The federal government is set to offload about $3 billion of land thanks to surplus defence sites and a CSIRO Ginninderra site near Canberra that’s past its use by date. What a great opportunity to change the game on housing, according to reasoned independent Australian Capital Territory senator David Pocock and his supporters.
Around the world governments in some countries riven by the housing crisis are starting to move and show some muscle.
The new aspiring UK PM Andy Burnham has flagged handing councils back control of residential development sites and the masterplanning of amenities, transport and home construction to meet the needs of 1.5 million people waiting for social housing.
Canada has earmarked $82 billion for housing.
According to Pocock, who wields a lot of respect and is seen by some observers as a latent much bigger political force, reckons it’s time Australia also stepped up to the challenge.
Last Thursday he introduced his own senator’s bill to parliament, supported by Jackson Hills, chief executive of housing peak body National Shelter, said he supports the bill alongside Australian Community Housing CEO Mark Degotardi and Independent MP Nicolette Boele.
The bill aims for affordable housing to be included in any residential developments built on federal land sold or leased to private developers.
This would include the entire swathe of land included in the 67 surplus defence sites around the country and the CSIRO site together worth around $3 billion.
Pocock said that while the federal government has done well to invest in more social and affordable housing, including the Housing Australia Future Fund and its historic tax reforms, it still falls short of meeting outstanding needs by 640,000 social and affordable housing units.
“The job has only started on addressing housing in Australia, and there’s a lot of anxiety around what happens once HAFF round three concludes,” Pocock said.
The bill sets a default 30 per cent baseline for the sites and allows for other changes and flexibility to respond to different sites and market conditions.
Rent for affordable housing would be set at 75 per cent of market rate or 30 per cent of household income and be means tested.
“In the UK we see Andy Burnham promising the largest council house-building program in the post-war period. Canada’s National Housing Strategy (NHS) is investing upwards of $82 billion in housing. We need the Australian government to also go big,” Pocock said.
Jackson Hills, chief executive of housing peak body National Shelter, said he supports the bill alongside Australian Community Housing CEO Mark Degotardi and Independent MP Nicolette Boele.
Hills said while “a private senator’s bill like this is unlikely to pass”, it was very important to support the bill.
“Even if the bill never passes, it creates a concrete legislative model that governments, Commonwealth and state agencies, housing advocates and community housing providers can point to in future debates about public land, value capture and affordable housing supply.
“Imagine Defence, Australia Post, CSIRO, a Commonwealth agency, or another federal entity owns a large surplus site.”
The government would receive the higher possible price for land sales, while the developer who’s taking on an affordable housing obligation would pay less for the land due to its restrictions.
“The cost is effectively absorbed through lower land value and, in turn, managed by a CHP (community housing provider).”
See what Tim Helm and Henry Williams say about the missed opportunities involved in zoning upgrades that deliver windfall profits to landowners but leaves taxpayers picking up the bill.
Hills said if a developer builds 500 apartments, then at least 150 apartments would be designated as affordable housing. He added the idea wasn’t new or even groundbreaking. “Public land is the obvious place to apply that logic, given that it should be best utilised for the widest possible public benefit, especially if sold.
Hal Pawson, emeritus professor at UNSW and non-executive director at Community Housing Canberra, responded to Hills on social media, saying “hear, hear, Jackson!”
“Considering Australian governments are united in their stated commitment to expand social and affordable housing, why wouldn’t they likewise pledge to push every available policy button to make that happen?
“EVERY available policy button – including this one.”
