of a breach by the developer.
Subject to necessary amendments as required, this is the basis for future VPAs
(including those relating to affordable housing). As part of a VPA, Council will require
an applicant acknowledges that any unit (whether held in perpetuity by the Council or
as a rental unit(s) or monetary contribution or any other form of public benefit offered
as part of a VPA proposal) will not be subject to any trust, estates, interests,
dedications, conditions, restrictions and covenants affecting the land or any part of the
land. Note this does not relate to Councils protection of retaining the contribution.
Further, the VPA will acknowledge that any dedication of land in perpetuity will be
contingent on the land being classified as Operational Land pursuant to the LG Act.
Council will be bound by the VPA in ensuring that the land, monetary contribution or
other benefit will be applied to the provision and maintenance of affordable housing in
the manner proposed in this policy.
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Waverley Affordable Housing Program Policy 2007
3.5 Steps in the process
In general terms, the WAHP process and procedures are as follows:
Step 1 - Pre-DA meeting
• Applicant arranges a pre-DA meeting with the respective Development
Assessment Area Manager/Strategic Planning – Social (as required) to discuss
the proposed development. The applicant uses information as per Waverley
Affordable Housing Program DA Kit available from Councils Customer Service
Centre or website regarding development generally and the WAHP. Participation
in the WAHP is contingent on a willingness to comply with the planning
framework.
• Council advises the applicant about the WAHP process and provides a
preliminary assessment of the type of contribution proposed by the applicant.
• Council notifies the applicant of the results of the pre-DA meeting, particularly
any issues of detail that must be resolved by the applicant prior to the DA
lodgement. The information provided does not guarantee or ensure an applicant
that the given proposal will be supported.
Step 2 - Development Application Lodgement
• Applicant lodges DA with Council, including all necessary documentation
required to enter into the WAHP using the WAHP DA Kit as a guide.
• The applicant must lodge the following information to support the affordable
housing component of the DA:
– A completed WAHP DA checklist (this includes a valuation providing
market value and rental rates of the proposed units). Additionally, all FSR
calculations prepared are to be certified by a registered surveyor or
appropriately qualified person.
– Copy of the completed Pre-DA form.
– A draft VPA based on the pro-forma available on Councils website, which
comprises a developers offer to enter into a VPA for the purposes of
Section 93(3) of the EP&A Act. The parties agree on the terms of the
accompanying explanatory note and the content of the application to which
the draft agreement relates.
– A Statement of Environmental Effects (“SEE”) justifying the claim for
additional floor space and confirmation as participation in the WAHP by
way of completing the form of acceptance template.
• The respective Duty Officer conducts an initial check for any non-compliances. If
there are non-compliances, Council will advise the applicant for the opportunity to
resolve the problem by provision of additional information or through amendment of
the DA.
Step 3 - Referral
• The application is referred to various Council sections as necessary for
evaluation and comment.
Step 4 - Notification and Advertising
• The application, draft VPA and explanatory note are publicly notified and exhibited
in accordance with the EP&A Act and Regulation. Notification letters will be sent to
properties in the vicinity of the development site. Additionally, the proposed draft
VPA will be advertised in the local newspaper.
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Waverley Affordable Housing Program Policy 2007
Step 5 - Development Assessment and Determination
• The proposed development is assessed in accordance with all environmental
planning controls.
• The Assessment Officer inspects the site, considers the submissions and
prepares a report.
• If the application is complex or controversial, an Independent Hearing and
Assessment Panel (“IHAP”) meeting is held or if a number of objections are
raised, the application will be referred to the Development and Building Unit
(“DBU”).
• The draft VPA and public submissions are considered in the determination of the
application so far as relevant to the application. The weight given to the draft
VPA and public submissions is a matter for Council to determine.
• If Council is satisfied in accordance with the relevant planning, health and
compliance requirements, the proposed development is approved (only then
move to Step 6).
