draft resource town housing affordability strategy · stakeholders to ensure a long-term prosperous...

Draft Resource Town Housing Affordability Strategy A headline initiative of the Surat Basin Future Directions Statement

December 2010

Growth Management Queensland The State Government, through Growth Management Queensland (GMQ) in the Department of Infrastructure and Planning, is leading the way with a focused approach to managing growth. This strategy is a demonstration of GMQ delivering a more streamlined and coordinated planning strategy that will optimise housing affordability in the Surat Basin region.

Looking forward. Delivering now. The Department of Infrastructure and Planning leads a coordinated Queensland Government approach to planning, infrastructure and development across the state.

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Contents Housing affordability in the Surat Basin region ................................ 2 Introduction................................................................................................................ 2 Background......................................................................................................................................... 2 What is housing affordability?............................................................................................................. 4 Housing affordability context............................................................................................................... 5 Strategy goals. .................................................................................................................................. 7 Opportunities and challenges....................................................................................................... 7 Overview of the current state of housing affordability......................................................................... 7 Opportunities and strenghts................................................................................................................ 9 Challenges now and into the future .................................................................................................. 10 Stakeholder roles and responsibilities ..................................................................... 11 Strategy components .............................................................................................. 13 Implementation and review...................................................................................... 21

Resource Town Housing Affordability Strategy 1

Introduction The draft Resource Town Housing Affordability Strategy articulates policies, programs and actions and corresponding stakeholder roles that together will optimise housing affordability in the Surat Basin region.

The draft strategy identifies the range of responses that need to be implemented concurrently and in a coordinated way by government and non-government agencies, Local Government and industry. This will to facilitate the delivery of housing appropriate for the needs of the Surat Basin community in light of anticipated impacts from a growing resources sector. It includes a cohesive set of principles and actions, which are aimed at optimising housing affordability in the Surat Basin area. It also sets out stakeholder roles and responsibilities.

The Surat Basin is one of Australia’s largest and relatively untouched energy resource areas and geologically occupies 300 000 square kilometres extending from central southern Queensland to central northern New South Wales. The Surat Basin does not align with a designated planning region under the Sustainable Planning Act 2009. It encompasses parts of the Maranoa-Balonne and South East Queensland regional planning areas and parts of the Darling Downs as yet not designated. For the purposes of this strategy, the area referred to as the Surat Basin region comprises the three Local Government areas of Maranoa, Western Downs and Toowoomba Regional Councils. While this strategy explicitly focuses on these three Local Government areas, it has impacts on and will be impacted by economic activity in the surrounding Local Government areas, in particular the Gladstone region and Banana and Balonne shires.

Background This strategy is one of a number of initiatives being delivered under the Surat Basin Future Directions Statement and sits within the broader context of the Queensland Government’s regionalisation initiative and the Queensland Housing Affordability Strategy. The strategy also forms an action of the draft Surat Basin Regional Planning Framework 2010, another initiative of the Surat Basin Future Directions Statement. Surat Basin Future Directions Statement Rapid resource sector growth and accompanying population growth in the Bowen Basin has resulted in significant environmental, social and economic impacts on local communities in the region. In response, the State Government, in partnership with industry and Local Government, made a commitment to strengthen social impact assessment within existing environmental impact statement processes through the Sustainable Resource Communities Policy—Social impact assessment in the mining and petroleum industries (2008). A coordinated partnership arrangement was established under this policy to seek resolution of the complex and interconnected issues arising for communities in areas of significant resource sector growth. The Surat Basin Future Directions Statement, launched by the Queensland Government on 4 March 2010, builds on the work already undertaken under the Sustainable Resource Communities Policy. It seeks to respond to the particular needs in the Surat Basin for coordinated action from the Queensland Government and other stakeholders to ensure a long-term prosperous and sustainable future for the region.

The Surat Basin Future Directions Statement provides a framework for a coordinated, region-wide approach to the complex and cumulative impacts of rapid growth and significant change associated with the development of energy resources in the Surat Basin. The statement commits to 10 headline initiatives, including developing a Resource Town Housing Affordability Strategy, to improve the availability of quality affordable land and housing outcomes. This initiative recognises the potential for a rapid influx of resource project workforces to place significant pressure on housing in the Surat Basin communities with impacts for key workers, the aged, household formation and those in crisis.

Regionalisation strategy The Queensland Government has embarked on a growth management agenda in response to the Queensland Growth Management Summit hosted by the Premier in March 2010. Two key initiatives of Queensland’s growth management agenda are the development of the Queensland Regionalisation Strategy and Queensland Infrastructure Plan. The Queensland Regionalisation Strategy will be delivered as a consultation draft by the end of 2010 for the government’s consideration. It will support and build on existing regional initiatives by providing an overarching, statewide context to inform government investment decisions to support the development of Queensland's regions.


