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TRANSCRIPT
July 2013 - CONFIDENTIAL
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Fishermans Bend Urban Renewal Area:
Options for Delivery of
Affordable Housing
9/AffordAble Housing options pAper (JuditH stubbs & AssociAtes)
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
Table of Contents
July 2013 - CONFIDENTIAL
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Figures
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
Maps
Tables
July 2013 - CONFIDENTIAL
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7
Bob is aged in his eighties and lives alone in a bedsit in Inner Melbourne. The unit is at the lower end of the market, and he pays $230 per week in rent. While his wife was alive they received a substantially higher pension, but now that he is living alone he is struggling with the cost of living. He pays 50% of his income in rent, leaving him with a disposable weekly income of $235 per week. This is just enough to cover essentials, such as groceries, clothing and footwear, purchase and maintenance of furniture and medical expenses. Being quite old and frail, Bob requires help with some day-to-day activities, such as grocery shopping. However, some weeks he struggles to pay for the cost of transport to the supermarket, as well as to other activities that help him to keep socially connected. Bob’s family have been trying to convince him to go to a nursing home. However, a sense of independence is very important to Bob, though lately he has been beginning to feel quite overwhelmed with maintaining an independent lifestyle on his current income.
When commuting becomes too expensive or too hard on family life, they often change jobs. The economy loses skilled workers and there are fewer families and older people in the community, and the quality of community life drops for everyone.
Fact 4: One third of low and moderate households in Greater Melbourne (almost 300,000 households) are in housing stress, or at risk of after housing poverty.
Fact 5: In City of Melbourne housing stress is extremely high (42% of low and moderate households, mainly low income renters).
But what can government do?
To a large extent, the future of Fishermans Bend will depend on whether government actively seeks to create affordable housing in the area. It can do this through the planning system at little cost to government.
For example, it can require that Fishermans Bend include a proportion of genuinely affordable housing, created through a range of mechanisms that are used elsewhere in Australia and overseas.
Fact 6: Government has a stated objective to promote affordable housing. The SPPF has an objective ‘to deliver more affordable housing close to jobs, transport and services’. A purpose of Places Victoria is to ‘promote affordable housing… in the urban renewal projects’ (cl 7(1)) under the Urban Renewal Authority Act 2003, and has special powers in this regard. A range of mechanisms are possible under existing legislation and policy, though some would need relatively straightforward amendments to the SPPF and/or local planning schemes.
The fact that all of these planning mechanisms are likely to be economically feasible and equitable means that government can take quite strong action in Fishermans Bend.
Based on current data, levels of potential developer profit in Fishermans Bend are likely to be relatively high due to lower land values and Capital City Zoning, especially when there is planning certainty and provision of transport infrastructure. Some of this profit can be taken for affordable housing (in addition to conventional developer contributions) without necessarily adversely affecting development decisions.
6 Affordable Housing Delivery Options Paper (FBURA)
Tom and Anna are a young couple with two children. They work full time, Tom as a labourer and Anna as a clerical assistant. The children are cared for by Anna’s mother during the day. They earn around $75,000 each year and pay 44% of their income for mortgage payments on their two bedroom apartment in FBURA. They have a disposable income of $545 per week, $175 less than similar households spend on necessities. To make ends meet, Tom services their car, their furniture is old and they eat cheaply. The car is quite old and they cannot afford to repair it or buy another. They would like to sell it, but, while Anna walks to work, there is no public transport running to Tom’s workplace. They never eat out, and, since buying the apartment, they spend their holidays at home. They have no savings. Anna’s mother has recently fallen ill and can no longer look after the children. They cannot afford child care, and are planning to sell up, find other work and relocate to the western suburbs.
Executive Summary What will Fishermans Bend look like?
There are two futures for Fishermans Bend Urban Renewal Area.
In one, Fishermans Bend is home to higher income singles and couples who can afford the high price of an apartment there. Low and moderate income families will join the exodus from inner Melbourne to outer urban areas an hour’s commute away from family, friends and employment.
In the second future, Fishermans Bend is a vibrant, mixed community where people of diverse ages, incomes, family types and occupations live. They can walk to work or catch public transport and can choose whether or not they own a car, a major cost saving for such families.
The choice of future will depend on whether government actively seeks to create affordable housing in the area.
Fact 1: 99%1 of very low, low and moderate income renters and purchasers will be excluded from Fishermans Bend if there is no intervention.2
Fact 2: Very low, low and moderate income households make up 60% of households in Greater Melbourne (that is, households earning up to 120% of gross median household income).
Refer tables 5-3, 7-11 and 7-15, the market will meet 1.3% of demand for affordable housing.Very low, low and moderate income households earn up to 50%, 80% and 120% of gross median household income respectively.
Fact 3: Over 90% of people who work in commercial and industrial areas in inner Melbourne commute from outer suburbs
Why does it matter?
Anyone in the community could need affordable housing.
Without it, families are forced to sacrifice basic necessities like transport, heating, medication, clothing or even food. They have to move from areas where they have strong attachments and have contributed to the social fabric over many years.3
All case studies are hypothetical but based on data including current housing costs, actual earnings, taxation rates, ABS household expenditure survey, tax benefits and Centrelink payments.
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
9
Different options have been tested and modelled to make sure that a wide range of families can be accommodated in Fishermans Bend in the future.
The ability to include these groups always involves some form of benefit capture or housing levy on development and the use of various leveraging opportunities. Options modelled are cost neutral to government however use of public land could provide additional leveraging opportunities.
It is strongly preferred that affordable housing be created in perpetuity. Shared equity means that the first owner will not sell the home for a ‘windfall profit’. Ownership or management of discount market rental properties by a community housing provider means they will be retained as affordable rental. This will also increase leveraging opportunities on funds raised through planning mechanisms or the use of government land.
If 20% affordable housing were to be provided for in Fishermans Bend then 8,000 of the proposed 40,000 dwellings to be created could be rented or purchased by very low, low and moderate income households. The target groups making up the 8,000 dwellings (or 20% of dwellings) are set out in Table 2-5, with this table based on current housing stress data for Greater Melbourne. Using this target and breakdown, the following four options explore the delivery of affordable housing to different mixes of target groups at minimal cost to government using a range of methods, including market delivery, mandated dwelling size, assisted purchase (shared equity), discount market rent and social housing. In each case, the model is fully funded by a developer levy with the levy increasing as
affordable housing is provided to more difficult to house groups.
In a business as usual model, there is no levy and affordable housing will be provided to 1.3% of the affordable housing target group,5 with those housed being half of moderate income renters6 and 10% of smaller moderate income purchasers7 in studio and one bedroom apartments. All low and very low income and all family households are excluded.
In an intermediate affordable housing model, a levy of 3.6% of saleable floor area is required to fund the model and 44% of the target group is accommodated. Those housed include all moderate income households; all smaller low income purchasers and renters; half of low income family purchasers; and 40% of low income family renters.8
In a pragmatic mixed model, a levy of 5.0% of saleable floor area is required to fund the model and 56% of the target group is accommodated. Those housed are all moderate income households including family households; all smaller low income purchasers and renters; half of low income family purchasers; 40% of low income family renters;
9 and all very low income renters, with social housing provided at levels for greater Melbourne.
That is, 1.3% of the households as set out in table 2-5. That is, the households will have incomes in the top half of the moderate income household band. That is, the households will have incomes in the top 10% of the moderate income household band.That is, the households will have incomes in the top 40% of the low income household band.That is, the households will have incomes in the top 40% of the low income household band.
8 Affordable Housing Delivery Options Paper (FBURA)
Jenna and Cameron are a young couple with one child. Cameron works full time in retail, and Jenna stacks shelves at a local supermarket five nights a week while Cameron cares for the baby. They earn $50,000 per year and pay 49% of their income on mortgage payments for their one bedroom apartment in FBURA, leaving them $510 per week. They cannot afford to own a car so they walk or use public transport. Jenna finds it scary walking home alone late at nights, but a taxi is out of the question. They would like to have another child, but it is quite crowded in their apartment and they really need something larger. If they rent in Hobson Bay rather than buying a place, Cameron can keep his job and they can make ends meet, but Jenna will need to find local work. They are not happy with this option, as they see owning an apartment as ‘getting ahead’. Cameron is looking for work in the western suburbs, and he and Jenna spend the weekends looking at house sale advertisements.
Alternatively, or in addition, if a scheme overlay constrains the height of apartment buildings beyond the current Capital City Zoning, there may be an opportunity to offer height or density bonuses in exchange for a contribution of 50% of additional profit toward the construction of affordable housing in perpetuity, should the developer chose to take up this incentive.
In addition, if government adds a subsidy in the form of land or funding, more low and moderate income families will be able to live in Fishermans Bend, especially where funds raised through the planning system or land contributions are leveraged to create additional housing.
Fact 7: Use of public land in FBURA for leveraging affordable housing can add affordable dwellings with no funding cost to government. Possible land includes car parking areas, green space and council depots.4
Why should government act to create affordable housing in FBURA?
Government action is the only way that low and moderate income families will be able to live in Fishermans Bend.
Very little social housing for very low income renters has been provided in Docklands, Southbank or Melbourne CBD over the past decade, despite major growth in dwelling supply. And virtually none of the stock created is affordable to low and moderate income families either.
There is a narrow ‘window of opportunity’ to capture benefit for use as affordable housing, Refer table 7-7 for preliminary assessment.
or to acquire land at lower market prices. Any action in the future to create affordable housing in FBURA will be far more expensive for government.
Fact 8: Given the early stage in the life of this project, there are still likely to be major opportunities to create affordable housing through a development contribution or levy on the uplift or additional development profit.
What are the options to create affordable housing in FBURA?
Four broad options have been investigated for government to consider and develop further.
July 2013 - CONFIDENTIAL
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Opt
ions
for t
he d
eliv
ery
of A
fford
able
Hou
sing
in F
ishe
rman
s Ben
d12
O
ptio
n 1:
‘Bus
ines
s as
Usu
al’ M
odel
O
ptio
n 2:
‘Asp
iratio
nal A
fford
able
Ho
usin
g’ M
odel
O
ptio
n 3:
‘Pra
gmat
ic’ M
ixed
M
odel
O
ptio
n 4:
Inte
rmed
iate
Af
ford
able
Hou
sing
Mod
el
Desc
riptio
n
Mar
ket d
eliv
ery
with
out p
lann
ing
inte
rven
tion
to c
reat
e af
ford
able
hou
sing
20%
of t
otal
dw
ellin
gs (p
oten
tially
8,
000)
incl
udin
g m
arke
t del
iver
y,
man
datin
g siz
e/ty
pe, d
iscou
nt
mar
ket r
ent,
assis
ted
purc
hase
&
soci
al h
ousin
g, a
ssum
ing
hous
ing
need
for G
reat
er M
elbo
urne
, and
30
% o
f inc
ome
for h
ousin
g st
ress
Per O
ptio
n 2,
but
soci
al h
ousin
g at
Gre
ater
Mel
bour
ne a
vera
ge
(3.1
%),
and
’mix
ed’ h
ousin
g st
ress
th
resh
olds
(30
%, 3
5% a
nd 4
0% o
f in
com
e fo
r diff
eren
t gro
ups)
13
Per O
ptio
n 3,
but
exc
ludi
ng so
cial
ho
usin
g du
e to
the
high
subs
idie
s re
quire
d
% o
f tar
get g
roup
s ac
com
mod
ated
14
1.3%
80
%15
56
%
44%
Targ
et g
roup
s lik
ely
to
be h
ouse
d in
FBU
RA
Smal
l mod
erat
e in
com
e re
ntin
g an
d pu
rcha
sing
hous
ehol
ds
in st
udio
and
1 b
/r
dwel
lings
At le
ast 5
0% o
f eac
h ta
rget
gro
up is
ac
com
mod
ated
All m
oder
ate
inco
me
hous
ehol
ds
At le
ast 4
0% o
f low
inco
me
hous
ehol
ds
Very
low
inco
me
rent
ing
hous
ehol
ds, t
houg
h w
ith re
duce
d qu
antu
m o
f soc
ial h
ousin
g
All m
oder
ate
inco
me
hous
ehol
ds
At le
ast 4
0% o
f low
inco
me
hous
ehol
ds
Targ
et g
roup
s stil
l exclud
ed fr
om F
BURA
All f
amily
hou
seho
lds,
an
d al
l ver
y lo
w &
low
in
com
e ho
useh
olds
Low
er 5
0% o
f low
inco
me
fam
ily
rent
ers,
and
low
er 5
0% o
f ver
y lo
w
inco
me
purc
hase
rs
Very
low
inco
me
purc
hase
rs;
low
er 5
0-60
% o
f low
inco
me
fam
ily h
ouse
hold
s
Very
low
inco
me
rent
ers a
nd
purc
hase
rs; l
ower
50-
60%
of l
ow
inco
me
fam
ily h
ouse
hold
s
Hous
ing
subs
idy
assu
mpt
ions
N
o su
bsid
ies a
ssum
ed
Min
imum
disc
ount
mar
ket r
ent t
o al
low
acc
ess f
or a
ll ta
rget
gro
ups;
m
inim
um p
urch
aser
equ
ity sh
are
to
Min
imum
disc
ount
mar
ket r
ent o
f 70
%; m
inim
um e
quity
shar
e fo
r pu
rcha
ser o
f 50%
Min
imum
disc
ount
mar
ket r
ent o
f 70
%; m
inim
um e
quity
shar
e fo
r pu
rcha
ser o
f 50%
12 M
odel
ling
assu
mes
a ra
nge
of d
eliv
ery
mec
hani
sms,
with
som
e af
ford
able
hou
sing
prov
ided
by
the
mar
ket,
som
e by
man
datin
g siz
e an
d ty
pe o
f dw
ellin
g, so
me
via
disc
ount
mar
ket r
ent a
nd
assis
ted
purc
hase
or s
hare
d eq
uity
sche
mes
and
som
e by
pro
visio
n of
soci
al h
ousin
g (r
ent b
ased
on
25%
of i
ncom
e).
13 A
ll ve
ry lo
w in
com
e ho
useh
olds
: 30%
; All
fam
ily re
ntin
g ho
useh
olds
: 30%
; Low
and
mod
erat
e in
com
e sm
all r
entin
g ho
useh
olds
: 35%
; Low
and
mod
erat
e fa
mily
pur
chas
ing
hous
ehol
ds: 3
5%;
Low
and
mod
erat
e sm
all p
urch
asin
g ho
useh
olds
: 40%
. 14
Tar
get g
roup
s are
set o
ut in
tabl
e 2-
5.
15 T
hat i
s, th
ere
wou
ld s
till b
e 20
% o
f tot
al s
tock
‘affo
rdab
le’ t
o ho
useh
olds
from
targ
et g
roup
s, b
ut s
ome
targ
et g
roup
s w
ill b
e ex
clud
ed a
s it
is no
t pos
sible
to p
rovi
de th
e de
pth
of s
ubsid
y re
quire
d.
10 Affordable Housing Delivery Options Paper (FBURA)
In an aspirational model, a levy of 9.0% of saleable floor area is required to fund the model and 80% of the target group is accommodated. Those housed are from all groups with the exclusion of half of low income family renters10 and half of very low income purchasers. 11 Social housing is provided at rates commensurate with demand for affordable housing by very low income households in Greater Melbourne.
That is, those low income family households provided for will have incomes in the top 50% of the low income household band. That is, those very low income purchasers housed will have incomes in the top 50% of the low income household band.
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
13
Part A: OPTIONS PAPER 1 Background 1.1 Aim of the Options Paper
1.2 Background to development of Options Paper
18 Presentation by Places Victoria, 13 May 2013 12
Affo
rdab
le H
ousin
g De
liver
y O
ptio
ns P
aper
(FBU
RA)
O
ptio
n 1:
‘Bus
ines
s as
Usu
al’ M
odel
O
ptio
n 2:
‘Asp
iratio
nal A
fford
able
Ho
usin
g’ M
odel
O
ptio
n 3:
‘Pra
gmat
ic’ M
ixed
M
odel
O
ptio
n 4:
Inte
rmed
iate
Af
ford
able
Hou
sing
Mod
el
allo
w a
cces
s for
all
targ
et g
roup
s
Broa
d de
liver
y m
etho
ds
cons
ider
ed (%
of a
ll ho
usin
g in
FBU
RA, t
hat i
s %
of 4
0,00
0 dw
ellin
gs)
Min
imal
in te
rms o
f ta
rget
gro
ups w
ithou
t ot
her i
nter
vent
ion
Mar
ket d
eliv
ery
(0.3
%);
Man
date
d dw
ellin
g siz
e (3
.8%
);16 A
ssist
ed
purc
hase
(6.5
%);
Disc
ount
mar
ket
rent
(2.7
%);
Soci
al h
ousin
g (6
.8%
)
Mar
ket d
eliv
ery
(1.5
%);
Man
date
d dw
ellin
g siz
e (6
.6%
); As
siste
d pu
rcha
se (5
.2%
); Di
scou
nt m
arke
t ren
t (3.
6%);
Soci
al h
ousin
g (3
.1%
)
Mar
ket d
eliv
ery
(1.8
%);
Man
date
d dw
ellin
g siz
e (7
.8%
); As
siste
d pu
rcha
se (6
.2%
); Di
scou
nt m
arke
t ren
t (4.
2%)
Levy
requ
ired17
N
il 9%
of s
alea
ble
floor
are
a 5.
0% o
f sal
eabl
e flo
or a
rea
3.6%
of s
alea
ble
floor
are
a Co
st to
bus
ines
s N
il Ba
sed
on c
urre
nt d
ata,
levy
like
ly
to b
e ab
le to
be
acco
mm
odat
ed
with
out s
igni
fican
tly re
duci
ng
expe
cted
leve
ls of
dev
elop
er p
rofit
fr
om la
nd v
alue
s and
dev
elop
men
t po
tent
ial
Base
d on
cur
rent
dat
a, le
vy
likel
y to
be
able
to b
e ac
com
mod
ated
with
out
signi
fican
tly re
duci
ng e
xpec
ted
leve
ls of
dev
elop
er p
rofit
from
la
nd v
alue
s and
dev
elop
men
t po
tent
ial
Base
d on
cur
rent
dat
a, le
vy
likel
y to
be
able
to b
e ac
com
mod
ated
with
out
signi
fican
tly re
duci
ng e
xpec
ted
leve
ls of
dev
elop
er p
rofit
from
la
nd v
alue
s and
dev
elop
men
t po
tent
ial
Cost
to g
over
nmen
t N
il
If fu
ndin
g is
by a
dev
elop
er le
vy a
nd
deliv
ery
by a
com
mun
ity h
ousin
g pr
ovid
er, t
hen
cost
to g
over
nmen
t w
ill b
e m
inim
al a
nd w
ill b
e th
e co
st
of a
dmin
istra
tion.
Th
e le
vy c
ould
be
redu
ced
by u
se o
f pu
blic
land
for d
evel
opm
ent a
nd
som
e or
all
fund
ing
of so
cial
hou
sing
by g
over
nmen
t.
If fu
ndin
g is
by a
levy
and
del
iver
y by
a c
omm
unity
hou
sing
prov
ider
, th
en c
ost t
o go
vern
men
t will
be
min
imal
and
will
be
the
cost
of
adm
inist
ratio
n.
The
levy
cou
ld b
e re
duce
d by
use
of
pub
lic la
nd fo
r dev
elop
men
t an
d so
me
or a
ll fu
ndin
g of
soci
al
hous
ing
by g
over
nmen
t.
If fu
ndin
g is
by a
levy
and
del
iver
y by
a c
omm
unity
hou
sing
prov
ider
, th
en c
ost t
o go
vern
men
t will
be
min
imal
and
will
be
the
cost
of
adm
inist
ratio
n.
The
levy
cou
ld b
e re
duce
d by
use
of
pub
lic la
nd fo
r dev
elop
men
t.
16M
odel
ling
base
d on
50:
50 st
udio
s and
one
bed
room
apa
rtm
ents
; and
70:
30 tw
o be
droo
m a
nd th
ree
bedr
oom
apa
rtm
ents
to p
rovi
de a
n ap
prop
riate
mix
of d
wel
lings
. Re
fer t
able
s 7-1
5, 1
6 an
d 17
for d
etai
ls.
17 T
he le
vy w
ill b
e a
cost
to d
evel
oper
s in
term
s of r
educ
ed p
rofit
.
July 2013 - CONFIDENTIAL
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14 Affordable Housing Delivery Options Paper (FBURA)
1.3 The Study Area
19 Review of internal working documents, May 2013 20 Presentation by Places Victoria, 13 May 2013 21 Presentation by Places Victoria, 13 May 2013
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
17
Map
1-2
: St
ate
Subu
rbs,
Stat
istic
al A
rea
2 an
d LG
As fo
r dem
ogra
phic
and
mar
ket a
naly
sis
Sour
ce: J
SA 2
013,
usin
g da
ta fr
om A
BS C
ensu
s of P
opul
atio
n an
d Ho
usin
g 20
11
16
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Map
1-1
: Re
leva
nt S
tatis
tical
Are
a 2
for d
emog
raph
ic a
nd m
arke
t ana
lysis
So
urce
: JSA
201
3, u
sing
data
from
ABS
Cen
sus o
f Pop
ulat
ion
and
Hous
ing
2011
July 2013 - CONFIDENTIAL
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2 Affordable Housing in the Greater Melbourne Context: a rationale for intervention
2.1 Overview
2.2 What is ‘Affordable Housing’?
2.2.1 Definition
22 The income benchmarks for very low, low and moderate income households used in this report differ from those used by the City of Melbourne in their report Future Living, although the overall ranges are generally consistent. City of Melbourne’s middle income earners are similar to low and moderate income households as defined in this report, and City of Melbourne’s low income households are similar to very low income households as defined in this report.
18 Affordable Housing Delivery Options Paper (FBURA)
1.4 Format of the Options Paper
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2.2.2 Aspirational benchmarks
Table 2-1: Relevant Affordable Housing Benchmarks for Greater Melbourne (1)
Very low-income household
Low-income household
Moderate-income household
Income Benchmark <50% of Gross Median
H/H Income for Greater Melbourne
50-80% of Gross Median H/H Income for
Greater Melbourne
80%-120% of Gross Median H/H Income for
Greater Melbourne
Weekly Income Range (Annual household income) (2)
<$682 p/wk ($0-$35,000 pa)
$683-$1,089 p/wk ($35,000-$57,000 pa)
$1,090-$1,634 p/wk ($57,000-$85,000 pa)
Affordable Rental Benchmarks (3) <$204 $205-$326 $327-$490
Affordable Purchase Benchmarks (4) <$177,500 $177,500 - $283,750 $283,750 - $426,250
Source: JSA 2012, based on data from ABS (2011) Census indexed to December 2012 dollars (TABLE NOTES FOOTNOTED)30
28 See reference in Places Victoria (2012) Project Afford: Leading the Innovative Delivery of More Affordable Infill Housing for Victorians, p. 2, where ‘Low Income’ is defined as households that earn up to 80% of gross median household income for Melbourne metropolitan area; and ‘Moderate Income’ is defined as households that earn between 80 and 120% of gross median household income for the Melbourne metropolitan area. 29 See, for example Places, Victoria (2013) FBURA Draft Affordable Housing Discussion Paper, which contains proposed definitions and benchmarks for ‘Affordable Rental Housing’ as ‘housing that is made available for rent for those households on low and moderate incomes who are unable to afford to rent on the open market’, and ‘Affordable Purchase Housing as ‘housing that is made available to purchase for those households on moderate incomes who are restricted in their ability to purchase on the open market’, with relevant benchmarks proposed as in accordance with definitions adopted by Federal and Victorian State Planning, Local Government and Housing Ministers in 2005. 30 (1) All values reported are in December 2012 dollars, and assumes that household will pay no more than 30% in rent or mortgage repayments; (2) Gross weekly household income; (3) Calculated as 30% of gross household income; (4) Assumes a current interest rate of 6.25% assuming a 20% deposit for a 30 year ANZ Standard Variable Home Loan.
