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.

Update: Sales of Millers Point properties

A further ten Public Housing properties in Millers Point were auctioned off to private market purchasers on the evening of 9 June 2016. 

The Daily Telegraph's coverage provides that the sales generated $33.805 million in total. Prices ranged from $5.725 million for the six-bedroom home at 7 Dalgety Road, to $1.815 million for the three-bedroom property at 27 Windmill Street. 

Above: aerial view of Millers Point

The NSW Government's 'Discover Millers Point' page states that the next sales will consist of four terrace properties of between two and six bedrooms, to be auctioned on July 13. 

As at 10 May 2016, 330 of the 399 Social Housing properties in Millers Point and surrounds had been vacated. Of the remaining 69 homes, 12 residents have been approved to move into 13 of the 28 properties set aside for existing residents (two adjoining properties will be modified to create one tenancy). 

Update at Thursday, 15 July 2016:

Sales: Four more properties in Millers Point went under the hammer on 13 July 2016. You can check these out at: https://www.finance.nsw.gov.au/about-us/media-releases/social-housing-benefit-sale-four-millers-point-terraces The NSW Government Real Estate 'Rediscover Millers Point' website was updated on 14 July 2016. 

Residents: At the meeting of Millers Point Estates Advisory Board NSW on 13 July 2016 Housing NSW reported that:

• 399 properties in the portfolio
• 344 have been vacated out.
• Of the 55 remaining tenancies to be relocated, 50 are from FACS Housing NSW and 5 from Little Real Estate.
• 13 of the 55 remaining tenancies have been approved for moving into alternative accommodation (both within or outside Millers Point)
• 42 tenants are still to be rehoused. 
• 15 proprieties set aside for remaining tenants remain unallocated. 

Of the 42 tenants still to be rehoused, 7 reside in the Sirius Building.

Our response


To date 94 properties have been sold for $264,212,000, with a median sale price of $2.48M and sales in the range $1.54M and $7.70M. You may check this out at: http://rediscovermillerspoint.com.au/ 

The NSW Government receives an extra bonus on each sale. Its return on the sales is at least 5% higher than the sale price received due to stamp duty to the state government. For each property, the NSW Government receives the following additional payment: over 1m - add $40,490 plus $5.50 for every $100 by which the price exceeds $1,000,000; over $3m - add $150,490 plus $7.00 for every $100 by which the price exceeds $3,000,000.

The NSW Government's stated target for total revenue from Millers Point sales is $500 million. Given the staggering sales figures to date, it is reasonable to conclude that it could comfortably meet its target through the sale of properties that already lie vacant. 

The Government should therefore allow the remaining 42 households - overwhelmingly occupied by elderly, long-term tenants - to age in place in their current homes. 

The Government should also permanently retain some workers' cottages, and units within the Sirius Building, as Public Housing. This would allow the Millers Point community to retain a social mix. It would also be consistent with the Government's firm commitment to deliver social mix through its Social Housing redevelopment programs (such as those at Airds-Bradbury, Telopea, Waterloo, Glebe, and Macquarie Park). 

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".

Redevelopments in Northern Sydney

Over the past year the NSW Government has launched major projects to transform the State's Social and Affordable Housing portfolios - most notably Communities Plus and the Social and Affordable Housing Fund. But throughout this period, NSW Land and Housing Corporation ('LAHC') has also busied itself with smaller scale initiatives. As we outlined last week (here, with update here), on Sydney's well-heeled North Shore this has involved 'spot sales' of large houses to the private market. It appears likely that the resulting windfall gains have assisted an underfunded LAHC to meet its operating costs. 

Above: LAHC has been busy across the City of Ryde

But LAHC has also pursued a related though distinct strategy in neighbouring Northwest Sydney. The Public Housing provider demolished a number of large, freestanding houses in the Ryde Local Government Area in 2014 and 2015. It constructed units in their place. 

Public tender documents provide that houses across four sites in the suburb of Eastwood - two each on Alison Street, Raymond Street, and North Road, and three on the corner of Banksia Street and Lovell Road - were demolished, with small apartment complexes built in place of each. We understand that the same will likely happen to Public Housing cottages on Irene Crescent, also in Eastwood. 

Eight houses on Neville and Fawcett Streets, Ryde were also levelled for multi-unit developments. Finally, LAHC demolished a house on Adelaide Street, West Ryde, replacing it with a seven-unit building. 

Land and Housing Corporation has provided that all newly-constructed units will be provided exclusively as Public Housing. 

Our response

In our earlier discussion of North Shore spot sales, we highlighted the process LAHC undertakes in assessing its housing assets: "In managing the Public Housing portfolio, Land and Housing Corporation periodically estimates the cost or windfall or maintaining, redeveloping, or selling individual dwellings. In the case of valuable North Shore land in a heated market, it appears the opportunity cost of not selling is proving difficult to resist."

It is concerning that in Northwest Sydney, substantially similar properties to those sold on the North Shore have instead been redeveloped. It is impossible to escape the conclusion that land values were a key consideration; simply put, Ryde is markedly less valuable than its blue chip neighbour. According to Land and Sales Report data, the City of Ryde ranks 18th amongst Greater Sydney's 51 LGAs by average dwelling sale price. A far cry from the North Shore, which contains six of the top ten. The contrasting fortunes of the Ryde and North Shore properties suggests that the future Public Housing is tied to some extent to the fluctuations of a speculative and volatile property market. 

