Community Housing Industry Association Victoria (CHIA Vic) applauds a local council’s move to advance plans for developer contributions to help build hundreds of social housing dwellings.
Mornington Peninsula Shire resolved to release a plan to boost social housing supply in the area by requiring property developers of new developments to provide a modest contribution through construction or funds.
CHIA Vic chief executive Sarah Toohey said the council’s decision to take the draft strategy to community consultation is a positive step forward in easing the region’s housing crisis.
“The Mornington Peninsula Shire’s developer contributions strategy is the kind of innovative and visionary thinking we need to see across Victoria to ease the crippling housing crisis,” Ms Toohey said.
“There’s a desperate need for more social housing on the Mornington Peninsula. More and more locals are getting priced out of the private rental market, with asking rents up 7% on last year. Nearly 4,000 households on the Mornington Peninsula are experiencing homelessness, housing stress or living in overcrowded housing – and that will rise without ambitious action.
“The Peninsula is not alone – right across Victoria, people are struggling to find a safe, affordable place to call home, and we need more solutions like this one.
“We’re seeing local councils and communities take matters into their own hands to try to solve the housing crisis in their areas because State and Federal investments do not go far enough to fix our housing crisis.
“Requiring developers to make a contribution to this essential infrastructure has time and again been recommended as a solution for governments to embrace to ease the housing and homelessness crisis.
“It’s disappointing yet no surprise that we are seeing the private developer lobby scaremongering about the Mornington Peninsula Shire’s developer contributions strategy. If introduced, this scheme could actually drive down the price of developable land. With enough lead time, property developers would easily be able to factor the contribution cost into the price they are willing to pay for land, and not pass anything onto home buyers.
“Through the consultation process this strategy can be designed effectively to have the greatest impact on growing social housing in the area, whilst avoiding any unintended consequences.
“The Mornington Peninsula community and Victorians at large must get behind this essential and game-changing strategy. Importantly, the State Government mustn’t get in the way – in fact it should be rolling out a policy like this state-wide.”
