Who is the landlord in this brave new world?

With the foreshadowed, large-scale transfers of public housing stock to the community housing sector, the question arises as to who is the landlord.

Read our answer to this question here.

Brad Hazzard media release: Ivanhoe Estate + new Communities Plus sites

Posted without comment:

Thursday, 25 August 2016

HOUSING PROJECT DELIVERS STRONG INTEREST

The first Communities Plus renewal project at Ivanhoe (Macquarie Park) has sparked strong interest from the private sector development industry and Community Housing Providers (CHPs), said Minister for Social Housing, Brad Hazzard.

“The three shortlisted organisations represent the top echelon of the private development sector and strong Community Housing Providers,” Mr Hazzard said.

“This is an extremely positive response to the Communities Plus program and shows how Government, the private sector and CHPs can be innovative and band together to deliver more housing and better social outcomes.”

The shortlisted groups are: Exemplar Living (Lend Lease) with St George Community Housing and Capella Capital; Frasers Property with Mission Australian Housing and Citta Property Group; and Stockland with Evolve Housing and Brookfield Multiplex Constructions.

The renewal project at Ivanhoe will boost social housing, more than doubling the current 259 social housing dwellings. The project will see 556 new social housing dwellings, at least 128 new affordable housing dwellings and some 1900 private dwellings on the eight hectare site.

The NSW Government has also announced that the second Communities Plus Neighbourhood Renewal package will be offered through an Expression of Interest to Community Housing Providers and small to medium sized private developers. These ten sites will deliver an estimated 790 new private, social and affordable homes into the high demand NSW housing market.

“These ten sites will provide a 300% increase from the current number of social housing dwellings and give residents modern new homes,” Mr Hazzard said.

Neighbourhood Renewal Release 2 involves sites in Corrimal, Wagga Wagga, St Marys, Padstow, Liverpool, South Granville (two sites), Warwick Farm, Parramatta North and Lane Cove.

Communities Plus is a $22 billion redevelopment of NSW Government owned social housing estates to deliver 23,000 new social housing dwellings and 40,500 private and affordable homes in integrated communities with better community outcomes.

Proposed 'State Significant Precinct' at Riverwood

Minister for Social Housing, Brad Hazzard, recently announced a $3.4billion renewal of Riverwood in Sydney's south east, that will draw on the apparent success of the Washington Park project of Riverwood North. The announcement is reflected in this article from 'The St George and Sutherland Shire Leader' - 1600 new social and affordable homes to be mixed with private housing at Riverwood.

Image from http://washingtonpark.com.au/

The announcement says "The remaining 30.5 hectares of the Riverwood estate is being submitted as a State Significant Precinct (SSP), which will involve planning to identify all types of housing, community amenity, services and infrastructure needed for the local population."

State Significant Precinct's are a creature of planning law - specifically the State Environmental Planning Policy (State Specific Precincts) 2005. Determining an area to be a State Significant Precinct allows the NSW Government to override local government planning processes by either adjusting applicable Local Environmental Plans (as has happened with areas around Macquarie Park), or adjusting the SEPP to include zoning and planning controls within the document itself (as has happened with the Redfern-Waterloo area). More information about State Significant Precincts can be found in this document: here.

It is not clear which of the options will apply to the Riverwood site. However, in either case there is a process that needs to be followed and we understand this to be as good as underway. Responding to our enquiries, Minister Hazzard's office has confirmed that the Planning Minister has instructed the Department of Planning and Environment to provide the NSW Land and Housing Corporation - the Government entity that owns our public housing, and current owner of the Riverwood site - with an outline of what would be required to have the site considered a State Significant Precinct. The Land and Housing Corporation will then produce a submission, against which the matter will be considered. This will take some time, as it will involve a process of "consultation, design and planning".

It appears there will be opportunities for residents, the community and other stakeholders to have their say in the coming months. We can expect public exhibition of the resulting plans in the second quarter next year.

