Property developers may be forced to build social housing in projects

Property developers could be forced to allocate a certain amount of affordable housing in their designs in a proposal to make the housing market for accessible.

David Lee of Riverlee development. Picture: Fiona Harding

DEVELOPERS would be forced to set aside a certain number of affordable homes under a proposal to help make the market more accessible.

The inclusionary zoning concept has won the backing of Hobart Lord Mayor Anna Reynolds and David Lee from property development company Riverlee, but has been rubbished by the State Government as a “blunt instrument” to address a very complex issue.

The government land use planning intervention measure either mandates or creates incentives for residential developers to include a certain percentage of affordable housing dwellings, or make an equivalent financial contribution.

Lord Mayor Anna Reynolds and Housing Minister Roger Jaensch from the homelessness crisis forum. Picture: RICHARD JUPE

The concept — which requires inclusion in state planning policy to be implemented — was discussed at last week’s homelessness and housing crisis meeting, but has since been canned by the Government as a “one size fits all” approach.

Mr Lee said inclusionary zoning needed to be mandated and implemented by governments and councils to be successful.

He said under-utilised land in strategic locations — such as old industrial areas close to public transport — was ripe to be rezoned with a provision for affordable or social housing. “It can’t just be up to developers to choose when and how they want to do it,” Mr Lee said.

“Where there’s an uplift that can be gained from council intervention and rezoning, you capture value for the developer … that wasn’t there prior.”

He said Riverlee had completed about four projects in Victoria and felt 5 to 15 per cent was an appropriate allocation for affordable housing.

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Cr Reynolds also said inclusionary zoning needed to be mandated rather than incentivised.

“Voluntary won’t work and it’s not fair because it would be a new negotiation each time and one developer might not get as good a deal as another,” she said.

Cr Reynolds said if a developer wasn’t wanting to do it they could make a payment in lieu of the provision that could be used by a community housing provider to build new dwellings in the same suburb.

Shelter Tas and TasCOSS said they were also supportive of integrating inclusionary zoning into the state planning system, and Glenorchy Mayor Kristie Johnston said they would welcome the opportunity to look at how it could be implemented.

Inclusionary zoning has been implemented in South Australia, Sydney and the Australian Capital Territory.

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