Draft Surat Basin Regional Planning Framework 2010 The draft strategy links integrally with the draft Surat Basin Regional Planning Framework, which includes a settlement pattern for the region. It also complements several other initiatives of the Surat Basin Future Directions Statement such as the Social Impact Management Plan guidelines, a workforce development plan and an economic development strategy. The draft Surat Basin Regional Planning Framework is a non-statutory planning instrument that will be used to inform the review and preparation of existing and future statutory regional plans and planning policy. It will also assist in the assessment of environmental impact statements for major projects, the development of a statewide infrastructure plan and associated responses within the Surat Basin region. It provides the framework for integrating federal, state and Local Government agendas, linking infrastructure and service provision to manage future population change and economic growth. The draft Surat Basin Regional Planning Framework will also influence the development of Local Government planning schemes and community plans. The draft Surat Basin Regional Planning Framework establishes a regional vision for the area, as well as a series of key planning themes with associated strategies and initiatives. These themes include housing choice and affordability which seeks the:

‘provision of sufficient residential land and a range of housing within the towns of the Surat Basin, that responds to the growing and diverse demands on each community, including affordability’.1

One initiative identified under this theme is the implementation of the strategy. Existing regional plans Housing affordability and choice is recognised as desired regional outcomes in both the Maranoa-Balonne Regional Plan 2009 and the South East Queensland Regional Plan 2009–2031. Both plans incorporate policies and actions designed to achieve this outcome. This strategy is consistent with the housing aims in these regional plans and will help to address the issues identified. An increased need for affordable housing options for existing residents and workers moving to the Maranoa-Balonne region due to changing demographics is identified. The Maranoa-Balonne plan suggests that the private housing market has not responded adequately to demand for appropriate rental accommodation. Queensland Housing Affordability Strategy The Queensland Government released the Queensland Housing Affordability Strategy in 2007 to ensure that the state’s land and housing is on the market quickly and at the lowest cost. It identifies priority actions to improve factors that enable the market to respond more effectively to land and housing supply across the state. Actions included: • establishing the Urban Land Development Authority • making improvements to the planning and development assessment process • increasing the supply of land ready for development • regulating infrastructure charging plans across Queensland • monitoring the supply of land and housing • increasing flexibility in financing infrastructure services.

The Queensland Housing Affordability Strategy provides the overarching direction for improving housing affordability across the state. The actions already implemented will assist the housing market to be responsive to demand arising from rapid growth in the resources sector in the Surat Basin. For example, improvements made to the planning and development processes through the Sustainable Planning Act 2009 include mechanisms to set up planning frameworks to support the delivery of land available for housing. This can be undertaken through an amendment to Local Government planning schemes, or alternatively, a structure plan for a declared master planned area. The preparation of a structure plan enables land and infrastructure to be planned and coordinated together. It also assists with streamlining the development approval process by frontloading planning requirements and reducing the need for duplication of regulatory assessment. The draft strategy therefore relies on the fundamental elements of the Queensland Housing Affordability Strategy as its basis but adds further elements specific to the needs of the Surat Basin region.

1 Draft Surat Basin – Regional Planning Framework 2010, section 1.3 Purpose.


What is housing affordability? The term housing affordability is often used interchangeably and can be confused with the concept of affordable housing, which in turn is often used interchangeably with social housing. Housing affordability Housing affordability is a broad term referring to the outcome of the interplay between the production and acquisition costs of housing (supply costs) and the consumption price of housing (demand costs) in relation to the impact on households’ capacity to secure housing (see Figure 1—Elements contributing to housing, page 6). Therefore improving housing affordability involves consideration of a wide range of factors that affect both the supply and demand for housing. No one agency, sector or level of government has control of all the factors that contribute to housing affordability. Some supply chain elements, however, are more easily influenced by government actions such as strategic land-use planning, establishing the legal framework conducive to streamlining development assessment processes, simplifying planning requirements and thereby minimising holding costs. Affordable housing In contrast, affordable housing refers to the physical, built product—a dwelling adequate to live in and within the financial means of the consumer, leaving sufficient income for other needs. Different models and price-to-income ratios are used to define affordable housing. At a joint meeting in 2005 State, Territory and Australian Government Ministers for Housing, Local Government and Planning endorsed the following definition as part of a Framework for National Action on Affordable Housing: ‘Affordable housing is appropriate for the needs of a range of low and moderate-income households and priced so that households are able to meet other essential basic living costs’.

The Urban Land Development Authority uses the following definition for affordable housing: where households are spending no more than 30 per cent of gross household incomes on rent and no more than 35 per cent for home purchase. Affordable housing is sometimes provided through rental schemes and various equity sharing arrangements. Some examples include: The Australian Government’s National Rental Affordability Scheme provides assistance and funding to increase the supply of affordable rental dwellings, reduce rental costs to low- to mid-income earners and to encourage investment in affordable housing on a large scale. The scheme provides for incentives over ten years to investors in new properties who reduce the rent by 20 per cent. The financial incentive comprises contributions from both the Australian and State governments. The Gold Coast Housing Company has launched a shared equity project in Upper Coomera designed to help moderate income earners who have been priced out of the home ownership market. The company retains 25 per cent ownership and sells the remaining 75 per cent to first home buyers. By retaining equity it can make buying a first house more affordable and allow first home buyers to gain capital growth and stop paying rent sooner. Social housing Public housing (or social housing) is rental housing that is owned by the government and made available to households with very low incomes and special needs. This service is provided by the Department of Communities and often in partnership with the not-for-profit housing sector. Rents are generally set as a percentage of a household’s income. This draft strategy is directed at facilitating and optimising housing affordability in the region through a mix of planning policies and related initiatives. The draft strategy is complemented by identifying other activities aimed at the direct provision of affordable housing in the Surat Basin and responses to social housing needs.

Housing affordability context The supply of private housing operates within a competitive investment market. A broad range of factors that impinge on housing affordability are identified in Figure 1—Elements contributing to housing affordability. Elements tend to fall into two broad categories of supply and demand costs, with some elements contributing to



both categories. Many of these elements lie outside the control of the planning system, State Government and Surat Basin stakeholders. A factor unique to resource towns is the degree to which the resource industry workforce is accommodated by project proponents directly and the degree to which local existing accommodation is relied upon. This element has the potential to strongly impact on the housing supply-demand balance in particular centres and the region generally as well as impacting on other regions in which the resource sector workforce may primarily reside.

