Developer responsibilities for affordable housing

All new significant developments should provide 15% affordable housing if they are within a designated affordable housing zone in the Planning and Design Code.

Significant developments include:

  • government land
  • major developments
  • land sold by government
  • private developments bound by the planning policy for affordable housing.

There are incentives to encourage affordable housing.

Development applications that include affordable housing are referred to SA Housing Authority for advice on whether the affordable housing criteria have been met.

Proposals that do not include affordable housing need to show a clear planning rationale in the application or discuss with the council or the relevant assessing authority to satisfactorily demonstrate why the provision will not be met.

What is affordable housing

Affordable housing is designed and priced to cost people no more than 30% of their gross income if they are on a low or moderate income.

A dwelling is considered to be an affordable home if it is:

  • offered for sale to eligible buyers
  • offered for home ownership and is for sale at or below the appropriate price point
  • priced at $367,000 or less (if key criteria are met, the price can be up to $422,050 - the criteria are published in the government gazette).

The commitment to provide affordable housing is made through a legally binding instrument, such as a land management agreement. The criteria are re-assessed annually to make sure these requirements are met.

How to include affordable housing in your development

  1. Discuss the requirements with your planning officer (council or State Commission assessment panel) and SA Housing Authority Affordable Housing officer.
  2. Sign an land management agreement, which commits you to providing affordable housing in your development project.
  3. Design your site plans, stage plans, lots and dwellings to meet the affordable housing price point and market demand.
  4. Allow for the delivery of affordable housing in the design with smaller lots for row housing, or community titled lots for apartments.
  5. Consider how environmental design could improve ongoing living affordability and amenity, for example, cross ventilation, passive solar energy design, efficient appliances, appropriate zoning, room flexibility for future use, and external shading from gardens.
  6. Lodge your affordable housing plan with the Affordable Housing team, outlining your stage plan and product mix.

Contact

Affordable Housing - SA Housing Authority

Phone: 13 12 99

Creating affordable housing for home buyers

You will need to make sure the property you create can be sold below the appropriate price point. To create affordable housing, you can choose to:

  • work with financial institutions to keep deposit requirements low and improve purchasing power for buyers, such as specialised low-income mortgages available through HomeStart Finance
  • improve flexibility by creating house and land packages that limit costs for buyers, improve construction times and make better use of the First Home Owner’s Grant
  • partner with a financial institution to create an innovative offering such as shared equity or rent-to-buy.

Selling your affordable homes to home buyers

One way you can target your advertising to reach homebuyers is to promote your affordable properties on the Home Seeker SA website. This government initiative offers appropriately priced homes for eligible homebuyers, as well as information on how to buy.

Contact the HomeSeeker SA Administration Team for information on how to advertise a property.

Affordable rental

Affordable rental properties can contribute to the 15% affordable housing requirement for developments when they are rented out at an affordable price.

Developers are encouraged to consider delivering affordable rental options, which may include partnering with, or selling to, an affordable rental provider such as a Community Housing Provider or Defence Housing.


Related information

Other websites

Request preliminary agency advice form - PlanSA

Planning and Design Code

    Legislation

    Urban Renewal Act 1995

    South Australian Housing Trust Regulations 2010

    South Australian Housing Trust Act 1995


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    Page last updated 9 April 2021

    Provided by:
    Attorney-General's Department
    URL:
    https://www.sa.gov.au/topics/planning-and-property/land-and-property-development/planning-professionals/developer-responsibilities-for-affordable-housing
    Last Updated:
    09/04/21
    Printed on:
    19/10/21
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