GOSFORD HOUSING FORUM

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• GOSFORD HOUSING FORUM
• Convened by Gosford City Council
• Housing Need in Gosford LGA
• The State of Play
• 25July 2008
• Dr Judith Stubbs
• Principal, Judith Stubbs Associates
• Adjunct Professor, City Futures UNSW

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Anyone In Your Community Could Need Affordable
Housing!

• Quality of life and access to basic necessities
• Affects everyone at some stage
• Economic development sustainability

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Purpose of Address Forum

• Provide an overview of the affordable housing
  challenges facing the Gosford LGA and the Central
  Coast Region
• Present Affordable Housing Strategies available
  to Local Government and the Community Sector in
  the context of current policy and funding
  opportunities
• Open up discussion on possible responses from
  those who have a stake in responding to
  affordable housing need at the local and regional
  level

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Critical Issues for the Region

• Need to increase diversity of stock to meet
  changing local needs over 25 years linked to the
  aging of the population
• Need to retain younger people including key
  workers for sustainable population base
• Serious increasing unaffordability of purchase
  and rental for many local people

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The Central Coast Region and Gosford LGA
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Age Profile 2006
Source Census of Population Housing (2006)
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Change in Age Profile 2001-06
Source Census of Population Housing (2006)
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Net Migration By Destination GLGA 2001-06

• Losing popn to surrounding LGAs like Wyong,
  Cessnock, Newcastle QLD employment,
  education, affordable housing
• Gaining popn from Sydney retirees, affordable
  housing

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Net Migration By Age GLGA 2001-06

• Net popn loss through out-migration
• Gaining 30-39 yrs and 65 yrs
• Losing younger people
• Relatively small 2001-06 growth through natural
  increase

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Dwelling Types

• More m/density and substantially more l/density
• Much less h/density
• Much higher proportion of permanent residency in
  CVPs

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Change in dwelling type 1996-2006

• Large loss in CVPs
• Major gain in improvised dwellings

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Change in number of People Per Dwellings 2001-06
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Change in no. of Bedrooms 2001-2006
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Tenure Type 2006

• Higher level of home ownership lower levels of
  renting
• Overall much lower levels of social housing
  concentrated in the West of LGA

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Change in Tenure 2001-06

• Like NSW exchanging equity for debt
• Increase in private rental
• Decrease in public housing and increase in
  community housing but from a very low base

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Of Social Housing 2006
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Projected Population Growth 2001-31 (DOP 2005)
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Projected Age Profile Central Coast Region
2001-2031 (DOP 2005)

• Projected to be oldest Region in GMS by 2031

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Projected Age Profile Gosford LGA 2001-2031 (DOP
2005)
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Projected Age Profile NSW 2001-2031 (DOP 2005)
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Central Coast Regional Strategy - Meeting Housing
Needs Within A Sustainability Framework

• Number 56,000 new dwellings (100,000 new
  residents total 400,000 residents in Region)
• Type Most net increase in 1-2 person households
• Need for smaller more manageable aged
  accommodation
• Affordability To key groups
• Location 70 in centres existing urban areas
  with land release North WLGA
• Access to transport, shops, services facilities
  (walk, ride)
• Distance, topography, barriers.
• Integration with existing urban area
• Connectivity knit
• Street network etc

• In the Context of other needs
• Protecting Agricultural Lands Rural Livelihoods
• Protecting the Natural Environment
• Preserving Scenic Amenity Rural Village
  Character
• Tourism
• Efficient use of infrastructure, services
  facilities
• Provide for employment growth/lands

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JSA Sustainability Framework
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Where will the new houses go?
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What is Affordable Housing?
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What is Affordable Housing

• Its NOT Low-Cost Housing (though can be)
• Its NOT Social Housing (though can be)
• It IS housing that costs low-moderate income
  households no more than 30 of gross household
  income where
• Low income lowest 40 of h/h income
• Moderate income above to 120 of median h/h
  income

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What is housing stress?
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Median Sale Price Strata Dwelling 2001-07
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Median Sale Price Non-Strata Dwellings 2001-07
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Median Weekly Rent 2-Bedroom Flat 2001-08
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Median Weekly Rent 3-Bedroom House 2001-08
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Housing Stress (Rental)