20 Affordable Housing Delivery Options Paper (FBURA)
23 In accordance with good practice, and with Places Victoria (2012) Project Afford: Leading the Innovative Delivery of More Affordable Infill Housing for Victorians, p. 2. 24 See for example Yates, J. 2007. Housing Affordability and Financial Stress, AHURI Sydney University, who notes that, often ‘housing stress’ is defined by the 30-40 rule, that is, that a low income household (in the lowest 40% of household income) will pay no more than 30% of its gross income on housing costs. This broad rule of thumb is often extended to the low to moderate income groups as defined under NSW State Environmental Planning Policy No 70 (Affordable Housing). 25 See for example Yates, J. 2007. Housing Affordability and Financial Stress, AHURI Sydney University. 26 See for example Flood, J. 2012. ‘Housing Stress: Keep or discard? Presentation to 6th Australasian Housing Researchers Conference, 8-10 February 2012, Adelaide, South Australia 27 For Example, the Environmental Planning and Assessment Act 1979 (NSW) defines ‘Affordable Housing’ and establishes benchmarks for ‘very low’, ‘low’, and ‘moderate income’ households in Environmental Planning Policy No 70 (Affordable Housing). These are consistent with relevant research and literature, and these benchmarks have been adopted for the purpose of this Options Paper.,
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2.3 What are the types of ‘Affordable Housing’?
Table 2-2: Types of Affordable Rental Housing
32 See Section 7 below.
22 Affordable Housing Delivery Options Paper (FBURA)
2.2.3 Benchmarks used for sensitivity analysis
31 See for example Gleeson, B. and Randolph, B. (2002) ‘Social disadvantage and planning in the Sydney Context’, Urban Policy and Research Vol 20(1) pp101-107; and Kellett, J. Morrissey, J. and Karuppannan, S. 2012. ‘The Impact of Location on Housing Affordability’, Presentation to 6th Australasian Housing Researchers Conference, 8-10 February 2012, Adelaide, South Australia
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Table 2-3: Types of Affordable Purchase Housing
33 Consumer protection agencies, such as NSW Fair Trading, publish warnings against such schemes where they are operated privately (as distinct from schemes offered by a social housing provider). 34 See for example Crabtree, Blunden et al (2013) The Australian Community Land Trust Manual, UWS and UNSW.
24 Affordable Housing Delivery Options Paper (FBURA)
Source: JSA 2011 derived from various sourcesis co
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2.5 Why would Victorian State Government support the creation of ‘affordable housing’ in FBURA?
2.5.1 Affordable Housing is a Policy Objective Legislative support for affordable housing
35 See for example Carstens v Pittwater Council (1999) 111 LGERA 1, 25; and BGP Properties Pty Ltd v Lake Macquarie City Council (2004) 138 LGERA 237 at [113]. 36 Clause 16.01-5 Housing Affordability 37 Under s60(1A)(a) of the Planning and Environment Act 1987 (Vic) 38 Under s173(1)of the Planning and Environment Act 1987 (Vic) a responsible authority may enter into an agreement with an owner of land in the area covered by a planning scheme for which it is a responsible authority. 39 Under s174(2)(b) of the Planning and Environment Act 1987 (Vic) 40 Under s174(2)(c)(i) and (ii) of the Planning and Environment Act 1987 (Vic)
26 Affordable Housing Delivery Options Paper (FBURA)
Source: JSA 2011, derived from various sources.
2.4 What principles should apply to ‘Affordable Housing’?
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of development contributions in the form of a levy of a percentage of the proposed cost of carrying out development or any class of development’. Further, the Minister will determine what part (if any) a development contribution will be ‘for the provision of infrastructure by a council’ (s94EE(3A)). It is noted that, in determining the level and nature of contributions, the Minister will, as far as practicable make the contribution ‘reasonable with regard to the cost’ of infrastructure in relation to the development (s94EE(2)(a)). 47 Biruu Australia(2008), Advice on the Issues of the Inner Region Affordable Housing Overlay; and SGS Economics and Planning (2007) An Affordable Housing Overlay in the VPP – Implementation Model for Melbourne’s Inner Urban Region.
28 Affordable Housing Delivery Options Paper (FBURA)
41 Carstens v Pittwater Council (1999) 111 LGERA 1, 25; and BGP Properties Pty Ltd v Lake Macquarie City Council (2004) 138 LGERA 237 at [113]. 42 For example, in NSW, SEPP 70 Affordable Housing (Revised Schemes) (SEPP 70) amends relevant local and regional environmental planning instruments to enable the levying of development contributions to provide for affordable housing. However, the provisions of s94F and s94G are operationalised and limited in practice by SEPP 70, which applies to a very limited number of housing schemes including Ultimo-Pyrmont, Willoughby and Green Square, and to only three council areas – Sydney, Leichhardt and Willoughby Councils. This would appear to preclude other councils from imposing a mandatory levy, at least under s94F and s94G, although some councils have done so unchallenged. 43 Under the Act, a responsible authority must consider: 60(1)(a) The relevant planning scheme; …and may consider 60(1A)(g) any other strategic plan, policy statement, code or guideline which has been adopted by a Minister, government department, public authority or municipal council; 44 Advice for Victorian Government Solicitor on developing a Contributions Plan for Low Cost Housing by City of Melbourne, letter dated 30 June 1997 raises issues related to its proper consideration as a form of ‘community infrastructure’ or ‘works and services’. 45 The ability to make voluntary planning agreements, including in relation to ‘affordable housing’ as a ‘public purpose’ under s 93F of the Environmental Planning and Assessment Act 1979 (NSW) 46 There is be scope under more recent provisions of the Environmental Planning and Assessment Act 1979 (NSW) to levy a contribution for affordable housing where nexus between the development or class of development and increased demand for affordable housing (as a form of ‘special infrastructure)’ is demonstrated, and where there is reasonableness in the assessment of the level of contribution levied. This includes contributions to ‘affordable housing’ in ‘special contributions areas’, and outside of them, at the discretion of the Minister (noting that Warnervale Town Centre is listed as a Special Contributions Area in Schedule 5A). This includes the provision, extension and augmentation of (or the recoupment of the cost of providing, extending or augmenting) public amenities or public services, affordable housing and transport or other infrastructure relating to land; and the funding of recurrent expenditure in relation to the above, or any studies or other support required (s94ED). Such contributions are not limited to land within a ‘special contributions area’, although such contributions are not to be required unless the provision of infrastructure ‘arises as a result of the development or class of development of which the development forms part’ (s94EE(2)(c)). Reasonable discretion also appears to be provided for in s94EE(3), which states that, despite the limitations of other provisions, ‘the Minister may…determine the level and nature
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Support by Relevant Local Authorities for Affordable Housing
48 See for example City of Port Phillip Municipal Strategic Statement, cl 16 Housing, in particular cl 16.01.5 Housing Affordability
49 See http://www.portphillip.vic.gov.au/amendment-c102.htm
50 City of Port Phillip, Housing Strategy 2007-2017 sets out Council’s vision for housing in the municipality as, ‘To direct residential growth to locations which offer the greatest access to shops, public transport and other services, and provide housing diversity by facilitating the development of affordable, accessible and suitable housing which meets the needs of all current and future residents, including the disadvantaged and those who are unable to adequately access the private housing market’.
30 Affordable Housing Delivery Options Paper (FBURA)
Table 2-4 Potential Affordable Housing Mechanisms and Strategies under the Urban Renewal Authority Victoria Act 2003 (Vic) Places Victoria could: Relevant clause in the Act
Acquire land through purchase, consolidation, transfer, or otherwise that could then be developed for mixed use and include a minimum % of affordable housing
Part 2 Division 2 part 7 Functions (1) (a);
8 Powers of the Authority
Enter into a joint venture that will develop an innovative urban model of housing providing outcomes that are economically feasible and that contribute to sustaining a socially mixed environment
Part 2, 12 , Authority to enter into joint ventures etc
Establish an Affordable Housing Trust to collect and manage funds that could then be applied to the delivery of affordable housing, or contribute to an already established Trust (e.g. COPP)
Part 2, 12 , Authority to enter into joint ventures etc
Carry out a model development that demonstrates best practice in the delivery of housing diversity. The model would provide a mixed model of housing delivering a desired percentage of affordable housing whilst retaining economic feasibility.
Part 2 Division 2 part 7 Functions (1) (d)
Provide a consultancy service to developers who may have an interest in providing socially and economically sustainable housing
Part 2: Division 2 part 7 Functions (1) (d), (e), ( f), (g)
Enter into a reciprocal arrangement with public authorities that may hold assets in FBURA to apply these assets towards innovative housing that will promote social sustainability
Part 2: 13 Reciprocal arrangements with public sector agencies
Acquire land from public authorities (including any unalienated land) and contribute this to an Affordable Housing Trust (see above) to develop model affordable housing projects
Part 2: 14 Grant of Land to the authority
Part 3: Division2 – Obtaining land
Raise funds through charges on the owners, occupiers, or licensees of properties in the project area for the supply of services provided by or by agreement with the Authority where the service is the affordable housing that is needed to protect the social sustainability of the FBURA(subject to the recommendation of the Minister and approval of the Treasurer.
Part 3 -Subdivision 2 – General charges - 51F
Exempt a private development from duties, taxes, fees or charges in exchange for the delivery of an agreed percentage of dwellings as affordable housing
Part 3 Division 6 – Other Powers; 52 – exemption from duty, rates taxes or charges
Use the powers provided by the Act over transport corridors to consider the use of closed or removed roads, or the airspace over rail transport corridors, to provide opportunities for affordable housing
Part 3 Division 6 – Other Powers, 53 Transport Facilities; 54 Closing roads
Source: JSA derived from various sources and the Urban Renewal Authority Victoria Act 2003
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Support for Affordable Housing by Places Victoria
54 Victorian State Government (2012) Discussion Paper, Melbourne, let's talk about the future, pgs. 35-36, noting that across Melbourne, just 0.3 per cent of one bedroom dwellings let in the March 2012 quarter were affordable (ie. no more than 30 per cent of gross income spent on rent) to a single person on Centrelink payments.. 55 Victorian State Government (2012) Discussion Paper, Melbourne, let's talk about the future, pgs. 35-36. 56 Victorian State Government (2012) Discussion Paper, Melbourne, let's talk about the future, p. 26. 57 Victorian State Government (2012) Discussion Paper, Melbourne, let's talk about the future, pgs. 36-38. 58 Victorian State Government (2012) Discussion Paper, Melbourne, let's talk about the future, p. 36. 59 Department of Premier and Cabinet (2013)
32 Affordable Housing Delivery Options Paper (FBURA)
Support for Affordable Housing in Regional Strategic Plans
51 City of Melbourne (2013), Chapter 4: Housing Affordability 52 Workshop with staff of City of Melbourne and City of Port Phillip, 23 May 2013 53 For example, as provided for in cl 41 of City of Port Phillip LPS, which notes that, ‘If an overlay is shown on the planning scheme map, the provisions of the overlay apply in addition to the provisions of the zone and any other provision of this scheme. Because a permit can be granted does not im ply that a permit should or will be granted. The responsible authority must decide whether the proposal will produce acceptable outcomes in terms of the State Planning Policy Framework, the Local Planning Policy Framework, the purpose and decision guide lines of the overlay and any of the other decision guidelines in Clause 65’.
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63 Rental supplements to low income tenants 64 Gurran, N. and Whitehead, C. 2011. ‘Planning and Affordable Housing in Australia and the UK: A Comparative Perspective’, in Housing Studies, Vol. 26, Nos. 7-8, 1193-1214
34 Affordable Housing Delivery Options Paper (FBURA)
The funding environment will not result in sufficient affordable housing
60 Darcy, M. and Stubbs, J. 2005. ‘Housing and Contemporary Social Work Practice’, in Alston, M. & McKinnon, J. (eds) Social Work Fields of Practice, Oxford University Press, UK. 61 Burke, T. and Hulse, K. 2010. ‘The Institutional Structure of Housing and the Sub-prime Crisis: An Australian Case Study’, in Housing Studies, Vol. 2. No. 6, 821-838, November 2010 62 See for example Stilwell, F. and Primrose, D. 2010. ‘Economic Stimulus and Restructuring: Infrastructure, Green Jobs ad Spatial Impacts’, in Urban Policy and Research, Vol. 28, No. 1, 5-25, March 2010
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Implications for Potential Affordable Housing Targets
36 Affordable Housing Delivery Options Paper (FBURA)
2.5.2 Extent and Nature of Affordable Housing Need
Figure 2-1: Housing Stress by Income and Tenure – Greater Melbourne (All households) Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder)
Figure 2-2: Housing Stress among Relevant Target Groups – Greater Melbourne (Renting and Purchasing Households) Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder)
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2.5.3 Likely exclusion of key target groups from FBURA based on the evidence
Overview
An expensive local housing market
38 Affordable Housing Delivery Options Paper (FBURA)
TOTAL DWELLINGS RENTAL/PURCHASE BREAKDOWN
DWELLING SIZE BREAKDOWN65
HOUSEHOLD INCOME BREAKDOWN
Total 8,000 Dwellings
Rental 55%
4,400 Dwellings
Smaller Dwellings 27.5%
2,200 Dwellings
Very Low Income 18.5%
1,500 Dwellings
Low Income 7%
600 Dwellings
Moderate Income 2%
100 Dwellings
Larger Dwellings 27.5%
2,200 Dwellings
Very Low Income 14.5%
1,200 Dwellings
Low Income 9%
700 Dwellings
Moderate Income 3%
300 Dwellings
Purchase 45%
3,600 Dwellings
Smaller Dwellings 17.5%
1,400 Dwellings
Very Low Income 5.5%
400 Dwellings
Low Income 6%
500 Dwellings
Moderate Income 6.5%
500 Dwellings
Larger Dwellings 27.5%
2,200 Dwellings
Very Low Income 7.5%
600 Dwellings
Low Income 9%
700 Dwellings
Moderate Income 11%
900 Dwellings
Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder)
65Smaller dwellings are those suitable for single person and couple households (typically studio and one bedroom), larger dwellings are those suitable for other households (typically two bedroom and greater).
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Table 2-6: Changes in Social Housing Supply in Proxy SA2s 2001-2011 Social Housing 2001 2006 2011
Docklands (SA2) Number 0 6 60
Docklands (SA2) % of occupied private dwellings 0.0% 0.3% 2.2%
Melbourne (SA2) Number 133 108 150
Melbourne (SA2) % of occupied private dwellings 3.5% 1.7% 1.6%
Southbank (SA2) Number 3 7 10
Southbank (SA2) % of occupied private dwellings 0.2% 0.2% 0.2%
Source: JSA 2013, using data from ABS Census of Population and Housing 2001, 2006, 2011 (Time Series Profile, Place of Enumeration)
Mobility trends indicate a need to encourage social inclusion
40 Affordable Housing Delivery Options Paper (FBURA)
Social housing not keeping pace with dwelling increase
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Most target groups excluded from FBURA on current trends
42 Affordable Housing Delivery Options Paper (FBURA)
Table 2-7: Total commuters by selected SA2s and LGAs
Area People who live and work in the area
People who commute into the area
People who commute out of the area
Docklands SA2 605 31,407 2,562
Melbourne SA2 4,378 181,543 4,693
Southbank SA2 1,003 32,945 5,501
Port Melbourne SA2 926 2,844 6,947
South Melbourne SA2 822 20,176 4,152
Melbourne (C) 27,913 331,772 17,718
Port Phillip (C) 11,843 52,013 39,442
Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Work)
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Economic Analysis Supports a Range of Mechanisms and Strategies
44 Affordable Housing Delivery Options Paper (FBURA)
2.5.4 Strong Market Intervention is Effective and Economically Feasible
Market provision of affordable housing possible but limited
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Hypothetical Case Studies
Overview
Tom and Anna (a ‘Moderate Income Household’) – FBURA
66 Median price from quartile sales data. 67 ABS Household expenditure survey (includes $170 vehicle operating costs). 68 Figure includes rates, insurance, repairs, domestic fuel and power, food and non-alcoholic beverages, clothing and footwear, household furnishings and equipment, household services and operation, medical care and health expenses, personal care, miscellaneous goods and transport costs. The figure excludes alcoholic beverages, tobacco products and recreation.
46 Affordable Housing Delivery Options Paper (FBURA)
2.5.5 ‘Affordable Housing’ could affect anyone in the community Overview
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Arthur and Denise (a ‘Low / Very-Low Income Household’) – FBURA
71 Median combined balance for ages 65-69, ABS 4125.0. 72 Assumes rate of return equivalent to inflation. 73 Figure includes domestic fuel and power, food and non-alcoholic beverages, clothing and footwear, household furnishings and equipment, household services and operation, medical care and health expenses, personal care and miscellaneous goods. The figure excludes home ownership costs, alcoholic beverages, tobacco products, recreation and transport costs.
48 Affordable Housing Delivery Options Paper (FBURA)
Jenna and Cameron (a ‘Low Income Household’) – FBURA
69 ABS Household expenditure survey 70 Figure includes rates, insurance, repairs, domestic fuel and power, food and non-alcoholic beverages, clothing and footwear, household furnishings and equipment, household services and operation, medical care and health expenses, personal care and miscellaneous goods. The figure excludes alcoholic beverages, tobacco products, recreation and transport costs.
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Alistair and Kate (a ‘Low Income Household’) – Inner Melbourne
Bob (a ‘Very Low Income Household’) – Inner Melbourne
80 Victorian Department of Human Services, Rental Report Data Tables, September Quarter 2012. 81 Administrative assistant jobs advertised on www.seek.com.au on 20 May 2013. 82 ABS Household Expenditure Survey 2009-10 – Household with Second Quintile Gross Weekly Household Income for Victoria (average $779 per week):
Groceries: an average of $105 per week. Clothing and footwear: $25 per week. Household furnishings and equipment: $40 per week. Household services and operation: $50 per week. Domestic power and fuel: $35 per week. Medical expenses: $35 per week. Personal care: $15 per week. Miscellaneous goods and services: $75 per week.
83 Victorian Department of Human Services, Rental Report Data Tables, September Quarter 2012. 84 JSA calculation, based on data from ABS Census of Population and Housing 2011. 85 http://www.superguide.com.au/how-super-works/age-pension-rates
50 Affordable Housing Delivery Options Paper (FBURA)
Vivien and James (a ‘Moderate Income Household’) – Inner Melbourne
74 Including costs of home ownership 75 Victorian Department of Education and Early Childhood Development – Pay Rate for Accomplished Teacher (Level A-4), effective from 1 January 2012. 76 Victorian Department of Human Services, Rental Report Data Tables, September Quarter 2012. 77 ABS Household Expenditure Survey 2009-10 – Household with Third Quintile Gross Weekly Household Income for Victoria (average $1,333 per week):
Groceries: an average of $140 per week. Clothing and footwear: $45 per week. Household furnishings and equipment: $45 per week. Household services and operation: $60 per week. Domestic power and fuel: $40 per week. Medical expenses: $50 per week. Personal care: $20 per week.
78 JSA calculations, based on median sale prices published by the Victorian Department of Sustainability and Environment (September Quarter 2012) and data from RPData, properties sold in Docklands, Port Melbourne, South Melbourne and Southbank between 20 April 2012 and 19 April 2013. 79 Calculated by JSA using www.infochoice.com.au ‘Home Loan Calculator’.
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3 Options for creation of Affordable Housing in FBURA
3.1 Overview
3.2 Mechanisms and Strategies Available to Retain or Create Affordable Housing
3.2.1 A range of mechanisms and strategies are needed
52 Affordable Housing Delivery Options Paper (FBURA)
86 http://www.humanservices.gov.au/customer/enablers/centrelink/rent-assistance/payment-rates 87 ABS Household Expenditure Survey 2009-10 – Household with First Quintile Gross Weekly Household Income for Victoria (average $391 per week):
Groceries: an average of $85 per week. Clothing and footwear: $15 per week. Household furnishings and equipment: $25 per week. Household services and operation: $30 per week. Domestic power and fuel: $25 per week. Medical expenses: $35 per week. Personal care: $10 per week.
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54 Affordable Housing Delivery Options Paper (FBURA)
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ity b
onus
‘cal
cula
tor’
for t
he c
ontr
ibut
ion
(e.g
. W
aver
ley
Coun
cil i
n N
SW).
heig
ht a
nd d
ensit
y, th
is co
uld
wor
k ag
ains
t oth
er
obje
ctiv
es su
ch a
s den
sific
atio
n an
d gr
adua
ted
deve
lopm
ent s
tand
ards
to p
rote
ct u
rban
inte
rfac
es.
This
wou
ld b
e a
mor
e va
luab
le m
echa
nism
if si
gnifi
cant
co
nstr
aint
s are
ulti
mat
ely
appl
ied
to h
eigh
t, gi
ven
the
signi
fican
t val
ue o
f eac
h ad
ditio
nal f
loor
in JS
A’s
prel
imin
ary
asse
ssm
ent.
How
ever
, it i
s not
ed th
at
sche
mes
in N
SW w
here
this
has b
een
appl
ied,
yie
ld is
re
lativ
ely
low
, and
the
resp
onse
by
deve
lope
rs is
un
cert
ain.
It is
not
a su
bstit
ute
for a
man
dato
ry le
vy.
?
Ince
ntiv
e to
redu
ce ti
me/
incr
ease
ce
rtai
nty
of a
ppro
vals
linke
d to
de
mon
stra
ted
affo
rdab
le h
ousin
g ou
tcom
es.
Ther
e is
an im
plie
d or
effe
ctiv
e co
nstr
aint
in th
e Ca
pita
l City
Zon
e re
gard
ing
appr
oval
s, d
espi
te
‘Acc
omm
odat
ion’
bei
ng li
sted
as ‘
perm
it no
t req
uire
d’
unde
r Sch
edul
e 1.
‘Ac
com
mod
atio
n’ c
ould
be
tran
sfer
red
into
Sec
tion
2 (r
equi
ring
a pe
rmit)
, and
‘A
ccom
mod
atio
n in
clud
ing
x% o
f affo
rdab
le h
ousin
g’
(as s
peci
fied
in a
rela
ted
polic
y or
sche
dule
) cou
ld b
e lis
ted
in S
ectio
n 1.
Thi
s cou
ld p
rovi
ding
an
ince
ntiv
e fo
r app
licat
ions
whi
ch p
rovi
de th
e re
quire
d co
mpo
nent
of a
fford
able
hou
sing
in F
BURA
pre
cinc
ts.
In th
e ev
ent o
f unc
onst
rain
ed h
eigh
t con
stra
ints
, de
velo
pmen
t cou
ld b
e st
ruct
ured
to su
ppor
t the
im
post
thro
ugh
addi
tiona
l hei
ght.
A po
licy
coul
d pr
ovid
e fo
r an
equi
vale
nt c
ash
or la
nd
cont
ribut
ion
(on
or o
ff sit
e), a
nd w
ould
pro
vide
for
Stre
amlin
ing
of a
ppro
vals
proc
ess t
o re
duce
tim
e co
uld
be a
n ef
fect
ive
ince
ntiv
e fo
r the
cre
atio
n of
affo
rdab
le
hous
ing
with
in th
e Ca
pita
l City
Zon
e. H
owev
er, t
his m
ay
be se
en to
wor
k ag
ains
t the
inte
ntio
n of
the
Capi
tal C
ity
Zone
to p
rovi
de fo
r a m
ore
liber
al a
ppro
vals
regi
me
incl
udin
g fo
r acc
omm
odat
ion.
JSA’
s ana
lysis
indi
cate
s tha
t sig
nific
ant p
rofit
is o
btai
ned
from
eac
h ad
ditio
nal f
loor
, so
that
a m
ore
liber
al
appr
oval
s pro
cess
whe
re a
dem
onst
rate
d Af
ford
able
Ho
usin
g ou
tcom
e is
achi
eved
cou
ld b
e qu
ite b
enef
icia
l (s
ee T
able
3.2
bel
ow).