• As an offer has been made in accordance with section 93I(3) of the EP&A Act, a
condition of the development consent can be imposed requiring the developer to
enter into a VPA in accordance with the terms of that offer.
• Any consequential amendments required to the application and draft VPA are
made and, if necessary, the amended application, draft planning agreement and
explanatory note are re-exhibited for the prescribed period of 28 days.
Step 6 - Approval and VPA Finalisation
Council stipulates that a VPA does not take effect until the date the development
consent is granted or until such time that the VPA is executed.
The consent is issued and the developer complies with the conditions of consent
regarding the provision of a contribution or the provision of affordable housing
dedication as part to all conditions of consent.
Step 7A – Payment of contribution
• In the event that a monetary payment is proposed and acceptable to Council,
this is made payable to Council by way of one complete cheque satisfying the
condition of consent.
Step 7B - Dedication of unit(s) or provision of rental unit(s)
• In the event that an offer is made contributing affordable housing unit(s) in either
perpetuity or rent capped, the affordable housing will be inspected prior to the
issuing of an OC. Subject to the housing being provided to the satisfaction of the
Council or Section 88B instruments being in place, the developer will then be
discharged from the VPA.
Note: The above information is intended as a general description of the
process. As with any DA process, there may be other steps which are not
included or stipulated in the above mentioned.
3.6 Waverley Affordable Housing Program Calculator
(WAHPC)
The WAHP process essentially involves the granting of additional floor space to a
development site for the purposes of a public benefit as outlined in Section 1.3 of this
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Waverley Affordable Housing Program Policy 2007
policy. The additional floor space has a monetary value and, consequently, the sharing
of the planning gain from this additional floor space is the fundamental method of
securing additional affordable housing.
The method of calculating the planning gain involves a calculation based on the value
of the additional floor space which based on the land value of the given site(s). Council
has developed the Waverley Affordable Housing Program Calculator (“WAHPC”)
based on this concept which provides a uniform approach to quantifying the financial
benefits, as well as uniformity and accountability of the value of the additional floor
space.
The calculator relies on the input of the recent sale price or valuation of the site,
current and bonus FSR, site area, market rent, sales value of the unit and net yield for
investments. It is required that this information is submitted to Council as consistent
with the WAHP DA Kit. All information with regard to market and sales information is to
be submitted as prepared by a valuer. All FSR calculations prepared are to be certified
by a registered surveyor. The estimated benefit to the developer is then calculated,
which can be captured by Council for affordable housing purposes through three
methods, which include:
• Unit(s) granted in perpetuity;
• Provision of affordable unit(s) assess on the discounted value or the rental cap; or
• Contribution as a monetary amount in lieu of a unit in perpetuity or a rental unit.
The model calculator is available on Council’s website, completed output sheets are to
be provided at the time an application participating in WAHP is lodged.
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Waverley Affordable Housing Program Policy 2007
3.6.1 SEPP (Affordable Rental Housing) 2009 & WAHP
In the instance where the application of SEPP (Affordable Rental Housing) 2009 and
the WAHP apply simultaneously, a WAHP ‘discount’ may be applicable.
Where a WAHP contribution is offered and equates to a greater amount than a SEPP
(Affordable Rental Housing) 2009 contribution, the SEPP (Affordable Rental Housing)
2009 contribution will be deducted from the original WAHP contribution, leaving a
WAHP ‘discount’ contribution amount. The WAHP ‘discount’ contribution will be
retained by Council for the purposes of Waverley’s Affordable Housing Program, while
the SEPP (Affordable Rental Housing) contribution will be forwarded to Housing NSW
for the purposes of the Boarding House Financial Assistance Program.
No WAHP ‘discount’ will be offered when the WAHP contribution is equal to or less
than a SEPP (Affordable Rental Housing) contribution. WAHP contributions are still
required to be calculated in accordance with the WAHPC, however should reflect the
WAHP ‘discount’ amount.
