Cheap housing push in new developments

DEVELOPERS would be forced to include cheaper homes in new residential projects under a contentious plan to tackle housing affordability.

Seven councils in Melbourne's east are lobbying for laws they say would ease a mounting housing crisis in the region, where 5000 people are on public housing waiting lists and only 3 per cent of rentals are considered affordable.

It follows November's news that Melbourne had become Australia's least affordable capital, according to the Housing Industry Association.

The Eastern Affordable Housing Alliance - which includes the cities of Knox, Boroondara, Monash, Manningham, Whitehorse and Maroondah and the Yarra Ranges shire - is pushing the controversial idea of inclusionary zoning, which would let councils force developers to include social and cheaper housing in new projects.

But the idea is not supported by the new state government. Planning Minister Matthew Guy said mandatory social housing targets would not improve affordability, because they would end up pushing up the price of other dwellings in the developments.

''Our view is that you don't increase affordability by making 20 per cent of the homes cheaper and 80 per cent more expensive,'' he said.

Labor planning spokesman Brain Tee said the government should look at the idea.

Comment: food for thought.
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Yarra Ranges’ councillor Jeanette McRae, who is Yarra Ranges Council’s representative on the Alliance and a long-time advocate of affordable housing, said the availability of public housing in the Yarra Ranges was well below the state average.

“There are fewer than 600 government-owned social housing dwellings In the Yarra Ranges. This equates to four dwellings per 1000 population compared to the state average of 13.5 dwellings per 1000,” Cr McRae said.

Cr McRae said the council adopted a housing strategy in May last year with affordable housing as one of its main themes.

“Improving housing diversity and affordability is one of 10 Council Plan priorities. Council officers have been proactive in talking to developers, housing associations and the State Government about opportunities for the provision of affordable housing in the municipality,” she said.

Cr McRae has called on the state government to increase the amount of social housing in line with the state average and for the Department of Human Services to develop a range of family units, medium density housing units and transitional housing in the Yarra Ranges.

For more information on the EAHA, please contact Cr Mick Van de Vreede, Chair - Eastern Affordable Housing Alliance, 0438 029 932 or for local Yarra Ranges issues contact Cr Jeanette McRae on (03)5962 541