In the meantime, Minister Hazzard's announcement gives us a little more to go on. It says that “conservative estimates tell us we can get at least 1600 new social and affordable homes but there is a lot of planning and community consultation to do before we settle on final figures.” It also promises that "current residents in social housing will be able to continue to live in Riverwood, in the new housing. It will be two years before any resident will have to temporarily relocate to allow new building works to begin."

We can also expect involvement from the Community Housing sector in the renewal of Riverwood, and the management of any new social housing properties. SGCH, a Community Housing landlord that has worked with Government and the private sector on the Washington Park project, has noted Minister Hazzard's announcement in a recent newsletter (and a slightly reworded press release). CEO Scott Langford, said: “We very much look forward to having an input into the plans for the redevelopment and to seeing the next stage deliver housing that caters for the diverse needs of all people in our society.”

Affordable Housing at 'Lachlan's line', Macquarie Park

NSW Government developer UrbanGrowth has released details of its plans for Affordable Housing at 'Lachlan's line' - a major residential development in Macquarie Park, Northwest Sydney. Measuring 9 hectares, Lachlan's line sits between Epping Road and the M2 motorway, and adjacent North Ryde train station. The brownfield site was most recently owned by NSW Government agency RailCorp, and used to assist construction of the Epping to Chatswood train line. Once complete, the site is expected to house approximately 5000 residents in 2700 apartments, across 10 'super lots'. 

Above: Concept art of a completed Lachlan's line

On June 27 2016, UrbanGrowth announced that it is seeking expressions of interest from Community Housing providers - potentially in partnership with private developers - to purchase and develop one super lot as Affordable Housing for key workers. According to the associated information memorandum, this 2507 square metre lot is zoned R4 (high density residential), and has a concept design for 96 apartments, including the floor space bonus available under the NSW planning policy for Affordable Housing. Expressions of interest for CHPs and developers close on 29 July 2016, and UrbanGrowth will issue invitations to tender later this year. No timeline for the development of the Affordable Housing lot specifically is available. However, construction of residential towers at Lachlan's line generally is expected to commence in 2017, with residents moving in by 2019. 

Also announced on June 27 was an EOI and tender process for private developers concerning a further two super lots - of 6883 and 6745 square metres, also zoned for high density residential. Collectively, these are expected to house approximately 172 apartments. UrbanGrowth sold an additional super lot - the largest of the 10 - in late 2014. Shanghai developer Greenland purchased the 1.2-hectare site, zoned B4 (mixed use). According to The Australian Financial Review, Greenland intends to build up to 900 apartments on this land. There is nothing to suggest that any of these lots will include an Affordable or Social Housing component. 

Above: The Lachlan's line build site

Lachlan's line is the second major residential project in Macquarie Park being undertaken by UrbanGrowth - together with the redevelopment of the Ivanhoe Public Housing estate under the 'Communities Plus' program. TUNSW Clearing House has recorded details of the Ivanhoe project here, with an update here. The NSW Government has designated Macquarie Park and its surrounds a 'priority growth area'. 

Our response

Despite the flurry of news this week, Lachlan's line is not an especially new initiative. It was announced way back in September 2013, and the Government's vision for the site as a major residential development can be traced back at least as far as the sale of the mixed use lot in 2014. Until now, all evidence suggested the project would deliver its mammoth 2700 apartments for 5000 residents with a Social and Affordable Housing component of precisely zero; In other words, a rare and valuable opportunity spurned. According to National Shelter, rental housing in Macquarie Park and neighbouring suburbs is 'severely unaffordable' for low income households - meaning they pay over 38% of their income in rent on average. NSW Land and Housing Corporation's own initiatives and decade-long wait times in Northwest Sydney also reflect an urgent need for more Social Housing.

