Felmeri collapse to spark new planning rules on community access roads ‘to stop another housing debacle’

Developers must build proper access roads before authorities green light community housing estates, according to official new proposals to stop another Felmeri-style debacle.

Edward Gilmore with his unfinished home after the collapse of the Felmeri Group in O'Halloran Hill, before the road was completed. Picture: Kelly Barnes

Developers must build proper access roads before authorities green light community housing estates, according to official new proposals to stop another Felmeri-style project debacle.

Taxpayers were forced to spend more than $1m to finish a community road that had stopped southern suburbs residents accessing a 23-home development at Main South Rd, O’Halloran Hill.

State government work was required after Felmeri, which fell into liquidation in July, left a large trench in the unfinished road, which builders could not safely access.

Proposed new state planing rules, to be unveiled on Monday, will require developers to provide necessary common road infrastructure in order to gain approval for any community title.

Councils grant development but the State Planning Commission will issue a “land division certificate” to allow construction once authorities believe conditions are met.

The road before. Picture: Keryn Stevens

And nearing completion. Picture: Naomi Jellicoe/ NCA NewsWire

Planning Minister Nick Champion said new rules would apply to all community title subdivisions of six lots, or more, in which a private road was needed to connect homes.

He has “urgently” written to the commission seeking support for a new “practice direction”.

He said the reform made councils’ and developers’ responsibility clear.

“We don’t want a repeat of the gut-wrenching experience families went through when Felmeri collapsed, leaving them in a dire situation that was not their fault,” he said.

“Families deserve to build their dream home without worrying about a lack of access preventing them from finishing their works.

“This reform will make it clear to councils and developers they have a responsibility to play their part in building future communities as our government tackles the housing crisis.

“Our planning system is agile but in circumstances like this it can step in when needed to ensure new homes are supported by the required infrastructure and key services.”

Felmeri Homes Directors Frank Felmeri Junior and Frank Felmeri Senior. Picture: Supplied

Senior government sources said the commission appeared initially happy with the “eminently sensible” proposals but will consider Mr Champion’s request at a meeting next month.

Senior officials are also critical of Marion Council’s decisions and efforts in helping fix the O’Halloran Hill problem.

Council documents show a 2015 development consent changed in 2020 for the O’Halloran Hill project.

The road was to be first built prior to construction, but it was later approved to finish within two years of approval.

In a lengthy statement, a council spokesman defended its conduct.

He said in 2017, Felmeri “requested multiple changes” to its application that included adding a childcare centre allotment and cutting residential allotments.

Developers also asked for changes to the driveway clause “so the allotment titles could be released and sold by the developer”.

“This issue is a case of mismanagement by the building company responsible and exacerbated by the state development system which doesn’t have adequate consumer protection in place,” he said.

“Council always endeavoured to make decisions in the best interests of the homeowners. We have remained honest throughout the entire process.”

Opposition spokeswoman, Michelle Lensink, was supportive of the reforms “in principle” but urged the government to have a “more proactive role in monitoring the building sector”.

Originally published as Felmeri collapse to spark new planning rules on community access roads ‘to stop another housing debacle’