√
58
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Mec
hani
sm /
Stra
tegy
Le
gal C
onsi
dera
tions
Ef
fect
iven
ess
Reco
mm
ende
d
etc
resu
lting
in a
fford
able
hou
sing
at
spec
ified
pric
e po
ints
)
√
FACI
LITA
TIVE
INTE
RVEN
TIO
N:
Incl
ude
affo
rdab
le h
ousin
g ob
ject
ives
, def
initi
ons,
ben
chm
arks
an
d ta
rget
s or K
PIs i
n re
leva
nt E
PIs,
po
licie
s and
pla
ns
Incl
ude
in S
truc
ture
Pla
n or
sim
ilar f
or F
BURA
(as a
w
hole
or p
reci
ncts
), an
d op
erat
iona
lise
for e
xam
ple
thro
ugh
amen
dmen
t to
LPS,
and
/or t
o SP
PF [f
or
exam
ple,
a c
lear
er d
efin
ition
, ben
chm
arks
, tar
get
grou
ps in
cl 1
6.01
]. Le
gal w
ith m
inist
eria
l app
rova
l for
re
leva
nt a
men
dmen
ts a
nd li
kely
requ
ired
to su
ppor
t a
Stru
ctur
e Pl
an o
r sim
ilar.
Shou
ld b
e su
ppor
ted
by a
po
licy
for t
rans
pare
ncy
and
cons
isten
cy. O
ther
m
echa
nism
s to
achi
eve
KPIs
/ tar
gets
are
disc
usse
d be
low
.
Impo
rtan
t, an
d ef
fect
ive
if in
clud
ed in
env
ironm
enta
l pl
anni
ng in
stru
men
ts, p
olic
ies o
r pla
ns th
at h
ave
lega
l fo
rce,
and
pre
fera
bly
supp
orte
d by
spec
ific
mec
hani
sms
√
Libe
ralis
e pe
rmiss
ibili
ty /r
emov
e im
pedi
men
ts fr
om L
PS, p
olic
ies,
co
ntro
ls (e
.g. z
onin
g th
at c
onst
rain
s di
vers
ity, c
ontr
ols t
hat i
ncre
ase
cost
) No
lega
l con
stra
ints
- th
e Ca
pita
l City
Zon
e pr
ovid
es
for a
libe
ral a
ppro
ach
to zo
ning
, and
a p
relim
inar
y au
dit s
how
s no
signi
fican
t bar
riers
, apa
rt fr
om
pote
ntia
l to
dela
y de
velo
pmen
t thr
ough
the
mer
its
asse
ssm
ent p
roce
ss, a
nd d
epen
ding
on
wha
t con
trol
s ar
e ul
timat
ely
over
laye
d on
FBU
RA.
Impo
rtan
t in
open
ing
up d
iver
sity
but o
f lim
ited
utili
ty
due
to li
bera
l nat
ure
of th
e Ca
pita
l City
Zon
e, a
nd th
e fa
ct th
at ‘d
iver
sity’
doe
s not
equ
al ‘a
fford
abili
ty’ f
or
mos
t tar
get g
roup
s.
?
Ince
ntiv
es to
incr
ease
dev
elop
able
ar
ea (r
elax
atio
n of
con
trol
s, e
tc)
invo
lvin
g de
nsity
or h
eigh
t bon
us in
ex
chan
ge fo
r a 5
0% sh
are
of
No
appa
rent
lega
l con
stra
ints
, tho
ugh
this
wou
ld li
kely
ne
ed m
inist
eria
l app
rova
l for
app
licat
ion
gene
rally
or
to h
igh
valu
e pr
ecin
cts.
Mec
hani
sm c
ould
be
oper
atio
nalis
ed th
roug
h an
am
endm
ent t
o LP
S
Mor
e co
nven
tiona
l app
roac
hes a
re u
nlik
ely
to b
e ef
fect
ive
in th
e Ca
pita
l City
Zon
e un
less
ther
e is
an
over
lay
of m
ore
rest
rictiv
e co
ntro
ls ov
er p
art o
r all
of th
e sit
e. W
hilst
art
ifici
al c
onst
rain
ts c
ould
be
impo
sed
on
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
6
1
Mec
hani
sm /
Stra
tegy
Le
gal C
onsi
dera
tions
Ef
fect
iven
ess
Reco
mm
ende
d
for P
lace
s Vic
toria
/the
Vic
toria
n St
ate
Gove
rnm
ent t
o se
ek su
ch a
gree
men
ts p
roac
tivel
y in
rela
tion
to
indi
vidu
al la
rge
sites
to p
rovi
de p
lann
ing
cert
aint
y or
ot
her b
enef
it in
exc
hang
e fo
r the
cre
atio
n of
af
ford
able
hou
sing.
Aga
in, i
t is p
refe
rabl
e th
at th
is is
supp
orte
d by
a p
olic
y or
pla
n to
ens
ure
tran
spar
ency
an
d ac
coun
tabi
lity.
secu
re a
fford
able
hou
sing
in p
erpe
tuity
.
MAN
DATO
RY IN
TERV
ENTI
ON
Incl
usio
nary
app
roac
hes t
hat
spec
ify a
% o
f affo
rdab
le h
ousin
g (in
th
is ca
se, 2
0%) b
e pr
ovid
ed a
cros
s th
e w
hole
are
a, o
r spe
cifie
d pr
ecin
cts/
sites
:
Th
roug
h on
e m
echa
nism
, or
Th
roug
h a
rang
e of
mec
hani
sms
and
fund
ing
stra
tegi
es (a
s fa
vour
ed in
this
case
) .
No
appa
rent
lega
l con
stra
ints
to a
n in
clus
iona
ry
appr
oach
, tho
ugh
amen
dmen
ts m
ay b
e re
quire
d in
LP
S an
d/or
VPP
/SPP
F fo
r som
e m
echa
nism
s.
For e
xam
ple,
a S
truc
ture
Pla
n or
sim
ilar c
ould
requ
ire
20%
affo
rdab
le h
ousin
g at
spec
ified
ben
chm
arks
/ dw
ellin
g ty
pes a
nd te
nure
s for
a re
leva
nt ta
rget
gro
up
mix
, with
targ
ets,
KPI
s and
a su
ite o
f rel
ated
m
echa
nism
s req
uire
d to
ach
ieve
this
also
spec
ified
. Am
endm
ents
to L
PS a
nd/o
r the
SPP
F w
ould
be
need
ed to
the
exte
nt th
ey a
re re
quire
d to
supp
ort
mec
hani
sms s
peci
fied
(e.g
. man
dato
ry m
echa
nism
s se
t out
bel
ow),
and
to e
nsur
e th
e St
ruct
ure
Plan
has
le
gal f
orce
.
This
coul
d be
ach
ieve
d th
roug
h an
affo
rdab
le h
ousin
g ov
erla
y fo
r FBU
RA th
at sp
ecifi
es th
e re
quire
men
ts fo
r af
ford
able
hou
sing,
rele
vant
mec
hani
sms,
etc
,
√
60
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Mec
hani
sm /
Stra
tegy
Le
gal C
onsi
dera
tions
Ef
fect
iven
ess
Reco
mm
ende
d
tran
spar
ency
in d
ecisi
on m
akin
g.
No
appa
rent
lega
l con
stra
ints
, tho
ugh
this
wou
ld li
kely
ne
ed m
inist
eria
l app
rova
l to
amen
d LP
S, fo
r exa
mpl
e Sc
hedu
les 1
and
2 o
f the
Cap
ital C
ity Z
one.
(Cou
ld a
lso b
e im
plem
ente
d to
supp
ort m
anda
tory
m
echa
nism
s –se
e be
low
).
Ince
ntiv
es to
incr
ease
dw
ellin
g di
vers
ity /r
educ
e co
st
No
appa
rent
lega
l con
stra
ints
due
to th
e Ca
pita
l City
Zo
ne.
This
mec
hani
sm is
effe
ctiv
e in
mar
kets
whe
re c
ontr
ols
have
the
delib
erat
e or
uni
nten
ded
cons
eque
nce
of
cons
trai
ning
the
deve
lopm
ent o
f sm
alle
r dw
ellin
gs.
How
ever
, it i
s lar
gely
redu
ndan
t in
the
Capi
tal C
ity Z
one
and
the
mar
ket a
ppea
rs to
be
prov
idin
g sm
alle
r dw
ellin
gs, t
houg
h th
ese
are
not a
fford
able
to m
ost
targ
et g
roup
s with
out a
subs
idy.
?
Ente
ring
into
Pla
nnin
g Ag
reem
ents
un
der s
ectio
n 17
3 o
f the
Act
Lega
l mec
hani
sm fo
r neg
otia
ting
a pl
anni
ng
agre
emen
t, w
hich
cou
ld b
e ne
gotia
ted
with
rega
rd to
se
curin
g af
ford
able
hou
sing.
The
y w
ould
nor
mal
ly b
e en
tere
d in
to v
olun
taril
y as
par
t of t
he re
zoni
ng o
r de
velo
pmen
t app
licat
ion
proc
ess,
so le
gal a
dvic
e w
ould
be
requ
ired
rega
rdin
g th
e se
curin
g of
af
ford
able
hou
sing
as p
art o
f man
dato
ry m
echa
nism
s di
scus
sed
belo
w.
How
ever
, the
re w
ould
app
ear t
o be
an
oppo
rtun
ity
The
rezo
ning
to C
apita
l City
Zon
e of
the
who
le F
BURA
sit
e w
ell i
n ad
vanc
e of
stru
ctur
e pl
anni
ng o
r in
fras
truc
ture
pro
visio
n is
likel
y to
hav
e m
eant
a lo
ss o
f le
vera
ge b
y th
e re
leva
nt a
utho
rity
in n
egot
iatin
g su
ch
agre
emen
ts.
Non
ethe
less
, the
ir pr
oact
ive
use
on la
rge
sites
(whe
re
ther
e m
ay b
e ot
her a
dvan
tage
s to
the
owne
r) o
r to
secu
re m
anda
tory
con
trib
utio
ns if
this
can
be le
gally
ac
hiev
ed is
like
ly to
be
an e
ffect
ive
mec
hani
sms t
o
?
July 2013 - CONFIDENTIAL
vo
lu
me
3
6
3
Mec
hani
sm /
Stra
tegy
Le
gal C
onsi
dera
tions
Ef
fect
iven
ess
Reco
mm
ende
d
levy
in a
dditi
on to
con
vent
iona
l dev
elop
men
t co
ntrib
utio
ns.
th
e hi
ghes
t affo
rdab
le h
ousin
g yi
eld
of a
ny fu
ndin
g st
rate
gy a
vaila
ble
in th
e FB
URA
con
text
.
Affo
rdab
le H
ousi
ng L
evy
(e.g
. flo
or
spac
e or
equ
ival
ent u
nit)
acr
oss
FBU
RA o
r pre
cinc
ts (e
.g. u
nder
the
Urba
n Re
new
al A
utho
rity
Act 2
003)
A ke
y co
mpo
nent
in a
n in
clus
iona
ry a
ppro
ach,
ge
nera
lly le
vied
on
a flo
or sp
ace
basis
acr
oss a
ll re
siden
tial (
and
pote
ntia
lly) c
omm
erci
al u
ses i
n an
ar
ea, o
r spe
cific
pre
cinc
ts, a
nd le
vied
in u
nits
or
equi
vale
nt c
ash
or la
nd to
cre
ate
affo
rdab
le h
ousin
g in
per
petu
ity ,
and
com
pone
nt is
a fl
oor s
pace
levy
(w
hich
may
be
cons
truc
ted
as a
n in
-kin
d co
ntrib
utio
n in
uni
ts o
r lan
d).
It is
note
d th
at u
nder
the
Urba
n Re
new
al A
utho
rity
Act 2
003,
the
auth
ority
(Pla
ces V
icto
ria) m
ay le
vy fe
es
and
char
ges a
nd p
ursu
e a
rang
e of
stra
tegi
es to
cre
ate
affo
rdab
le h
ousin
g (s
ee d
iscus
sion
at S
ectio
n 2.
5.1
abov
e).
This
coul
d pr
ovid
e an
alte
rnat
ive
lega
l m
echa
nism
to d
evel
opm
ent c
ontr
ibut
ions
und
er P
art
3B o
f the
Act
, tho
ugh
in p
ract
ice
its re
mai
ns a
levy
,
As n
oted
, JSA
’s re
sear
ch in
dica
tes t
hat t
his a
ppro
ach
is lik
ely
to b
e ec
onom
ical
ly fe
asib
le (d
ue to
sign
ifica
nt
uplif
t in
FBU
RA p
reci
ncts
), eq
uita
ble
(not
requ
ired
to b
e pa
ssed
on
to fi
rst h
ome
owne
r, fo
r exa
mpl
e), a
nd to
pr
ovid
e fo
r by
far t
he h
ighe
st a
fford
able
hou
sing
yiel
d of
an
y fu
ndin
g st
rate
gy a
vaila
ble
in th
e FB
URA
con
text
.
√
Ince
ntiv
e to
redu
ce ti
me/
incr
ease
ce
rtai
nty
of a
ppro
vals
linke
d to
de
mon
stra
ted
affo
rdab
le h
ousin
g ou
tcom
es.
The
mec
hani
sms d
escr
ibed
abo
ve c
ould
be
cons
truc
ted
as a
man
dato
ry re
quire
men
t, w
here
all
‘acc
omm
odat
ion’
in S
ched
ule
1 of
the
Capi
tal C
ity
Zone
as i
t app
lies t
o FB
URA
only
is r
equi
red
to
cont
ain
‘20%
affo
rdab
le h
ousin
g’ in
per
petu
ity (a
s sp
ecifi
ed in
a re
late
d st
ruct
ure
plan
, pol
icy
or
Stre
amlin
ing
of a
ppro
vals
proc
ess t
o re
duce
tim
e co
uld
be a
n ef
fect
ive
ince
ntiv
e fo
r the
cre
atio
n of
affo
rdab
le
hous
ing
with
in th
e Ca
pita
l City
Zon
e. H
owev
er, t
his m
ay
be se
en to
wor
k ag
ains
t the
inte
ntio
n of
the
Capi
tal C
ity
Zone
to p
rovi
de fo
r a m
ore
liber
al a
ppro
vals
regi
me
incl
udin
g fo
r acc
omm
odat
ion.
62
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Mec
hani
sm /
Stra
tegy
Le
gal C
onsi
dera
tions
Ef
fect
iven
ess
Reco
mm
ende
d
supp
orte
d by
a tr
ansp
aren
t pol
icy
for i
mpl
emen
tatio
n,
acco
unta
bilit
y fo
r fun
ds c
olle
cted
incl
udin
g pr
iorit
ies,
ad
min
istra
tion,
etc
(per
cl 4
1 of
City
of P
ort P
hilli
p LP
S,
for e
xam
ple)
.
Man
datin
g dw
ellin
g si
ze, t
ype,
an
d/or
oth
er c
ontr
ols t
hat r
educ
e co
st o
f con
stru
ctio
n (e
.g. m
axim
um
or n
o pa
rkin
g)
No
appa
rent
lega
l con
stra
ints
, tho
ugh
this
wou
ld li
kely
ne
ed m
inist
eria
l app
rova
l to
amen
d LP
S, fo
r exa
mpl
e,
spec
ified
in a
n af
ford
able
hou
sing
over
lay
to su
ppor
t th
e FB
URA
stru
ctur
e pl
an.88
Like
ly to
be
of b
enef
it to
a n
arro
w ra
nge
of ta
rget
gro
ups
but n
onet
hele
ss v
alua
ble
to re
quire
this
in th
e ev
ent t
hat
the
mar
ket d
oes n
ot c
ontin
ue to
pro
vide
such
dw
ellin
gs,
or le
ss c
ostly
incl
usio
ns.
√
Deve
lopm
ent c
ontr
ibut
ions
und
er
Part
3B
of th
e Ac
t.
Requ
iring
a d
evel
opm
ent c
ontr
ibut
ion
for a
fford
able
ho
usin
g un
der a
DCP
und
er P
art 3
B of
the
Act
depe
nds u
pon
the
inte
rpre
tatio
n of
‘com
mun
ity
infr
astr
uctu
re’ o
r ‘se
rvic
e’ in
det
erm
inin
g its
lega
l st
atus
. The
re c
ould
also
be
con
stra
ints
to th
e am
ount
th
at c
ould
be
levi
ed d
epen
ding
on
com
petin
g de
man
ds fo
r the
se fu
nds,
alth
ough
as n
oted
a
signi
fican
t lev
y is
feas
ible
.
Requ
iring
such
a c
ontr
ibut
ion
may
requ
ire a
n am
endm
ents
to (o
r cla
rific
atio
n of
def
initi
ons u
nder
) Pa
rt3B
of t
he A
ct, o
r a sp
ecifi
c af
ford
able
hou
sing
Ther
e ar
e lik
ely
to b
e co
mpe
ting
dem
ands
on
such
co
ntrib
utio
ns, e
ven
if th
ey a
re d
eem
ed to
be
lega
l. Ho
wev
er, s
ome
form
of l
evy
on a
dditi
onal
pro
fit
gene
rate
d th
roug
h th
e op
erat
ion
of th
e pl
anni
ng a
nd
deve
lopm
ent a
sses
smen
t pro
cess
is b
y fa
r the
mos
t ef
ficie
nt a
nd e
ffect
ive
met
hod
for g
ener
atin
g af
ford
able
ho
usin
g in
FBU
RA.
JSA’
s res
earc
h in
dica
tes t
hat t
his a
ppro
ach
is lik
ely
to b
e ec
onom
ical
ly fe
asib
le (d
ue to
sign
ifica
nt u
plift
in F
BURA
pr
ecin
cts)
, equ
itabl
e (n
ot re
quire
d to
be
pass
ed o
n to
fir
st h
ome
owne
r, fo
r exa
mpl
e), a
nd to
pro
vide
for b
y fa
r
√
M
odel
ling
is ba
sed
on 5
0:50
stud
io a
nd o
ne b
edro
om a
part
men
ts; a
nd 7
0:30
two
bedr
oom
and
thre
e be
droo
m a
part
men
ts to
ens
ure
a sp
read
of a
part
men
t size
s.
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
6
5
Mec
hani
sm /
Stra
tegy
Le
gal C
onsi
dera
tions
Ef
fect
iven
ess
Reco
mm
ende
d
DIRE
CT M
ARKE
T IN
TERV
ENTI
ON
:
Use
of g
over
nmen
t lan
d fo
r af
ford
able
hou
sing
deve
lopm
ent
/par
tner
ship
s
No
lega
l app
aren
t con
stra
ints
to u
se o
f cou
ncil
or
othe
r gov
ernm
ent l
and,
and
lega
l mec
hani
sms e
xist
to
prot
ect t
he p
ublic
aut
horit
y’s i
nter
est i
n th
e la
nd, t
o en
sure
that
land
or u
nits
cre
ated
are
use
d fo
r af
ford
able
hou
sing
in p
erpe
tuity
, etc
.
Furt
her,
unde
r the
Urb
an R
enew
al A
utho
rity
Act 2
003,
Pl
aces
Vic
toria
can
resu
me
land
in F
BURA
bas
ed o
n cu
rren
t lan
d va
lue,
con
solid
ate
land
, etc
and
do
othe
r th
ings
to a
chie
ve c
erta
in o
utco
mes
(inc
ludi
ng in
re
latio
n to
affo
rdab
le a
s a p
urpo
se o
f the
aut
horit
y).
Ther
e w
ould
app
ear t
o be
not
hing
to p
reve
nt it
from
do
ing
so to
ach
ieve
its p
urpo
se in
rela
tion
to
affo
rdab
le h
ousin
g un
der i
ts A
ct (s
ee d
iscus
sion
at
Sect
ion
2.5.
1 ab
ove)
.
PV c
an a
lso e
nter
into
join
t ven
ture
s with
oth
er
agen
cies
to d
evel
op la
nd fo
r a sp
ecifi
c pu
rpos
e, w
hich
ag
ain
coul
d le
gitim
atel
y in
clud
e af
ford
able
hou
sing
give
n th
at is
one
of t
he p
urpo
ses f
or w
hich
Pla
ces
Vict
oria
was
est
ablis
hed.
Lim
ited
gove
rnm
ent-
owne
d sit
es h
ave
been
iden
tifie
d th
at a
re u
ncon
stra
ined
or h
ave
the
pote
ntia
l for
futu
re
rede
ploy
men
t. Ho
wev
er, t
hose
that
hav
e be
en id
entif
ied
have
sign
ifica
nt p
oten
tial t
o yi
eld
affo
rdab
le h
ousin
g fo
r th
e ra
nge
of ta
rget
gro
ups i
nclu
ding
ver
y lo
w a
nd lo
w
inco
me
hous
ehol
ds a
s par
t of m
ixed
tenu
re
deve
lopm
ents
(inc
ludi
ng so
cial
rent
al, d
iscou
nt m
arke
t re
ntal
, sha
red
equi
ty a
nd m
arke
t hou
sing
to h
elp
fund
th
e de
velo
pmen
t). L
ever
agin
g op
port
uniti
es a
re
part
icul
arly
impo
rtan
t (se
e Ta
ble
3.2
belo
w a
nd S
ectio
n 7)
.
Furt
her,
the
pow
ers o
f Pla
ces V
icto
ria th
at c
an b
e us
ed
to g
ive
effe
ct to
its p
urpo
se in
rela
tion
to a
fford
able
ho
usin
g op
en u
p sig
nific
ant o
ppor
tuni
ties i
n cr
eatin
g af
ford
able
hou
sing
on g
over
nmen
t lan
d.
Thes
e ca
n be
dev
elop
ed th
roug
h an
EO
I pro
cess
in
part
ners
hip
with
a C
HP a
nd/o
r a su
itabl
e pr
ivat
e de
velo
per i
nclu
ding
und
er m
odel
s suc
h as
com
mun
ity
land
trus
t (CL
T) w
ith o
wne
rshi
p ve
sted
in a
n af
ford
able
ho
usin
g tr
ust o
r sim
ilar a
nd u
nits
man
aged
by
a CH
P.
√
Rede
ploy
men
t of D
HS fu
nds f
rom
th
e sa
le o
r red
evel
opm
ent o
f cap
ital
stoc
k in
City
of M
elbo
urne
or C
ity o
f
No
lega
l con
stra
ints
Po
tent
ially
impo
rtan
t str
ateg
y to
cre
ate
soci
al re
ntal
ho
usin
g in
FBU
RA, b
ut c
onsu
ltatio
n w
ith D
HS in
dica
te
that
this
is lik
ely
to b
e lo
w y
ield
as F
BURA
may
not
be
a
√
64
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Mec
hani
sm /
Stra
tegy
Le
gal C
onsi
dera
tions
Ef
fect
iven
ess
Reco
mm
ende
d
sche
dule
).
This
requ
irem
ent c
ould
be
prov
ided
in u
nits
as p
art o
f th
e de
velo
pmen
t or a
s an
equi
vale
nt c
ontr
ibut
ion.
Th
e de
velo
per w
ould
be
awar
e of
this
requ
irem
ent
and
coul
d fa
ctor
in th
is re
quire
men
t int
o th
e he
ight
of
the
build
ing,
num
ber o
f apa
rtm
ents
so a
s to
stru
ctur
e th
e de
velo
pmen
t to
acco
unt f
or th
is le
vy.
As n
oted
, the
re is
an
impl
ied
or p
oten
tial c
onst
rain
t th
e Ca
pita
l City
Zon
e re
gard
ing
appr
oval
s, d
espi
te
Acco
mm
odat
ion’
bei
ng li
sted
as a
use
for w
hich
a
perm
it is
not r
equi
red
unde
r Sec
tion
1 of
Sch
edul
e 1.
No
appa
rent
lega
l con
stra
ints
, tho
ugh
this
wou
ld li
kely
ne
ed m
inist
eria
l app
rova
l to
amen
d LP
S, fo
r exa
mpl
e Se
ctio
n 1
and
2 of
Sch
edul
e 1
to th
e Ca
pita
l City
Zon
e. JS
A’s a
naly
sis in
dica
tes t
hat f
or e
very
add
ition
al fl
oor,
prof
it w
ould
be
arou
nd $
3,00
0 pe
r squ
are
met
re o
r m
ore,
so th
at a
mor
e lib
eral
app
rova
ls pr
oces
s whe
re a
de
mon
stra
ted
Affo
rdab
le H
ousin
g ou
tcom
e is
achi
eved
co
uld
be q
uite
ben
efic
ial (
see
Tabl
e 3.
