Affordable housing policies and contribution schemes, when established with the appropriate considerations and ambitions, can provide a meaningful contribution to addressing the state’s housing crisis. For many years now, the City of Sydney has demonstrated that local government does not have to be relegated to the passenger seat when it comes to the provision of non-market affordable housing options. Only recently, Shelter NSW was able to congratulate the City on the improvement of its affordable housing contribution scheme, in a move set to raise $320m in additional contributions to affordable housing.
 
This ambition can be quite influential. Recently, the Inner West Council cited the City of Sydney’s scheme in their justification for revising their existing affordable housing policy, adopted in 2022. Shelter NSW is supportive of this ambition and willingness to ensure that the Council’s scheme continues to effectively serve its community, however we must also express some disappointment in the proposed outcome.
 
While council initially explored the adoption of a 20% contribution rate on additional floorspace (uplift), this commitment was halved to 10%, marking a 5-percentage point reduction from the existing policy. Shelter NSW and its members did raise concerns about the justifying feasibility study and while we appreciate council’s engagement with these matters in its post-consultation report, we are nonetheless disappointed that such a conservative approach by one of the state’s notionally progressive councils has been undertaken.
 
Though, Council’s consideration of expanding its preferred recipients of affordable housing contributions beyond Tier 1 CHPs and its consideration of a diverse and affordable housing grant, similar to that of the City of Sydney, is a notable change. This could allow contributions to be allocated to a greater variety of CHPs who can offer more bespoke, community-oriented solutions.
 
The addition of LGBTQIA+ people, and sole parents and their children escaping domestic violence to the target cohorts for this scheme is a welcome amendment, as is Council’s noted willingness to advocate to state government on social and affordable housing.
 
While we are disappointed that the City of Sydney could only inspire the Inner West Council so far, we look forward to continuing to engage with and advocate in the Inner West and beyond to drive greater housing justice.