Woollahra councillor Sean Carmichael criticises developers ‘tacking on’ affordable housing

An inner city councillor has criticised the hidden reason why an affordable housing unit in Sydney’s eastern suburbs stands empty, despite soaring demand during the housing crisis.

An artist impression of a proposed development for 136 New South Head Rd Edgecliff

An inner city councillor has criticised the hidden reason why an affordable housing unit in Sydney’s eastern suburbs stands empty, despite soaring demand during the housing crisis.

Woollahra Council recently debated a recommendation by council officers to approve a draft voluntary planning agreement (VPA) with developer Ingham Planning for public exhibition, in relation to plans for a 12-storey tower with retail, commercial and residential space at Edgecliff.

The voluntary planning agreement would allow council to secure $5m in contributions, including $2.7m dedicated to increase the supply of affordable housing in Woollahra and $2.3m for public amenities and infrastructure.

It comes after some Sydney councils railed against NSW Premier Chris Minn’s recently-announced planning incentives which will give developers of major residential projects, valued more than $75m, an 30 per cent extension on height and floor space if 15 per cent of the development was made available for affordable housing.

The proposed cityscape of Edgecliff commercial centre. Picture: Woollahra Council.

Mayors including Hills Council’s Peter Gangemi, Waverley’s Paula Masselos and Woollahra’s Susan Wynne have claimed the plan will strain existing infrastructure.

Woollahra Liberal councillor Sean Carmichael said the council should use the VPA to fund affordable housing projects in the area, including through a recently endorsed proposal to pool money, expertise and resources with neighbouring Waverley and Randwick councils.

A photomontage of the tower approved at 136-138 New South Head Rd.

Mr Carmichael pointed to a unit listed for rent as affordable housing being advertised at $1100 per week, featuring high-end appliances, two bedrooms, two bathrooms, and a car space.

He said while it was cost effective for developers to uniformly fit out an entire building before offering one or two apartments for affordable housing, the outcome did not meet the community’s needs.

Properties can achieve “affordable housing” status when they are rented at least 20 per cent below market rent through a registered community housing provider.

To be eligible for affordable housing, the gross household income limit for the first adult is $71,600, with each additional adult having a $35,800 income limit. For each child, the income limit is $21,500 which means a couple with three children can earn up to $171,900 and still be eligible for affordable housing assistance under the NSW Government’s guidelines.

Liberal councillor Sean Carmichael highlighted inflated going rents for affordable housing currently on offer in Sydney’s eastern suburbs.

Affordable housing is for low to moderate-income households and priced so residents can also meet costs for food, clothing, and medical care.

Mr Carmichael said more needed to be done in relation to affordable housing in Sydney’s east.

“This tower tried to tack affordable housing into its scheme,” he said. “How much of your income if you’re earning $71,000 a year will go toward paying $1100 per week for a unit?

“This unit has sat here on the market for a very long time now and will probably continue to do so.”

Woollahra Mayor Susan Wynne.

Waverley Mayor Paula Masselos has criticised the NSW government’s affordable housing approach.

The CEO of Bridge Housing – a low and moderate-income housing provider – Rebecca Pinkstone said looking at the discounted rent on an advertisement doesn’t give you the full picture of what a tenant pays, with the potential the rent may be further discounted based on the person’s income.

‘To calculate the affordable housing rent we must discount the market rent by at least 20 per cent and ensure the rent paid by the tenant does not exceed 30 per cent of their income,” she said.

A question on notice by councillor Harriet Price revealed Woollahra Council currently has 23 affordable housing developments approved that stand empty or are yet to be built.

The property previously offered at $1100 was listed as no longer available at Welcome Mat as of Monday.

The council endorsed the recommendation for the draft VPA to be placed on public exhibition, after the mayor used her casting vote.