2 be
low
).
√
Prot
ectio
n of
exi
stin
g st
ocks
of
affo
rdab
le o
r low
cos
t hou
sing
Appe
ar to
be
prov
ided
for u
nder
soci
al a
nd e
cono
mic
im
pact
con
sider
atio
ns u
nder
s60(
1A)(a
) of t
he A
ct
Like
ly to
be
of li
mite
d ut
ility
as t
here
is n
ot a
hig
h co
ncen
trat
ion
of e
xist
ing
affo
rdab
le h
ousin
g on
the
FBU
RA si
te. E
xper
ienc
e in
oth
er st
ates
also
indi
cate
s tha
t re
fusa
l of a
pplic
atio
ns in
volv
ing
a lo
ss o
f sto
ck is
a
reas
onab
ly h
igh
risk
stra
tegy
as i
t is o
ften
lega
lly
chal
leng
ed d
espi
te le
gisla
tion
requ
iring
an
asse
ssm
ent o
f th
e so
cial
and
eco
nom
ic im
pact
s of a
DA,
and
miti
gatio
n to
offs
et th
e lo
ss o
f suc
h ho
usin
g is
mos
t effe
ctiv
e w
hen
supp
orte
d by
stro
ng p
olic
y pr
ovisi
ons.
X
July 2013 - CONFIDENTIAL
vo
lu
me
3
67
3.4 Evaluation of Funding Strategies
66
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Mec
hani
sm /
Stra
tegy
Le
gal C
onsi
dera
tions
Ef
fect
iven
ess
Reco
mm
ende
d
Port
Phi
llip
to c
onst
ruct
stoc
k or
buy
la
nd in
FBU
RA
prio
rity
area
for D
HS in
vest
men
t str
ateg
ical
ly, a
nd
grea
ter y
ield
is li
kely
to b
e ac
hiev
ed in
low
er la
nd v
alue
ar
eas (
e.g.
rede
velo
pmen
t of l
ower
den
sity
stoc
k in
m
iddl
e rin
g su
burb
s).
The
exce
ptio
n w
ould
be
if so
me
form
of s
ubsid
y w
ere
avai
labl
e (e
.g. l
and
com
pone
nt p
rovi
ded
free
of c
harg
e or
at a
sign
ifica
nt d
iscou
nt, w
ith in
vest
men
t by
DHS
part
of
a p
artn
ersh
ip d
evel
opm
ent w
here
leve
rage
op
port
uniti
es w
ere
avai
labl
e).
See
also
disc
ussio
n be
low
rega
rdin
g fu
ndin
g st
rate
gies
.
Dire
ct fu
ndin
g fo
r soc
ial h
ousin
g fr
om D
HS
No
lega
l con
stra
ints
Per r
ow im
med
iate
ly a
bove
.
Disc
usse
d be
low
as f
undi
ng st
rate
gy.
See
also
disc
ussio
n be
low
rega
rdin
g fu
ndin
g st
rate
gies
.
√
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
6
9
Fund
ing
mec
hani
sm
Who
pay
s?
Co
mm
ents
Ho
w e
ffect
ive
in m
eetin
g id
entif
ied
need
?
road
rese
rves
, fire
stat
ion
or A
uspo
st si
tes)
, al
thou
gh th
ere
may
be
som
e pr
ice
on in
crea
sed
foun
datio
ns, s
ubst
ruct
ure
etc
Deve
lopm
ent c
ontr
ibut
ions
, flo
or sp
ace
affo
rdab
le h
ousi
ng
levi
es u
nder
incl
usio
nary
zo
ning
, etc
.
Deve
lope
r pay
s
Desp
ite C
apita
l City
Zon
ing
bein
g al
read
y ap
plie
d,
signi
fican
t upl
ift is
still
like
ly to
occ
ur in
the
futu
re
with
the
prov
ision
of t
rans
port
infr
astr
uctu
re a
nd
deve
lopm
ent c
erta
inty
.
JSA’
s ana
lysis
sugg
ests
that
leve
ls of
pro
fit b
ased
on
cur
rent
land
and
dw
ellin
g pr
ices
are
such
that
le
vies
can
be
requ
ired
and
deve
lopm
ent p
rofit
will
st
ill b
e w
ell a
bove
nor
mal
leve
ls of
pro
fit.
Asse
ssed
as t
he m
ost e
ffect
ive
fund
ing
stra
tegy
par
ticul
arly
giv
en th
e m
ix o
f dw
ellin
gs a
nd su
bsid
y re
quire
d un
der
scen
ario
s mod
elle
d.
Base
d on
our
mod
ellin
g, th
ere
is sig
nific
ant o
ppor
tuni
ty fo
r ben
efit
capt
ure
of th
e or
der o
f one
dw
ellin
g in
eac
h fiv
e to
se
ven
cons
truc
ted.
Ho
me
purc
hase
rs /r
ente
rs p
ay
JSA
anal
ysis
sugg
ests
that
the
dem
and
curv
e is
rela
tivel
y fla
t, th
at is
, the
incr
ease
d su
pply
from
co
nstr
uctio
n of
dw
ellin
gs in
FBU
RA w
ill n
ot le
ad to
a
decl
ine
in p
rice.
As n
oted
, up
lift i
s hig
h en
ough
that
the
cost
of
reas
onab
le c
ontr
ibut
ions
or l
evie
s doe
s not
hav
e to
be
pas
sed
on to
the
cons
umer
, and
pur
chas
ers i
n FB
URA
are
gen
eral
ly n
ot in
the
affo
rdab
le h
ousin
g ta
rget
gro
ups,
and
are
mor
e lik
ely
to b
e hi
gher
in
com
e ho
useh
olds
.
Not
app
licab
le.
Deve
lopm
ent i
ncen
tives
/c
once
ssio
ns o
r con
trol
re
laxa
tion
Who
le o
f com
mun
ity p
ays
Prof
it fr
om u
p lif
t and
apa
rtm
ent s
ales
pric
e is
likel
y to
be
suffi
cien
tly h
igh
to m
ake
such
in
cent
ives
att
ract
ive.
To
the
exte
nt th
at th
e de
velo
per g
ets e
xtra
floo
r spa
ce o
r hei
ght o
r tim
e th
an w
ould
oth
erw
ise b
e av
aila
ble,
it w
ould
be
cost
ne
utra
l or l
ikel
y in
crea
se p
rofit
.
Ther
e is
a no
n-m
onet
ary
‘cos
t’ to
the
com
mun
ity
to th
e ex
tent
that
am
enity
is c
ompr
omise
d by
the
As n
oted
abo
ve, s
uch
oppo
rtun
ities
are
lim
ited
due
to th
e sit
e al
read
y be
ing
rezo
ned
Capi
tal C
ity, a
nd y
ield
is li
kely
to
be lo
w. H
owev
er, t
his m
ay b
e re
- eva
luat
ed
once
con
trol
s (if
any)
are
kno
wn
for t
he
Capi
tal C
ity Z
one
as it
app
lies i
n FB
URA
.
68
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Fund
ing
mec
hani
sm
Who
pay
s?
Co
mm
ents
Ho
w e
ffect
ive
in m
eetin
g id
entif
ied
need
?
Man
datin
g dw
ellin
g siz
e an
d pr
ovis
ion
thro
ugh
the
mar
ket
Deve
lope
rs m
ay p
ay
To th
e de
gree
to w
hich
this
mec
hani
sm d
istor
ts th
e m
arke
t (is
not a
lread
y be
ing
prov
ided
by
deve
lope
rs),
it co
uld
be se
en a
s an
impo
st o
n th
em
rega
rdin
g us
e of
land
for h
ighe
st a
nd b
est u
se a
s th
ere
may
be
som
e lo
ss o
f pro
fit. H
owev
er, t
he
incr
ease
in su
pply
doe
s not
invo
lve
a su
bsid
y to
pu
rcha
sers
as t
hey
still
pay
the
mar
ket p
rice
for t
he
dwel
ling.
Som
ewha
t effe
ctiv
e fo
r sm
alle
r ho
useh
olds
but
fam
ilies
larg
ely
excl
uded
.
Smal
ler d
wel
lings
will
pro
vide
affo
rdab
le
hous
ing
to a
roun
d 19
% o
f the
dem
and
for
affo
rdab
le h
ousin
g us
ing
the
hous
ing
stre
ss p
rofil
e fo
r Gre
ater
Mel
bour
ne.
Fund
ing
tran
sfer
s, e
.g. d
isco
unt
mar
ket r
ent,
soci
al h
ousi
ng,
subs
idis
ed p
urch
ase.
M
echa
nism
s inc
lude
:
Prov
ision
of
publ
ic h
ousin
g by
DH
S (c
apita
l or f
undi
ng)
Gove
rnm
ent/
who
le o
f com
mun
ity
pays
Like
ly to
be
inef
ficie
nt in
FBU
RA d
ue to
hig
h dw
ellin
g pr
ices
, and
DHS
may
not
con
sider
FBU
RA
as a
prio
rity
for f
utur
e in
vest
men
t com
pare
d w
ith
othe
r are
as w
ith lo
wer
leve
ls of
soci
al h
ousin
g
Yiel
ds li
kely
low
com
pare
d w
ith a
reas
of
low
er la
nd v
alue
, and
DHS
ow
ns n
o la
nd in
FB
URA
Sale
of D
HS st
ock
and
rein
vest
men
t of f
unds
in F
BURA
Gove
rnm
ent/
who
le o
f com
mun
ity
pays
Like
ly to
be
inef
ficie
nt in
FBU
RA d
ue to
hig
h dw
ellin
g pr
ices
, and
DHS
may
not
con
sider
FBU
RA
as a
prio
rity
for f
utur
e re
inve
stm
ent o
f fun
ds
gain
ed fr
om sa
le o
f dw
ellin
gs n
ear F
BURA
Yiel
ds li
kely
low
com
pare
d w
ith a
reas
of
low
er la
nd v
alue
, and
DHS
ow
ns n
o la
nd in
FB
URA
Use
/ded
icat
ion
of p
ublic
land
fo
r JVs
, CLT
s, e
tc.
Gove
rnm
ent/
who
le o
f com
mun
ity
pays
Use
of g
reen
(ope
n) sp
ace
is lik
ely
to b
e at
a
prem
ium
and
unl
ikel
y.
Use
or r
edep
loym
ent o
f bro
wnf
ield
site
s will
in
volv
e an
opp
ortu
nity
cos
t (e.
g. C
OPP
dep
ot) (
or
coul
d be
‘airs
pace
’)
Use
of ‘
airs
pace
’ is c
ost f
ree
(e.g
. car
par
ks a
nd
Som
e op
port
uniti
es fo
r lev
erag
ing
of fu
nds
obta
ined
else
whe
re (e
g th
roug
h pl
anni
ng
mec
hani
sms d
iscus
sed
belo
w).
See
disc
ussio
n be
low
with
rega
rd to
yie
ld.
July 2013 - CONFIDENTIAL
vo
lu
me
3
7
1
Fund
ing
mec
hani
sm
Who
pay
s?
Co
mm
ents
Ho
w e
ffect
ive
in m
eetin
g id
entif
ied
need
?
sens
e of
forg
one
prof
it.
Dire
ct g
over
nmen
t fun
ding
St
ate
and
fede
ral g
over
nmen
t und
er
the
NAH
A
The
curr
ent f
undi
ng e
nviro
nmen
t doe
s not
favo
ur
signi
fican
t add
ition
al fu
ndin
g by
stat
e an
d fe
dera
l go
vern
men
t for
soci
al h
ousin
g, a
nd F
BURA
wou
ld
need
to b
e pr
iorit
ised
for s
uch
new
inve
stm
ent,
or
rein
vest
men
t of p
rope
rtie
s sol
d or
rede
velo
ped
else
whe
re.
A re
lativ
ely
smal
l con
trib
utio
n un
less
FB
URA
is p
riorit
ised.
Leve
rage
opt
ions
com
bine
d w
ith u
se o
f pub
lic la
nd:
As
siste
d pu
rcha
se
The
purc
hase
r (th
eir s
hare
of e
quity
an
d ot
her c
osts
) and
the
com
mun
ity
/dev
elop
er
With
70%
equ
ity sh
are,
a le
vy o
f tw
o ap
artm
ents
will
yie
ld n
ine
apar
tmen
ts if
co
nstr
ucte
d on
pub
lic o
wne
d la
nd a
nd
oppo
rtun
ity c
ost i
s for
egon
e.
Di
scou
nt m
arke
t ren
tal
The
rent
er a
nd th
e co
mm
unity
/d
evel
oper
With
80%
disc
ount
mar
ket r
ent,
a le
vy o
f te
n ap
artm
ents
will
yie
ld 2
8 re
ntal
ap
artm
ents
if c
onst
ruct
ed o
n pu
blic
ow
ned
land
and
opp
ortu
nity
cos
t is
fore
gone
.
So
cial
Hou
sing
The
rent
er a
nd th
e co
mm
unity
/d
evel
oper
A le
vy o
f tw
o ap
artm
ents
, tak
en a
s cas
h,
will
yie
ld th
ree
apar
tmen
ts if
con
stru
cted
on
pub
lic o
wne
d la
nd a
nd o
ppor
tuni
ty
cost
is fo
rego
ne.
70
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Fund
ing
mec
hani
sm
Who
pay
s?
Co
mm
ents
Ho
w e
ffect
ive
in m
eetin
g id
entif
ied
need
?
gran
ting
of a
dditi
onal
floo
r spa
ce o
r low
er le
vel o
f sc
rutin
y fo
r app
licat
ions
.
Leve
rage
opt
ions
:
Assis
ted
purc
hase
(e.g
. sha
red
equi
ty)
The
purc
hase
r (th
eir s
hare
of e
quity
an
d ot
her c
osts
) and
the
com
mun
ity
/dev
elop
er
Whi
lst th
e pu
rcha
ser p
ays,
the
bene
fit to
the
purc
hase
r will
exc
eed
the
cost
as t
hey
have
ob
tain
ed a
goo
d at
bel
ow m
arke
t pric
e
With
a 7
0% e
quity
shar
e, a
levy
of o
ne
apar
tmen
t will
yie
ld th
ree
affo
rdab
le
apar
tmen
ts in
tota
l. W
ith a
50%
equ
ity
shar
e, a
levy
of o
ne a
part
men
t will
yie
ld
two
affo
rdab
le a
part
men
ts.
Disc
ount
mar
ket r
enta
l
The
rent
er a
nd th
e co
mm
unity
/d
evel
oper
Whi
lst th
e re
nter
pay
s, th
e be
nefit
to th
e re
nter
w
ill e
xcee
d th
e co
st a
s the
y ha
ve o
btai
ned
a go
od
at b
elow
mar
ket p
rice
Usin
g 80
% d
iscou
nt re
nt a
nd a
llow
ing
10%
fo
r adm
inist
ratio
n an
d m
aint
enan
ce, a
le
vy o
f ten
apa
rtm
ent w
ill y
ield
nin
etee
n af
ford
able
apa
rtm
ents
. W
ith 5
0% m
arke
t re
nt, a
levy
of f
our a
part
men
ts w
ill y
ield
fiv
e af
ford
able
apa
rtm
ents
.
Soci
al h
ousin
g Th
e re
nter
and
the
com
mun
ity
/dev
elop
er
Whi
lst th
e re
nter
pay
s, th
e be
nefit
to th
e re
nter
w
ill e
xcee
d th
e co
st a
s the
y ha
ve o
btai
ned
a go
od
at b
elow
mar
ket p
rice
Ther
e is
limite
d le
vera
ge o
ppor
tuni
ty h
ere
as so
cial
hou
sing
inco
mes
for c
omm
unity
ho
usin
g pr
ovid
ers a
re la
rgel
y co
nsum
ed in
op
erat
iona
l cos
ts
Use
of p
ublic
land
Th
e co
mm
unity
, ren
ters
and
pu
rcha
sers
Ther
e is
a co
nsid
erab
le g
ap b
etw
een
squa
re m
etre
sa
les p
rices
and
squa
re m
etre
con
stru
ctio
n pr
ices
fo
r mul
ti st
orey
apa
rtm
ents
and
the
land
co
mpo
nent
form
s a si
gnifi
cant
pro
port
ion
of th
e pu
rcha
se p
rice
of m
ulti
stor
ey d
wel
lings
. W
hile
th
ere
is a
cost
to th
e co
mm
unity
, thi
s cos
t is l
ost
oppo
rtun
ity c
ost (
retu
rn o
n ca
pita
l), a
nd so
doe
s no
t req
uire
to b
e fu
nded
, rat
her i
t is a
cos
t in
the
A le
vy o
f tw
o ap
artm
ents
, tak
en a
s cas
h,
will
yie
ld th
ree
apar
tmen
ts if
con
stru
cted
on
pub
lic o
wne
d la
nd a
nd o
ppor
tuni
ty
cost
is fo
rego
ne.
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
7
3
Deliv
ery
mec
hani
sm
Com
men
ts
How
eff
ectiv
e in
mee
ting
iden
tifie
d ne
ed
Assis
ted
purc
hase
/sha
red
equi
ty a
ppro
ache
s
Base
d on
Wes
tern
Aus
tral
ian
expe
rienc
e, 3
0% su
bsid
y is
sust
aina
ble.
High
er le
vels
of su
bsid
y ar
e re
quire
d to
pro
vide
affo
rdab
le p
urch
ase
to fa
mily
targ
et g
roup
s:
Thre
e be
droo
m a
part
men
ts fo
r 50%
of m
oder
ate
inco
me
fam
ily
hous
ehol
ds w
ill re
quire
a 4
2% su
bsid
y;
Thre
e be
droo
m a
part
men
ts fo
r 50%
of l
ow in
com
e fa
mily
ho
useh
olds
will
requ
ire a
62%
subs
idy;
and
Two
bedr
oom
apa
rtm
ents
for 5
0% o
f low
inco
me
fam
ily h
ouse
hold
s w
ill re
quire
a 4
6% su
bsid
y.
Som
ewha
t effe
ctiv
e fo
r sm
alle
r pur
chas
ing
hous
ehol
ds b
ut la
rger
fam
ilies
ex
clud
ed.
Assis
ted
purc
hase
of s
mal
ler d
wel
lings
will
pro
vide
affo
rdab
le h
ousin
g to
:
30
% o
f sm
alle
r ver
y lo
w in
com
e pu
rcha
sing
hous
ehol
ds (s
tudi
o ap
artm
ent)
all s
mal
ler l
ow in
com
e pu
rcha
sing
hous
ehol
ds;
al
l sm
alle
r mod
erat
e in
com
e pu
rcha
sing
hous
ehol
ds; a
nd
tw
o be
droo
m a
ccom
mod
atio
n to
90%
of s
mal
ler f
amily
mod
erat
e in
com
e pu
rcha
sing
hous
ehol
ds.
This
is 21
% o
f the
dem
and
for a
fford
able
hou
sing
usin
g th
e ho
usin
g st
ress
pr
ofile
for G
reat
er M
elbo
urne
.
Disc
ount
mar
ket r
ent
Base
d on
SEP
P AR
H an
d N
RAS,
a 2
0% su
bsid
y (8
0% d
iscou
nt m
arke
t re
nt) i
s sus
tain
able
.
High
er le
vels
of su
bsid
y ar
e re
quire
d to
pro
vide
affo
rdab
le re
ntal
to
man
y fa
mily
and
ver
y lo
w in
com
e ta
rget
gro
ups:
Th
ree
bedr
oom
apa
rtm
ents
for 5
0% o
f mod
erat
e in
com
e fa
mily
ho
useh
olds
will
requ
ire a
25%
subs
idy;
Th
ree
bedr
oom
apa
rtm
ents
for 5
0% o
f low
inco
me
fam
ily
hous
ehol
ds w
ill re
quire
a 5
1% su
bsid
y;
Tw
o be
droo
m a
part
men
ts fo
r 50%
of l
ow in
com
e fa
mily
ho
useh
olds
will
requ
ire a
34%
subs
idy;
O
ne b
edro
om a
part
men
ts fo
r 50%
of v
ery
low
inco
me
smal
ler
hous
ehol
ds w
ill re
quire
a 6
2% su
bsid
y; a
nd
Som
ewha
t effe
ctiv
e fo
r sm
alle
r ren
ting
hous
ehol
ds b
ut la
rger
fam
ilies
ge
nera
lly e
xclu
ded.
Subs
idise
d re
ntal
of s
mal
ler d
wel
lings
will
pro
vide
affo
rdab
le h
ousin
g to
:
90
% o
f sm
alle
r low
inco
me
rent
ing
hous
ehol
ds
al
l sm
alle
r mod
erat
e in
com
e re
ntin
g ho
useh
olds
;
two
bedr
oom
acc
omm
odat
ion
to a
ll sm
alle
r fam
ily m
oder
ate
inco
me
rent
ing
hous
ehol
ds; a
nd
th
ree
bedr
oom
acc
omm
odat
ion
to 4
0% o
f fam
ily m
oder
ate
inco
me
rent
ing
hous
ehol
ds.
This
is 11
% o
f the
dem
and
for a
fford
able
hou
sing
usin
g th
e ho
usin
g st
ress
pr
ofile
for G
reat
er M
elbo
urne
.
72
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
3.5
Eval
uatio
n of
Del
iver
y M
echa
nism
s
Deliv
ery
mec
hani
sm
Com
men
ts
How
eff
ectiv
e in
mee
ting
iden
tifie
d ne
ed
Incr
ease
in su
pply
of
deve
lopa
ble
land
Effic
acy
of m
echa
nism
is d
ebat
ed.
(See
disc
ussio
n at
7.1
.13)
No
evid
ence
from
hist
oric
al d
ata
that
incr
easin
g su
pply
lead
s to
long
te
rm d
ecre
asin
g pr
ices
.
Very
Lim
ited.
Mar
ket w
ill p
rovi
de a
fford
able
hou
sing
to:
50
% o
f sm
alle
r mod
erat
e in
com
e re
ntin
g ho
useh
olds
; an
d
10
% o
f sm
alle
r mod
erat
e in
com
e pu
rcha
sing
hous
ehol
ds.
This
is 1%
of t
he d
eman
d fo
r affo
rdab
le h
ousin
g us
ing
the
hous
ing
stre
ss
prof
ile fo
r Gre
ater
Mel
bour
ne.
Prov
ide
smal
ler d
wel
lings
/ no
par
king
Mod
ellin
g ha
s bee
n ba
sed
on th
e fo
llow
ing
max
imum
dw
ellin
g siz
es
(with
out p
arki
ng) a
nd e
xtra
cted
from
NSW
SEP
P AR
H:
St
udio
apa
rtm
ent 3
5 m
2
O
ne b
edro
om a
part
men
t 50
m2
Two
bedr
oom
apa
rtm
ent 7
0 m
2
Th
ree
bedr
oom
apa
rtm
ent 9
5 m
2
Som
ewha
t effe
ctiv
e fo
r sm
alle
r hou
seho
lds b
ut fa
mili
es la
rgel
y ex
clud
ed.
Smal
ler d
wel
lings
will
pro
vide
affo
rdab
le h
ousin
g to
:
50
% o
f sm
alle
r low
inco
me
rent
ing
hous
ehol
ds;
al
l sm
alle
r mod
erat
e in
com
e re
ntin
g ho
useh
olds
;
two
bedr
oom
acc
omm
odat
ion
to 5
0% o
f sm
alle
r mod
erat
e in
com
e re
ntin
g ho
useh
olds
;
all s
mal
ler l
ow in
com
e pu
rcha
sing
hous
ehol
ds (s
tudi
o ap
artm
ents
); an
d
all s
mal
ler m
oder
ate
inco
me
purc
hasin
g ho
useh
olds
Th
is is
19%
of t
he d
eman
d fo
r affo
rdab
le h
ousin
g us
ing
the
hous
ing
stre
ss
prof
ile fo
r Gre
ater
Mel
bour
ne.