The news that one of the ten super lots comprising Lachlan's line has been set aside for the construction of Affordable Housing is therefore a considerable surprise, but certainly welcome. But it must be noted that the Affordable Housing lot is the smallest of the four to be put to market thus far. It is approximately 20% of the size of the Greenland lot, and one fifth smaller than the other two designated for private housing. In turn, the 96 Affordable Housing apartments will make up around 8% of the 1170 dwellings to be constructed across these four lots. Which is not insignificant in itself; But if the remaining lots are given to private development, that will mean that just 3.5% of all housing at Lachlan's line is Affordable. Moreover, there is still no indication that the project will include any Social Housing at all.

We therefore call on the Government to build on its good work. It should ensure that the remaining six lots at Lachlan's Line include a substantial Social and Affordable Housing component - thereby delivering a true mixed tenure development for the benefit of all of Northwest Sydney. 

Finally, the words of Planning Minister Rob Stokes, speaking to 7 news about Lachlan's line, have also given us pause for thought. He acknowledged there is "plenty of demand" for Affordable Housing throughout NSW, and noted, "We'll earmark a certain percentage in new developments such as this one for key workers - people like emergency service workers, nurses, and teachers". Again, we approve of the principle of including an Affordable Housing component in all major residential developments. We just hope the percentage the Minister has in mind is significantly higher than 3.5. 

Affordable Housing project in Armidale

Northern Tablelands MP Adam Marshall has announced that Community Housing provider Homes North will develop a six-unit Affordable Housing complex in Armidale. According to The Northern Daily Leader, the project will be undertaken in conjunction with property developer Hibbards.

Above: a Community Housing development in Northwestern NSW

National Shelter's rental affordability index provides that the rental market in Armidale is 'relatively unaffordable' for low income households - meaning they pay over 30% of their income in rent on average. 

Although Homes North manages over 1000 Social and Affordable Housing properties in New England and Northwestern NSW, this represents its first foray into property development. According to Mr. Marshall's announcement, the NSW Government "has helped Homes North to increase its borrowings in order to supply more affordable housing". It is believed this was achieved via the transfer of Public Housing stock from NSW Land and Housing Corporation to Homes North. 

The 'Future Directions' plan for the Social Housing portfolio from 2016-2026 outlines an intent to transfer management and/or ownership of Public Housing to Community Housing providers, such that community providers own or manage 35% of all Social Housing in NSW.

The Bays Precinct: housing update

Our February 2016 analysis of NSW Government developer UrbanGrowth's plans for Sydney's Bays Precinct, and the dearth of Social and Affordable Housing options therein, noted the following regarding the Sydney Fish Market site:

"An article in The Australian dated 21 January 2016 provides that UrbanGrowth has requested submissions from commercial property agents for the sale and redevelopment of 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."

Above: The current Sydney Fish Market

Singaporean property development giant Oxley Holdings has announced an intention to develop the Fish Market site. In a statement to the Singapore Stock Exchange dated May 14 2016, CEO Ching Chiat Kwong provided that "The Board of Directors of Oxley Holdings Limited wishes to announce that the group plans to enter the Australian market and is currently looking at Sydney's Bays Precinct as the location for a flagship commercial and residential project to add to its project portfolio. The Fish Market site at Pyrmont is one of several sites considered by the group as a potential redevelopment site. In line with its business strategy, the Group will collaborate with a local partner and has identified Brookfield Multiplex as a potential partner. Further information will be announced when there are material developments." 

Reporting on the announcement, The Australian newspaper noted, "The [Fish Market] site is tipped to attract a bevy of other developers, with Lend Lease, Grocon and Malaysia's UEM Sunrise Berhad among potential runners."

The announcement was not covered by UrbanGrowth's own 'Bays Precinct newsroom'. 

Our response

Though the Oxley Holdings announcement is far from definitive, it appears to signal that the wheels of Government action are very much turning on the redevelopment of the large package of land comprising the Fish Market and neighbouring waterfront. Given The Australian's previous reporting, and the top-tier status of the developers set to compete for the contract, it is also reasonable to conclude that the residential component of the project will deliver a substantial quantity of new dwellings. 