No individual reform is sufficient to address housing affordability. Ultimately rental and house purchase prices are controlled by the market. An increase in demand for housing will tend to provide positive outcomes for investors, at least initially, as prices and rents increase. While particular anomalies are introduced into the market by the intense peaks and troughs associated with resource sector development, an overly interventionist approach, for example, through rent subsidisation, may introduce perverse anomalies that make it more difficult for the market to self-correct and operate efficiently and sustainably. Consequently minimising the impact of the temporary resource sector workforce on the local housing market is critical to this draft strategy. This can be achieved by mitigation strategies such as the direct provision of new accommodation for temporary workforces. While a range of separate levers that can influence certain factors contributing to housing affordability exist, these operate across the three tiers of government and the private sector. Connections between land supply, investment decisions and the price of housing are complex. Interactions between governments, development companies and consumers exert constantly changing impacts on the relationship between demand for and supply of land and housing. Due to the multiple factors influencing housing affordability, input is required from all levels of government, industry (finance, development, resources), the not-for-profit sector and consumers to make a contribution towards housing affordability. The capacity of Local Government as key planning partner with the State Government, coordinator and deliverer is critical for the success of this strategy.

Figure 1—Elements contributing to housing2

Availability of housing land

2 Adapted from figure 1.1, First Home Ownership, Productivity Commission Inquiry Report No. 28, 31 March 2004

Cost of finance

Income

Supply of housing (costs)

Land release and developmentprocesses

Cost of housing-related infrastructure

Construction costs—materials and labour availability

Employer provided housing

Taxes, concessions and transfercosts

Affordability

Prices

Availability of finance

Employment levels and composition Demand for housing

Population growth, household size, age structure

Govt assistance to home buyers

Investor demand—returns on other investments

Rental prices and availability

Consumer preferences


Strategy goals The draft strategy is based on four broad goals which underpin the actions set out in the strategy components section from page 13. The goals are:

Diversity Choice of dwelling type and tenure is available to consumers to meet the needs of different household types and to meet changing life cycle needs and household economic circumstances.

Design Housing designs and materials incorporate principles of universality, energy efficiency and resource conservation to promote long-term living affordability.

Affordability Housing affordability is optimised through targeted housing supply and demand actions.

Responsiveness Residential development responds effectively to changing housing needs associated with population and resource sector growth.

The availability of a suitable range of housing contributes to the community’s ability to function in an efficient, equitable and sustainable manner. A mix of appropriate and affordable housing is needed to accommodate community diversity within existing and planned communities. Diverse communities, in turn, play a critical role in maintaining social cohesion, supporting local economies and sustaining a range of local services and businesses.

Opportunities and challenges Overview of the current state of housing affordability Based on the Surat Basin Regional Housing Market Snapshot (Department of Communities, October 2010) common features found across the region include steady growth in the number of rental properties and steady rises in median rents. Although home purchase affordability remains better than the statewide average, all areas are notably above the sustainable level for affordability. Features that vary across the region include vacancy rates, degree of rental affordability and the rate of increase in median rents and detached house prices. Table 1—Housing affordability indicators provides a summary of key statistics for the three Local Government areas in the region. However, it is expected that the housing situation will remain fluid and volatile in response to resource and infrastructure project decisions, commencements and completions. Maranoa Maranoa is characterised by low resident population growth but housing data indicates that the non-resident population is having a significant impact on housing. Although growth in new rental properties has exceeded the formation of new households, rental vacancy rates are below healthy levels and well below the Queensland average. It has experienced a significant increase in median rents, much higher than the overall increase for Queensland. In particular, rents for four bedroom properties have nearly doubled over the five years to 2009–10. However, the median rent for two bedroom dwellings is considerably lower than the overall Queensland median. Appropriate housing mix and diversity may be an underlying issue for the Maranoa area. While the percentage increase in the proportion of household income spent on median rent is significant for low income households, overall rental affordability remains under the affordability stress level of 30 per cent of gross household income spent on housing for low income households. Similar to rents, the median detached house price has more than doubled over the last five years. Although sales activity for dwellings and land has been trending down, median detached dwellings prices are higher than those in


Western Downs. While above the sustainable level for affordability, Maranoa remains the most affordable area for home purchase out of the three Local Government areas in the Surat Basin region. Western Downs Western Downs’ annual population growth in 2008–09 was well below the Queensland average. Coming from a low base, the area has seen significant growth in rental properties over the five years to 2009–10, adding 225 private rental dwellings. The average annual growth in rental properties over five years is well above the average annual rate of growth in new households. With the exception of 2008–09, vacancy rates have steadily increased with 2009–10 levels of 11.5 per cent, more than double the state average. These vacancy rates have not translated into decreased rents. Increases in median rents for one to four bedroom dwellings range from 67 per cent to 94 per cent over the five years to 2009–10 and have placed low income households in Western Downs most at risk of affordability stress. Although the difference is diminishing, the purchase price of houses or land in the Western Downs remains significantly lower than Toowoomba. While only a small part of the property market in Western Downs, flats, units and townhouses recorded a higher median price than the predominant detached house in 2009–10. Western Downs may be attracting some speculative actions with residential land sales remaining steady but detached house sales declining over the five year period. While home purchase has become significantly more expensive over the five years and affordability is now well above the sustainable level, it still compares favourably with Toowoomba and the state average. Toowoomba Toowoomba has experienced steady growth in population, only slightly below the state average, and in the number of rental properties. In comparison to the rest of the region it has experienced more moderate growth in median rents and below the Queensland average. Although rental vacancy rates over the past two years have been below the healthy level, rental affordability remains below the affordability stress level. Property prices indicate that detached houses are more expensive than elsewhere in the region but flats/units/townhouses in Toowoomba are less expensive than in Western Downs. While growth in detached house prices has been subdued, it has the least sustainable level for affordability in the region. Although Toowoomba is the tenth largest growing Local Government area in Queensland and has large property sales volume, this has been steadily declining over the past five years. While dwelling approvals are significantly lower than 2004 levels, Toowoomba recently experienced an 8.9 per cent increase between 2008 and 2009. Table 1—Housing affordability indicators

