Property Council NSW Executive Director Katie Stevenson said it was clear the City was working hard to strike the right balance on a complex issue.
"Delivering more affordable housing is everyone's priority in a housing crisis, and it's good to see the City of Sydney working to address industry needs and feedback in the planned review.
"There's an opportunity here for the City of Sydney, private developers, and the community housing sector to work together to deliver a more sustainable pipeline of affordable housing," she said.
"We're keen to work with the City of Sydney on measures to expand affordable housing and the proposed changes in the review, such as precinct-specific rates and the alignment of contributions with real costs, are a positive step towards greater equity and efficiency.
"The City's proposal for a phased approach to new monetary contribution rates also acknowledges market realities and will give developers time to adapt," she said.
Key elements of the City's proposed changes in the review include:
- Retaining current LGA-wide contributions (3% for residential, 1% for non-residential developments) while requiring monetary contributions only, to streamline processes.
- Simplifying residential rezoning contributions to 20% of uplift, with non-residential uplift contributions increased to 2%.
- Phasing in increased monetary contribution rates over four years, reflecting true delivery costs and tailored to precinct-specific housing markets.
The planning proposal will now be submitted to the Department of Planning, Housing and Infrastructure with a request for gateway determination. The Draft City of Sydney Affordable Housing Program Amendment will be exhibited at the same time as the planning proposal.
