Planning professionals and developers

Developer responsibilities for affordable housing

All new significant developments should provide 15% affordable housing if they are within a designated affordable housing zone in a council development plan. Significant developments include government land, major developments and private developments that are bound by the development plan policy for affordable housing.

There are also various incentives to encourage the provision of affordable housing outside of significant developments.

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 on a low or moderate income no more than 30% of their gross income in repayments.

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

  • offered for sale at or below the appropriate price
  • offered for sale to eligible buyers
  • priced at $332,000 or less (if key criteria are met, the price can be up to $381,800 - the criteria are published in the government gazette).

The commitment to provide affordable housing is made through a legally binding Land Management Agreement (LMA), and the criteria are re-assessed annually to ensure these requirements are met.

How to include affordable housing in your development

Address affordable housing requirements with your Local Government Planning Officer and SA Housing Authority Affordable Housing Officer and sign an LMA committing to provide affordable housing in your development project.

  1. Design your site plans, stage plans, lots and dwellings to meet the affordable housing price point and market demand
  2. Allow for the delivery of affordable housing in the design of your project with smaller lots for row housing, or community titled lots for apartments.
  3. Consider how environmental design could improve ongoing living affordability, for example, cross ventilation, passive solar energy design, efficient appliances, appropriate zoning, room flexibility for future use, and external shading from gardens.
  4. Lodge your affordable housing plan with the affordable housing team at the SA Housing Authority, outlining your stage plan and product mix.

Contact

Affordable Housing - SA Housing Authority
Phone: 13 12 99

Selling your affordable homes to home buyers

You can sell affordable housing to an eligible homebuyer through the Affordable Homes Program with properties marketed on realestate.com.au and domain.com.au.

In addition to standard marketing activity, developers wanting to sell affordable homes to eligible home buyers may also 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 First Home Owner’s Grant
  • Consider partnering with a financial institution to create an innovative offering such as shared equity or rent-to-buy.

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

On this site

Other websites

    Legislation


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    Page last updated 11 October 2018

    Provided by:
    Department of Human Services
    URL:
    https://www.sa.gov.au/topics/planning-and-property/land-and-property-development/planning-professionals/developer-responsibilities-for-affordable-housing
    Last Updated:
    11/10/18
    Printed on:
    18/11/18
    Copyright statement:
    SA.GOV.AU is licensed under a Creative Commons Attribution 4.0 Licence. © Copyright 2018