Yet Social and Affordable Housing remains, as far as we can tell, entirely off the table. We can therefore only repeat our previous concern that such an approach to redevelopment will constitute a unique opportunity lost - for the huge number awaiting Social and Affordable Housing in inner Sydney, and for the area's social mix. 

We'd also refer to the recent musings of the State MP for most of the Bays Precinct site, Jamie Parker, on the direction of the project. Mr. Parker stressed the need to provide, "sustainable, integrated, democratic, vibrant infill development that provides continuous public access to the harbour front, includes social and - importantly - affordable housing, recreation and community facilities." He is concerned that a prioritisation of commercial and private residential developments, and a shortfall in community consultation, will see the Bays Precinct end up as "Barangaroo on steroids".

NSW Government announces SAHF shortlist

The NSW Government has announced that nine parties have been shortlisted to participate in the first stage of the Social and Affordable Housing Fund ('SAHF'). The SAHF was established in 2015, with $1.1 billion in seed capital from the State, to assist Community Housing providers, private developers, landholders, and NGOs to develop Social and Affordable Housing. 

Above: An award-winning Social Housing development 

The shortlisted parties include four standalone applicants - specialist Community Housing providers Link and St George, plus BaptistCare and Uniting, care organisations involved in Community Housing. The other five are consortia containing Community Housing providers and/or care organisations and private interests. At the industry briefing concerning the SAHF, NSW Government representatives suggested that only consortia would be considered. The State received 24 applications in total. 

There is no indication of where the shortlisted parties propose to construct new housing, nor how many properties each applicant intends to deliver. However, the SAHF project team previously indicated that approximately 30% of dwellings to be provided at the first stage will be in regional NSW. Nor is there any indication of how many parties will ultimately be successful. But given 3000 properties will be built in the initial tranche, and the minimum project size is 500 dwellings for metro-based applications and 200 for regional or mixed applications, it is possible that all shortlisted parties could be selected.

The shortlisted applicants must now submit detailed proposals. The NSW Government is expected to announce its preferred applicants in August 2016. The announcement provides that successful applicants are expected to begin tenanting SAHF properties in two to three years. 

The Social and Affordable Housing fund is one means by which the State hopes to increase the Social Housing portfolio under the overarching 'Future Directions' plan. 

Olympic Park-Bridge Housing management partnership

Sydney Olympic Park Authority ('SOPA') and Bridge Housing have entered into an arrangement for management of up to 50 dwellings. SOPA is a statutory authority responsible for management and development of Sydney Olympic Park. Bridge Housing is a registered 'Tier 1' Community Housing Provider, currently managing 1716 Social and Affordable housing properties across Sydney. 

Bridge Housing's 2015 annual report states that Bridge and SOPA have agreed that Bridge will manage "up to 50" properties delivered under an affordable housing program devised by the park authority. According to the Bridge Housing website, the properties variously contain 1, 2, 3 and 4 bedrooms, and are interspersed among private dwellings. 23 are currently tenanted, and this number is expected to rise to 50 by 2017. 

Above: aerial view of Sydney Olympic Park

Bridge Housing's website provides that the agreement was "won" by "competitive tender", and its management services are provided to SOPA on a fee for service basis. Accordingly, Bridge Housing says it is unbound by requirements of the National Regulatory System for Community Housing (NRSCH) in its management of the properties, except if its activities impact upon its viability as a Community Housing Provider. The agreement is therefore an essentially private arrangement for the provision and management of housing, rather than a conventional Affordable Housing program. 

However, Bridge Housing has provided that it complies with the NSW Affordable Housing Guidelines in its management of the SOPA properties.

