Novocastrians Invited to Shape the Future of Affordable Housing

22 November 2024

City of Newcastle has launched its Affordable Housing Contributions Scheme, inviting the community to provide feedback as the proposal enters its public exhibition phase. The initiative builds on recent developments across Newcastle, including the delivery of affordable housing projects in Waratah and other suburbs, showcasing the city’s ongoing commitment to tackling housing stress.

Endorsed at the December 2023 Ordinary Council Meeting, the scheme has been approved for exhibition by the Department of Planning, Housing and Infrastructure. It seeks to amend the Newcastle Local Environmental Plan 2012 to include provisions enabling contributions from new residential and mixed-use developments towards affordable housing.

The scheme applies to developments over 540m² or benefiting from zoning uplifts, with contributions taking the form of financial subsidies, land dedications, or completed dwellings. These contributions will be managed by community housing providers to expand and maintain affordable housing stock.

Affordable housing supports very low to moderate-income households facing housing stress, defined as spending more than 30% of gross income on housing costs after basic living expenses.

Recent projects, such as the affordable housing initiative in Waratah, have demonstrated the tangible benefits of investing in accessible residential options. These developments have provided secure and modern housing for individuals and families, with priority given to those experiencing financial hardship. The Waratah project features energy-efficient units designed to reduce utility costs, offering residents long-term affordability and sustainability.

Similar affordable housing initiatives have been rolled out in Mayfield, Wallsend, and Hamilton, each tailored to the unique needs of their communities. These projects combine innovative designs with strategic locations close to essential services like public transport, schools, and healthcare, ensuring residents can fully participate in community life.

Executive Director of Planning and Environment, Michelle Bisson, highlighted the detailed methodology underpinning the scheme. “Our planners have developed rigorous contribution rates tailored to different areas, balancing feasibility and investment returns,” she said. The Department’s Housing Policy Team has commended Newcastle’s innovative approach.

Population forecasts project 41,150 new residents by 2041, driving demand for nearly 20,000 additional homes. This highlights the urgent need for initiatives like the Affordable Housing Contributions Scheme, which aims to create equitable access to housing across the city.

City of Newcastle’s Housing Policy sets ambitious targets of 15% affordable housing on private land and 25% on government land. These targets align with the Newcastle 2040 Community Strategic Plan, which envisions a liveable, sustainable, and inclusive city.

Councillor Elizabeth Adamczyk, Chair of the Affordable Housing Working Party, stressed the scheme’s social and economic benefits. “Affordable housing strengthens community diversity, liveability, and wellbeing,” she said. “This proposal reflects careful collaboration with housing experts and industry to ensure both housing supply and development feasibility.”

The contributions scheme is designed to ensure that developers and stakeholders work together to support those in need, while maintaining Newcastle’s reputation as a dynamic and attractive place to live. It builds on lessons learned from existing projects, such as ensuring developments remain financially viable and socially impactful.

With housing stress increasing, community input is critical to shaping Newcastle’s housing future. Residents are encouraged to provide feedback on the planning proposal and the Affordable Housing Contributions Scheme via the City of Newcastle’s Have Your Say page until 2 February 2025.

The growing homeless population in Newcastle is becoming increasingly visible, with makeshift camps appearing at Horseshoe Beach, people sleeping in shopfronts, and others resorting to living in their cars at locations like King Edward Park and surrounding areas. These signs of housing stress highlight the urgent need for initiatives like the Affordable Housing Contributions Scheme to provide long-term solutions for those struggling to secure stable accommodation.