Growth feature Maranoa Western Downs Toowoomba Total

Estimated resident population as at 30 June 20091 13 223 31 469 159 098 203 790

Population increase June 2008 to June 2009 (no. and %)1

34 0.3%

496 1.6%

3 454 2.2% 3 984

Population projections to 2016 and 2031 (high series)1

14 600 16 530

35 020 42 570

188 270 252 040

237 890 311 140

New dwelling approvals in year ending December 2009 (no. and % annual increase)1

41 13.9%

187 171.0%

1 013 8.9% 1 241

Land available for residential development and expected dwelling yield (December quarter 2009)2

Not available Not available 4 092 hectares 11 000 dwellings

Dwelling sales for year ending December quarter 2009 and percentage change from previous year2

Not available 616 -13.4%

4 369 +15.9%

Median price detached houses for year ending December 2009 and change from previous year2

Not available $244 000 +6%

$289 000 +7.8%

Private rented dwellings (no. and % growth over five years to 2009-10)3

824 38%

2120 37%

13 506 15%

Increase of 2 584 19%


Median weekly rents 2009–10: 2 bedroom 4 bedroom3

$200 $370

$210 $350

$200 $330

Queensland $300 $385

Median rent percentage increase over 5 years to 2009–10 (2 and 4 bedroom)3

74% 95%

68% 94%

33% 32%

50% 38%

Rental vacancy rates 2009-103 2.4% 11.5% 1.6% 4.1% Rental affordability level (% of income used for rent for low Income households)3 25% 31% 26% 29%

Median purchase price: detached house; flat/unit/townhouse; land3

$276 000 - $100 000

$265 000 $285 000 $112 500

$295 000 $228 000 $133 000

$420 000 $363 000 $195 000

Home purchase affordability (median detached house price/median gross household income) 3

4.3 4.6 5.2 6.3

1 Population and housing profiles, Office of Economic and Statistical Research, Qld Treasury, April 2010 2 Residential land and dwelling activity profiles, OESR, Qld Treasury, December quarter 2009 3 Surat Basin Regional Housing Market Snapshot, Private Housing Programs, Department of Communities, October 2010

Opportunities and strengths A range of planning tools which support and contribute to improved housing affordability and diversity in the region already exist. Local Governments in the region have identified housing diversity and affordability as key outcomes for their communities in primary planning documents, for example, desired regional outcome 4 in the Maranoa-Balonne Regional Plan 2009 and 8.5 in the South East Queensland Regional Plan 2009-2031 as well as theme 6 in the Toowoomba Regional Community Plan 2010. The draft Surat Basin Regional Planning Framework provides an overarching vision for the Surat Basin region’s desired future and strategic directions which establishes the broad policy framework for housing choice and affordability. These planning tools provide an impetus and a base upon which to progress this strategy.

Optimising housing affordability can contribute to meeting the strategic, social and economic priorities of the region and create sustainable communities. Housing that is affordable, provides choice of tenure and design and is adaptable to changing needs over time, contributes to the diversity, cohesion and inclusive character of communities. A proactive planning approach by Local Governments can facilitate the development of diversity in housing stock and tenure to support a more stable and sustainable community in the long term. All three regional Councils are in the process of developing new planning schemes which will enable the timely incorporation of tools and policies to optimise housing choice, diversity and affordability in light of anticipated demands. There is adequate land available for future residential development in the Surat Basin region. An assessment of suitability factors and growth projections to identify land necessary for future residential purposes will be made during the process of developing new planning schemes. The region is currently experiencing significant dwelling approval activity and lot consumption which suggests it is responding to the increased demand for dwellings. While there has been significant increases in house purchase and rental prices, affordability is still considerably better than the state average. The declaration of an Urban Development Area in Roma provides an opportunity to demonstrate a range of housing products and designs at an affordable price. The Urban Land Development Authority will apply their housing affordability, housing accessibility and sustainability policies and guidelines in developing the area. This is expected to encourage developers to produce more diversity in housing products and thereby provide greater choice for consumers.

Through effective and ongoing consultation between project proponents, Local Governments and housing providers, the region can plan for and deliver liveable communities. This will attract a growing permanent


resident population over the longer term while mitigating any short-term adverse impacts from a surge in temporary, non-resident workforces associated with construction of major projects.

There are considerable opportunities to build on existing relationships and strengthen engagement with the not-for-profit sector to provide and manage affordable rental accommodation for low to moderate income residents. This will help to retain existing residents and employees within their communities in the face of inevitable price rises for new dwellings. Currently there are opportunities to leverage funds for affordable rental accommodation and for expediting development of residential land through national affordable housing initiatives provided by the Australian Government, such as the National Rental Affordability Scheme and the Housing Affordability Fund.

Challenges now and into the future The draft Surat Basin Regional Planning Framework outlines specific challenges in relation to growth and housing for each Local Government area in the region. Broadly, a decline in housing availability and affordability may adversely affect the region’s economic performance and labour market efficiency over the longer term by limiting skilled worker attraction strategies. Where rents and house prices are rising faster than incomes, service industry workers can be forced to move from key centres to lower priced housing in smaller centres. Due to the consequential increased commuting distance to places of employment and associated increased environmental costs and social polarisation, living affordability in these scenarios is not improved.