According to SOPA General Manager (Commercial) Nick Hubble, the Authority has developed a policy to allocate properties delivered under the scheme to persons employed within the park. He provides further, "We have a preference in the park for people who are engaged in sports programs...Bridge Housing essentially take our policy, they connect people who are looking for that housing supply, and run an end to end service". Bridge Housing's website states that the policy allows for the properties to be allocated to athletes, coaches, technical staff, and other workers such as police operating in the park. Bridge has provided that allocation of the properties to such persons is preferred though not strictly required under the SOPA policy.

Our response

Community Housing Providers are increasingly vital to the delivery and management of Social and Affordable Housing in NSW. In addition to dominating the Affordable Housing space, the Future Directions strategy declares that community providers will own or manage up to 35% of all Social Housing in the State by 2026. Large 'Tier 1 providers' such as Bridge are particularly important to the provision and maintenance of these services.

As a corporation charged by statute with ownership and management of what was once Crown land, SOPA does inhabit a somewhat ambiguous space between the public and the private. But it is clearly not engaged in Social or Affordable Housing issues in any meaningful sense. Its intention to develop and provide properties at below market rent - even a modest 50 - is therefore welcome. As is its implicit acknowledgment that other organisations are better positioned than itself to managed those properties. Other private and semi-private organisations would do well to adopt a similar sense of social responsibility.

But the projects confuses a development that a private landlord and its agent elect to offer on an affordable basis with what is conventionally called 'Affordable Housing' (for example, as defined by the Centre for Affordable Housing). There appears to be little to nothing here that actually requires the SOPA properties to be provided as Affordable Housing. Moreover, the allocation policy applied to the project by the park authority is particularly narrow. Bridge's decision to adhere to the NSW Affordable Housing Guidelines should at least ensure appropriate management and charging of rent. 

But it also raises the question of whether the line between community service and private initiative could be allowed to blur for providers ambitious to expand their reach. Indeed we are aware of instances in which Community Housing Providers engaged in fee for service management have abandoned such requirements in ending individual tenancies. Community Housing Providers are also exempted from the Property, Stock and Business Agents Act that regulates private operators engaged in property management.

In all, it is appropriate to question whether Community Housing Providers should be bound by the national regulatory requirements, as well as applicable State-level provisions, for all properties they manage. These are providers that have received significant public funds and land to assist their rise to prominence. And the national requirements were developed by the sector itself - partly as a means of demonstrating its professionalism and capacity for self-regulation. But more than anything, they should be bound to a standard befitting their status as the new vanguard of Social and Affordable Housing. 

We welcome feedback from all tenants, including those resident in Sydney Olympic Park affordable housing properties. This may be provided to contact [at] tenantsunion.org.au. Your anonymity will be respected. 

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'.

Communities Plus update

A paper released by the NSW Government in relation to the tender process for Communities Plus has revealed new details about the scheme. The document, published on NSW e-tendering and entitled 'Expressions of Interest: First Six Sites of the Communities Plus Program', is intended for developers and community housing providers with an interest in participating in the scheme. It concerns the sites at Gosford, Warwick Farm, Glendale, Seven Hills, Telopea, and Tweed Heads. A standalone equivalent is expected to be released for the larger Macquarie Park site. 

The Communities Plus Telopea site

Build characteristics

The paper most comprehensively discusses build characteristics. It describes the project as consisting of "medium and high density" construction. At present, the Seven Hills, Telopea, and Warwick Farm blocks are zoned for high density residential, Glendale and Tweed Heads are zoned for medium density residential, whilst Gosford is designated mixed use. It is provided further that “The program is predominantly seeking one and two bedroom dwellings as social housing, with a preference for more two bedroom dwellings. A number of dual key dwellings could be attractive as they provide greater flexibility.” 

Regarding the quality of residences to be delivered, the paper states that “as a minimum, the social housing will be required to meet the Silver Level of the Liveable Housing Design Guidelines as published by Liveable Housing Australia.” Liveable Housing Australia describes itself as a "not-for-profit partnership between community and consumer groups, government and the residential building industry". Its primary function is to "advocate the mainstream adoption of liveable housing design principles in all new homes..." - especially housing that "better respond[s] to the changing needs and abilities of people over their lifetime". It has not made its housing design guidelines publicly available. 

