Local Government NSW has released its Unlocking Homes plan, that calls for a $5 billion loan from the NSW government for house building
Councils from across Sydney and NSW have come together to propose a new system for funding essential infrastructure to unlock housing supply in outer metropolitan and regional areas.
The Unlocking Homes plan by Local Government NSW includes a new $5 billion no-interest loans scheme for councils to bring forward construction of the roads, stormwater systems and the infrastructure needed to make housing development stack up in Western Sydney and regional NSW.
Mayors and leaders from eight Western Sydney councils joined LGNSW president Mayor Darcy Byrne at St Marys in Penrith to call on the NSW government to back the plan, which would unlock up to 70,000 homes in these municipalities alone, they say.
Housing completions in Western Sydney are languishing and need to be dramatically increased for NSW to meet its target of 377,000 new homes under the National Housing Accord.
The Unlocking Homes plan calls on the NSW government to:
- establish a $5 billion interest-free loan facility for councils to deliver local infrastructure needed for housing construction to commence. Councils would repay the government when developer contributions were paid once construction commences
- commit to forward-funding $3 billion of state and regional infrastructure in growth areas, with costs recouped progressively from the state government’s Housing and Productivity Contribution receipts so there is no added financial burden to government
- update the list of infrastructure that developer contributions can be used for, to allow councils to build social infrastructure such as libraries, childcare facilities and pools, that make communities liveable.
Mayor Darcy Byrne says the system for funding the infrastructure needed for new homes is broken and must be remade to solve the housing supply crisis in NSW.
“We agree with the NSW government that the housing crisis is the number one challenge facing the state, but we also know that too little investment in the basic infrastructure needed for new homes is making the crisis worse,” Byrne says.
“Put simply, if we are serious about actually fixing the housing crisis, we need the NSW government to do more to fix the infrastructure roadblocks that are preventing housing supply.”
Byrne says that the lack of up-front investment in roads, water, sewage and stormwater means that houses are not being built. Therefore, no-interest loans would help boost the development of housing on greenfield sites.
“Councils and the NSW government are required to deliver essential infrastructure, but under this broken system the funding arrives too late,” he says.
“That means housing is delayed, communities wait longer for facilities, and the cost only goes up.
“Councils are also expected to build the social infrastructure needed to make communities liveable, such as libraries and community facilities, but under current rules, developer contributions can’t be used to fund those projects.
“The NSW government has the power to fix this. By backing LGNSW’s proposals and partnering with councils, it can unlock the infrastructure needed to get housing moving.
“Local government stands ready to work with the state government to deliver the infrastructure communities need and the housing NSW urgently requires.”
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