Housing markets in resource areas are characterised by periods of rapid growth in the resource sector as investment and commencement decisions are made by major project proponents. House prices rise as demand outstrips supply or is artificially inflated by high rental subsidies. While this can stimulate investment in additional supply there is an inherent time lag. When demand declines during resource sector downturns or as projects are completed, house prices fall and vacancy rates rise. This scenario makes it difficult for the private housing market to adequately self-correct in a timely manner. Aligning development to meet supply in the face of inevitable peaks and troughs in housing demand will be a fine balancing act and will require timely and effective consultation between stakeholder groups.

Speculative development in this environment has inherent risks for investors and may compare unfavourably with alternative investments or property investment in more mature markets. Toowoomba is likely to be less affected than the smaller towns in the region. Investment levels may be compounded by the reluctance of financiers to lend for housing in mining towns. Investors often require higher returns to compensate for risk, including unpredictable capital appreciation over the long term. Reliance on pure market conditions is unlikely to produce an effective housing market. Targeted complementary measures such as the direct provision of affordable housing and social housing for specific groups in the community may assist in the short term. The majority of residential developers in the region are small scale operators with limited investment capacity, with some exceptions in Toowoomba. However, the degree of development required may not be sufficient to attract large scale property developers. Barriers to institutional investment in affordable rental housing primarily revolve around returns risks that are more difficult for small developers.

The level of predictability about housing demand and the capacity of regional Councils to effectively plan for the cumulative effects of resources sector development will require the supply of reliable and timely information, flexibility and close consultation between stakeholders. A key factor for the housing market will be the proportion of the resource project’s operational workforce that is sought to be accommodated in townships compared with on-site temporary dwellings and the timeliness of such decisions. Evans and Peck3 forecast a significant increase in the construction labour force in the Surat Basin region between 2011 and 2014, tapering down after 2016 and steady growth in the operational workforce from 2013. To date most resource sector project proponents have indicated in their environmental impact statements that the majority of personnel will be housed in camp facilities away from existing townships.

3 Evans and Peck, 2010 Major Projects in the Surat Basin – Assessment Model Report, Department of Employment, Economic Development and Innovation, Queensland Government.


Should the greater proportion of the operational workforce be accommodated in on-site temporary dwellings on a drive in/drive out or fly in/fly out basis, housing demand will be spread across the state, in particular South East Queensland and Gladstone. Toowoomba could be expected to absorb some of the drive in/drive out operational workforce.

Stakeholder roles and responsibilities Australian Government The Australian Government sets the broad economic context for housing supply through taxation and monetary policy which impacts on both housing demand and supply. It also provides funds that support housing demand and the direct provision of new affordable rental housing and housing affordability. The Australian Government, in partnership with the State and Local Governments and local communities, has established Regional Development Australia (RDA) Committees to develop and strengthen regional communities for a sustainable future. The Darling Downs and South West RDA Committee will support regional planning through the identification of priority economic, social or environmental issues and actions to address them.

Queensland Government The Queensland Government is currently preparing a regionalisation strategy that will set the broad policy direction for government investment in regions, including the Surat Basin region. The Queensland Government sets the regulatory framework for planning, development assessment, infrastructure charging, building standards and the land tenure system which can all contribute to housing affordability. Additionally, it can directly influence workforce accommodation requirements for significant projects requiring consideration by the Coordinator-General through environmental and social impact assessment. These roles are supplemented by the direct service provision, or in partnership with the not-for-profit sector, of social housing and housing assistance programs through the One Social Housing System policy. The Department of Communities provides a range of programs that support social housing. This includes: • capital grants to service providers for dwelling construction • a community rent scheme which provides funds to community organisations to provide subsidised

medium-term transitional accommodation to social housing applicants in severe or immediate need for accommodation

• community-managed housing studio units program • crisis accommodation program • long-term community housing program • a rent start program which provides subsidised rental assistance in properties headleased through

the private rental market by community housing providers. The Urban Land Development Authority plays a significant role in both direct provision of affordable housing acting as developer and/or development assessor. It also collaborates with other stakeholders (Local Government, not-for-profit sector, resource project proponents) to achieve housing diversity and affordability. The Urban Land Development Authority’s resource community program will complement the existing property market by ensuring property within declared Urban Development Areas (UDA) is released to the market in a timely fashion. This is achieved through resolution of tenure conflicts and expeditious development assessment through UDA-specific development schemes. In addition, the Urban Land Development Authority has developed partnerships with not-for-profit housing companies to quarantine a portion of its developments for rent or purchase at affordable levels for low to moderate income households. Local Government Local Government has a key role in regulating land use, applying development standards, undertaking development assessment, infrastructure planning and charging at the local level which can impact on the timely delivery and range of housing options delivered. Some Local Governments are also engaged in measures to address specific local housing needs either through direct housing development and provision or in partnership with other entities such as not-for-profit housing companies.



Private sector and project proponents The majority of the housing market is held and managed by the private sector which delivers housing that responds to market demand. Consequently it plays a significant role in delivering housing options but the degree of activity by the sector is also significantly influenced by the cost and availability of finance, investment returns and risks, and regulatory frameworks established by governments. The quantity, type and location of accommodation for the resource sector workforce directly provided by project proponents adds a key variable to private investment in the housing market in the Surat Basin region.

Not-for-profit sector The not-for-profit sector plays a critical role in the direct provision and management of affordable housing, social and crisis housing and housing support services. The Council of Australian Governments and the Housing Ministers Conference has recognised the need to support and extend this growing sector. This sector relies on a mosaic of support from all levels of government and the community. It manages a significant asset base and has demonstrated an ability to implement innovative tenure and funding arrangements to secure housing that meets particular needs of the community.

