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.

The Bays Precinct - social and affordable housing

In October 2015, the UrbanGrowth NSW released a comprehensive transformation plan for the redevelopment of what it refers to as 'The Bays Precinct'. The precinct is so named for its proximity to four harbour bays on the western fringe of the Sydney CBD. It is made of up 95 hectares of land:

i) The port facilities, silo complex, and disused power station at White Bay and Glebe Island;

ii) The industrial area, light rail line, and disused heavy rail lines along Lilyfield Road, Lilyfield;

iii) The Sydney fish market, Pyrmont;

iv) Wentworth Park, Glebe;

v) Path areas connecting these sites. 

Aerial view of 'The Bays Precinct' (White Bay in foreground)

According to the transformation plan, this represents a major redevelopment project to be undertaken over a 25-year period. The plan lists nine overarching project objectives. Objective three is "To deliver housing choices, including affordable housing options, through design, finance and construction excellence". The plan also divides planned works into "immediate" (2015-2019), "medium-term" (2019-2022), and "longer-term" (2022-) priorities. 

Delivery of affordable housing is only referenced with regard to one sector of the precinct to be redeveloped - the Lilyfield road site. It reads, in full, "Future uses could include a mix of different housing choices, including affordable housing, as well as public spaces and employment uses." The Lilyfield site is listed as a 'longer-term' priority. 

The document does not make any reference to the delivery of social housing.

An article in The Australian dated January 21 2016 provides that UrbanGrowth has requested submissions from commercial property agents for the sale and redevelopment of the fish market site.The site is being renewed with reference to a private memorandum of understanding between its owners and UrbanGrowth. It states that the request for redevelopment is "aimed at turning the block into a world-class food market, with the winning party to also build apartments on the site." It is not provided that these apartments will include any Affordable and/or Social housing component. 

The piece also provides that the Government "is taking offers for the development rights to transform the nearby White Bay Power Station into a 100,000 square metre office park". An article the the Inner West Courier dated 4 February says that the University of Sydney, University of NSW, University of Technology Sydney, and Macquarie University are hoping to develop the space into a shared campus for tech students. The request for proposals for the White Bay site closes on 25 February 2016. 

An UrbanGrowth media release dated 9 December 2015 provides that the NSW Federation of Housing Associations, the peak body for community housing in the state, is amongst the 68 organisations granted membership of the 'Bays Precinct Reference Group'. According to the statement, the group "will be an ongoing forum for communication between UrbanGrowth NSW and the community throughout the Bays Precinct Transformation Program". 

Our concerns

The critical need for new social and affordable housing stock in NSW, and especially Sydney, is well-documented. More than 60,000 people are currently awaiting housing assistance on the NSW Housing Register. For most of the state capital - including the Inner Sydney and Inner West allocation zones that include the Bays Precinct - the wait for most types of social housing dwelling is over ten years. The Baird administration has formally acknowledged this need, making the supply of new stock one of its three priorities for social housing over the next decade in its all of government Future Directions strategy. 

The Bays Precinct, meanwhile, is one of the largest and most high profile initiatives of the Government's urban renewal arm. 95 hectares is an extremely large package of land in the inner city. Moreover, a large portion of that which has been slated for redevelopment is publicly owned and currently disused or even empty. That this represents a unique opportunity to contribute to the alleviation of the social and affordable housing crisis in Sydney is self-evident. 

However, despite the project objectives proclaiming the importance of 'housing options', the available evidence suggests delivering social and affordable housing in this precinct is not a priority. The immediate priorities for renewal - the power station and fish markets - look set to include no social or affordable housing at all. Only long-term priority Lilyfield "may" include a mix of housing, when developed at an undetermined point in the future. Community Housing interests will have a voice on the project reference group, amongst more than sixty other organisations representing myriad interests.

Completing the Bays Precinct renewal without the inclusion of social and affordable housing will represent a unique opportunity lost - both for the tens of thousands enduring an interminable wait for stable and secure housing, and for our state Government who has recently placed a great deal of emphasis on increasing the city's 'social mix'.

Macquarie Park redevelopment update

The NSW Government has released further details of the Macquarie Park redevelopment.

According to a Department of Family and Community Services media release, construction works will take place on the site of the NSW Land and Housing Corporation's Ivanhoe Estate. It follows that State Property Authority land in Macquarie Park will not be utilised, and no private property will be acquired. Furthermore, the precise number of affordable housing dwellings to be constructed is 128.

An artist's impression of the Macquarie Park redevelopment

The redevelopment will also form part of a new FACS initiative called 'Communities Plus'. According to Fairfax Media's story on the announcement, the initiative will deliver approximately 550 social, affordable, and private dwellings in Gosford, Newcastle, Tweed Heads, Seven Hills, Telopea, and Liverpool, in addition to the Macquarie Park project. 

