No new Social, Affordable housing for North Eveleigh

NSW Government developer UrbanGrowth has announced plans for new housing in the 'Central to Eveleigh precinct' of inner Sydney. The project concerns the redevelopment of disused and vacant State land around the railway tracks to the southwest of Central Station - though it also takes in the larger Waterloo station redevelopment, and anticipates future works in Redfern. 

UrbanGrowth has announced that the renewal of the 'North Eveleigh' sub-precinct will primarily deliver "buildings between three and 20 storeys providing 600-700 new apartments with a total floor area of around 57,000 square metres providing homes for between 1,150 and 1,350 people"  - in addition to amenities such as a small park. 

But the project will deliver no Social or Affordable Housing.

Above: The 'Platform Apartments' development in North Eveleigh

The North Eveleigh sub-precinct is a 3.3 hectare site situated to the southwest of Redfern Station, between the Carriageworks site and Iverys Lane Newtown. Though comprised mostly of disused RailCorp land, it includes the 'Platform Apartments' development - consisting of 88 Affordable Housing units owned and managed by community housing provider City West housing. That development predates the Central to Eveleigh program, though a Sydney Morning Herald article provides that the NSW Government contributed the land and the cost of civil works. 

An UrbanGrowth spokesman told the Herald that, including The Platform, the North Eveleigh site will include 11-13% Affordable Housing once works are complete. A spokesman told ABC News that other Central to Eveleigh sub-precincts may deliver Social and Affordable Housing. 

Stakeholder responses

City West Housing CEO Janelle Goulding told the Herald the provider is "surprised to hear" the North Eveleight sub-precinct development will not deliver Affordable Housing. Ms. Goulding also said, "At the end of the day affordable housing is so needed it shouldn't even be a discussion point".

Jenny Leong MP's electoral district of Newtown includes the North Eveleigh site, and much of the wider Central to Eveleigh precinct. On March 26, Ms. Leong posted an update to her Facebook page concerning the announcement. It reads, in part: "...affordable housing is critical to success of urban renewal...Shameful stuff and such a lost opportunity for the NSW Government to follow the lead of other global cities by establishing provisions for ensuring affordable housing is at the heart of urban renewal". Ms. Leong was also co-signatory to a November 2015 submission to UrbanGrowth that calls for 30% Affordable Housing at the North Eveleigh site. Other signatories included local interest groups REDWatch, Friends of Erskineville, Alexandria Residents Action Group, and North Eveleigh Working Group. 

On March 26, Shadow Social Housing Minister Tania Mihailuk MP posted an update to her Facebook page concerning the announcement. It reads, in full: "Another backflip from this Government. Once again developers and investors are the winners and everybody else misses out". Ms. Mihailuk also told ABC News, "Clearly what the Government has already set aside there for its targets is not enough", and, "It's about this Government taking seriously the need to set social and affordable housing targets in each of their own developments". 

Homelessness NSW described the announcement on its Facebook page as "an unbelievable decision that needs reversing". 

Our response

We share much the same concerns regarding North Eveleigh as for The Bays Precinct. The site represents a sizeable package of disused and vacant State land, in a region experiencing an acute shortage of Social and Affordable Housing. The NSW Government has also emphasised the need to increase inner Sydney's 'social mix'. 

Furthermore, North Eveleigh is situated in close proximity to the Waterloo site marked for redevelopment over the next 20 years. Approximately 2000 Public Housing tenants will be relocated over the life of that project. New Social Housing at North Eveleigh could have served as a site for temporary relocation, or a permanent new home, for some of the Waterloo tenants whose homes are marked for demolition.

The decision taken is therefore a missed opportunity in multiple respects. 

Affordable Housing projects in inner Sydney

Community Housing provider City West Housing has recently announced numerous developments in its portfolio of Affordable Housing. 

Ultimo sales and relocations

City West Housing is in the final stages of selling off eight nineteenth century houses in the inner Sydney suburb of Ultimo. The terrace properties have been used as Affordable Housing since their acquisition by City West in 1994. Records available on realestate.com.au provide that the package consists of six three-bedroom properties, one two-bedroom property, and one four-bedroom property. They are situated adjacent the TAFE Sydney Campus.

Above: seven of the eight terraces for sale

Five of the properties were sold in October and November 2015, and a further two were sold on 18 February 2016. According to a report in the Inner West Courier from February 2016, the final property will be sold in March 2016. 

Records published by real estate agency Cobden & Hayson indicate that the combined sales price of the seven properties sold to date is $12,010,000. The eighth property has a current estimated value of $1,600,000.

City West Housing has provided information regarding the relocation process for the eight affected households. Depending on the circumstances of the occupants, households were either relocated to other properties within the City West portfolio, or transitioned to alternative housing. City West paid the relocation costs of all households eligible to transition within their Affordable Housing portfolio.* 

Wigram Road Glebe development

City West Housing's 2015 annual report states that the provider is "in the process" of acquiring land adjacent the Mirvac Harold Park development on Wigram Road, Glebe. It provides further, "Our early design concepts indicate that we will deliver 76 units [here]. CWH will commence design and planning this year with construction estimated to commence in the latter half of 2016". Although information is not available on the mix of Affordable, Social, and private market housing to be delivered through this development, City West's current portfolio consists of 547 rental properties, of which 510 are provided as Affordable Housing. And recent City West construction projects have delivered Affordable Housing exclusively. 