Strategy components The strategy’s principles and actions are located within three broad focus areas—optimising housing supply by removing obstacles to timely developments and affordability; responding effectively to demand factors; and consolidating coordinated governance arrangements for long term sustainability. Stakeholder involvement required to implement the actions is also identified.

Principles Actions Involvement 1. Focus—optimising timely housing supply Fundamental to optimising housing supply is the provision of a competitive land and housing market enabled to respond to changing demands over relatively short periods as a result of changing economic circumstances. Planning system mechanisms can contribute to this outcome but not control all the variables. 1.1 A sufficient quantity of appropriately located land is available for residential development. What has already been done: The South East Queensland Regional Plan 2009–2031 nominates Westbrook, currently a rural area, as an identified growth area. Subject to further planning it may be able to accommodate some of Toowoomba’s projected residential growth needs. The Toowoomba Regional Council will also be undertaking studies to identify medium to long term broadhectare development opportunities for consideration in the next revision of this Plan. The draft Surat Basin Regional Planning Framework 2010 identifies the key locations for residential growth in the region with Toowoomba serving as the principal service centre for the region and Dalby and Roma operating as secondary centres. Highfields, Oakey, Pittsworth, Chinchilla, Miles and Wandoan have been identified as key locations for residential growth.

1.1.1 Identify key growth areas for future residential growth when reviewing or making statutory regional plans and planning schemes. Under the auspices of Sustainable Planning Act 2009, planning instruments and planning schemes establish the legal rules governing the way land can be used and developed. Planning schemes establish the principal development controls for a Local Government area. 1.1.2 Monitor surplus and underutilised government land for opportunities to contribute to the land supply for the development of affordable housing through the application of the Queensland Government Property Management Committee’s Disposal Policy 8—Affordable Housing Protocol for Surplus Government Land.

Local Government to expedite finalisation of new planning schemes, supported by State Government. State Government agencies in association with Local Government.

1.2 Planning and development assessment systems operate efficiently to avoid unnecessary delays and

1.2.1 Encourage and facilitate Local Government’s adoption of the Smart eDA system to simplify development applications and

Local and State Government


costs in bringing land and housing to the market. What has already been done: The Sustainable Planning Act 2009 provides frameworks to support the delivery of land available for housing. This can be undertaken through an amendment to Local Government planning schemes or through a structure plan for a declared master planned area. The preparation of a structure plan enables land and infrastructure to be planned and coordinated together while also streamlining the development approval process and reducing the need for duplication of regulatory assessment.

A draft Model Code for Smart Growth, a program to help achieve desired regional outcome 8 of the South East Queensland Regional Plan 2009–2031, has been developed in conjunction with a Council of Mayors project, Next Generation Planning. This work is aimed at improving housing affordability through the application of consistent planning tools designed to produce a wider variety of housing in local areas, and more sustainable designs and performance.

expedite development assessment. 1.2.2 Facilitate a partnership approach between all levels of government, industry and the community when making or amending Local Government planning schemes to ensure land use planning matters are resolved as much as possible at this point rather than during the development assessment process. 1.2.3 Ensure new planning schemes being developed by Local Government optimise the use of simplified processes available under the Sustainable Planning Act 2009 for low risk developments such as housing. This could include using model planning provisions that facilitate a diverse range of housing types which is being developed as part of the Model Code for Smart Growth. Having a consistent approach to residential development across the Surat Basin region would remove inefficiencies which can be a cause of delays and cost to housing development. 1.2.4 Explore scope for planning incentives to be offered to encourage affordable housing provision by reducing costs associated with affordable housing development, for example, a relaxation of density standards in return for a commitment to provide affordable housing or a reduction in certain charges or rates. 1.2.5 Review and investigate new planning instrument options to incorporate affordable housing in new developments. (Action 1.2.5 forms part of the State Government’s response to the Queensland Growth Management Summit. Its outcome is intended to have statewide application; however, any new planning instruments developed for this purpose will be pertinent to the Surat Basin region for facilitating delivery of affordable housing.)

Local Government and State Government Local Government Local Government State Government (Departments of Communities and Infrastructure and Planning) in consultation with Local Governments


1.3 A transparent and accountable infrastructure planning and charging regime is in place to provide certainty for developers and adequately fund infrastructure for new residential development. What has already been done: The State Government has established an Infrastructure Charges Taskforce as part of the response to the Queensland Growth Management Summit to investigate and report on options by the end of 2010. While the outcomes are likely to have statewide application, any improvements to infrastructure charging will assist the development sector and Local Governments in planning for and undertaking projects in the Surat Basin region.

1.3.1 Local Governments to complete priority infrastructure plans. 1.3.2 Identify opportunities to simplify charges, provide greater certainty and investigate alternative trunk infrastructure funding arrangements such as third party financing through the work of the Infrastructure Charges Taskforce. 1.3.3 Explore funding program opportunities to assist with reducing upfront infrastructure costs for housing development, such as the Federal Government’s Housing Affordability Fund and regional development initiatives.