The residences constructed will also incorporate energy efficient design features; “Passive environmental design, which maximise solar access, orientation and cross flow ventilation to reduce energy heating, cooling, lighting and clothes drying costs...will be a requirement”.

Commercial arrangements

The paper also addresses anticipated commercial arrangements between LAHC, developers, and community housing providers - including the overarching commercial objectives of the project. LAHC will seek to optimise its commercial return for the land it contributes to the project, whilst adding to the overall supply of social housing and "seamlessly integrating" social, affordable, and private market housing.

The paper contemplates the manner in which the Government will dispose of and/or retain the sites earmarked for development in some detail. Although there will be no mandatory commercial structure, it outlines two "non-binding" arrangements. Under 'Contract for Sale of Land', LAHC would concurrently "offer a Contract for the Sale of Land to sell the site and a Contract for the Sale of Land to purchase the completed social housing dwellings.” Under 'Project Delivery Agreement (PDA)', "LAHC would retain ownership of the land until the project is completed and would appoint a Proponent to develop the site at the Proponent's cost. The proponent earns a return through a development fee equal to the proceeds of sale...[and] will be responsible for and accept all risk selling the private dwellings".

The affordable housing component of Communities Plus developments is also discussed. The Government anticipates that affordable residences will be owned or controlled by the developers, and managed by a registered community housing provider. Further, “it is not intended the value of land contributed by LAHC will fund the affordable housing component.” These residences will be managed according to Department of Family and Community Service guidelines as to what constitutes affordable rental housing. 

The paper also notes that parties contracted to construct and manage the sites will not be able to draw on funding from other NSW Government housing initiatives, such as the Social and Affordable Housing Fund. 

$1bn Social and Affordable Housing Fund announced

The NSW Government has unveiled the first details of its 'one billion dollar social and affordable housing fund' (SAHF), at an industry briefing on 11 December 2015. 

According to David de Carvalho, Deputy Secretary - Strategic Reform and Policy at the Department of Family and Community Services, monies from the fund will be used to bridge a funding gap in proposed new social and affordable housing developments, to make such projects commercially viable. Project consortia including at least one Tier 1 or Tier 2 community housing provider may apply for funding. Mr. de Carvalho provided that the fund will deliver "at least 3000" social and affordable housing dwellings - and anticipated further funding if this "initial stage" is successful. 

Community housing providers are the principal beneficiaries of the SAHF

To be eligible for funding, a proposed development must provide a minimum of new social housing dwellings - 500 for metro or mixed metro and regional developments, and 200 for regional developments. In this context, 'new dwellings' can mean either newly constructed or newly available as social housing. Richard Mills, Project Director at the NSW Treasury, said the Government has no preference for metro or regional proposals. Furthermore, at least 70% of the total number of dwellings must be social or affordable housing. The Government anticipates that community housing providers involved will hold unencumbered title to social and affordable housing residences funded under the scheme.

Both Mr. de Carvalho and Mr. Mills emphasised that projects delivering a mix of social, affordable, and private market dwellings over multiple locations would be preferred. Mr. de Carvalho said projects would "ideally" be located close to employment, services, and public transport. Both also stressed a preference for projects built on unused or under-utilised land already owned by the applicant housing provider/s. Mr. Mills agreed with a suggestion from a briefing attendee that consortia need not apply if a proposed development does not satisfy this preference. 

It is important that not all funding for successful applications will go towards construction of dwellings. Funding will be provided for the community housing providers' tenancy and asset management services. Social service providers are also expected to form part of applicant consortia. This is because funding will also go to what the briefing presentation called "Tailored Support Coordination" - that is, services that support the deemed needs of resident social housing tenants. According to Mr. de Carvalho, such supports will ideally facilitate increased educational and employment prospects, and ultimately a transition out of social housing. Mr. Mills emphasised that this funding will provide for the "coordination" of social services - that is, linking them and monitoring activities - but not the client support activities themselves. Indeed, project funding will be provided over a period of 25 years, as opposed to a lump sum. 