Precise details about the initiative are not yet available. It appears that all Communities Plus developments will contain a mix of social, affordable, and private residences. According to Fairfax, developers will hold the private dwellings, the NSW Government will hold social housing dwellings, and community housing providers will hold affordable housing. 

In the Fairfax story, FACS Minister The Hon. Brad Hazzard MP also describes Communities Plus as, "a new way of thinking in social housing. Many of the new social housing units will be a base for pilot programs that link housing assistance to education, training and local employment opportunities." And the FACS media release describes the project as a collaboration of "the very best in urban design, construction, community engagement and tenancy services."

Minister Hazzard will host an industry briefing on Communities Plus on 4 November 2015. 

Redevelopment of Macquarie Park, 2016-2018

The NSW Government has announced an extensive redevelopment of the Sydney suburb of Macquarie Park.

Macquarie Park is situated in northwest Sydney. It is part of the City of Ryde, though borders the North Shore councils of Ku-ring-gai and Willoughby. It is home to the Ivanhoe Estate – a medium density public housing complex consisting of 259 townhouses and apartments, and approximately 460 residents. Ivanhoe was built approximately 25 years ago.  

 

NSW Government plans to build 2500 new apartments in Macquarie Park by 2018, with construction commencing next year. The number of new residences could rise as high as 5800 between 2019 and 2031, though the Government has not actually confirmed what, if any development will take place following the first stage of construction.

Irrespective of the final scope of the redevelopment, it will represent a substantial increase in the population density of Macquarie Park. According to City of Ryde data, current density is 9.10 persons per hectare over 676 hectares. At the 2011 census, its total population was 6149. Indeed, the suburb is presently comprised mostly of university grounds, commercial properties, parklands, and low-density housing.

Effect on public and affordable housing stock

The Ivanhoe Estate will be demolished as part of the redevelopment. However, the first stage of construction will include 556 new public housing dwellings (that is, 22.24% of total new dwellings).

This represents a better net result for the public housing stock than provided for in the Macquarie Park Task Force’s development fact sheet, published in May 2012. This provided that, “If the Ivanhoe estate is redeveloped, the same number of social housing homes will be built. There will be no loss of social housing in the area.”

The 2016-2018 developments will also include an affordable housing component. Media reporting conflicts on precisely how many affordable housing dwellings will be built. The Daily Telegraph’s report, available here, says there will be 128 affordable housing dwellings (5.12%). The Sydney Morning Herald says “about 25 per cent” of total dwellings will be either public or affordable housing. Given the public housing component is confirmed to be 556, this would mean about 69 affordable housing residences (2.76%) will be built.

Effect on current public housing tenants

NSW Family and Community Services Minister Brad Hazzard has said that, from 2016, FACS Housing will assist residents of the Ivanhoe Estate to relocate to available public housing properties in the vicinity of Macquarie Park. The Minister said that FACS Housing will also offer Ivanhoe residents the opportunity to move back into Macquarie Park once redevelopment is complete. 

This is largely consistent with what was provided in the Macquarie Park Task Force’s fact sheet; “Where tenants are moved out of the estate to allow redevelopment to take place, they will have the option of moving back to the estate provided that a new dwelling is available that is also suited to their needs.”

Macquarie Park and all surrounding suburbs are situated in FACS Housing’s Northern Sydney allocation zone. FACS Housing lists current wait times in Northern Sydney for those eligible for public housing as “10+ years” for all types of dwelling. This suggests that public housing availability in the vicinity of Macquarie Park is generally very low.

Nothing announced to date gives credence to the rumour, published in a Daily Telegraph story in 2014, that “Public housing tenants could be forced to pay full rent after five years under a “work for the dole”-type public housing trial in Macquarie Park”.

Land acquisition

It is not yet clear whether any privately owned residential properties or commercial land will be compulsorily acquired to facilitate the redevelopment.

However, the Macquarie Park Task Force fact sheet states that, collectively, the State Property Authority and NSW Land and Housing Corporation already own 12.2 hectares of land in Macquarie Park. The Ivanhoe Estate is built on approximately 7 hectares. 

Infrastructure Investment

The Sydney Morning Herald report linked above says the NSW Government will invest $5 million into new infrastructure to accompany the redevelopment. The Daily Telegraph says a new school “could be built” as part of first stage of construction.

It is unclear whether construction of the school would be paid for out of the $5 million infrastructure budget, or by private developers in return for permission to undertake for-profit construction – as occurred, for example, with construction of the Homebush Bay bridge.