July 2013 - CONFIDENTIAL
vo
lu
me
3
75
3.6 Consideration of Four Delivery Options
74
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Deliv
ery
mec
hani
sm
Com
men
ts
How
eff
ectiv
e in
mee
ting
iden
tifie
d ne
ed
Tw
o be
droo
m a
part
men
ts fo
r 50%
of v
ery
low
inco
me
smal
ler
fam
ily h
ouse
hold
s will
requ
ire a
75%
subs
idy.
Soci
al h
ousin
g Es
sent
ially
rest
ricte
d to
ver
y lo
w in
com
e ho
useh
olds
Will
pro
vide
affo
rdab
le h
ousin
g to
ver
y lo
w in
com
e re
ntin
g ho
useh
olds
ho
wev
er v
ery
low
inco
me
wor
king
hou
seho
lds a
re li
kely
to b
e ex
clud
ed
due
to a
lloca
tion
polic
ies.
This
is 34
% o
f the
dem
and
for a
fford
able
hou
sing
usin
g th
e ho
usin
g st
ress
pr
ofile
for G
reat
er M
elbo
urne
.
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
77
O
ptio
n 1:
‘Bus
ines
s as
Usu
al’ M
odel
O
ptio
n 2:
‘Asp
iratio
nal
Affo
rdab
le H
ousi
ng’ M
odel
Opt
ion
3: ‘P
ragm
atic
’ M
ixed
Mod
el
Opt
ion
4: In
term
edia
te
Affo
rdab
le H
ousi
ng M
odel
Broa
d de
liver
y m
etho
ds
cons
ider
ed (%
of a
ll ho
usin
g in
FB
URA
) M
arke
t del
iver
y on
ly
Mar
ket d
eliv
ery
(0.3
%)
Man
date
d dw
ellin
g siz
e (3
.8%
)
Assis
ted
purc
hase
(6.5
%)
Disc
ount
mar
ket r
ent (
2.7%
)
Soci
al h
ousin
g (6
.8%
)
Mar
ket d
eliv
ery
(1.5
%)
Man
date
d dw
ellin
g siz
e (6
.6%
)
Assis
ted
purc
hase
(5.2
%)
Disc
ount
mar
ket r
ent (
3.6%
)
Soci
al h
ousin
g (3
.1%
)
Mar
ket d
eliv
ery
(1.8
%)
Man
date
d dw
ellin
g siz
e (7
.8%
)
Assis
ted
purc
hase
(6.2
%
Disc
ount
mar
ket r
ent (
4.2%
)
% o
f asp
iratio
nal a
fford
able
ho
usin
g ta
rget
gro
ups
acco
mm
odat
ed
1.3%
80
%
56%
44
%
Targ
et g
roup
s lik
ely
to b
e ho
used
in
FBU
RA (s
ee T
able
2.5
abo
ve fo
r re
leva
nt g
roup
s)
Smal
l mod
erat
e in
com
e re
ntin
g an
d pu
rcha
sing
hous
ehol
ds in
st
udio
and
1 b
/r d
wel
lings
At le
ast 5
0% o
f eac
h ta
rget
gr
oups
is a
ccom
mod
ated
All m
oder
ate
inco
me
hous
ehol
ds
At le
ast 4
0% o
f low
inco
me
hous
ehol
ds
Very
low
inco
me
rent
ing
hous
ehol
ds, t
houg
h w
ith re
duce
d qu
antu
m o
f soc
ial h
ousin
g
All m
oder
ate
inco
me
hous
ehol
ds
At le
ast 4
0% o
f low
inco
me
hous
ehol
ds
Targ
et g
roup
s lik
ely
to b
e ex
clud
ed fr
om F
BURA
(see
Tab
le
2.5
abov
e fo
r rel
evan
t gro
ups)
All o
ther
targ
et g
roup
s inc
ludi
ng
all f
amily
hou
seho
lds,
and
all
very
lo
w &
low
inco
me
hous
ehol
ds
Low
er 5
0% o
f low
inco
me
fam
ily
rent
ers,
and
low
er 5
0% o
f ver
y lo
w in
com
e pu
rcha
sers
Very
low
inco
me
purc
hase
rs
Low
er 5
0-60
% o
f low
inco
me
fam
ily h
ouse
hold
s
Very
low
inco
me
rent
ers a
nd
purc
hase
rs
Low
er 5
0-60
% o
f low
inco
me
fam
ily h
ouse
hold
s
76
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
O
ptio
n 1:
‘Bus
ines
s as
Usu
al’ M
odel
O
ptio
n 2:
‘Asp
iratio
nal
Affo
rdab
le H
ousi
ng’ M
odel
Opt
ion
3: ‘P
ragm
atic
’ M
ixed
Mod
el
Opt
ion
4: In
term
edia
te
Affo
rdab
le H
ousi
ng M
odel
Affo
rdab
le H
ousin
g Ta
rget
20
% o
f tot
al st
ock
20%
of t
otal
stoc
k 20
% o
f tot
al st
ock
20%
of t
otal
stoc
k
Hous
ing
Stre
ss L
evel
s ass
umed
30
%, 3
5% a
nd 4
0% a
ssum
ed fo
r se
nsiti
vity
ana
lysis
30
% h
ousin
g st
ress
for a
ll te
nure
, in
com
e an
d ho
useh
old
grou
ps
Mix
ed h
ousin
g st
ress
(1)
Mix
ed h
ousin
g st
ress
(1)
Hous
ing
subs
idy
assu
mpt
ions
N
o su
bsid
ies a
ssum
ed
Min
imum
disc
ount
mar
ket r
ent
as re
quire
d to
allo
w a
cces
s for
all
targ
et g
roup
s
Min
imum
equ
ity sh
are
for
purc
hase
r as r
equi
red
to a
llow
ac
cess
for a
ll ta
rget
gro
ups
Min
imum
disc
ount
mar
ket r
ent
of 7
0%
Min
imum
equ
ity sh
are
for
purc
hase
r of 5
0%
Min
imum
disc
ount
mar
ket r
ent
of 7
0%
Min
imum
equ
ity sh
are
for
purc
hase
r of 5
0%
Broa
d de
liver
y m
etho
ds
cons
ider
ed (%
of a
fford
able
ho
usin
g co
mpo
nent
pro
vide
d in
FB
URA
)
Mar
ket d
eliv
ery
only
Mar
ket d
eliv
ery
(1.3
%)
Man
date
d dw
ellin
g siz
e89 (1
8.9%
)
Assis
ted
purc
hase
(32.
5%)
Disc
ount
mar
ket r
ent (
13.6
%)
Soci
al h
ousin
g (3
3.8%
)
Mar
ket d
eliv
ery
(7.5
%)
Man
date
d dw
ellin
g siz
e (3
3%)
Assis
ted
purc
hase
(26.
1%)
Disc
ount
mar
ket r
ent (
17.9
%)
Soci
al h
ousin
g (1
5.5%
)
Mar
ket d
eliv
ery
(8.9
%)
Man
date
d dw
ellin
g siz
e (3
9.1%
)
Assis
ted
purc
hase
(30.
9%)
Disc
ount
mar
ket r
ent (
21.1
%)
89M
odel
ling
base
d on
50:
50 st
udio
s and
one
bed
room
apa
rtm
ents
; and
70:
30 tw
o be
droo
m a
nd th
ree
bedr
oom
apa
rtm
ents
to p
rovi
de a
n ap
prop
riate
mix
of d
wel
lings
. Re
fer t
able
s 7-1
5, 1
6 an
d 17
for d
etai
ls.
July 2013 - CONFIDENTIAL
vo
lu
me
3
79
O
ptio
n 1:
‘Bus
ines
s as
Usu
al’ M
odel
O
ptio
n 2:
‘Asp
iratio
nal
Affo
rdab
le H
ousi
ng’ M
odel
Opt
ion
3: ‘P
ragm
atic
’ M
ixed
Mod
el
Opt
ion
4: In
term
edia
te
Affo
rdab
le H
ousi
ng M
odel
Levy
requ
ired
on sa
leab
le fl
oor
area
with
som
e de
velo
pmen
t on
publ
ic la
nd, N
RAS
fund
ing
and
DHS
fund
s 30%
of s
ocia
l hou
sing
com
pone
nt
Nil
7.
0% o
f net
floo
r are
a 3.
9% o
f net
floo
r are
a 3.
1% o
f net
floo
r are
a
Cost
to g
over
nmen
t of l
and
use
Nil
N
o fu
ndin
g re
quire
d, b
ut lo
st
oppo
rtun
ity c
ost o
n la
nd
No
fund
ing
requ
ired,
but
lost
op
port
unity
cos
t on
land
N
o fu
ndin
g re
quire
d, b
ut lo
st
oppo
rtun
ity c
ost o
n la
nd
78
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
O
ptio
n 1:
‘Bus
ines
s as
Usu
al’ M
odel
O
ptio
n 2:
‘Asp
iratio
nal
Affo
rdab
le H
ousi
ng’ M
odel
Opt
ion
3: ‘P
ragm
atic
’ M
ixed
Mod
el
Opt
ion
4: In
term
edia
te
Affo
rdab
le H
ousi
ng M
odel
Pote
ntia
l fun
ding
mec
hani
sms
N
il re
quire
d
Dire
ct g
over
nmen
t fun
ding
Deve
lopm
ent l
evy
Leve
ragi
ng o
ppor
tuni
ties
Oth
er so
urce
s
Dire
ct g
over
nmen
t fun
ding
Deve
lopm
ent l
evy
Leve
ragi
ng o
ppor
tuni
ties
Oth
er so
urce
s
Dire
ct g
over
nmen
t fun
ding
Deve
lopm
ent l
evy
Leve
ragi
ng o
ppor
tuni
ties
Oth
er so
urce
s
Levy
requ
ired
on sa
leab
le
com
mer
cial
floo
r are
a N
il
Poss
ible
in fu
ture
, but
mod
ellin
g sh
ows l
ow le
vels
of p
rofit
abili
ty
Poss
ible
in fu
ture
, but
mod
ellin
g sh
ows l
ow le
vels
of p
rofit
abili
ty
Poss
ible
in fu
ture
, but
mod
ellin
g sh
ows l
ow le
vels
of p
rofit
abili
ty
Levy
requ
ired
on sa
leab
le
resid
entia
l flo
or a
rea
Nil
9%
of n
et fl
oor a
rea
5.0%
of n
et fl
oor a
rea
3.6%
of n
et fl
oor a
rea
Levy
requ
ired
on sa
leab
le fl
oor
area
with
som
e de
velo
pmen
t on
publ
ic la
nd
Nil
8.
4% o
f net
floo
r are
a 4.
7% o
f net
floo
r are
a 3.
4% o
f net
floo
r are
a
Levy
requ
ired
on sa
leab
le fl
oor
area
with
att
ract
ion
of N
RAS
fund
ing
Nil
8.
8% o
f net
floo
r are
a 4.
8% o
f net
floo
r are
a 3.
3% o
f net
floo
r are
a
Levy
requ
ired
on sa
leab
le fl
oor
area
with
30%
DHS
fund
ing
of
soci
al h
ousin
g N
il
7.7%
of n
et fl
oor a
rea
4.4%
of n
et fl
oor a
rea
Not
app
licab
le
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
81
Figure 4-1: Percentage increase in population from 1991 – Selected LGAs Source: JSA 2013, using data from ABS Census of Population and Housing 1991-2011 (Time Series Profile, Place of Enumeration)
Figure 4-2: Percentage increase in population from 2001 – Selected SA2s ( Source: JSA 2013, using data from ABS Census of Population and Housing 2001-2011 (Time Series Profile, Place of Enumeration)
80 Affordable Housing Delivery Options Paper (FBURA)
PART B: BACKGROUND REPORT
4 Population and Housing Market Trends 4.1 Overview
4.2 Population Growth 1991-2011
July 2013 - CONFIDENTIAL
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83
4.4 Household type profiles and change over time
82 Affordable Housing Delivery Options Paper (FBURA)
Figure 4-3: Percentage increase in population from 2001 – Docklands SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2001-2011 (Time Series Profile, Place of Enumeration)
4.3 Age Profile
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
85
Figure 4-4: Median established house prices – Capital Cities (CPI adjusted) (Source: ABS, JSA calculation)
(Source: ABS, JSA calculation)
0
100
200
300
400
500
600
700
Mar
-200
2Au
g-20
02Ja
n-20
03Ju
n-20
03N
ov-2
003
Apr-
2004
Sep-
2004
Feb-
2005
Jul-2
005
Dec-
2005
May
-200
6O
ct-2
006
Mar
-200
7Au
g-20
07Ja
n-20
08Ju
n-20
08N
ov-2
008
Apr-
2009
Sep-
2009
Feb-
2010
Jul-2
010
Dec-
2010
May
-201
1O
ct-2
011
Mar
-201
2
Established House Median Price ($2012)
Sydney
Melbourne
Brisbane
Adelaide
Perth
Hobart
Darwin
Canberra
0.0
50.0
100.0
150.0
200.0
250.0
300.0
Mar
-200
2
Oct
-200
2
May
-200
3
Dec-
2003
Jul-2
004
Feb-
2005
Sep-
2005
Apr-
2006
Nov
-200
6
Jun-
2007
Jan-
2008
Aug-
2008
Mar
-200
9
Oct
-200
9
May
-201
0
Dec-
2010
Jul-2
011
Feb-
2012
Sep-
2012
Price Index of Established Houses
Sydney
Melbourne
Brisbane
Adelaide
Perth
Hobart
Darwin
Canberra
84 Affordable Housing Delivery Options Paper (FBURA)
4.5 Capital City Price Comparisons
July 2013 - CONFIDENTIAL
vo
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87
Figure 4-7: Median unit/apartment prices – selected suburbs (CPI adjusted) (Source: Land Victoria, A Guide to Property Values 2011)
0
100000
200000
300000
400000
500000
600000
700000
800000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Median unit/apartment prices ($2012)
Melbourne Metropolitan area Melbourne
Docklands Port Melbourne
South Melbourne Southbank
86 Affordable Housing Delivery Options Paper (FBURA)
4.6 Sales Prices over time
Figure 4-6: Median house prices – selected LGAs (CPI adjusted) (Source: Land Victoria, A Guide to Property Values 2011)
0
200000
400000
600000
800000
1000000
1200000
1400000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Median house prices ($2012)
Melbourne Metropolitan area Melbourne City
Port Phillip City Maribyrnong City
Hobsons Bay City
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
89
Figure 4-9: Median three bedroom house rentals for selected areas (CPI adjusted) (Source: Department of Human Services, Rental Report)
0
100
200
300
400
500
600
700
800
900
2007 2008 2009 2010 2011 2012
Median Rental 3 Bedroom House ($2012)
Melbourne Metropolitan area Melbourne City
Port Phillip City Maribyrnong City
Hobsons Bay City
88 Affordable Housing Delivery Options Paper (FBURA)
4.7 Rents over time
Figure 4-8: Median two bedroom flat rentals for selected areas (CPI adjusted) (Source: Department of Human Services, Rental Report)
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012
Median Rental 2 Bedroom Flat ($2012)
Melbourne Metropolitan area Melbourne City
Port Phillip City Maribyrnong City
Hobsons Bay City
July 2013 - CONFIDENTIAL
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91
4.8 Dwelling Structure and change over time
90 Affordable Housing Delivery Options Paper (FBURA)
Figure 4-10: Median one bedroom flat rentals for selected areas (CPI adjusted) (Source: Department of Human Services, Rental Report)
Figure 4-11: Median two bedroom flat rentals for selected areas (CPI adjusted) (Source: Department of Human Services, Rental Report)
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012
Median Rental 1 Bedroom Flat ($2012)
Melbourne Metropolitan area Melbourne
Docklands Port Melbourne
South Melbourne Southbank
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012
Median Rental 2 Bedroom Flat ($2012)
Melbourne Metropolitan area Melbourne
Docklands Port Melbourne
South Melbourne Southbank
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
9
3
Sour
ce: J
SA 2
013,
usin
g da
ta fr
om A
BS C
ensu
s of P
opul
atio
n an
d Ho
usin
g 20
11 (B
asic
Com
mun
ity P
rofil
e, P
lace
of U
sual
Res
iden
ce)
92 Affordable Housing Delivery Options Paper (FBURA)
July 2013 - CONFIDENTIAL
vo
lu
me
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95
Figure 4-14: Dwelling structure profile 2001-2011 (percentages) – Melbourne SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2001-2011 (Time Series Profile, Place of Enumeration)
94 Affordable Housing Delivery Options Paper (FBURA)
Figure 4-13: Dwelling structure profile 2001-2011 (percentages) – Greater Melbourne Source: JSA 2013, using data from ABS Census of Population and Housing 2001-2011 (Time Series Profile, Place of Enumeration)
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
97
4.9 Tenure profile and change over time
4.9.1 General tenure profile
96 Affordable Housing Delivery Options Paper (FBURA)
Figure 4-15: Dwelling structure profile 2001-2011 (percentages) – Southbank SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2001-2011 (Time Series Profile, Place of Enumeration)
July 2013 - CONFIDENTIAL
vo
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99
Figure 4-17: Household tenure type profile 2001-2011 (percentages) – Greater Melbourne Source: JSA 2013, using data from ABS Census of Population and Housing 2001-2011 (Time Series Profile, Place of Enumeration)
98
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Figu
re 4
-16:
Ten
ure
prof
ile –
Sel
ecte
d SA
2s a
nd L
GAs,
201
1 So
urce
: JSA
201
3, u
sing
data
from
ABS
Cen
sus o
f Pop
ulat
ion
and
Hous
ing
2011
(Bas
ic C
omm
unity
Pro
file,
Pla
ce o
f Usu
al R
esid
ence
)
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
101
Figure 4-19: Change in proportion of occupied private dwellings comprised of social housing, Melbourne and Port Phillip Local Government Areas, compared with Greater Melbourne and Australia, 2001-2011 Source: JSA 2013, using data from ABS Census of Population and Housing 2001, 2006, 2011 (Time Series Profile, Place of Enumeration)
Table 4-1: Changes in Social Housing Supply in Proxy SA2s 2001-2011 Social Housing 2001 2006 2011
Docklands (SA2) Number 0 6 60
Docklands (SA2) % of occupied private dwellings 0.0% 0.3% 2.2%
Melbourne (SA2) Number 133 108 150
Melbourne (SA2) % of occupied private dwellings 3.5% 1.7% 1.6%
Southbank (SA2) Number 3 7 10
Southbank (SA2) % of occupied private dwellings 0.2% 0.2% 0.2%
Source: JSA 2013, using data from ABS Census of Population and Housing 2001, 2006, 2011 (Time Series Profile, Place of Enumeration)
100 Affordable Housing Delivery Options Paper (FBURA)
Figure 4-18: Household tenure type profile 2001-2011 (percentages) – Southbank SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2001-2011 (Time Series Profile, Place of Enumeration)
4.9.2 Social Housing Fails to Keep Pace with Population Increase/Demand
July 2013 - CONFIDENTIAL
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103
Map 4-2: LGAs from which residents have moved to Southbank SA2 2006-2011
Map 4-3: Net In-Migration to Melbourne SA2 from LGAs 2006-2011 Source: JSA 2013, using data from ABS Census of Population and Housing 2011
102 Affordable Housing Delivery Options Paper (FBURA)
4.10 Mobility trends
4.10.1 Migration
Map 4-1: LGAs from which residents have moved to Melbourne SA2 2006-2011
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105
Figure 4-20: In-Migration Summary 2006-2011 – Numbers Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Usual Residence)
4.10.2 Commuting trends
104 Affordable Housing Delivery Options Paper (FBURA)
Map 4-4: Net Migration into Southbank SA2 from LGAs 2006-2011 Source: JSA 2013, using data from ABS Census of Population and Housing 2011
ABS table builder, 19.4% for Melbourne SA2, 14.8% for Southbank SA2 and 8.5% for Greater Melbourne.
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Map 4-6: LGAs from which workers commute into Melbourne SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2011
106 Affordable Housing Delivery Options Paper (FBURA)
Map 4-5: LGAs from which workers commute into Port Melbourne Industrial SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2011
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Table 4-2: Total commuters by selected SA2s and LGAs
Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Work)
Table 4-3: Total commuters by industrial / commercial areas (SA2s)
Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Work)
108 Affordable Housing Delivery Options Paper (FBURA)
Map 4-7: SEIFA Index of Education and Occupation by LGAs Source: JSA 2013, using data from ABS Census of Population and Housing 2011
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Figure 4-22: Individual Income by Commuter Status – Southbank SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Work)
110 Affordable Housing Delivery Options Paper (FBURA)
Figure 4-21: Occupation Profile by Commuter Status – Southbank SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Work)
17%
40%
6%
16%
10%
8%
0%
2%
18%
34%
8%
13%
15%
6%
1%
4%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Managers
Professionals
Technicians and Trades Workers
Community and Personal Service Workers
Clerical and Administrative Workers
Sales Workers
Machinery Operators and Drivers
Labourers
Southbank SA2
Lived and Worked in Area Commuted Into Area for Work
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Figure 4-24: Individual Income by Commuter Status – Melbourne SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Work)
4.10.3 Car Ownership
112 Affordable Housing Delivery Options Paper (FBURA)
Figure 4-23: Occupation Profile by Commuter Status – Melbourne SA2 Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Work)
14%
41%
7%
12%
14%
8%
0%
4%
16%
40%
5%
4%
26%
6%
1%
2%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Managers
Professionals
Technicians and Trades Workers
Community and Personal Service Workers
Clerical and Administrative Workers
Sales Workers
Machinery Operators and Drivers
Labourers
Melbourne SA2
Lived and Worked in Area Commuted Into Area for Work
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Figu
re 4
-26:
Mot
or v
ehic
le o
wne
rshi
p fo
r se
lect
ed a
reas
, com
pare
d w
ith G
reat
er M
elbo
urne
, 201
1 –
aver
age
num
ber
of m
otor
veh
icle
s pe
r ho
useh
old
by g
ross
wee
kly
hous
ehol
d in
com
e So
urce
: JSA
201
3, c
alcu
late
d us
ing
data
from
ABS
Cen
sus o
f Pop
ulat
ion
and
Hous
ing
2011
(Tab
lebu
ilder
, Pla
ce o
f Enu
mer
atio
n)
114
Affo
rdab
le H
ousin
g De
liver
y O
ptio
ns P
aper
(FBU
RA)
Figu
re 4
-25:
Mot
or v
ehic
le o
wne
rshi
p fo
r se
lect
ed a
reas
, com
pare
d w
ith G
reat
er M
elbo
urne
, 201
1 –
prop
ortio
n of
hou
seho
lds
by n
umbe
r of
m
otor
veh
icle
s ow
ned
Sour
ce: J
SA 2
013,
cal
cula
ted
usin
g da
ta fr
om A
BS C
ensu
s of P
opul
atio
n an
d Ho
usin
g 20
11 (T
able
build
er, P
lace
of E
num
erat
ion)
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116 Affordable Housing Delivery Options Paper (FBURA)
5 Housing Stress 5.1 Overview of housing stress is relevant areas
91 A household living in Greater Melbourne that is earning less than 120% of the median gross household income for Greater Melbourne and that pays 30% or more of its gross household income in rental payments or mortgage repayments is said to be in housing stress.92 Note that, by definition, higher income households cannot be in housing stress.
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5.2 Projected Population forecasts and implications for housing stress
93 Department of Planning and Community Development (2012) Victoria in the Future 2012: Population and Household Projections 2011-2031 for Victoria and its Regions, p 2.94 Department of Planning and Community Development (2012) Victoria in the Future 2012: Population and Household Projections 2011-2031 for Victoria and its Regions, p 2.95 Department of Planning and Community Development (2012) Victoria in the Future 2012: Population and Household Projections 2011-2031 for Victoria and its Regions, p 3.96 Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham.97 Department of Planning and Community Development (2012) Victoria in the Future 2012: Population and Household Projections 2011-2031 for Victoria and its Regions, p 6.