Please refer to the example below for further explanation of the WAHP ‘discount’.
Example
WAHP = $200,000
SEPP (Affordable Rental Housing) 2009 = $150,000
Typical total contributions to be paid = $200,000 + $150,000 = $350,000
WAHP ‘discount’
ie. (Original WAHP contribution amount – SEPP (Affordable Rental Housing) 2009
contribution amount = WAHP ‘discount’ contribution amount)
$200,000 - $150,000 = $50,000
Total contributions to be paid = (WAHP ‘discount’) $50,000 + (SEPP Affordable Rental
Housing) 2009 $150,000 = $200,000
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Waverley Affordable Housing Program Policy 2007
4. Accountability, management and reporting
systems
4.1 Introduction
This section sets out accountability, management and reporting systems associated of
the WAHP. It details the various statutory requirements in relation to reporting and
access to various documents, as well as the Council’s own internal requirements in
relation to the operation of the WAHP.
4.2 Registering VPAs and accounting for contributions
The EP&A Regulation requires Council keep a VPA register and allow public access to
that register in the following terms:
“25F Councils to facilitate public inspection of relevant planning agreements
1. A council must keep a planning agreement register.
2. The council must record in the register a short description of any planning
agreement (including any amendment) that applies to the area of the
council, including the date the agreement was entered into, the names of
the parties and the land to which it applies.
3. A council must make the following available for public inspection (free of
charge) during the ordinary office hours of the council:
a) the planning agreement register kept by the council,
b) copies of all planning agreements (including amendments) that apply to
the area of the council,
c) copies of the explanatory notes relating to those agreements or
amendments.”
4.2.1 Waverley Affordable Housing Program Register (WAHPR)
Council have established, and on a quarterly basis update and maintain the Waverley
Affordable Housing Program Register (“WAHPR”). The WAHPR comprises all of the
units which have been acquired through the WAHP, in addition, the stage of operation
of each unit (i.e. consent completed, undeveloped etc).
4.2.2 Waverley Voluntary Planning Agreement Register (WVPAR)
In accordance with the EP&A Regulation, Council has established, and on a quarterly
basis update and maintain the Waverley Voluntary Planning Agreement Register
(“WVPAR”). The WVPAR is publicly accessible containing all VPAs entered by Council
and the respective details to these agreements. Council reports on the WVPAR on an
annual basis.
4.3 Management of existing and future WAHP stock
4.3.1 Classification of land in accordance with this policy
In accordance with this policy, all land dedicated to Council for the purposes of
affordable housing will be classified as ‘Operational Land’ pursuant to the LG Act. This
classification permits the flexible use of the affordable housing stock and respond to
existing and future tenancy needs.
4.3.2 Re-classification of existing land
Prior to the introduction of VPAs, stock within the existing WAHP portfolio was
classified as ‘Community Land’ pursuant to the LG Act. This classification limits the
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Waverley Affordable Housing Program Policy 2007
options that Council has in dealing with the properties. Consequently, Council,
proposes some flexibility is provided within the WAPHP. In some cases Council may
wish to retain the classification of a nominated property when it enters the WAHP as
‘Operational Land’. This will allow for thee flexibility not retaining the property or for
disposal and re investment of funds for thee purpose of maximising affordable housing
benefits.
4.4 Monitoring
Council will regularly review this policy and the manner in which it operates. As
necessary, amendments and other changes may be required to ensure the policy
operates in the way that Council intends.
4.5 Tenancy management
4.5.1 Tenancy and property management position
The WAHP provides housing for households on low and moderate incomes which
have a connection to the Waverley LGA and which are otherwise unable to secure
local affordable long-term housing. Currently, Council externally delegates
management responsibilities to non-profit community housing co-operatives, namely
the South West Inner Sydney Housing Co-operative (SWISH).
