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Affordable Housing Contributions

Client: City of Sydney

State: NSW

The City of Sydney was investigating implementing an affordable housing scheme to apply to land within the local area, not currently subject to an existing affordable housing scheme. An additional contribution requirement on sites that are subject of changes to the planning controls was also being considered. AEC was commissioned to assist the City of Sydney understand the viability of implementing these affordable housing requirements on development, in addition to how these contributions and resultant affordable housing outcomes compare with targets envisaged in the draft District Plan.

AEC undertook profiling of the precincts and generic feasibility testing to examine the financial impacts to development following the inclusion of a ‘standard’ affordable housing levy and potential for a ‘site-specific’ levy, followed by a generic assessment of development tolerance and comparison of affordable housing outcomes with the draft District Plan proposed targets. This led to the identification of:

  • An appropriate contributions rate to apply in residual areas of the city as well as the ‘site specific levy’

  • Affordable housing outcomes from the contributions rate, site specific levy and affordable housing targets

  • Implications for competitiveness and investment following implementation of an affordable housing contribution requirement.


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