118 Affordable Housing Delivery Options Paper (FBURA)
Figure 5-1: Housing Stress among Relevant Target Groups – City of Melbourne Source: JSA 2013, using data from ABS Census of Population and Housing 2011 (Tablebuilder)
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Total
Tenure Size99 Income
Total 8,000 Dwellings
Rental 55%
4,400 Dwellings
Smaller Dwellings 27.5%
2,200 Dwellings
Very Low Income 18.5%
1,500 Dwellings
Low Income 7%
600 Dwellings
Moderate Income 2%
100 Dwellings
Larger Dwellings 27.5%
2,200 Dwellings
Very Low Income 14.5%
1,200 Dwellings
Low Income 9%
700 Dwellings
Moderate Income 3%
300 Dwellings
Purchase 45%
3,600 Dwellings
Smaller Dwellings 17.5%
1,400 Dwellings
Very Low Income 5.5%
400 Dwellings
Low Income 6%
500 Dwellings
Moderate Income 6.5%
500 Dwellings
Larger Dwellings 27.5%
2,200 Dwellings
Very Low Income 7.5%
600 Dwellings
Low Income 9%
700 Dwellings
Moderate Income 11%
900 Dwellings Source: JSA 2013, calculated using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Enumeration)
99Smaller dwellings are those suitable for single person and couple households (typically studio and one bedroom), larger dwellings are those suitable for other households (typically two bedroom and greater).
120 Affordable Housing Delivery Options Paper (FBURA)
5.3 Three Scenarios as the basis of targets for Affordable Housing Created in FBURA
5.3.1 Overview
5.3.2 Greater Melbourne Scenario
98 Presentation by Places Victoria, 13 May 2013
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Table 5-2: Housing Targets based on Housing Stress Profile for City of Melbourne
Total
Tenure Size Income
Total 8,000 Dwellings
Rental 85%
6,800 Dwellings
Smaller Dwellings 52%
4,200 Dwellings
Very Low Income 34%
2,700 Dwellings
Low Income 11%
900 Dwellings Moderate Income
7% 600 Dwellings
Larger Dwellings 33%
2,600 Dwellings
Very Low Income 20%
1,600 Dwellings
Low Income 7%
550 Dwellings Moderate Income
6% 450 Dwellings
Purchase 15%
1,200 Dwellings
Smaller Dwellings 10%
800 Dwellings
Very Low Income 3%
250 Dwellings
Low Income 3%
250 Dwellings Moderate Income
4% 300 Dwellings
Larger Dwellings 5%
400 Dwellings
Very Low Income 2%
150 Dwellings
Low Income 1.5%
125 Dwellings Moderate Income
1.5% 125 Dwellings
Source: JSA 2013, calculated using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Enumeration)
122 Affordable Housing Delivery Options Paper (FBURA)
5.3.3 City of Melbourne Scenario
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Table 5-3: Housing Targets based on Housing Stress Profile for Main Commuting Areas (Brimbank (C), Hobsons Bay (C), Melton (S), Port Phillip (C) and Wyndham (C))
Total
Tenure Size Income
Total 8,000 Dwellings
Rental 50%
4,000 Dwellings
Smaller Dwellings 25%
2,000 Dwellings
Very Low Income 16%
1,300 Dwellings
Low Income 7%
550 Dwellings Moderate Income
2% 150 Dwellings
Larger Dwellings 25%
2,000 Dwellings
Very Low Income 15%
1,200 Dwellings
Low Income 8%
650 Dwellings Moderate Income
2% 150 Dwellings
Purchase 50%
4,000 Dwellings
Smaller Dwellings 20%
1,600 Dwellings
Very Low Income 6%
450 Dwellings
Low Income 7%
550 Dwellings Moderate Income
7% 600 Dwellings
Larger Dwellings 30%
2,400 Dwellings
Very Low Income 9%
700 Dwellings
Low Income 10%
800 Dwellings Moderate Income
11% 900 Dwellings
Source: JSA 2013, calculated using data from ABS Census of Population and Housing 2011 (Tablebuilder, Place of Enumeration)
124 Affordable Housing Delivery Options Paper (FBURA)
5.3.4 Scenario based on main areas from which commuters are drawn
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Table 6-1: Results of linear regression analysis – separate houses
Constant +$295,000 This is the base component of price and could be considered as representing land value.
Number of bedrooms +$168,000 Each bedroom adds this amount to the sales price.
Number of bathrooms +$101,000 Each bathroom adds this amount to the sales price.
Number of garages / parking spaces
+$138,000 Each garage/parking space adds this amount to the sales price. The high value reflects the premium placed on parking in the area.
Source: RP Data sales data, 12 months to March 2013, JSA analysis
Quartile analysis
Table 6-2: Quartile analysis – separate houses
One $640,500 $745,000 Sample less than ten
Two $674,500 $795,000
Three $900,000 $1,050,000
Four $1,112,000 $1,200,000 Sample less than thirty
Source: RP Data sales data, 12 months to March 2013, JSA analysis
126 Affordable Housing Delivery Options Paper (FBURA)
6 Assessment of current and likely future affordability
6.1 Overview
6.2 Analysis of Sales Data
6.2.1 Separate Houses Introduction
LRA results
100 RP Data.101 The 95% level of significance was used as the test variable.
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129
Table 6-3: Results of linear regression analysis – apartments
Area +$7,387 per m2 Note that care is required when extrapolating outside of the data range, particularly with regard to negative values below.
South Melbourne -$68,000 A locational discount is associated with South Melbourne by comparison with the study area.
Constant -$21,000 This constant is not statistically significant.
Source: RP Data sales data, 12 months to March 2013, JSA analysis
Apartment type
128 Affordable Housing Delivery Options Paper (FBURA)
6.2.2 Apartments Introduction
LRA results
Introduction
Apartment size
102 RP Data sales data, 12 months to March 2013.
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Southbank All $447,500 $540,000
One $378,000 $400,000
Two $489,750 $540,000
Three $622,500 $700,000
South Melbourne All $446,250 $521,000
One $366,500 $406,000 Sample less than thirty properties.
Two $512,000 $535,000
Three $551,250 $655,000 Sample less than ten properties.
Port Melbourne All $500,000 $620,000
One $402,500 $459,500
Two $526,500 $630,000
Three $868,750 $1,167,500 Sample less than ten properties.
Source: RP Data sales data, 12 months to March 2013, JSA analysis
130 Affordable Housing Delivery Options Paper (FBURA)
Table 6-4: Results of linear regression analysis – apartments Variable Impact on price Notes
Constant -$66,000 Care should be taken extrapolating outside the range of data.
Number of bedrooms +$197,000 Each bedroom adds this amount to the sales price.
Number of bathrooms +$167,000 Each bathroom adds this amount to the sales price.
Number of garages / parking spaces
+$81,000 Each garage/parking space adds this amount to the sales price. The high value reflects the premium placed on parking in the area.
Source: RP Data sales data, 12 months to March 2013, JSA analysis
Quartile analysis
Table 6-5: Results of quartile analysis – apartments
All All $460,000 $550,000
One $379,250 $407,250
Two $500,125 $560,000
Three $640,000 $850,000
Docklands All $453,600 $547,500
One $368,750 $415,000
Two $498,750 $570,500
Three $756,250 $957,500 Sample less than thirty properties.
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133
Quartile analysis
Results are set out in the table below.
Table 6-7: Results of quartile analysis – separate houses Number of bedrooms
First quartile weekly rent
Median weekly rent
Comment
One $408 $475 Sample less than ten properties.
Two $500 $555 Sample less than thirty properties.
Three $750 $875
More than three $1,150 $1,300 Sample less than thirty properties.
Source: Rental advertisements (snapshot at end March 2013), JSA analysis
6.3.2 Apartments Introduction
LRA results
104 www.realestate.com.au
132 Affordable Housing Delivery Options Paper (FBURA)
6.3 Analysis of Rental Data
6.3.1 Separate Houses Introduction
LRA results
Table 6-6: Results of linear regression analysis – separate houses Variable Impact on weekly rent Notes
Constant -$228
Number of bedrooms +$170 Each bedroom adds this amount to the rent.
Number of bathrooms +$284 Each bathroom adds this amount to the rent.
Number of garages / parking spaces
+$124 Each garage/parking space adds this amount to the rent.
Source: Rental advertisements (snapshot at end March 2013), JSA analysis
103 www.realestate.com.au
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Quartile analysis
Table 6-9: Results of quartile analysis – apartments
Suburb Number of bedrooms
First quartile weekly rent
Median weekly rent
Comment
All All $450 $550
One $400 $425
Two $520 $560
Three $749 $893
Docklands All $480 $588
One $410 $450
Two $540 $600
Three $840 $950
Southbank All $450 $530
One $400 $430
Two $520 $550
Three $699 $845
South Melbourne All $410 $510
One $375 $400
Two $513 $550
Three $695 $750 Sample less than 30
Port Melbourne All $472 $596
One $398 $440
Two $500 $596
Three $750 $878 Sample less than 30
Source: Rental advertisements (snapshot at end March 2013), JSA analysis
134 Affordable Housing Delivery Options Paper (FBURA)
Table 6-8: Results of linear regression analysis – apartments
Variable Impact on
weekly rent Notes
Constant -$35
Number of bedrooms +$135 Each bedroom adds this amount to the rent.
Number of bathrooms +$216 Each bathroom adds this amount to the rent.
Number of garages / parking spaces
+$43 Each garage/parking space adds this amount to the rent.
Southbank +$35 On average Southbank attracts higher rents.
South Melbourne -$48 On average South Melbourne is associated with slightly lower rents.
Source: Rental advertisements (snapshot at end March 2013), JSA analysis
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7 Delivery mechanisms for Affordable Housing
7.1 Principles and discussion
7.1.1 Affordability Target
7.1.2 Target Groups
7.1.3 Housing Affordability Benchmark
136 Affordable Housing Delivery Options Paper (FBURA)
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Proportion of gross household income spent on rent or mortgage payments
Very Low income
Low income
Moderate income
Rental Households
30% $204 $326 $490
35% $239 $381 $572
40% $273 $436 $654
Purchasing Households
30% $178,000 $284,000 $426,000
35% $208,000 $294,000 $497,000
40% $237,000 $303,000 $568,000
Source: JSA 2012, based on data from ABS (2011) Census indexed to December 2012 dollars, ANZ loan calculator
7.1.4 Affordable Housing in Perpetuity
7.1.5 Minimum dwelling sizes
138 Affordable Housing Delivery Options Paper (FBURA)
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41
Tabl
e 7-
3: D
etai
led
deve
lopm
ent s
cena
rios
Scen
ario
Es
timat
ed M
axim
um G
FA
Cons
truc
tion
Cost
per
Apa
rtm
ent
Sale
s Cos
t per
Ap
artm
ent
Expe
cted
Pro
fit
per A
part
men
t Ap
artm
ent
Affo
rdab
ility
Five
stor
ey d
evel
opm
ent,
with
lift
, 35
squa
re m
etre
ap
artm
ents
(stu
dio)
with
no
par
king
(Mon
tagu
e pr
ecin
ct)
1,00
0 m
2 X
0.9
(ass
umes
10%
of
area
is o
pen)
X 0
.8 (a
llow
20%
for
com
mon
are
a an
d ex
tern
al w
alls)
x
5 flo
ors =
3,6
00 m
2
Allo
win
g 35
m2 p
er a
part
men
t gi
ves 1
03 d
wel
lings
.
Land
Pur
chas
e
$3,5
00,0
00 /
103
= $3
4,00
0
Apar
tmen
t
35 m
2 X $
2,93
3106 /0
.8=
$128
,000
Allo
wan
ce fo
r lan
dsca
ping
1,0
00 m
2 X 0
.1 X
$12
3107 /
103
= $1
00
TOTA
L: $
162,
000
$170
,000
$1
70,0
00 -
$162
,000
=
$8,0
00.
(Rat
e of
retu
rn
abou
t 5%
).
Affo
rdab
le to
all
low
inco
me
hous
ehol
ds
Five
stor
ey d
evel
opm
ent,
with
lift
, 35
squa
re m
etre
ap
artm
ents
(stu
dio)
with
no
par
king
(oth
er
prec
inct
s)
1,00
0 m
2 X
0.9
(ass
umes
10%
of
area
is o
pen)
X 0
.8 (a
llow
20%
for
com
mon
are
a an
d ex
tern
al w
alls)
x
5 flo
ors =
3,6
00 m
2
Allo
win
g 35
m2 p
er a
part
men
t gi
ves 1
03 d
wel
lings
.
Land
Pur
chas
e
$1,0
00,0
00 /
103
= $1
0,00
0
Apar
tmen
t
35 m
2 X $
2,93
3 /0
.8=
$128
,000
Allo
wan
ce fo
r lan
dsca
ping
1,0
00 m
2 X 0
.1 X
$12
3 / 1
03 =
$10
0
TOTA
L: $
138,
000
$170
,000
$1
70,0
00 -
$138
,000
=
$32,
000.
(Rat
e of
retu
rn
abou
t 23%
).
Affo
rdab
le to
all
low
inco
me
hous
ehol
ds
106 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
bas
ic st
anda
rd fi
nish
apa
rtm
ents
, and
allo
win
g 40
% fo
r pro
fit, o
verh
eads
, GST
etc
.10
7 Raw
linso
ns A
ustr
alia
n Co
nstr
uctio
n Ha
ndbo
ok 2
012,
usin
g ra
tes f
or o
pen
park
ing,
and
allo
win
g 40
% fo
r pro
fit, o
verh
eads
, GST
etc
.
140 Affordable Housing Delivery Options Paper (FBURA)
Table 7-2: Rents and prices for minimum dwelling sizes Dwelling size Rent (No parking space) Purchase price
Studio $270 $170,000
One bedroom $270 $280,000
Two bedroom $400 $428,000
Three bedroom $540 $613,000
Source: JSA calculation based on results of linear regression analysis
7.1.6 Mandating dwelling type and size Purchase Market
105 MacroplanDimasi, FBURA Real Estate Market Assessment, quotes values of $800-1,000 for Sandridge, Wirraway and Lorimer with higher values of $3,000-$3,500 reported for Montague.
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Scen
ario
Es
timat
ed M
axim
um G
FA
Cons
truc
tion
Cost
per
Apa
rtm
ent
Sale
s Cos
t per
Ap
artm
ent
Expe
cted
Pro
fit
per A
part
men
t Ap
artm
ent
Affo
rdab
ility
Five
stor
ey d
evel
opm
ent,
with
lift
, 70
squa
re m
etre
ap
artm
ents
(tw
o be
droo
m) w
ith n
o pa
rkin
g (M
onta
gue
prec
inct
)
1,00
0 m
2 X
0.9
(ass
umes
10%
of
area
is o
pen)
X 0
.8 (a
llow
20%
for
com
mon
are
a an
d ex
tern
al w
alls)
x
5 flo
ors =
3,6
00 m
2
Allo
win
g 70
m2 p
er a
part
men
t gi
ves 5
1 dw
ellin
gs.
Land
Pur
chas
e
$3,5
00,0
00 /
51 =
$69
,000
Apar
tmen
t
70 m
2 X $
2,93
3 /0
.8=
$257
,000
Allo
wan
ce fo
r lan
dsca
ping
1,0
00 m
2 X 0
.1 X
$12
3 / 5
1 =
$241
TOTA
L: $
326,
000
$428
,000
$4
28,0
00 -
$326
,000
=
$102
,000
.
(Rat
e of
retu
rn
abou
t 31%
).
Just
affo
rdab
le to
m
oder
ate
inco
me
hous
ehol
ds
Five
stor
ey d
evel
opm
ent,
with
lift
, 70
squa
re m
etre
ap
artm
ents
(tw
o be
droo
m) w
ith n
o pa
rkin
g (o
ther
pre
cinc
ts)
1,00
0 m
2 X
0.9
(ass
umes
10%
of
area
is o
pen)
X 0
.8 (a
llow
20%
for
com
mon
are
a an
d ex
tern
al w
alls)
x
5 flo
ors =
3,6
00 m
2
Allo
win
g 70
m2 p
er a
part
men
t gi
ves 5
1 dw
ellin
gs.
Land
Pur
chas
e
$1,0
00,0
00 /
51 =
$20
,000
Apar
tmen
t
70 m
2 X $
2,93
3 /0
.8=
$257
,000
Allo
wan
ce fo
r lan
dsca
ping
1,0
00 m
2 X 0
.1 X
$12
3 / 5
1 =
$241
TOTA
L: $
277,
000
$428
,000
$4
28,0
00 -
$277
,000
=
$151
,000
.
(Rat
e of
retu
rn
abou
t 55%
).
Just
affo
rdab
le to
m
oder
ate
inco
me
hous
ehol
ds
Sour
ce: J
SA c
alcu
latio
n ba
sed
on re
fere
nces
cite
d.
142
Affo
rdab
le H
ousin
g De
liver
y O
ptio
ns P
aper
(FBU
RA)
Scen
ario
Es
timat
ed M
axim
um G
FA
Cons
truc
tion
Cost
per
Apa
rtm
ent
Sale
s Cos
t per
Ap
artm
ent
Expe
cted
Pro
fit
per A
part
men
t Ap
artm
ent
Affo
rdab
ility
Five
stor
ey d
evel
opm
ent,
with
lift
, 50
squa
re m
etre
ap
artm
ents
(one
bed
room
) w
ith n
o pa
rkin
g (M
onta
gue
prec
inct
)
1,00
0 m
2 X
0.9
(ass
umes
10%
of
area
is o
pen)
X 0
.8 (a
llow
20%
for
com
mon
are
a an
d ex
tern
al w
alls)
x
5 flo
ors =
3,6
00 m
2
Allo
win
g 50
m2 p
er a
part
men
t gi
ves 7
2 dw
ellin
gs.
Land
Pur
chas
e
$3,5
00,0
00 /
72 =
$49
,000
Apar
tmen
t
50 m
2 X $
2,93
3 /0
.8=
$183
,000
Allo
wan
ce fo
r lan
dsca
ping
1,0
00 m
2 X 0
.1 X
$12
3 / 7
2 =
$200
TOTA
L: $
232,
000
$280
,000
$2
80,0
00 -
$232
,000
=
$48,
000.
(Rat
e of
retu
rn
abou
t 21%
).
Affo
rdab
le to
all
mod
erat
e in
com
e ho
useh
olds
Five
stor
ey d
evel
opm
ent,
with
lift
, 50
squa
re m
etre
ap
artm
ents
(one
bed
room
) w
ith n
o pa
rkin
g (o
ther
pr
ecin
cts)
1,00
0 m
2 X
0.9
(ass
umes
10%
of
area
is o
pen)
X 0
.8 (a
llow
20%
for
com
mon
are
a an
d ex
tern
al w
alls)
x
5 flo
ors =
3,6
00 m
2
Allo
win
g 50
m2 p
er a
part
men
t gi
ves 7
2 dw
ellin
gs.
Land
Pur
chas
e
$1,0
00,0
00 /
72 =
$14
,000
Apar
tmen
t
50 m
2 X $
2,93
3 /0
.8=
$183
,000
Allo
wan
ce fo
r lan
dsca
ping
1,0
00 m
2 X 0
.1 X
$12
3 / 7
2 =
$200
TOTA
L: $
197,
000
$280
,000
$2
80,0
00 -
$197
,000
=
$83,
000.
(Rat
e of
retu
rn
abou
t 42%
).
Affo
rdab
le to
all
mod
erat
e in
com
e ho
useh
olds
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
145
108 RPdata and JSA analysis109 Using rates from Rawlinsons Australian Construction Handbook 2012.110 Using rental advertisement data from www.realcommercial.com.au for South Melbourne, accessed 3 May 2013.
144 Affordable Housing Delivery Options Paper (FBURA)
7.1.7 Benefit Capture Feasibility and quantum
Table 7-4: Summary of development scenarios
Source: JSA calculation
July 2013 - CONFIDENTIAL
vo
lu
me
3
1
47
Deta
iled
mod
ellin
g
Tabl
e 7-
6: D
etai
led
deve
lopm
ent s
cena
rios
Scen
ario
Es
timat
ed M
axim
um G
FA
Cons
truc
tion
Cost
per
Dw
ellin
g Sa
les C
ost p
er
Dwel
ling
Expe
cted
Pro
fit
per D
wel
ling
Bene
fit c
aptu
re
Five
stor
ey d
evel
opm
ent,
with
lift
, ave
rage
ap
artm
ent (
88 m
2 in
clud
ing
gara
ge, t
wo
bedr
oom
s,
one
bath
room
)
(Mon
tagu
e pr
ecin
ct)
1,00
0 m
2 X
0.9
(ass
umes
10%
of
area
is o
pen)
X 0
.8 (a
llow
20%
for
com
mon
are
a an
d ex
tern
al w
alls)
x
5 flo
ors =
3,6
00 m
2
Allo
win
g 88
m2 p
er a
part
men
t gi
ves 4
1 dw
ellin
gs.
Land
Pur
chas
e
$3,5
00,0
00 /
41 =
$85
,000
Apar
tmen
t
62 m
2 X $
3,16
4113 /0
.8=
$245
,000
Gara
ge
$21,
00011
4
Balc
ony
8m2 X
$1,
09211
5 = $
9,00
0
Allo
wan
ce fo
r lan
dsca
ping
1,0
00 m
2 X 0
.1 X
$12
3116 /
41 =
$30
0
TOTA
L: $
360,
000
$7,3
87 X
88
- $6
8,00
0 - $
21,0
00 =
$5
61,0
00
$561
,000
- $3
60,0
00 =
$2
01,0
00.
(Rat
e of
retu
rn
abou
t 56%
).
(Pro
fit p
er m
2 of
land
is $
201,
000
X 41
/1,0
00 =
$8
,241
)
($56
1,00
0 -
$360
,000
X 1
.1) X
0.
5 =
$83,
000.
This
is eq
uiva
lent
to
one
apa
rtm
ent
in se
ven.
Five
stor
ey d
evel
opm
ent,
with
lift
, ave
rage
ap
artm
ent (
88 m
2 in
clud
ing
1,00
0 m
2 X
0.9
(ass
umes
10%
of
area
is o
pen)
X 0
.8 (a
llow
20%
for
com
mon
are
a an
d ex
tern
al w
alls)
Land
Pur
chas
e
$1,0
00,0
00 /
41 =
$24
,000
$7,3
87 X
88
- $6
8,00
0 - $
21,0
00 =
$5
61,0
00 -
$299
,000
=
($56
1,00
0 -
$299
,000
X 1
.1) X
113 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
med
ium
stan
dard
fini
sh a
part
men
ts, a
nd a
llow
ing
40%
for p
rofit
, ove
rhea
ds, G
ST e
tc.
114 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
par
king
stat
ions
, and
allo
win
g 40
% fo
r pro
fit, o
verh
eads
, GST
etc
.11
5 Raw
linso
ns A
ustr
alia
n Co
nstr
uctio
n Ha
ndbo
ok 2
012,
usin
g ra
tes f
or m
ediu
m st
anda
rd u
nit b
alco
nies
, and
allo
win
g 40
% fo
r pro
fit, o
verh
eads
, GST
etc
.11
6 Raw
linso
ns A
ustr
alia
n Co
nstr
uctio
n Ha
ndbo
ok 2
012,
usin
g ra
tes f
or o
pen
park
ing,
and
allo
win
g 40
% fo
r pro
fit, o
verh
eads
, GST
etc
.
146 Affordable Housing Delivery Options Paper (FBURA)
Table 7-5: Assessment of commercial uses for benefit capture
Offices (low rise two stories, finished)
$300 $255 $2,576 10%
Offices (4-7 stories, finished)
$300 $255 $3,164 8%
Offices (high rise, finished)
$300 $255 $4,158 6%
Retail (Shopping Centre – medium standard, two storey)
$616 (Using all data)
$524 $2,961 18%
Retail (Shopping Centre – medium standard, two storey)
$548 (Excluding data from regional shopping centre)
$411 $2,961 14%
Warehouses (Multi Storey)
$223 $190 $2,058 9%
Source: JSA calculation
111 Allowing 15% for rates, maintenance, depreciation etc.112 Using rates from Rawlinsons Australian Construction Handbook 2012 and allowing 40% for builders profit, GST, overheads etc.