4.5.2 Duties and responsibilities of the housing co-operative
4.5.3 Tenancy Agreements (Terms and Conditions)
The WAHP Tenancy Agreements (Terms and Conditions) are as consistent with the
WAHP Agreement Policy and Residential Tenancies Act 1987.
4.5.4 Tenant Eligibility Criteria
In order to be eligible to participate in the WAHP, successful applicants must be able
to substantiate compliance with the following criteria:
a) The average household gross annual income, which includes all people in the
household aged eighteen (18) years and older, taken over the last two (2) years
prior to application to WAHP much fall within the following ranges of percentages
of the median household income from the Waverley Statistical Division according
to the Australian Bureau of Statistics:
• Low 0% - 80% (the precise income amount will vary annually)
• Medium 0% - 120% (the precise income amount will vary annually)
b) Must be able to demonstrate a connectedness to the Waverley LGA area
meaning a tenant must be living in the Council LGA currently and for the past
three (3) years; or if not living the Waverley Council LGA, have lived in the area
for at least five (5) years in the previous ten (10) years;
c) Must not own assets or property which could reasonably be expected to be used
to solve their housing needs;
d) Employees, or immediate relatives of employees of the Waverley Council and
the Affordable Housing Manager (“AHM”);
e) Must not be already living in secure medium and long term subsidized social
housing the Eastern Suburbs including the Local Government Area of Waverley,
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Waverley Affordable Housing Program Policy 2007
Woollahra, Randwick, Botany and City of Sydney at the time of application
submission;
f) Prior to accepting potential tenants on the waiting list, their eligibility needs to be
confirmed through:
• proof of income, through documentation such as income tax returns, social
security documentation, declaration of all assets etc, and
• proof of connection with the Waverley area, through evidence of current
and past phone/power bills and/or current and past rent receipts.
Interviews are conducted with applicants in order to verify compliance with
eligibility criteria; and
g) Prior to placement of anyone from the waiting list in a dwelling, the income and
connectedness criteria, lack of secure accommodation are to be verified.
Applicants no longer meeting the criteria should be removed from the waiting list.
4.5.5 Tenant Allocation Process
WAHP properties are allocated to approved tenants as per the following:
a) properties will be advertised. Advertisements for properties will clearly stipulate
all eligibility criteria;
b) applicants who fulfil the eligibility criteria will be short listed;
c) eligible applicants whose household numbers are appropriate to the available
property size will be further short listed; and
d) all eligible potential tenants will enter a ballot which will be drawn.
Three (3) years is the maximum period available to any tenant in the WAHP. Shorter
periods of tenure may be negotiated for privately owned rent capped properties.
Previous tenants unsuccessful at the ballot will be advised of new similar properties
coming into the WAHP by way of letter from the respective AHM for twelve (12)
months only. It is noted, there will be no succession or transfer of tenure. The AHM
should inform prospective tenants of all possible conditions of tenure.
4.5.6 Rent Setting
The affordable housing units rent is set to a level that is 25% below the Rental Review
Board median weekly rent in the Waverley local government area as according to the
unit composition as stipulated below:
a) a studio one or (1) bedroom residence;
b) a two (2) bedroom residence; or
c) a three (3) bedroom residence.
It is noted rent is not to be expressed as a percentage of household income. Income is
used as eligibility criteria only.
4.5.7 Evictions
Evictions undertaken by Council pursuant to the WAHP are as consistent with the
Residential Tenancies Act 1987.
4.5.8 Finalisation of Lease
Evictions undertaken by Council pursuant to the WAHP are as consistent with the
Residential Tenancies Act 1987.
PAGE 23
Waverley Council Customer
Service Centre
55 Spring Street
Bondi Junction
Email waver@waverley.nsw.gov.au
Web www.waverley.nsw.gov.au
Telephone Enquiries
General business 9369 8000
General fax 9387 1820
TTY for hearing impaired 9389 9827
After hours emergencies 9369 8000
Your call will be directed to the appropriate area.