• Low Cost is different to Affordable
• Housing Stress (Rental)
• 3480 low-income households in GLGA at NSW
  average (60)
• 4003 low-income households in WLGA at NSW
  average (60)
• 796 mod-income households in GLGA well below
  NSW average
• 589 mod-income households in WLGA well below
  NSW average
• _________________________________________________
  __________________
• Around 9,000 low to mod-income households in
  rental stress
• Around 7,500 low-income households in rental
  stress
• The latter an indicator of underlying need for
  social housing

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Housing Stress (Purchase)

• Low Cost is different to Affordable
• Housing Stress (Rental)
• 1150 low-income households in GLGA at NSW
  average (60)
• 1300 low-income households in WLGA at NSW
  average (60)
• 2271 mod-income households in GLGA well above
  NSW average (52 v 36)
• 2424 mod-income households in WLGA well above
  NSW average (53 v 36)

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Public Housing Demand in Far North Coast
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Affordability Summary

• Gosford Wyong increasingly unaffordable,
  especially to key groups
• High levels of rental stress among low-income
  households
• Very high levels of mortgage stress among
  moderate-income earners (FHBs?)
• Private Renters on low-moderate incomes
• Young people
• Key workers
• One-income families
• Older asset poor residents
• Special needs groups, including disabled, frail
  aged, Indigenous families
• Loss of CVPs indications of increasing levels
  of homelessness

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• GOSFORD HOUSING FORUM
• Convened by Gosford City Council
• Capturing Opportunities for Affordable Housing
  Through Planning and Partnerships
• 25July 2008
• Dr Judith Stubbs
• Principal, Judith Stubbs Associates
• Adjunct Professor, City Futures UNSW

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Affordability Summary

• Gosford Wyong increasingly unaffordable,
  especially to key groups
• High levels of rental stress among low-income
  households
• Very high levels of mortgage stress among
  moderate-income earners (FHBs?)
• Private Renters on low-moderate incomes
• Young people
• Key workers
• One-income families
• Older asset poor residents
• Special needs groups, including disabled, frail
  aged, Indigenous families
• Loss of CVPs indications of increasing levels
  of homelessness

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The Challenge

• Limited growth in public housing
• Increased demand-side response from previous
  Federal Government
• Loss of at least 900m in Federal funds under
  CSHA
• Viability issues re aging stock, maintenance
  backlog increasing disadvantage of tenant
  profile
• Tighter targeting under Reshaping Public Housing
  NSW Policy
• Concerns regarding quality diversity of
  services available to tenants including local
  responsiveness
• At least 7,500 renters in this Region are falling
  through the gaps
• Increased reliance on Community Housing Providers
  including growth providers under Planning for
  the Future (DOH /OCH 2007)
• Locally responsive management advantages
• Ability to leverage resources, raise capital
• Cost effective
• CRA

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Public Housing Stock v Occupied Private Dwellings
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Change in Social Housing Stock 1996-2005 NSW
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Growth Opportunities for Affordable Rental
Housing

• But significant planned growth in Community
  Housing Providers planned
• Stock transfers including long-term leasing to
  increase viability
• Amalgamations or other partnerships between CHPs
  to increase scale and capacity
• Diversification of target groups for
  sustainability (increase AH)
• Management development partnerships
• Fee-for-service management for government,
  private sector or other NGOs
• Commercial JVs or debt-equity projects alone or
  with others
• Debt-equity projects partnering with local
  government and/private sector partners
• Debt-equity projects also involving government
  funding through NRAS and/or AHIF (e.g. NRAS
  allows for around 50,000 additional borrowings
  per property)
• Identification of growth providers by OCH

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Change in Social Housing 2001-06
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• Growth other CH Providers in Coastal NSW

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Community-Local Government Partnerships

• LG-CHP Partnership potentially very effective way
  to grow stock
• LG brings to the table
• Local research planning expertise
• Resources that can be leveraged including
• Surplus land
• Contributions from planning mechanisms (e.g.
  Density Bonuses, SEPP10, Voluntary Planning
  Agreements)
• Other support, e.g. administrative
• CHP brings to the table
• Resources (e.g. surplus funds, access to funding)
• Connections (local, regional, commercial/financial
  )
• Management and increasingly development capacity
• Excellent risk-management (Registration)

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Council Affordable Housing Powers and
Responsibilities