Windfall

According to the NSW Government’s Globe program, the land value of the Ivanhoe estate site is approximately $45,000,000. As the Government has not yet announced what, if any additional land will be utilised for construction, it is not possible to calculate additional land values.

Data reflecting projected sales figures for apartments and commercial land to be sold on the private market has not been made publicly available.

Agitated at Claymore

Julie Foreman, Tenants' Union Executive Officer and previously a community worker at Campbelltown, revisits the social housing estate at Claymore.

* 

 

I was at Claymore in southern Sydney  last week. I had worked with the community some five years ago and have remained a friend of many of the active volunteers there.  As I drove into Claymore I passed a building that had housed in succession, at least seven different NGOs over a 14 year period. 

I had reason to reflect on this because I was attending a celebration of the Claymore Community Laundromat and Coffee Shop which had been opened for over 10 years.  The Laundromat is managed and staffed by community members.  It took two years of development work by the community before it even opened but it has stood the test of time.  St Vincent de Paul Society provides a small amount of funds to enable a part-time volunteer coordinator to be employed.

The Laundromat does many things. It provides practical services: washing machines, dryers and a coffee shop.  It also is a gathering place, a place to share community information, social support and training.

I think all of us in government and community organisations have much to learn from Claymore’s Laundromat.  Claymore is also a public housing estate.  When attempting to engage in community building with public or social housing tenants, government and non government organisations think they have the answers and know what processes to follow.  I think the community knows the solution and how to achieve it in a far more practical and sustainable way.  Our job is to listen, really listen and support the local knowledge and skill. If we want to learn how to do this I am sure the women of Claymore would be happy to teach us.

While in Claymore I also caught up with representatives from the local resident group who provided me with an up date on the latest ‘redevelopment’ proposals for the estate.  I have lost count of the number of plans for Claymore that have stopped and started over the last 10 years.

Anyway, the current plan is to sell off land and rebuild private medium density dwellings and reduce the number of social housing dwellings.  The social housing will not be replaced elsewhere. The community were not consulted on this prior to the announcement by the then Minister for Family and Community Service (FACS), Prue Goward.

Urban Growth [previously Landcom] are responsible for the redevelopment and have made a Development Application (DA) to Campbelltown City Council. They and FACS have established a Claymore Information Group (CIG) which residents and community workers attend.  Residents were recruited with the express purpose of being precinct representatives.  The representatives have to promise not to talk to media and are told not to pass all information onto their precinct residents.  In addition the information provided to members is often vague or incorrect and meetings are cancelled at short notice. So questions asked by residents of their representatives go unanswered. This has created much frustration for the representatives and residents, forcing some reps to resign or feel coopted. Other local community groups report feeling excluded from the process.

The residents are not against redevelopment; in fact they believe it is necessary.  It is the process that concerns them and the decisions made as a result.

Currently Urban Growth  is renovating and updating the areas around the precinct that will house private residents, even though other precincts were due for, and indeed more in need of, renovation.  This need had been identified in earlier consultations and plans.

Urban Growth has asked residents involved with the process to sign a submission to Council supporting all aspects of the DA.  In fact they provided a letter for them to sign.  The letter mentioned in detail the community infrastructure to be improved –a  shopping centre upgrade, bus route improvements etc but was silent on issues such as social housing, design or density.  Urban Growth advised residents that signing the submission would expedite the infrastructure that the community wanted.

Of course they also said that anyone could make their own submission.  However I imagine that those who didn’t sign might feel they were letting their community down.  

Such processes do nothing to build community trust or to lead to best outcomes.

Apollo estate (East Dubbo) to be sold

A different sort of social housing estate redevelopment: public housing tenants at the Apollo estate in East Dubbo have been informed that their houses are to be put on the market for sale to individual buyers. The objective, says the NSW State Government, is to reduce the concentration of social housing in East Dubbo.

(Apollo House)

The Government says that about 60 properties will be sold, and that there are no plans to build any new social housing stock in Dubbo – so it is not just the concentration, but the absolute amount of social housing that will be reduced.

What will become of the tenants? They're invited to consider buying their houses when they come up for sale. The local MP is encouraging them to do so, noting:

Buying a house would bring with it the benefit of the pride of ownership.

Hmm. It looks like a fairly proud bunch of tenants who participated in the recent Building Stronger Communities program, which invested in a range of community planning activities; support services; education, training and employment opportunities; and landscaping and other physical improvements to the estate. This program wrapped up in 2011.

Those not buying can expect to be offered alternative social housing... but where?

If you've any news from the ground at East Dubbo, please let us know.