The briefing presentation provided the following timeline for the initiative:

"14 December 2015 - Registration process [for interested participants] opens;
Late January 2016 - Release of Invitation for expressions of interest;
March 2016 - Deadline for submissions of expressions of interest;
May 2016 - Announcement of shortlisted Applicants;
May 2016 - Release of requests for proposal;
May-July 2016 - Interactive process;
July 2016 - Deadline for submission of proposals;
August 2016 - Announcement of preferred proponents;
September 2016 - Service agreements awarded."

The SAHF was initially promised by the Liberal-National Party coalition prior to the 2015 NSW election. The substantive policy announced on 11 December was developed in conjunction with the NSW Council of Social Services (NCOSS), with reference to a Memorandum of Understanding, and infrastructure think tank IPA. 

Premier Mike Baird is expected to make another announcement concerning the fund in early 2016. The full industry briefing is available here, and the accompanying presentation here. 

Our response

NSW is experiencing a renting affordability crisis. Approximately 60,000 people are currently on the waiting list for social housing in NSW. The wait time for a majority of dwellings - particularly larger houses, and almost all properties in Sydney - is at least five years, and often more than a decade. Moreover, due to the preference given to 'priority' applicants in allocating available properties, an offer of social housing for many non-priority applicants will most likely never arrive.

The Tenants' Union strongly supports the expansion of the state's social and affordable housing stock in NSW as a central measure to address this crisis. Accordingly, we are supportive of the basic objective of the SAHF to provide 3000 new social and affordable dwellings. However, we also agree with the closing comments provided by Acting NCOSS CEO John Mikelsons at the industry briefing, that "tomorrow, even with this fund, we will still have a housing affordability crisis in NSW". An additional 3000 dwellings represents a commendable first step rather than anything close to a solution. Mr. Mikelsons also identified the need for inclusionary zoning and tax reform to adequately address this issue. Here, too, we broadly concur, though would add that reform to tenancy laws is also important. 

Our response to the finer details of the scheme is also mixed. We support the requirement that funded projects consist of at least 70% social and affordable housing. This provides an appropriate focus, and should serve as an important safeguard against use of the initiative as a de facto subsidy for private market developments. Moreover, the benefits to tenants of housing close to transport, employment, and education facilities are self-evident - though this does not appear to be a strict requirement for funding. 

The preference for developments on 'unused or under-utilised' land already owned by applicant housing providers should provide for efficient use of Government funds, and hopefully the delivery of as many new residences as possible. We are somewhat concerned, however, by the possibility that low-density community housing may be considered 'under-utilised'. This would raised the prospect of painful eviction and relocation for existing tenants. 

But the requirement that funded projects include "Tailored Support Coordination" seems to signal the continuation of a worrying trend in social housing in NSW. It assumes an intrinsic and necessary connection between poverty and social support. The successful 'Housing First' initiative negates such a presumption. The expectation on efforts to 'transition' to the structurally insecure and unaffordable private market is also cruel and unrealistic for most. Finally, such an approach further entrenches housing as a privilege to be earned and lost, as opposed to a basic need and a human right. 

New details about Communities Plus

New details have emerged regarding the NSW Government's residential development project, Communities Plus.

Locations

Previously, the Department of Family and Community Services had announced that seven locations would be utilised, but had only disclosed the precise location of the Macquarie Park site. The Communities Plus website now includes details of the locations of the other sites: Gosford, Liverpool, Newcastle, Seven Hills, Telopea, & Tweed Heads.

Communities Plus site in Gosford, from Google Maps

The Gosford site is a 4500m² block at 209-309 Mann Street, adjacent the Pacific Highway and close to Gosford station. Google Maps suggests it is a disused commercial property - consisting mostly of a closed down hardware store and its parking area. 

