New rent discount apartment block in Zetland helps low-income earners live closer to the city

WITH Sydneysiders having to splash more and more of their income on rent, one new private development has come up with a solution aimed squarely at low-income workers.

New housing is being released to the market, with rent charged as a percentage of your income, not a flat rent. Government worker Joanne Simpson was involved in a similar program and says it has been a lifesaver, helping her rent an Eveleigh home she'd never afford otherwise. Picture: Adam Taylor

WITH Sydneysiders forced to splash more and more of their income on skyrocketing rents, one new private development has come up with a solution to allow low-income workers to live near the city.

When completed in February, more than 100 units in City West Housing’s new Zetland development will be made available only to people earning less than $90,000 a year, with successful applicants paying a maximum of 30 per cent of their income on rent.

The move will see discounts of up to $250 a week off “market” rent being offered.

City West CEO Janelle Goulding said the affordable housing provider uses different models to determine its rent depending on how much tenants earn, but no renters will be charged more than 30 per cent of their income.

“The aim is to help bus drivers, nurses and other people working vital, low-paying jobs. These are people who need to live close to work, but have been shut out of the market by soaring rents,” Ms Goulding told The Sunday Telegraph.

A rental affordability index released earlier this week showed the causes of homelessness have shifted from factors such as mental health to simply being pushed out by prices.

Low-income families are also spending up to 80 per cent of their pay on accommodation costs, according to the index.

“Renters choose between poverty closer to [job] centres ... or high transport costs with long commutes,” National Shelter’s Adrian Pisarski said.

Government worker Joanne Simpson says a similar low-rent option made it possible for her to afford rent closer to the city. Picture: Adam Taylor

Public servant Joanne Simpson rents a home in one of City West’s earlier affordable housing initiatives near Newtown and said the program has allowed her to keep her job.

“I wouldn’t be able to do my job without living in the area, but there’s no way I could afford to rent a home here without help. This makes life possible,” Ms Simpson said.

The new release is located at 130 Portman St, Zetland, the former site of South Sydney Hospital and part of the future Green Square Town Centre.

The apartments are a mix of one, two and three-bedroom homes that would rent on the open market for $450 to $800 a week.

A single income household earning $40,000 a year would be charged rent of roughly $220 per week for a one-bedroom home, saving them at least $230.

“The aim is to help bus drivers, nurses and other people working vital, low-paying jobs. These are people who need to live close to work, but have been shut out of the market by soaring rents.”

Developer City West owns more than 500 properties around Pyrmont, Ultimo and Green Square and has built the homes via contributions from private developers, who also helped stump up the rental discounts.

“This is not public housing,” Ms Goulding said.

“These are beautifully designed homes that reflect modern tastes and the needs of hardworking families.”

Applicants need to be employed and have a pre-tax household income of less than $90,000 to be eligible.