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
49
Scen
ario
Es
timat
ed M
axim
um G
FA
Cons
truc
tion
Cost
per
Dw
ellin
g Sa
les C
ost p
er
Dwel
ling
Expe
cted
Pro
fit
per D
wel
ling
Bene
fit c
aptu
re
120
m2 X
$12
3119 =
$15
,000
TOTA
L: $
958,
000
Tow
n ho
use
deve
lopm
ent,
with
lift
, ave
rage
dw
ellin
g (b
lock
size
186
m2
incl
udin
g ga
rage
, thr
ee
bedr
oom
s, o
ne b
athr
oom
)
(oth
er p
reci
ncts
)
Allo
win
g ef
fect
ive
plot
ratio
of
0.5,
dw
ellin
g ar
ea =
93
m2 w
ith
sepa
rate
gar
age
of 1
8 m
2 .
Land
Pur
chas
e
186
m2 X
$1,
000
= $1
86,0
00
Dwel
ling
93 m
2 X $
2,93
3120 =
$27
3,00
0
Gara
ge
18m
2 X
$1,0
4312
1 = $
19,0
00
Allo
wan
ce fo
r lan
dsca
ping
120
m2 X
$12
3122 =
$15
,000
TOTA
L: $
493,
000
$295
,000
+ $
168,
000
X 3
+ $1
01,0
00 X
1 +
$1
38,0
00 X
1 =
$1
,039
,000
$1,0
39,0
00 -
$493
,000
=
$546
,000
.
(Rat
e of
retu
rn
abou
t 110
%).
(Pro
fit p
er m
2 of
land
is $
546,
000
/1
86 =
$2,
935)
($1,
039,
000
- $4
93,0
00 X
1.1
) X
0.5
= $2
48,0
00.
This
is eq
uiva
lent
to
one
dw
ellin
g in
fo
ur.
Sour
ce: J
SA c
alcu
latio
n ba
sed
on re
fere
nces
cite
d
119 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
ope
n pa
rkin
g, a
nd a
llow
ing
40%
for p
rofit
, ove
rhea
ds, G
ST e
tc.
120 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
hig
h st
anda
rd to
wn
hous
es, a
nd a
llow
ing
40%
for p
rofit
, ove
rhea
ds, G
ST e
tc.
121 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
bric
k ga
rage
s, a
nd a
llow
ing
40%
for p
rofit
, ove
rhea
ds, G
ST e
tc.
122 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
ope
n pa
rkin
g, a
nd a
llow
ing
40%
for p
rofit
, ove
rhea
ds, G
ST e
tc.
148
Affo
rdab
le H
ousin
g De
liver
y O
ptio
ns P
aper
(FBU
RA)
Scen
ario
Es
timat
ed M
axim
um G
FA
Cons
truc
tion
Cost
per
Dw
ellin
g Sa
les C
ost p
er
Dwel
ling
Expe
cted
Pro
fit
per D
wel
ling
Bene
fit c
aptu
re
gara
ge, t
wo
bedr
oom
s,
one
bath
room
)
(oth
er p
reci
ncts
)
x 5
floor
s = 3
,600
m2
Allo
win
g 88
m2 p
er a
part
men
t gi
ves 4
1 dw
ellin
gs.
Apar
tmen
t
62 m
2 X $
3,16
4 /0
.8=
$245
,000
Gara
ge
$21,
000
Balc
ony
8m2 X
$1,
092
= $9
,000
Allo
wan
ce fo
r lan
dsca
ping
1,0
00 m
2 X 0
.1 X
$12
3 / 4
1 =
$300
TOTA
L: $
299,
000
$561
,000
$2
62,0
00.
(Rat
e of
retu
rn
abou
t 87%
).
(Pro
fit p
er m
2 of
land
is $
262,
000
X 41
/1,0
00 =
$1
0,74
2)
0.5
= $1
16,0
00.
This
is eq
uiva
lent
to
one
apa
rtm
ent
in fi
ve.
Tow
n ho
use
deve
lopm
ent,
with
lift
, ave
rage
dw
ellin
g (b
lock
size
186
m2
incl
udin
g ga
rage
, thr
ee
bedr
oom
s, o
ne b
athr
oom
)
(Mon
tagu
e pr
ecin
ct)
Allo
win
g ef
fect
ive
plot
ratio
of
0.5,
dw
ellin
g ar
ea =
93
m2 w
ith
sepa
rate
gar
age
of 1
8 m
2 .
Land
Pur
chas
e
186
m2 X
$35
00 =
$65
1,00
0
Dwel
ling
93 m
2 X $
2,93
3117 =
$27
3,00
0
Gara
ge
18m
2 X
$1,0
4311
8 = $
19,0
00
Allo
wan
ce fo
r lan
dsca
ping
$295
,000
+ $
168,
000
X 3
+ $1
01,0
00 X
1 +
$1
38,0
00 X
1 =
$1
,039
,000
$1,0
39,0
00 -
$958
,000
=
$81,
000.
(Rat
e of
retu
rn
abou
t 8%
).
(Pro
fit p
er m
2 of
land
is $
81,0
00
/186
= $
435)
Not
app
licab
le
117 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
hig
h st
anda
rd to
wn
hous
es, a
nd a
llow
ing
40%
for p
rofit
, ove
rhea
ds, G
ST e
tc.
118 R
awlin
sons
Aus
tral
ian
Cons
truc
tion
Hand
book
201
2, u
sing
rate
s for
bric
k ga
rage
s, a
nd a
llow
ing
40%
for p
rofit
, ove
rhea
ds, G
ST e
tc.
July 2013 - CONFIDENTIAL
vo
lu
me
3
151
124 The rest of the money goes towards interest payments.125$10,000 per year over ten years at 7%.
150 Affordable Housing Delivery Options Paper (FBURA)
Benefit capture delivery models
Introduction
Affordable Purchase Housing
Affordable Rental Housing
123 Using minimum dwelling sizes from NSW SEPP Affordable Rental Housing
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
53
Tabl
e 7-
7: P
ublic
ly o
wne
d la
nd w
ithin
FBU
RA p
reci
ncts
Num
ber
Addr
ess
Curr
ent U
se
Acce
ss to
pr
opos
ed p
ublic
tr
ansp
ort l
inks
Acce
ss to
se
rvic
es
Lot s
ize
Prob
able
dw
ellin
g yi
eld
(ass
umin
g te
n st
orey
dev
elop
men
t)
Rest
rain
ts
(H
erita
ge, F
lood
pr
one,
co
ntam
inat
ed,
fire
pron
e)
Com
men
ts
1 Co
rner
W
illia
mst
own
and
Proh
asky
Ope
n Sp
ace
with
so
me
land
scap
ing
Ow
ners
hip?
2-30
0 m
etre
s fro
m
prop
osed
ligh
t rai
l in
Plum
mer
stre
et
400
met
res f
rom
bu
ses a
t cor
ner o
f W
illia
mst
own
and
Salm
on
3.0
kms t
o sh
ops i
n Ba
y St
reet
11,5
50m
2 11
,550
× 0
.45
×
(1
0 ÷
(66
÷ 0.
8)) =
630
N
ot k
now
n O
pen
spac
e lik
ely
to b
e in
sh
ort s
uppl
y in
FBU
RA
2 JL
Mur
phy
Rese
rve
Corn
er
Will
iam
stow
n an
d Gr
aham
Ope
n Sp
ace,
Sp
orts
Fie
lds,
Co
unci
l Dep
ot
Adja
cent
to p
ropo
sed
light
rail
in P
lum
mer
st
reet
Adja
cent
to b
uses
in
Will
iam
stow
n Ro
ad
1.5
kms t
o sh
ops i
n Ba
y St
reet
Depo
t:
9,10
0m2
9,10
0 ×
0.45
×
(1
0 ÷
(66
÷ 0.
8)) =
500
N
ot k
now
n Sp
orts
fiel
ds e
tc li
kely
to b
e at
a p
rem
ium
in F
BURA
The
depo
t site
is m
ostly
car
pa
rk a
nd is
und
erut
ilise
d
3 Co
rner
W
illia
mst
own
and
Grah
am
Fire
Sta
tion
Adja
cent
to p
ropo
sed
light
rail
in P
lum
mer
st
reet
Adja
cent
to b
uses
in
Will
iam
stow
n Ro
ad
1.5
kms t
o sh
ops i
n Ba
y St
reet
1,80
0m2
1,80
0 ×
0.45
×
(1
0 ÷
(66
÷ 0.
8)) =
100
Lim
ited
yiel
d
Herit
age
(?)
Poss
ible
inte
grat
ed
deve
lopm
ent?
152 Affordable Housing Delivery Options Paper (FBURA)
7.1.8 Recipient sites for benefit capture
The estimated construction cost (including builder profit) of a two bedroom apartment in a five storey lifted development is $277,000, compared with a likely spot purchase price of $428,000. On this basis, a levy of two apartments, taken as cash, can be used to construct three similar apartments on public land.
July 2013 - CONFIDENTIAL
vo
lu
me
3
1
55
Num
ber
Addr
ess
Curr
ent U
se
Acce
ss to
pr
opos
ed p
ublic
tr
ansp
ort l
inks
Acce
ss to
se
rvic
es
Lot s
ize
Prob
able
dw
ellin
g yi
eld
(ass
umin
g te
n st
orey
dev
elop
men
t)
Rest
rain
ts
(H
erita
ge, F
lood
pr
one,
co
ntam
inat
ed,
fire
pron
e)
Com
men
ts
7 Co
rner
Bo
unda
ry a
nd
Whi
te
Garb
age
Tran
sfer
st
atio
n 30
0 m
etre
s to
prop
osed
ligh
t rai
l in
Ingl
es st
reet
200
met
res t
o bu
ses
in N
orm
anby
Roa
d
1.5
kms t
o sh
ops i
n Ba
y St
reet
and
nea
r So
uth
Mel
bour
ne
Mar
kets
N
ot su
itabl
e
Exist
ing
uses
wou
ld n
eed
to
be re
loca
ted
8 Co
rner
Bo
unda
ry a
nd
Fenn
ell
Ambu
lanc
e Se
rvic
e 70
0 m
etre
s to
prop
osed
ligh
t rai
l in
Ingl
es st
reet
600
met
res t
o bu
ses
in N
orm
anby
Roa
d
300
met
res t
o bu
ses
in L
orim
er S
tree
t (p
edes
tria
n ac
cess
?)
2.0
kms t
o sh
ops i
n Ba
y St
reet
and
nea
r So
uth
Mel
bour
ne
Mar
kets
N
ot su
itabl
e
Exist
ing
use
unlik
ely
to b
e re
loca
ted?
9 Co
rner
Gl
adst
one
and
Mon
tagu
e
Seco
ndar
y Co
llege
100
met
res t
o tr
am
stop
200
met
res t
o bu
ses
in N
orm
anby
Roa
d
700
met
res t
o sh
ops n
ear
Sout
h M
elbo
urne
M
arke
ts
N
ot su
itabl
e
Exist
ing
use
unlik
ely
to b
e re
loca
ted?
154
Affo
rdab
le H
ousin
g De
liver
y O
ptio
ns P
aper
(FBU
RA)
Num
ber
Addr
ess
Curr
ent U
se
Acce
ss to
pr
opos
ed p
ublic
tr
ansp
ort l
inks
Acce
ss to
se
rvic
es
Lot s
ize
Prob
able
dw
ellin
g yi
eld
(ass
umin
g te
n st
orey
dev
elop
men
t)
Rest
rain
ts
(H
erita
ge, F
lood
pr
one,
co
ntam
inat
ed,
fire
pron
e)
Com
men
ts
4 Co
rner
W
illia
mst
own
and
Bert
ie
Aust
post
sort
ing
cent
re
300
met
res t
o pr
opos
ed li
ght r
ail i
n In
gles
stre
et
Adja
cent
to b
uses
in
Will
iam
stow
n Ro
ad
1.2
kms t
o sh
ops i
n Ba
y St
reet
Carp
ark:
5,00
0m2
5,00
0 ×
0.45
×
(1
0 ÷
(66
÷ 0.
8)) =
270
A go
od p
art o
f the
site
is a
n at
gra
de p
arki
ng a
rea.
Ho
usin
g co
uld
be d
evel
oped
on
this
area
and
par
king
le
vels
mai
ntai
ned
5 Co
rner
Ingl
es &
W
illia
mst
own
Port
Mel
bour
ne
Cric
ket G
roun
d Ad
jace
nt to
pro
pose
d lig
ht ra
il in
Ingl
es
stre
et
Adja
cent
to b
uses
in
Will
iam
stow
n Ro
ad
1.3
kms t
o sh
ops i
n Ba
y St
reet
and
ar
ound
Sou
th
Mel
bour
ne
Mar
ket
N
ot su
itabl
e
Spor
ts fi
elds
etc
like
ly to
be
at a
pre
miu
m in
FBU
RA.
Ther
e is
curr
ently
rest
ricte
d ac
cess
to th
e cr
icke
t gro
und,
an
d it
does
not
app
ear t
o be
pu
blic
ope
n sp
ace
6 Co
rner
Bo
unda
ry a
nd
Gove
rnor
Port
Phi
llip
Coun
cil W
orks
De
pot
200
met
res t
o pr
opos
ed li
ght r
ail i
n In
gles
stre
et
100
met
res t
o bu
ses
in N
orm
anby
Roa
d
1.5
kms t
o sh
ops i
n Ba
y St
reet
and
nea
r So
uth
Mel
bour
ne
Mar
kets
N
ot su
itabl
e
Exist
ing
uses
wou
ld n
eed
to
be re
loca
ted
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
57
Tabl
e 7-
8: L
arge
r par
cels
of D
HS la
nd in
adj
acen
t are
as
Num
ber
Addr
ess
Curr
ent U
se
Acce
ss to
prop
osed
pub
lic
tran
spor
t lin
ks
Acce
ss to
serv
ices
Rest
rain
ts
(H
erita
ge, F
lood
pro
ne,
cont
amin
ated
, fire
pro
ne,
zoni
ng)
Com
men
ts
1 Ar
ea a
roun
d Ho
we
Para
de
Sepa
rate
hou
sing
(sem
i-det
ache
d)
1,00
0 m
etre
s fro
m
exist
ing
light
rail
stop
500
met
res f
rom
bus
es in
W
illia
mst
own
Road
2.0
kms t
o sh
ops i
n Ba
y St
reet
Ch
eck
herit
age
zoni
ng
Opp
ortu
nity
to in
crea
se
dens
ity
2 Ar
ea n
ear G
raha
m
and
Prin
ces
Two
stor
y to
wnh
ouse
s 30
0 m
etre
s to
exist
ing
light
rail
stop
45
0 m
etre
s to
shop
s in
Bay
Str
eet
Po
ssib
le re
deve
lopm
ent s
ite
for m
ulti-
stor
y ap
artm
ents
3 Ba
rak
Esta
te
Two
stor
y to
wnh
ouse
s 80
0 m
etre
s to
exist
ing
light
rail
1.3
kms
to sh
ops i
n Ba
y St
reet
Site
cov
erag
e re
lativ
ely
low
co
mpa
red
to su
rrou
ndin
g us
es
4 Ba
th P
lace
Fo
ur st
ory
high
den
sity
apar
tmen
ts
300
met
res t
o ex
istin
g lig
ht ra
il st
op
300
met
res t
o sh
ops
in B
ay S
tree
t
Apar
tmen
ts a
ppea
r qui
te o
ld
5 Ar
ea a
roun
d Co
vent
ry S
tree
t Tw
o st
ory
tow
nhou
ses
500
met
res t
o ex
istin
g lig
ht ra
il st
op
600
met
res t
o sh
ops
arou
nd S
outh
M
elbo
urne
Mar
ket
N
ew d
evel
opm
ent
Sour
ce: J
SA si
te e
valu
atio
n
156
Affo
rdab
le H
ousin
g De
liver
y O
ptio
ns P
aper
(FBU
RA)
Num
ber
Addr
ess
Curr
ent U
se
Acce
ss to
pr
opos
ed p
ublic
tr
ansp
ort l
inks
Acce
ss to
se
rvic
es
Lot s
ize
Prob
able
dw
ellin
g yi
eld
(ass
umin
g te
n st
orey
dev
elop
men
t)
Rest
rain
ts
(H
erita
ge, F
lood
pr
one,
co
ntam
inat
ed,
fire
pron
e)
Com
men
ts
10
Doug
las a
nd
Ferr
rars
O
ld M
elbo
urne
Th
eatr
e Co
mpa
ny
Site
200
met
res t
o tr
am
stop
650
met
res t
o bu
ses
in N
orm
anby
Roa
d
500
met
res t
o sh
ops n
ear
Sout
h M
elbo
urne
M
arke
ts
N
ot su
itabl
e
Prop
osed
scho
ol si
te –
cu
rren
t ow
ners
hip?
11
Doug
las a
nd
Ferr
rars
Ap
pear
s to
be
indu
stria
l lan
d 20
0 m
etre
s to
tram
st
op
650
met
res t
o bu
ses
in N
orm
anby
Roa
d
500
met
res t
o sh
ops n
ear
Sout
h M
elbo
urne
M
arke
ts
N
ot su
itabl
e
Sour
ce: J
SA si
te e
valu
atio
n
July 2013 - CONFIDENTIAL
vo
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me
3
159
7.1.11 Very Low Income Households
7.1.12 Very Low and Low Income Purchasing Households
7.1.13 Economic Efficiency
http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/22/2/11/1 NAB borrowing power calculator, noting that results are an approximate guide only. This concept is a technical term whereby the maximum utility is obtained from the available resources. It is discussed more broadly below. Relative efficiency can be empirically observed through the operation of markets and hence is measurable.Defined as fairness or distribution of resources. The meaning of the notion itself is contested, for example does equity mean equality of opportunity or equality of outcome? The two approaches have quite different policy implications. See for example Friedman L, (2002), The Microeconomics of Public Policy Analysis, Princeton, Princeton University Press, page 58.Ibid, page 66.
158 Affordable Housing Delivery Options Paper (FBURA)
7.1.9 Occupier share in purchase schemes
7.1.10 Discount Market Rent
Table 7-9: Values adopted for modelling
Source: JSA calculation
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
161
Ibid, Figure 5.Department of Sustainability and Environment (2013) Victorian Property Sales Report – September 2012 quarter, pp 2-4, taking a simple average of reported medians for groups of suburbs.Refer Appendix ARefer Appendix A
160 Affordable Housing Delivery Options Paper (FBURA)
7.1.14 Australian Housing Market Context
See for example Cox, W. & Pavletich, H. (2013) 9th Annual Demographia International Housing Affordability Survey, page 1. “In every market where there has been a sustained and significant increase in the Median Multiple, there has also been the implementation of more restrictive land use policy, which is referred to in this survey as "urban containment". Berry, M. and Dalton, T. (2004) Housing Prices and Policy Dilemmas: A Peculiarly Australian Problem, Urban Policy and Research, 22:1 69-91. The authors identify nine factors affecting housing affordability including interest rates; investment demand; economic climate; financial deregulation and innovation; land supply and the land use system; government taxes, levies and charges; demography; economic growth; and wealth levels and distribution.Stapeldon, N. (2010) A History of Housing Prices in Australia 1880-2010, Australian School of Business, University of NSW, discussion paper 2010/18, figure 1.
