The Statutory Framework for Local Government

Local government’s role in relation to housing is defined by the powers and responsibilities conferred on it by the Local Government Act 1993, the Environmental Planning and Assessment Act 1979 and a number of other statutes. The legislation most relevant to the housing responsibilities of local government is outlined below.

The Local Government (General) Regulation 2005

The Local Government (General) Regulation 2005 (clause 200) requires councils to prepare Social Plans that promote the wellbeing of their communities. A key indicator of such wellbeing may be the provision of a diversity of housing to meet community needs, including affordable housing. Local government areas are diverse in terms of their population, demographics, physical size, level of urbanisation, resources, infrastructure, etc. Consequently the requirements for the content of Social/Community Plans are framed broadly to allow for local variation in approach, and councils are encouraged to consult their communities to identify their needs and plan accordingly.

The Environmental Planning and Assessment Act and Regulation

The Environmental Planning and Assessment Act 1979 and the Environmental Planning and Assessment Regulation 2000 regulate the planning and development assessment functions of councils. The Act sets out NSW’s planning framework and the accompanying powers and responsibilities of state and local government, including the preparation of state, regional and local environmental plans and regulation of development processes.

In response to rising housing costs and a decline in housing affordability, the NSW Government amended the Environmental Planning and Assessment Act 1979 in 1999 to make provision and maintenance of affordable housing a specific objective of the Act. For further information see the Kit’s companion document Using Planning and Planning Mechanisms for Affordable Housing.

Local councils therefore have a variety of responsibilities that affect housing, based on their statutory obligations to identify community needs through social planning and the regulation of residential development through urban planning.

Many of the local community services provided by councils specifically help or support people to access appropriate housing or remain in their existing accommodation. Planning for infrastructure to support residential development can also have a significant impact on housing outcomes, including the appropriateness of housing (its amenity and access to services), and the cost and value of housing.

It is up to each council to decide exactly how it wants to document its housing objectives and strategies, and the instruments and processes it will use. However, for them to be effective, it is important for housing strategies to be integrated with Council’s overall management planning processes, not just its Social Plan or Residential Strategy.

This approach is consistent with an integrated planning and reporting project being undertaken by the Department of Local Government. The project focuses on better integration of statutory planning and reporting processes under the Local Government Act and the Environmental Planning and Assessment Act. Integration will not only avoid duplication and inconsistencies, but will facilitate a more effective response to housing need.

Given the primary importance of housing to the communities served by local government, it is important for councils to adopt a comprehensive housing strategy, rather than a traditional land use planning approach. Considering better housing outcomes to be outside council’s mainstream business could lead to a lack of momentum in implementation and to the risk that housing strategy will be overlooked entirely.

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Linking Local Housing Strategies to other Council Planning

Local housing strategies should be closely linked to council’s other planning responsibilities and processes. It may not even be necessary to prepare a separate Local Housing Strategy. Rather, elements of the strategy might be incorporated within council’s existing strategic processes and plans:

• A local social planning process could include a focus on housing needs and responses.
• A local environmental study to support a land use planning process should include an analysis of potential residential land capacity and constraints; population trends and corresponding housing needs; and sustainable residential design appropriate to the local context.
• A council’s statutory land-use plans could provide legal support for local housing objectives, by incorporating them in the overall aims of the plan, and by including specific mechanisms to achieve them through the planning process.
• A local economic strategy could develop mechanisms to attract appropriate workers or new residents through specific housing policies, such as housing for retirees, rural residential housing, or employee housing.·
• Council’s corporate plan may need to include provisions to support and operationalise housing related initiatives.
• A combination of these approaches, tailored to the circumstances of your council, is likely to be appropriate. However, to ensure that council’s specific housing objectives and initiatives are not ‘lost’, it is important to regularly review and update the key elements of the housing strategy.

The best approach for developing, documenting and implementing a Local Housing Strategy will depend largely on how council is organised and operates. A council may develop a stand-alone housing strategy that covers all relevant activities of council and directs how strategies will be implemented and enforced through those various areas. Local housing strategies can provide a framework to coordinate council’s various responsibilities in relation to housing. They can provide a common information base to inform the various housing decisions of council and facilitate collaboration between different council sections involved in housing.

However, it may not be necessary to prepare a separate Local Housing Strategy. As long as specific housing strategies adopted by council are underpinned by specialised research and consultation about housing needs within the community, elements of a strategy can be incorporated within council’s existing strategic processes and plans.

Some councils may choose to document housing needs and strategies through council’s Social Plan, which would in turn identify supporting strategies to be implemented through council’s other departments.

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Guidelines for Social and Community Planning and Reporting

The Department of Local Government has Social/Community Planning and Reporting Guidelines to help councils ensure that services are responsive to community need and diversity. The Guidelines help councils uphold the social justice principles of access, equity, participation and rights and address communities’ needs directly, or in cooperation with other agencies and organisations.

Councils are required to undertake a social/community planning process and produce and update a Social Plan every five years. The Plan should include:

• demographic data;
• human needs assessment;
• information about the specific needs of seven target groups: Aboriginal and Torres Strait Islanders, children, people with disabilities, young people, older people, people from culturally and linguistically diverse backgrounds, women;
• assessment of previous social/community plan;
• identification of priority initiatives to include in management plan.

As local government areas have diverse populations, demographics, physical sizes, levels of urbanisation, resources, and infrastructure, the Guidelines do not prescribe in any detail what must be contained in social/community plans, but encourage councils to consult their communities to identify their needs and plan accordingly. See the Social/Community Planning and Reporting Manual, which includes references to housing and housing.

Where the thrust of housing policy relates primarily to council’s urban planning functions, it may be most suitable to identify housing objectives and strategies within council’s planning instruments.

The following table summarises various local government roles and responsibilities in NSW and their relationship to housing outcomes in the community.

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