Local Government State Government Federal, State and Local Governments

1.4 Housing choice and diversity is available in all growth areas. For example, housing type needs to provide for lower income service industry workers (affordable), apprentices (shared dwellings), new arrivals (commercial temporary dwellings and affordable rental dwellings), and redundant workers (supported and crisis accommodation). What has already been done: The practice guide Affordable Housing National Leading Practice Guide and Tool Kit4 was developed in 2008 as a resource to help state housing, planning and Local Government practitioners and other key stakeholders work in partnership with private and not-for-profit developers to help provide affordable housing

1.4.1 Where appropriate, condition government owned land release/sales to incorporate requirements for diverse and affordable dwelling products. 1.4.2 Remove obstacles to diversity and affordability in planning schemes under development or revision through the application of State Planning Policy 1/07 Guideline for Housing and Residential Development, which promotes a range of housing densities, lot sizes, type and environmental performance. Examples could include provision for dual occupancies or accessory dwellings like granny flats or garden apartments to facilitate the supply of affordable rental accommodation and reducing barriers to the appropriate adaptation or redevelopment of existing housing in established areas. 1.4.3 Promote long-term living affordability by encouraging

State Government Local Governments supported by State Government Development industry and Local Governments.

4 Developed under the Framework for National Action on Affordable Housing which was adopted by a joint meeting of state, territory and Australian Government Ministers for Housing, Local Government and Planning and the President of the Australian Local Government Association in August 2005.


through the planning system. The Urban Land Development Authority has released a number of guidance documents to support housing choice and diversity, including Residential 30: Guideline to deliver diversity in new neighbourhood development; Accessible Housing Guidelines; and Sustainability Policy.

sustainable housing designs to be applied in new developments. (Guidance can be found in the Urban Land Development Authority’s guidelines.) 1.4.4 Deliver eight affordable rental dwellings by June 2011 in the Roma Urban Development Area that demonstrate to the private housing market how affordable housing can be achieved without loss of amenity. 1.4.5 Apply the Urban Land Development Authority’s Affordable Housing Strategy to any new Urban Development Areas declared in the Surat Basin.

Urban Land Development Authority Urban Land Development Authority

1.5 The impact of resource sector workforces, construction and operational, on the local housing market is minimised. What has already been done: Resource projects are subject to an Environmental Impact Assessment process under various legislation which provides for conditions to be placed on projects to minimise adverse impacts.

1.5.1 Finalise and implement the Major Projects Housing Policy, a commitment of the Sustainable Resource Communities Policy. The policy will establish principles to be used in assessment of the accommodation and housing market impacts of the following projects: • resource and resource-related projects considered as significant

projects under the State Development and Public Works Organisation Act 1971

• resource projects subject to an environmental impact assessment under the Environmental Protection Act 1994.

This policy will operate in the context of social impact assessment and will assist project proponents in completing this component of environmental impact assessment and community stakeholders in understanding these issues. 1.5.2 Use the Social impact assessment: Guideline to preparing a social impact management plan to mitigate and manage the impacts of projects considered by the Coordinator-General to ensure accommodation and housing market issues are addressed and that, where adverse impacts occur, government, industry and community work together to put in place suitable mitigation strategies.

State Government and resource project proponents State Government and resource project proponents. As stakeholder engagement is fundamental to the preparation of social impact assessment plans, Local Governments and community organisations will have the opportunity to identify any concerns.


1.5.3 As part of the social impact assessment process for resource projects in the Surat Basin under consideration by the Coordinator-General, ensure social impact management plans: • support adequate identification and assessment of

accommodation and housing market impacts • put in place mitigation strategies where these are needed • provide an effective mechanism for communication about

accommodation and housing market impacts.

1.6 An adequate supply of skilled tradespersons is available locally to respond to housing construction demand in a timely way. What has already been done: As a headline initiative of the Surat Basin Future Directions Statement, a Workforce Development Plan has been drafted and will be released by the end of 2010.

1.6.1 Monitor the supply and readiness of the housing trades workforce to meet the demand for new housing construction and respond to the development of any potential shortages through effective training and recruitment strategies. Resource sector projects are expected to source a large percentage of their construction workforces from outside the region. However, based on experience in other regional mining areas, resource projects can be expected to attract labour from existing local industries, potentially resulting in shortages. Shortages in skilled housing construction labour can delay the timely construction of housing or raise the cost through increased wages required to compete with resources sector wages.

State Government with the private sector

2. Focus—responding to demand factors 2.1 Relevant stakeholders have reliable and current information upon which to plan and improve responsiveness in meeting housing demand. What has already been done: The Office of Economic and Statistical Research, Queensland Treasury, regularly publishes population and housing profiles and residential land and dwelling activity profiles for Local Government areas for planning purposes. Housing demand and impacts associated with

2.1.1 The Office of Economic and Statistical Research will: • maintain a resource communities monitoring program and

include the Surat Basin resource communities in their following programs: – residential land supply monitoring – population (including non-resident worker populations) – household projections and estimates of underlying demand for dwellings

• continue to conduct regular surveys of resource project employment and accommodation providers in the Surat Basin.

2.1.2 The Department of Communities will update the Surat Basin

State Government State Government


resource sector workforces are identified in the environmental impact assessment process which provides stakeholders with early information upon which to plan.

Regional Housing Market Snapshot annually to assist with monitoring trends and planning for responsiveness. 2.1.3 Identify the vision and aspirations of communities, including housing demand, in the Surat Basin region through finalisation of Local Government community plans that can be implemented through Local Government corporate plans and planning schemes. 2.1.4 Finalise the cumulative growth management model as a probabilistic assessment tool for use by regional stakeholders in identifying and planning responses to housing demand. 2.1.5 Finalise legislative amendments to require applicants for gas and petroleum production tenure and licences to notify relevant Local Governments in relation to on-site temporary worker camps and proposed use of local services.