July 2013 - CONFIDENTIAL
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163
7.3 Options
7.3.1 ‘Business as Usual’ Option
162 Affordable Housing Delivery Options Paper (FBURA)
7.2 Assumptions
7.2.1 Overview
Refer Appendix A
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
65
hous
ehol
ds
Very
Low
inco
me
fam
ily a
nd g
roup
ho
useh
olds
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Low
inco
me
singl
e an
d co
uple
ho
useh
olds
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Low
inco
me
fam
ily a
nd g
roup
ho
useh
olds
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Mod
erat
e in
com
e sin
gle
and
coup
le
hous
ehol
ds
10%
of h
ouse
hold
s can
pur
chas
e a
one
bedr
oom
apa
rtm
ent i
n FB
URA
40
% o
f hou
seho
lds c
an p
urch
ase
a on
e be
droo
m a
part
men
t 60
% o
f hou
seho
lds c
an p
urch
ase
a on
e be
droo
m a
part
men
t
Mod
erat
e in
com
e fa
mily
hou
seho
lds
Excl
uded
from
FBU
RA
Excl
uded
from
FBU
RA
3% o
f hou
seho
lds c
an p
urch
ase
a tw
o be
droo
m a
part
men
t in
FBU
RA
Sour
ce: J
SA c
alcu
latio
n
164
Affo
rdab
le H
ousin
g De
liver
y O
ptio
ns P
aper
(FBU
RA)
Very
Low
inco
me
singl
e an
d co
uple
re
ntin
g ho
useh
olds
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Very
Low
inco
me
fam
ily a
nd g
roup
re
ntin
g ho
useh
olds
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Low
inco
me
singl
e an
d co
uple
re
ntin
g ho
useh
olds
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
10
% o
f hou
seho
lds c
an li
ve in
FBU
RA
Low
inco
me
fam
ily a
nd g
roup
rent
ing
hous
ehol
ds
Excl
uded
from
FBU
RA
Excl
uded
from
FBU
RA
Excl
uded
from
FBU
RA
Mod
erat
e in
com
e sin
gle
and
coup
le
rent
ing
hous
ehol
ds
50%
of h
ouse
hold
s can
live
in F
BURA
80
% o
f hou
seho
lds c
an li
ve in
FBU
RA
All h
ouse
hold
s can
live
in F
BURA
Mod
erat
e in
com
e fa
mily
rent
ing
hous
ehol
ds
Excl
uded
from
FBU
RA
5% o
f hou
seho
lds c
an re
nt a
two
bedr
oom
ap
artm
ent o
r hou
se in
FBU
RA
40%
of h
ouse
hold
s can
rent
a tw
o be
droo
m
apar
tmen
t or h
ouse
in F
BURA
Purc
hasi
ng H
ouse
hold
s
Very
Low
inco
me
singl
e an
d co
uple
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Ex
clud
ed fr
om F
BURA
Med
ian
data
has
bee
n us
ed a
s it i
s mor
e lik
ely
to re
pres
ent n
ewly
con
stru
cted
stoc
k
July 2013 - CONFIDENTIAL
vo
lu
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3
1
67
30%
hou
sing
stre
ss c
riter
ion
Very
Low
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds
NA
NA
NA
NA
All
hous
ehol
ds
Very
Low
inco
me
fam
ily
and
grou
p re
ntin
g ho
useh
olds
N
A N
A N
A N
A Al
l ho
useh
olds
Low
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds N
A O
ne b
edro
om o
r stu
dio
apar
tmen
t affo
rdab
le to
50
% o
f hou
seho
lds
NA
One
bed
room
or s
tudi
o ap
artm
ent
affo
rdab
le to
90%
of h
ouse
hold
s N
A
Low
inco
me
fam
ily a
nd
grou
p re
ntin
g ho
useh
olds
N
A N
A N
A N
A N
A
Mod
erat
e in
com
e sin
gle
and
coup
le re
ntin
g ho
useh
olds
50%
of h
ouse
hold
s can
live
in
FBU
RA
One
bed
room
or s
tudi
o ap
artm
ent a
fford
able
to a
ll ho
useh
olds
N
A N
A N
A
Mod
erat
e in
com
e fa
mily
re
ntin
g ho
useh
olds
N
A Tw
o be
droo
m a
part
men
t af
ford
able
to 5
0% o
f ho
useh
olds
N
A Tw
o be
droo
m a
part
men
t affo
rdab
le to
all
hous
ehol
ds a
nd th
ree
bedr
oom
apa
rtm
ent
affo
rdab
le to
40%
of h
ouse
hold
s N
A
166 Affordable Housing Delivery Options Paper (FBURA)
7.3.2 Assessment of affordability of different delivery methods
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
69
35%
hou
sing
stre
ss c
riter
ion
Very
Low
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds
NA
NA
NA
One
bed
room
or s
tudi
o ap
artm
ent a
fford
able
to 1
0% o
f ho
useh
olds
All
hous
ehol
ds
Very
Low
inco
me
fam
ily a
nd
grou
p re
ntin
g ho
useh
olds
N
A N
A N
A N
A Al
l ho
useh
olds
Low
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds
NA
One
bed
room
apa
rtm
ent a
fford
able
to
80%
of h
ouse
hold
s N
A O
ne b
edro
om a
part
men
t af
ford
able
to a
ll ho
useh
olds
N
A
Low
inco
me
fam
ily a
nd
grou
p re
ntin
g ho
useh
olds
N
A N
A N
A Tw
o be
droo
m a
part
men
t af
ford
able
to 4
0% o
f hou
seho
lds
NA
Mod
erat
e in
com
e sin
gle
and
coup
le re
ntin
g ho
useh
olds
80%
of h
ouse
hold
s can
liv
e in
FBU
RA
One
bed
room
apa
rtm
ent a
fford
able
to
all
hous
ehol
ds
NA
One
bed
room
apa
rtm
ent
affo
rdab
le to
all
hous
ehol
ds
NA
Mod
erat
e in
com
e fa
mily
re
ntin
g ho
useh
olds
Two
bedr
oom
apa
rtm
ent
affo
rdab
le to
5%
of
hous
ehol
ds
Two
bedr
oom
apa
rtm
ent a
fford
able
to
90%
of h
ouse
hold
s
Thre
e be
droo
m a
part
men
t af
ford
able
to 2
0% o
f hou
seho
lds
NA
Thre
e be
droo
m a
part
men
t af
ford
able
to a
ll ho
useh
olds
N
A
168
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Purc
hasi
ng H
ouse
hold
s
Very
Low
inco
me
singl
e an
d co
uple
hou
seho
lds
NA
Stud
io a
fford
able
to 5
% o
f ho
useh
olds
St
udio
affo
rdab
le to
30%
of
hou
seho
lds
NA
NA
Very
Low
inco
me
fam
ily
and
grou
p ho
useh
olds
N
A N
A N
A N
A N
A
Low
inco
me
singl
e an
d co
uple
hou
seho
lds
NA
Stud
io a
fford
able
to a
ll ho
useh
olds
One
bed
room
affo
rdab
le to
4%
of h
ouse
hold
s
One
bed
room
affo
rdab
le
to 8
0% o
f hou
seho
lds
NA
NA
Low
inco
me
fam
ily a
nd
grou
p ho
useh
olds
N
A N
A N
A N
A N
A
Mod
erat
e in
com
e sin
gle
and
coup
le h
ouse
hold
s
10%
of h
ouse
hold
s can
pu
rcha
se a
one
bed
room
ap
artm
ent i
n FB
URA
One
bed
room
affo
rdab
le to
al
l hou
seho
lds
Two
bedr
oom
affo
rdab
le
to 9
0% o
f hou
seho
lds
NA
NA
Sour
ce: J
SA c
alcu
latio
n
July 2013 - CONFIDENTIAL
vo
lu
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71
40%
hou
sing
stre
ss c
riter
ion
Very
Low
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds
NA
NA
NA
One
bed
room
or s
tudi
o ap
artm
ent
affo
rdab
le to
20%
of h
ouse
hold
s Al
l ho
useh
olds
Very
Low
inco
me
fam
ily a
nd
grou
p re
ntin
g ho
useh
olds
N
A N
A N
A N
A Al
l ho
useh
olds
Low
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds
One
bed
room
or s
tudi
o ap
artm
ent a
fford
able
to
10%
of h
ouse
hold
s
Two
bedr
oom
apa
rtm
ent
affo
rdab
le to
20%
of h
ouse
hold
s N
A Tw
o be
droo
m a
part
men
t affo
rdab
le
to 7
0% o
f hou
seho
lds
NA
Low
inco
me
fam
ily a
nd
grou
p re
ntin
g ho
useh
olds
N
A Tw
o be
droo
m a
part
men
t af
ford
able
to 2
0% o
f hou
seho
lds
NA
Two
bedr
oom
apa
rtm
ent a
fford
able
to
70%
of h
ouse
hold
s N
A
Mod
erat
e in
com
e sin
gle
and
coup
le re
ntin
g ho
useh
olds
All h
ouse
hold
s can
live
in
FBU
RA
Affo
rdab
le to
all
hous
ehol
ds
NA
Affo
rdab
le to
all
hous
ehol
ds
NA
Mod
erat
e in
com
e fa
mily
re
ntin
g ho
useh
olds
Two
bedr
oom
apa
rtm
ent
affo
rdab
le to
40%
of
hous
ehol
ds
Two
bedr
oom
apa
rtm
ent
affo
rdab
le to
all
hous
ehol
ds
Thre
e be
droo
m a
fford
able
to
50%
of a
ll ho
useh
olds
NA
Thre
e be
droo
m a
part
men
t affo
rdab
le
to a
ll ho
useh
olds
N
A
170
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Purc
hasi
ng H
ouse
hold
s
Very
Low
inco
me
singl
e an
d co
uple
hou
seho
lds
NA
Stud
io a
fford
able
to 2
0% o
f ho
useh
olds
Stud
io a
fford
able
to 4
0% o
f ho
useh
olds
One
bed
room
affo
rdab
le to
5%
of h
ouse
hold
s
NA
NA
Very
Low
inco
me
fam
ily a
nd
grou
p ho
useh
olds
N
A N
A N
A N
A N
A
Low
inco
me
singl
e an
d co
uple
hou
seho
lds
NA
Stud
io a
fford
able
to a
ll ho
useh
olds
One
bed
room
affo
rdab
le to
20%
of
hous
ehol
ds
One
bed
room
affo
rdab
le to
al
l of h
ouse
hold
s N
A N
A
Low
inco
me
fam
ily a
nd
grou
p ho
useh
olds
N
A N
A N
A N
A N
A
Mod
erat
e in
com
e sin
gle
and
coup
le h
ouse
hold
s
40%
of h
ouse
hold
s can
pu
rcha
se a
one
bed
room
ap
artm
ent i
n FB
URA
One
bed
room
affo
rdab
le to
all
hous
ehol
ds
One
bed
room
affo
rdab
le to
al
l hou
seho
lds
NA
NA
Mod
erat
e in
com
e fa
mily
ho
useh
olds
N
A Tw
o be
droo
m a
fford
able
to 3
0% o
f ho
useh
olds
Two
bedr
oom
affo
rdab
le to
al
l hou
seho
lds
Thre
e be
droo
m a
fford
able
to
30%
of h
ouse
hold
s
NA
NA
Sour
ce: J
SA c
alcu
latio
n
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
73
30%
hou
sing
stre
ss c
riter
ion
with
50%
shar
ed e
quity
and
dis
coun
t mar
ket r
ent
Very
Low
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds
NA
NA
NA
One
bed
room
or s
tudi
o af
ford
able
to 7
0% o
f ho
useh
olds
All
hous
ehol
ds
Very
Low
inco
me
fam
ily a
nd
grou
p re
ntin
g ho
useh
olds
N
A N
A N
A Tw
o be
droo
m a
fford
able
to
2% o
f hou
seho
lds
All
hous
ehol
ds
Low
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds
NA
One
bed
room
or s
tudi
o ap
artm
ent a
fford
able
to
50%
of h
ouse
hold
s N
A O
ne b
edro
om o
r stu
dio
apar
tmen
t affo
rdab
le to
all
hous
ehol
ds
NA
Low
inco
me
fam
ily a
nd
grou
p re
ntin
g ho
useh
olds
N
A N
A N
A
Two
bedr
oom
apa
rtm
ent
affo
rdab
le to
all
hous
ehol
ds
and
thre
e be
droo
m
apar
tmen
t affo
rdab
le to
40%
of
hou
seho
lds
NA
Mod
erat
e in
com
e sin
gle
and
coup
le re
ntin
g ho
useh
olds
50
% o
f hou
seho
lds c
an
live
in F
BURA
One
bed
room
or s
tudi
o ap
artm
ent a
fford
able
to a
ll ho
useh
olds
N
A N
A N
A
Mod
erat
e in
com
e fa
mily
N
A Tw
o be
droo
m a
part
men
t af
ford
able
to 5
0% o
f N
A Th
ree
bedr
oom
apa
rtm
ent
NA
172
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
Purc
hasi
ng H
ouse
hold
s
Very
Low
inco
me
singl
e an
d co
uple
hou
seho
lds
NA
Stud
io a
fford
able
to 3
0% o
f ho
useh
olds
One
bed
room
affo
rdab
le to
20
% o
f hou
seho
lds
Stud
io a
fford
able
to 5
0% o
f ho
useh
olds
NA
NA
Very
Low
inco
me
fam
ily a
nd
grou
p ho
useh
olds
N
A N
A N
A N
A N
A
Low
inco
me
singl
e an
d co
uple
hou
seho
lds
NA
Stud
io a
fford
able
to a
ll ho
useh
olds
One
bed
room
affo
rdab
le to
30%
of
hou
seho
lds
One
bed
room
affo
rdab
le to
al
l hou
seho
lds
NA
NA
Low
inco
me
fam
ily a
nd
grou
p ho
useh
olds
N
A N
A Tw
o be
droo
m a
fford
able
to
5% o
f hou
seho
lds
NA
NA
Mod
erat
e in
com
e sin
gle
and
coup
le h
ouse
hold
s
60%
of h
ouse
hold
s can
pu
rcha
se a
one
bed
room
ap
artm
ent i
n FB
URA
One
bed
room
affo
rdab
le to
all
hous
ehol
ds
One
bed
room
affo
rdab
le to
al
l hou
seho
lds
NA
NA
Mod
erat
e in
com
e fa
mily
ho
useh
olds
3% o
f hou
seho
lds c
an
purc
hase
a tw
o be
droo
m
apar
tmen
t in
FBU
RA
Two
bedr
oom
affo
rdab
le to
50%
of
hou
seho
lds
Thre
e be
droo
m a
fford
able
to
50%
of h
ouse
hold
s N
A N
A
Sour
ce: J
SA c
alcu
latio
n
July 2013 - CONFIDENTIAL
vo
lu
me
3
1
75
7.3.
3As
pira
tiona
l affo
rdab
le h
ousin
g m
odel
140
Very
low
inco
me
singl
e an
d co
uple
re
ntin
g ho
useh
olds
(1,5
00)
0 0
0 0
1,50
0 (1
br,
stud
io)
18.8
%
3.8%
Very
low
inco
me
fam
ily re
ntin
g ho
useh
olds
(1,2
00)
0 0
0 0
360
(3 b
r)
840
(2 b
r)
15.0
%
3%
90%
of l
ow in
com
e sin
gle
and
coup
le re
ntin
g ho
useh
olds
(600
)
0 30
0 (1
br,
stud
io)
0 30
0 (1
br,
stud
io –
80
% o
f mar
ket r
ent)
0
7.5%
1.
5%
50%
of l
ow in
com
e fa
mily
rent
ing
hous
ehol
ds (7
00)
0 0
0 49
0 (2
br –
66%
of
mar
ket r
ent)
0
8.8%
1.
8%
140 M
odel
ling
base
d on
50:
50 st
udio
s and
one
bed
room
apa
rtm
ents
; and
70:
30 tw
o be
droo
m a
nd th
ree
bedr
oom
apa
rtm
ents
to p
rovi
de a
n ap
prop
riate
mix
of d
wel
lings
. Re
fer t
able
s 7-1
5, 1
6 an
d 17
for d
etai
ls.
174
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
rent
ing
hous
ehol
ds
hous
ehol
ds
affo
rdab
le to
all
hous
ehol
ds
Purc
hasi
ng H
ouse
hold
s
Very
Low
inco
me
singl
e an
d co
uple
hou
seho
lds
NA
Stud
io a
fford
able
to 5
% o
f ho
useh
olds
St
udio
affo
rdab
le to
50%
of h
ouse
hold
s N
A N
A
Very
Low
inco
me
fam
ily a
nd
grou
p ho
useh
olds
N
A N
A N
A N
A N
A
Low
inco
me
singl
e an
d co
uple
hou
seho
lds
NA
Stud
io a
fford
able
to a
ll ho
useh
olds
One
bed
room
affo
rdab
le
to 4
% o
f hou
seho
lds
One
bed
room
affo
rdab
le to
all
hous
ehol
ds
NA
NA
Low
inco
me
fam
ily a
nd
grou
p ho
useh
olds
N
A N
A Tw
o be
droo
m a
fford
able
to 7
0% o
f ho
useh
olds
N
A N
A
Mod
erat
e in
com
e sin
gle
and
coup
le h
ouse
hold
s
10%
of h
ouse
hold
s can
pu
rcha
se a
one
be
droo
m a
part
men
t in
FBU
RA
One
bed
room
affo
rdab
le
to a
ll ho
useh
olds
O
ne b
edro
om a
fford
able
to a
ll ho
useh
olds
N
A N
A
Mod
erat
e in
com
e fa
mily
ho
useh
olds
N
A N
A Tw
o be
droo
m a
fford
able
to a
ll ho
useh
olds
an
d th
ree
bedr
oom
affo
rdab
le to
80%
of
hous
ehol
ds
NA
NA
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
77
140
50%
of l
ow in
com
e fa
mily
pu
rcha
sing
hous
ehol
ds (7
00)
0 0
490
(2 b
r – 5
4%
owne
r equ
ity)
210
(3 b
r – 3
8%
owne
r equ
ity)
0 0
8.8%
1.
8%
100%
of m
oder
ate
inco
me
singl
e an
d co
uple
pur
chas
ing
hous
ehol
ds
(500
)
50
450
(1 b
r)
0 0
0 6.
3%
1.3%
90%
of m
oder
ate
inco
me
fam
ily
hous
ehol
ds (9
00)
0 0
630
(2 b
r – 8
0%
owne
r equ
ity)
270
(3 b
r – 5
8%
owne
r equ
ity)
0 0
11.3
%
2.3%
Tota
l 10
0 (1
.3%
) 1,
510
(18.
9%)
2,60
0 (3
2.5%
) 1,
090
(13.
6%)
2,70
0 (3
3.8%
)
1 br
/stu
dio
100
(1.3
%)
1,30
0 (1
6.3%
) 40
0 (5
.0%
) 30
0 (3
.8%
) 1,
500
(18.
8%)
2 br
0
210
(2.6
%)
1,54
0 (1
9.3%
) 49
0 (6
.1%
) 84
0 (1
0.5%
)
3 br
0
0 66
0 (8
.3%
) 30
0 (3
.8%
) 36
0 (4
.5%
)
Sour
ce: J
SA c
alcu
latio
n
176
Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
140
21
0 (3
br –
49%
of
mar
ket r
ent)
100%
of m
oder
ate
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds
(100
)
50
50 (1
br,
stud
io)
0 0
0 1.
3%
0.3%
100%
of m
oder
ate
inco
me
fam
ily
rent
ing
hous
ehol
ds (3
00)
0 21
0 (2
br)
0
90 (3
br –
80%
of
mar
ket r
ent)
0
3.8%
0.
8%
50%
of v
ery
low
inco
me
singl
e an
d co
uple
pur
chas
ing
hous
ehol
ds
(400
) 0
0 40
0 (s
tudi
o 48
%
owne
r equ
ity)
0 0
5.0%
1.
0%
50%
of v
ery
low
inco
me
fam
ily
purc
hasin
g ho
useh
olds
(600
)
0 0
420
(2 b
r – 2
0%
owne
r equ
ity)
180
(3 b
r – 1
5%
owne
r equ
ity)
0 0
7.5%
1.
5%
100%
of l
ow in
com
e sin
gle
and
coup
le p
urch
asin
g ho
useh
olds
(5
00)
0 50
0 (s
tudi
o)
0 0
0 6.
3%
1.3%
July 2013 - CONFIDENTIAL
vo
lu
me
3
179
178 Affordable Housing Delivery Options Paper (FBURA)
7.3.4 ‘Pragmatic’ mixed model
6.5% X 72/88 = 5.9%400 X 0.52 + 420 X 0.8 + 180 X 0.85 + 490 X 0.46 + 210 X 0.62 + 630 X 0.2 + 270 X .42 = 1,2922.7% X 69/88 = 2.1%390 X 10/19 + 700 X 4/5= 7656.8% X 58/88 = 4.5%9.0% X 7500/8000 = 8.4%
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
81
147
100%
of m
oder
ate
inco
me
fam
ily
rent
ing
hous
ehol
ds (4
70)
0 33
0 (2
br)
0
140
(3 b
r – 8
0% o
f m
arke
t ren
t)
0 5.
9%
1.2%
100%
of l
ow in
com
e sin
gle
and
coup
le
purc
hasin
g ho
useh
olds
(40%
str
ess)
(7
90)
0 79
0 (s
tudi
o)
0 0
0 9.
9%
2.0%
50%
of l
ow in
com
e fa
mily
pur
chas
ing
hous
ehol
ds (3
5% st
ress
) (1,
100)
0
0 1,
100
(2 b
r –
60%
ow
ner
equi
ty
0 0
13.8
%
2.8%
100%
of m
oder
ate
inco
me
singl
e an
d co
uple
pur
chas
ing
hous
ehol
ds (4
0%
stre
ss) (
790)
470
320
(1 b
r)
0
0 0
9.9%
2.
0%
100%
of m
oder
ate
inco
me
fam
ily
purc
hasin
g ho
useh
olds
(35%
str
ess)
(1
,410
) 0
420
(2 b
r)
570
(2 b
r – 8
0%
owne
r equ
ity)
420
(3 b
r – 5
8%
owne
r equ
ity)
0 0
17.6
%
3.5%
Tota
l 60
0 (7
.5%
) 2,
640
(33.
0%)
2,09
0 (2
6.1%
) 1,
430
(17.
9%)
1,24
0 (1
5.5%
)
1 br
/stu
dio
600
(7.5
%)
1,89
0 (2
3.6%
) 0
190
(2.4
%)
690
(8.6
%)
180
Affo
rdab
le H
ousin
g De
liver
y O
ptio
ns P
aper
(FBU
RA)
147
Very
low
inco
me
singl
e an
d co
uple
re
ntin
g ho
useh
olds
(690
)148
0 0
0 0
690
(1 b
r, st
udio
) 8.
6%
1.7%
Very
low
inco
me
fam
ily re
ntin
g ho
useh
olds
(550
)149
0 0
0 0
165
(3 b
r)
385
(2 b
r)
6.9%
1.
4%
100%
of l
ow in
com
e sin
gle
and
coup
le
rent
ing
hous
ehol
ds (3
5% st
ress
) (94
0)
0 75
0 (1
br,
stud
io)
0 19
0 (1
br,
stud
io –
80
% o
f mar
ket r
ent)
0 11
.8%
2.
4%
40%
of l
ow in
com
e fa
mily
rent
ing
hous
ehol
ds (1
,100
)
0 0
0 1,
100
(2 b
r – 7
0% o
f m
arke
t ren
t)
0 13
.8%
2.
8%
100%
of m
oder
ate
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds (3
5%
stre
ss) (
160)
13
0 30
(1 b
r, st
udio
) 0
0 0
2.0%
0.
4%
147 M
odel
ling
base
d on
50:
50 st
udio
s and
one
bed
room
apa
rtm
ents
; and
70:
30 tw
o be
droo
m a
nd th
ree
bedr
oom
apa
rtm
ents
to p
rovi
de a
n ap
prop
riate
mix
of d
wel
lings
. Re
fer t
able
s 7-1
5, 1
6 an
d 17
for d
etai
ls.
Base
d on
3.1
% o
f dw
ellin
gs b
eing
soci
al h
ousin
g
Base
d on
3.1
% o
f dw
ellin
gs b
eing
soci
al h
ousin
g
July 2013 - CONFIDENTIAL
vo
lu
me
3
183
5.2% X 75/88 = 4.4% 1,100 X 0.40 + 570 X 0.2 + 420 X 0.42 = 7303.6% X 69/88 = 2.8%1,430 X 10/19 = 7503.1% X 58/88 = 2.0%5.0% X 7500/8000 = 4.7% 18
2 Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
147
2 br
0
750
(9.4
%)
1,67
0 (2
0.9%
) 1,
100
(13.
8%)
385
(4.8
%)
3 br
0
0 42
0 (5
.3%
) 14
0 (1
.8%
) 16
5 (2
.1%
)
Sour
ce: J
SA c
alcu
latio
n
Fishermans Bend - Final ReportFishermans Bend - Final Report - Background Documents
1
85
156
100%
of l
ow in
com
e sin
gle
and
coup
le
rent
ing
hous
ehol
ds (3
5% st
ress
) (1,
120)
0
900
(1 b
r, st
udio
) 0
220
(1 b
r, st
udio
–
80%
of m
arke
t ren
t)
14.0
%
2.8%
40%
of l
ow in
com
e fa
mily
rent
ing
hous
ehol
ds (1
,300
)
0 0
0 1,
300
(2 b
r – 7
0% o
f m
arke
t ren
t)
16.3
%
3.3%
100%
of m
oder
ate
inco
me
singl
e an
d co
uple
rent
ing
hous
ehol
ds (3
5% st
ress
) (1
90)
150
40 (1
br,
stud
io)
0 0
2.4%
0.
5%
100%
of m
oder
ate
inco
me
fam
ily re
ntin
g ho
useh
olds
(560
) 0
390
(2 b
r)
0 17
0 (3
br –
80%
of
mar
ket r
ent)
7.
0%
1.4%
100%
of l
ow in
com
e sin
gle
and
coup
le
purc
hasin
g ho
useh
olds
(40%
str
ess)
(930
) 0
930
(stu
dio)
0
0 11
.6%
2.
3%
50%
of l
ow in
com
e fa
mily
pur
chas
ing
hous
ehol
ds (3
5% st
ress
) (1,
300)
0
0 1,
300
(2 b
r – 6
0%
owne
r equ
ity
0 16
.3%
3.
3%
156
Mod
ellin
g ba
sed
on 5
0:50
stu
dios
and
one
bed
room
apa
rtm
ents
; and
70:
30 tw
o be
droo
m a
nd th
ree
bedr
oom
apa
rtm
ents
to p
rovi
de a
n ap
prop
riate
mix
of d
wel
lings
. Re
fer t
able
s 7-
15, 1
6 an
d 17
for d
etai
ls.
184 Affordable Housing Delivery Options Paper (FBURA)
7.3.5 Intermediate affordable housing model
July 2013 - CONFIDENTIAL
vo
lu
me
3
187
6.2% X 75/88 = 5.3%1,300 X 0.40 + 670 X 0.2 + 500 X 0.42 = 860 4.2% X 69/88 = 3.3%1,690 X 10/19 = 8903.6% X 7500/8000 = 3.4% 18
6 Af
ford
able
Hou
sing
Deliv
ery
Opt
ions
Pap
er (F
BURA
)
156
100%
of m
oder
ate
inco
me
singl
e an
d co
uple
pur
chas
ing
hous
ehol
ds (4
0% st
ress
) (9
30)
560
370
(1 b
r)
0
0 11
.6%
2.
3%
100%
of m
oder
ate
inco
me
fam
ily
purc
hasin
g ho
useh
olds
(35%
str
ess)
(1,6
70)
0 50
0 (2
br)
670
(2 b
r – 8
0%
owne
r equ
ity)
500
(3 b
r – 5
8%
owne
r equ
ity)
0 20
.9%
4.
2%
Tota
l 71
0 (8
.9%
) 3,
130
(39.
1%)
2,47
0 (3
0.9%
) 1,
690
(21.
1%)
1 br
/stu
dio
710
(8.9
%)
2,24
0 (2
8.0%
) 0
220
(2.8
%)
2 br
0
890
(11.
1%)
1,97
0 (2
4.6%
) 1,
300
(16.
3%)
3 br
0
0 50
0 (6
.3%
) 17
0 (2
.1%
)
Sour
ce: J
SA c
alcu
latio
n
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