At the least, LAHC has provided that it did not impose any mandatory relocation process on tenants moved on from the now-demolished Ryde properties. This must continue to be the case for as long as LAHC is driven, by underfunding and/or market conditions, to the view that some Public Housing is too valuable not to sell. 

On the other hand, it should be repeated that the redevelopment of LAHC land within the Public Housing portfolio is strongly preferable to the loss a site to private interests. Moreover, LAHC has said that its redevelopment works in Northwest Sydney are addressing increased demand for smaller, more accessible dwellings, and for more Social Housing overall, in the Ryde area. The pursuit of such objectives is legitimate. However, we might also repeat our quibble with similar projects elsewhere in Sydney. That is, a true social mix - of the sort the Government claims to desire - requires a diverse portfolio. That means larger affordable properties as well as small units and bedsits. Most notably, large properties are necessary to accommodate low-income families. LAHC's redevelopment of Ryde may well serve immediate portfolio needs, but it must not result in the disappearance of larger Public Housing properties from the area completely. 

SBS 'The Feed' on the proposed redevelopment of Waterloo

Ivanhoe Estate Tenant Group - Ryde Council's Volunteer Group of the Year, 2016.

Cross posted from the Brown Couch: former Ivanhoe Estate resident Marie Sillars talks about the strength of a community, the shock of relocation, and how to ensure all is not lost to "renewal".

***

My time with the Ivanhoe Estate Tenant Group Inc. started some 6 years ago and I am a Founder Member of the Group. We established a Community Centre (pictured) and started organising BBQs, meetings and getting involved in our community.

Four years ago we heard (on TV News) that Ivanhoe was to be demolished as it had gone past "its use by date" and very quickly we started to gather information, attend meetings, take part in Community Reference Group meetings and even became involved with a Parliamentary Committee on public housing. At the same time the group were running craft classes (we have knitted and crocheted scores of blankets, beanies, scarves etc. which will be donated to a homeless shelter & local hospital) computers for the elderly, breakfasts at the Centre, established a community garden (tenants were invited to take any herbs or veggies that they needed) and generally made ourselves busy with the day to day matters that a community needs. We had Oz Harvest for 2 years where we distributed up to 150 kilos of food on a Saturday afternoon and we had the greatest fun. Most of the Oz Harvest Committee were over the age of 60 and it was a great way to make sure that the elderly tenants had enough fruit, vegetables and groceries to keep them going until the next Saturday. Rain, hail and shine we worked our way through the food with an incredible energy for people of our age.

We knew the time was coming when the final decision would be made but somehow just kept working away trying not to think about the inevitable time when the FACS people would deliver the letters and we would then we would have to decide how we would deal with this. Late last year the letters were delivered and even though we knew it was coming the whole place went into shock and we were called to a meeting at the Community Centre where we were introduced to the officers who would become our Relocation Officers. It was an awful day and it had quite a negative effect upon the tenants, especially the elderly folk. We decided on that day that the Committee would go ahead "business as usual" and try hard to get through what was to become a difficult period. As Christmas at Ivanhoe came and went we all knew that this would probably be our last Christmas together as a group, and the atmosphere around the Centre changed. People were sad and a bit down and together with the Salvation Army on the Estate we tried very hard to keep people's spirits up and tried to make a positive side of the relocations.

As time went on and we were still attending meetings the interviews with our respective Relocation Officers were conducted and we were then told to wait as the Officers searched for places for us. As this has been happening tenants started to move away and so I contacted some people outside of the Estate to help establish a "Footprints" Committee to gather information, pictures and stories about the Estate so that when the new places are built, people there will know that there was a thriving, exciting community existing before. Ryde Council, Salvation Army, Macquarie University, FACS, and many of our wonderful supporters have come on board with this idea to create media, films, interviews and many other ways to show how a great Community CAN work and that Public Housing Tenants can work in a positive and intelligent way to come together and be proud of what they have achieved.

Two weeks ago I myself had to move and I am not very far away from the Ivanhoe Estate so I am able to keep craft classes happening on Mondays for those who are still there. The Committee who had worked so hard at Oz Harvest had started to move away also and we will all keep in touch in the future. As this Community fades away we are keen to let people know that through the Footprints Programme the Ivanhoe Committee will not be forgotten.

Last week (5th May 2016) some of the Committee attended a Volunteer of the Year Evening with Ryde Council and I was so very honoured to be nominated as Volunteer of the Year. I did not win but the Ivanhoe Estate Tenant Group DID win Volunteer Group of the Year 2016 and I have to say it was one of the proudest moments of my life. Even through our times of sadness it just shows that a community such as the Ivanhoe Estate can shine through, smile and move on to other communities. As they say "Onwards and Upwards" but in the end it has been a great achievement and one I will never forget!

Marie Sillars May 2016

Update: North Shore spot sales

In last week's article, we discussed recent 'spot sales' of Public Housing properties on Sydney's well-heeled North Shore, and its significance for the Social Housing portfolio as a whole. 

Above: Have spot sales been put on hold for Communities Plus?

We have since received some indication that LAHC recently paused intended spot sales in Northern Sydney. It has reportedly taken this decision in order to provide itself with more vacant dwellings for the ongoing relocation of around 400 tenants from the Ivanhoe Estate - part of the large 'Communities Plus' initiative. If accurate, it would not surprise if the reportedly cancelled sale of a 12-unit complex on Upper Spit Road, Mosman was in fact a deferral of sale until after those relocations are complete. 

We understand that LAHC is also planning sales of freestanding cottages in the suburb of Turramurra, in a similar manner to recent sales in Lane Cove and Asquith.