Above: the site of the Mirvac Harold Park development

The Inner West Courier report from February 2016 concerning the Ultimo sales cites Chief Executive Janelle Goulding as stating that "City West Housing had committed" the money from the sale of the Ultimo terraces to funding the Harold Park development. 

Cowper Street Glebe development

City West Housing's 2015 annual report also confirms that the provider will be involved in the redevelopment of the NSW Land and Housing Corporation-owned site at Cowper Street, Glebe (previously discussed on this blog). The report states, "The Minister for Family and Community Services and The Treasurer have now approved the vesting of land to CWH. The site at Cowper Street will accommodate 95 affordable units". 

Our response

Inner Sydney is suffering from an acute shortage of affordable rental housing. The Centre for Affordable Housing's area snapshot provides that the City of Sydney LGA is a renting hotbed. Approximately 77,000 rental households live within the city's boundaries. Around 40% are classed as 'low income'. But just 6.3% of rental housing stock in the LGA is affordable for low income households. That figure is just 2.1% for very low income households. 

City West Housing's intent to deliver new Affordable Housing units through the Wigram Road development is therefore welcome in and of itself. But given the project appears to be funded largely or wholly by the sale of the Ultimo terraces, it is appropriate to look at what has been lost - as well as the particulars of what is to be gained. 

The Ultimo homes include six three-bedroom properties and one containing four bedrooms. Comments made by City West to the Inner West Courier suggest that the Wigram Road complex will consist overwhelmingly or even exclusively of one and two bedroom units; "...the reality is the demand in that area is for twos and ones"; "[Wigram Road] will allow us to house about 100 people". 

City West Housing is therefore trading a small number of large homes, capable of housing about 30 people, for a larger number of small ones. In doing so, it posits that demand for larger affordable residences in the inner city is lacking. But it is not entirely clear that this is the case. Though the Centre for Affordable Housing snapshot does note that "Lone person and couple only households comprise a significant proportion of all households" across the region, it also states that the area "has a diversity of housing demand, supply, needs and trends." Indeed, census data indicates that the area is home to 15,000 households of three or more persons living on or below the median income. And wait times for three and four bedroom properties managed by Social Housing landlords is consistently at 10 years or more throughout the inner city.

Of course, selling for the sake of building also requires the relocation of tenants. This process can be stressful and even traumatic if not handled with great sensitivity. 

Finally, it is worth considering the composition of larger households. Many are likely occupied by families with children. Without access to suitable, affordable housing, low and middle-income families will have no choice but to leave the area - thereby narrowing the social mix of the community as a whole. 

So whilst additions to Sydney's affordable rental stock are welcome, it is discouraging to see it delivered at the expense of diversity in Affordable Housing. Such a trade off is likely to see the needs of larger households - and ultimately the public at large - sold short.


* We welcome feedback from tenants affected by sales of Affordable and Social Housing on their relocation. This may be provided to contact [at] tenantsunion.org.au. Your anonymity will be respected.

Cowper Street sale, development announced

On 9 December 2015, NSW Social Housing Minister Brad Hazzard announced the sale of a lot on Cowper Street, Glebe, to developer Roxy Gordon Pty Ltd. 

According to a media release issued by Mr. Hazzard, a mixed use development will be constructed on the site. The project will consist of 497 new dwellings - 247 private dwellings (49.7%), 159 social housing dwellings (32%), and 91 affordable housing dwellings (18.3%). The affordable housing component will be provided to "key workers". The Government intends to submit a development application for the project prior to Christmas 2015, and expects works will be completed by the end of 2018. 

Artist's impression of the Cowper Street redevelopment

The sale price for the site was $67 million. The Minister's press release says this will be reinvested to cover the social and affordable housing component of the new development. It is unclear how much construction of the social and affordable dwellings is expected to cost. 

According to a Family and Community Services media release dated 17 June 2015, Bridge Housing will manage the social housing component of the development, and City West Housing will manage the affordable housing component. According to an article in The Sydney Morning Herald dated June 13 2015, NSW Treasury has also provided title to this land to the community housing providers. 

The Cowper Street site has been vacant since the demolition of fifteen public housing apartment blocks in 2011. Hansard states that the former site contained 134 public housing units, and 208 tenants were relocated prior to demolition.

A separate development application for the site was lodged by the Government in 2011, but was contested by community groups. According to a Sydney Morning Herald article dated 14 May 2011, this development application was for a mixed use residential site of 493 dwellings - consisting of 250 private units (50.7%), 153 public housing units (31%), and 90 affordable housing units (18.3%). 

The project has not been listed as part of the Department of Family and Community Services' 'Communities Plus' program. The relationship between the Cowper Street redevelopment and the '$1 billion Social and Affordable Housing Fund' is not clear. 

Please comment below if you've seen or heard anything about the Cowper Street redevelopment not included in this story.