Voluntary Agreements - Principles and Examples

Leading practice examples - Voluntary negotiated agreements

Principles of leading practice

Voluntary negotiated agreements - examples

Ropes Crossing, NSW: negotiated agreement involving public land

In 2001 the New South Wales Government approved a development for homes and businesses and a regional park on the former Australian Defence Industries (ADI) site in the outer western Sydney suburb of St Mary’s. Approval was contingent on three per cent of residential lots on the site being provided for affordable housing. The agreement stipulated that the NSW Land & Housing Corporation (the NSW Department of Housing) was to act as nominee for the transfer of affordable housing lots, while the Department’s Centre for Affordable Housing, acting as agent for the Minister for Planning, would develop an affordable housing strategy for delivery and management of housing on the site. As the agreement is for the delivery of lots, not dwellings, finance still needs to be found for construction. An option is for the negotiation of cash-in-lieu payments or some lots to be sold with proceeds used for affordable housing on site.

Top of page

Byron Shire, NSW: planning agreement with private developer

Byron Shire Council, on the far north coast, has attempted to use a planning agreement to support and secure affordable housing within a boarding house development and associated other developments comprising a combined affordable housing target of up to 132 essential workers. Although the project has not yet been finalised, the details of the agreement provide an example for other projects in non metropolitan areas subject to both rapid population growth and house price escalation. Council’s contribution to the proposal includes a 4.2 per cent density concession focused on the site of the boarding house; a $6,000 grant in lieu of 50 per cent of the development contribution fees (the portion of the development application relating to the boarding house), as well as variations to parking, soft engineering, and layout requirements (offered subject to final development assessment process and community consultation).

Randwick Council, NSW: Voluntary Planning Agreement negotiation

Randwick City Council, in eastern Sydney, has established a strong policy framework for the use of planning agreements for affordable housing. A clause in the Randwick Local Environmental Plan supports the use of planning agreements to secure affordable housing contributions on large redevelopment sites requiring master plans. The nominal contribution is for one per cent of the total dwellings proposed to be transferred to Council.

Canada Bay, NSW: planning agreements policy

The City of Canada Bay in inner Sydney enacted a Planning Agreements Policy in December 2006. The Policy specifies that the Council may consider negotiating a planning agreement with a developer to achieve the provision of affordable housing. It establishes a number of fundamental principles about the use of planning agreements in Canada Bay, including, that ‘planning decisions may not be bought or sold through planning agreements’, and that ‘development that is unacceptable on planning grounds (including, without limitation, environmental grounds) will not be permitted because of planning benefits offered by developers that do not make the development acceptable in planning terms’.

To return to the Voluntary Negotiated Agreement Overview page click on the link below

Top of page

Principles of leading practice

Voluntary negotiated agreements

Leading practice in using voluntary negotiated agreements for affordable housing includes the following principles:

• Voluntary negotiated agreements for affordable housing are an important mechanism to consider when major changes to planning controls are requested for residential developments in new or established areas.
• A clear policy framework establishing the circumstances in which negotiated agreements for affordable housing will be sought provides certainty and transparency.
• A clear approach for establishing the likely affordable housing contributions to be sought assists with certainty and transparency and reduces the amount of time needed for negotiation.
• Planning agreements involving contributions, including contributions for affordable housing, should be publicly available for inspection as part of the normal development exhibition process.
• Pro forma agreements and contributions methods can speed the process and minimise transaction costs for all parties.
• Establish protocols for consultation and negotiation between planning authority staff, private developers, and the organisation responsible for delivering or managing the affordable housing to be generated through the agreement(s).

Pitfalls to avoid

• Avoid lengthy and time-consuming negotiation processes which add to the overall cost of the project.
• Avoid the implication that project approval depends on the affordable housing (or other) contribution—all planning approvals must be made on the basis of overall merits in relation to local, regional and state planning objectives and requirements.

To return to the Voluntary Negotiated Agreement Overview page click on the link below

Top of page