Local Government State Government State Government

2.2 Affordable housing is available to support and retain existing low to moderate income households in the Surat Basin and minimise their relocation. What has already been done: Under the National Rental Affordability Scheme, 95 dwellings have been approved in the Surat Basin region. A 20 hectare Urban Development Area was declared in Roma on 30 July 2010. The Urban Land Development Authority is preparing a development scheme for the area and will work with stakeholders to deliver a range of housing styles and densities at a variety of prices. The Urban Land Development Authority aims to provide 66 per cent of the housing at or below the median house price for the area. Housing products will be targeted at households with income of between $40 000 and $80 000. The Rural Housing Service Centre, involving a

2.2.1 Explore the potential for further opportunities to declare urban development areas in centres experiencing the greatest growth and demand for affordable housing. 2.2.2 Maximise opportunities available under the National Rental Affordability Scheme to develop new affordable rental accommodation. 2.2.3 Explore partnerships with the not-for-profit housing sector to provide and maintain an adequate supply of affordable housing. 2.2.4 Explore opportunities to improve access to affordable housing under the Department of Communities, Relocatable Housing Project, which provides for the relocation of excess departmental dwellings to regional and western Queensland.

Local Government, Urban Land Development Authority, State Government Urban Land Development Authority, Surat Basin Development Corporation, not-for-profit housing sector, State Government State Government


partnership between the not-for-profit housing sector, Maranoa Regional Council and the State Government, has been approved to provide a single coordinated social housing service in Roma. 2.3 The non-resident and temporary workforce associated with resource sector and related infrastructure projects are provided with adequate and appropriate accommodation.

2.3.1 Finalise and implement the Major Projects Housing Policy. 2.3.2 Monitor the application of the Queensland Development Code provisions relating to temporary dwellings to ensure it meets the needs of resource communities and project proponents. 2.3.3 Finalise and implement the draft Urban Land Development Authority guideline on non-resident worker accommodation to assist resource project proponents and developers responsible for preparing development applications for non-resident worker accommodation in Urban Development Areas. 2.3.4 Finalise and implement a Draft model code for non-resident worker accommodation to assist developers and Local Governments to prepare and assess development proposals for this type of accommodation in or near urban areas.

State Government State Government and Local Government Urban Land Development Authority State Government and Local Government

2.4 Home buyers are supported to enter the housing market. While housing in the Surat Basin is generally more affordable than in many other coastal areas of Queensland, supporting people to move from rental accommodation to home ownership also facilitates a stable growing resident population. Support for home buyers in the region also contributes to the overall strategy for attracting new residents to the region. What has already been done: The Department of Communities provides a range of programs to assist with home ownership including deposit assistance grants, mortgage relief, pathways

2.4.1 Provide additional assistance to first home owners either building or buying a new home in regions outside South East Queensland, including the Surat Basin, through the Queensland Government’s Regional First Home Owners Grant. An additional $4000 is available for eligible contracts or commencements between 1 June 2010 and 30 June 2011 on top of the Government’s existing $7000 first home owners grant available across the State. 2.4.2 Explore opportunities for the development of a shared equity home purchasing scheme in partnership with not-for-profit housing providers, for example, the Gold Coast Housing Company’s shared equity project at Upper Coomera.

State Government Not-for-profit housing providers in conjunction with the development industry, including the Urban Land Development Authority



shared equity loan, Queensland housing finance loans, Queensland State housing loans and the sales to tenants program. 2.5 Investment in the region’s housing market promotes a competitive and robust market.

2.5.1 Engage with the finance sector to promote the long term regional housing market needs and opportunities to mitigate concerns about risk regarding the capital value of housing in resource communities and the level of yield associated with affordable housing.

Regional consultative body, Local Government, development bodies, not-for-profit sector.

3. Focus—coordinated governance for effective outcomes Sustainability requires an appropriately representative body to be in place for the long term. Government, industry and the not-for-profit sectors perform key roles in influencing the housing market or in the direct provision of housing. In the Surat Basin region the resource industry sector will also play a significant role. The broad roles of stakeholder groups are described earlier in this strategy. It is essential that each sectors’ efforts are coordinated to positively influence housing outcomes for the Surat Basin over the longer term. To this end, a mechanism is required to ensure ongoing dialogue and sharing of information between the key sectors achieves informed and timely planning and decision-making. 3.1 Relevant stakeholders have an appropriate forum to share information and develop strategies and responses as required to meet the changing circumstances of housing supply and demand. What has already been done: The Surat Basin Future Directions Statement Steering Committee, comprising government agencies and Local Governments, was established to provide high level direction and resolution of cross-agency matters arising from the Future Directions Statement. The Surat Basin Local Leadership Group, established under the Sustainable Resource Communities Policy, includes Mayors of regional Councils, key industry and community stakeholders. The group provides a key mechanism for coordination and collaboration at a regional level.

3.1.1 Identify an existing or establish a new regional representative body to monitor cumulative impacts of growth and housing supply and demand trends and provide strategic advice on housing market issues to enhance responsiveness to demand/supply movements. This body could be tasked with: • engaging with equivalent bodies in other resource regions to

learn from their experiences • proactively marketing the liveability of resource towns to attract

permanent residency of the resource sector and related project workforces

• investigating opportunities for leveraging funding to provide for specific housing needs and housing market gaps from government and non-government sources.

Local and State Government, not-for-profit housing sector, economic development entities, resource companies, trade unions.

Implementation and review The Queensland Government’s Sustainable Resource Communities Policy is currently being reviewed, including the partnership arrangements and the role of local leadership groups. Once the review is complete, arrangements for ongoing coordination of the Surat Basin initiatives will be formalised. The Department of Infrastructure and Planning will conduct a review of the strategy in conjunction with Surat Basin stakeholders within three years of the release of the strategy.

draft resource town housing affordability strategy · stakeholders to ensure a long-term prosperous...

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