The 'Liverpool' site is actually a 1700m² block at 4-6 Bigge Street in neighbouring Warwick Farm, close to the Hume Highway. Google Maps suggests it is currently a vacant lot. It was previously the site of single-storey one bedroom and studio apartments. 

The 'Newcastle' site is actually a 2800m² block at the corner of Lake Road and Main Road, Glendale - part of the Lake Macquarie LGA. Google Maps suggests it too is a vacant lot.   

The Seven Hills site is a series of eight connected blocks, totalling 4400m², at 93-95 Best Road and 1-11 Second Avenue - a short distance from Seven Hills station. Google Maps suggests the blocks at 5, 7, 9 and 11 Best Road are vacant. Single story, freestanding houses sit on each of 93 and 95 Best Road, and 1 and 3 Second Avenue. 

The Telopea site is by far the biggest of the six; a series of three connected blocks, totalling 7200m², at 6-8 Moffats Drive and 13 Sturt Street, close to Kissing Point Road. According to Google Maps, 6 and 8 Moffats Drive both contain three-story apartment blocks; seeming to consist of 6 and 12 small apartments respectively. 13 Sturt Street contains two three-story apartment blocks, seeming to consist of 6 apartments each. 

The Tweed Heads site is a 1800m² block at 33-35 Boyd Street, close to the Queensland border. Google Maps suggests that 33 Boyd Street is a vacant lot, and 35 Boyd Street contains a single-story house. 

Project timeline

In October and November 2015, NSW Land and Housing Corporation, in conjunction with Ernst & Young, conducted industry briefings and 'market sounding' meetings with potential construction and operations partners. 

The Communities Plus website includes a basic timeline for further progression of the project into the second quarter of 2016:

"- 27 November 2015: Ivanhoe Estate at Macquarie Park Registrations of Interest (RoI) open
- 4 December: First Six Sites under the Communities Plus program Expressions of Interest (EoI) open
- 17 December 2015: Ivanhoe RoI closes
- 16 Feb 2016: Other Sites EoI close
- March 2016: Ivanhoe Industry Briefing & start of Procurement
- March/April 2016: Other Sites Request for Proposal"

Allocation requirements

The front page of the website includes this statement from Social Housing Minister Brad Hazzard MP: "Communities Plus will be at the forefront of encouraging people in social housing to be aspirational, not generational. Many of the new social housing units will be used to trial innovative programs that link housing assistance to participation in education, training and local employment opportunities to promote independence". 

The presentation that accompanied the industry briefings also includes the following quotes:

"What's Different About Communities Plus...
- Social housing tenants benefit from engagement, learning and employment
- Tenancy management that links supports to tenants who can benefit
- Return on investment includes social and economic outcomes"

"What Will This Mean For Social Housing Tenants?
- Targeted allocations
- Tenancy management with additional support
- Social housing, a platform for independence"

This represents a novel approach. Current FACS Housing policy provides that allocation of public housing is not dependent on tenant participation in education, training, employment, or other support initiatives. 

Our concerns

These projects will involve the demolition of dwellings that are currently tenanted, and many households will need to be relocated. FACS claims its staff are experienced in assisting tenants through these types of process, having learnt much from earlier renewal projects. But testimonial from places such as Millers Point, Claymore and Bonnyrigg give a different perspective - such as this article in today's "Sydney Central" local paper. Independent research into the impact of relocation - and what specifically helped long-term tenants adjust to new homes, neighbourhoods and communities - should be commissioned and considered before proceeding with any projects involving the renewal or disposal of currently tenanted stock.

And the idea that a social housing tenancy is at odds with 'independence' is starting to pervade the policy landscape - and social housing tenancies are becoming further enmeshed in our welfare systems alongside concepts like "mutual obligation". But expecting tenants who are eligible for social housing to promptly resolve their need for assistance and exit into an expensive and insecure private rental market is both cruel and unrealistic.