• AH objective in EPA Act in 1999 (section
  5(a)(viii))
• Make LEPs in accordance with the Objects of the
  Act Template particular aims, zone objectives
  and land uses, FSR variations under cl 4.4
• Voluntary Planning Agreements for public
  infrastructure including AH (s93F or Part 5B
  Division 4 of Am Act)
• Social economic impacts u/ s 79(C)(1)(b) of
  EPA Act 1979
• Public Interest u/ s 79(C)(1)(e)

AH DWELLINGS FROM LIVERPOOL COUNCIL PARTNERSHIP
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What Can Council do to affect the provision of
Affordable Housing at the local level?

• Choosing the Right Affordable Housing Approach
  for the LGA/Region
• Incorporating Affordable Housing aims, zone
  objectives, land uses and broad provisions into
  LEP
• Affordable Housing Provisions into DCP, VPA AH
  Policies
• Affordable Housing Partnerships dedicate
  resources created through planning provisions,
  land audits other support
• Protect AH stocks s79C(1)(b) (1)(e)

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What can Council do?
Moderate (Facilitative) Involvement
Minor (Less Direct) Involvement
Major (More Direct) Involvement
Facilitation of Housing Outcomes through
Planning Regulatory Functions
Awareness Raising and Advocacy
Direct Provision and /or Management
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Partnership on Surplus Land

• Council or other government department identifies
  surplus land, partners with developer and/or CHA
• Council retains /gains units to the improved
  value of land
• Council retains title to the units
• Managed by a Community Housing Association
• Key workers at 75 of market rent or low incomes
  h/hs at subsidised rental

Port Phillip Affordable Housing Partnership
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Works Best

• Larger sites suited to residential development
• Council-owned land surplus/potentially surplus to
  needs
• Other Government owned land suited to up-zoning
  surplus/potentially surplus to needs

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Planning Partnership

• Partnership using Provisions of EPA Act 1979
• Developer seeks rezoning leading to major land
  appreciation
• Developer offers to enter into a Planning
  Agreement
• Offers AH in exchange for incentives AND/OR
  rezoning/DA
• OR Site flagged as appropriate for AH is Schedule
  1 of LEP
• Council keeps title to AH created
• Housing managed by CHA
• Mixed income group including low income workers

City West Housing Project
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Potential Sites?

• Larger sites assessed as suited to residential
  development but not zoned
• Location
• Economic feasibility

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Partnerships Using Planning Incentives

• Council Housing Study identifies AH need
  strategies
• Council puts AH aims, zone objectives
  provisions in LEP DCPs VPA Policy
• Includes incentives for developers who provide AH
  as part on identified sites/precincts
• Units created managed directly by council or CHA
• Rented to low to moderate income families

AH UNITS CREATED BY WAVERLEY COUNCIL PLANNING
MECHANISMS
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• Planning Incentives /Density Bonus Sample
  Provisions
• 4.4 Floor space ratio optional
• (1) The objectives of this clause are as follows
• (a) and (b) Insert proposed objectives related
  to FSR.
• C) To provide for an equitable and transparent
  method of calculating additional floor space in
  precincts identified for Affordable Housing in
  the FSR Map and where Council is satisfied that
  the Affordable Housing provisions of its DCP are
  met.
• 2) The maximum floor space ratio for a building
  on any land is not to exceed the floor space
  ratio shown for the land on the Floor Space Ratio
  Map.
• 3) Despite sub-clause (2), consent may be granted
  to additional floor ratio as set out in the FSR
  Map if Council is satisfied that the requirements
  of the Affordable Housing provisions of its DCP
  are met.

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(No Transcript)
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Potential Sites?

• Sites suited to densification with appropriate
  controls to protect amenity
• High amenity /high land value sites
• Specific precincts/sites within zones
• R3
• R4
• B1
• B2
• B4

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Debt Financing Partnership

• Council identifies surplus land or and makes
  contribution to CHA
• CHA uses existing equity, own surplus and/or
  council contribution
• CHA obtains finance based on equity income
  stream
• Title may be shared or held by either Council or
  CHA
• Units created may be used for mixed income group

Wollongong City Council The Housing Trust
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Strategies

• Use resources created to leverage additional
  housing in partnership with CHA and/or private
  partner