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Sydney Councils Challenge State Housing Plans with Unique Strategies

Sydney councils are asserting their authority over housing density by developing independent plans in response to state government zoning changes. Rejecting a blanket rezoning policy, local councils are taking action to create tailored strategies that meet housing demands while maintaining control over their regions.

The New South Wales (NSW) government has implemented transport-oriented development (TOD) precincts, compelling councils to either accept these changes or devise their own housing solutions. Inner West Mayor Darcy Byrne is advocating for a swift approval process for development applications (DAs) as part of this local initiative. His council aims to deliver over 30,000 new homes through an alternative plan known as the “Fairer Future Plan,” which will focus on densely populated areas like Ashfield and Marrickville.

In a notable shift, the Inner West Council has established its version of the Housing Delivery Authority (HDA). While the official HDA can declare certain projects as state significant, this local version holds its executives accountable for expediting the DA process. Byrne expressed the council’s determination to address the housing supply crisis, stating, “When a DA is submitted, it is referred off for assessments sometimes to more than a dozen council officers. That can leave applicants feeling like they’re going through a pinball machine being bumped from person to person.”

To tackle this issue, the council has formed a “Major Residential Development Panel,” consisting of its general manager, general counsel, and director of planning. This panel will oversee DAs involving five or more new dwellings and aims to reduce processing times significantly. Council officers must report monthly on any delays, ensuring accountability and efficiency in the approval process.

Meanwhile, in Mosman, councillors are preparing to discuss a similar housing strategy. The focus will be on intensifying housing growth around the Spit Junction town centre and Military Road corridor to meet the state government’s target of 500 new homes by 2029. Councillor Simon Menzies emphasized the need for proactive measures to prevent overdevelopment in the area, stating, “We have to stand up and do something to save Mosman from gross overdevelopment because if we don’t have a plan, we’re going to lose.”

Mosman Mayor Ann Marie Kimber has reached out to Premier Chris Minns for an urgent meeting to discuss the possibility of accepting their alternative strategy. She expressed disappointment with remarks made by Minns, which she felt unfairly characterized Mosman as a “NIMBY” council. Kimber noted that many residents support increased density but desire it in appropriate locations rather than through a uniform approach.

Further north, the Ku-ring-gai Council is awaiting a decision regarding its alternative housing strategy, which proposes concentrating density in four town centres along the Pacific Highway while preserving low-rise residential neighborhoods. The NSW Department of Planning has recommended that Planning Minister Paul Scully endorse this strategy by November 2023. In a letter to the council, the department urged them to withdraw their court challenge against the government’s TOD reforms, warning of potential legal expenses. However, Ku-ring-gai Council remains committed to pursuing this legal action.

Scully reiterated the government’s intention to collaborate with councils that present realistic and actionable housing plans. He highlighted the urgency of the housing crisis, noting that Sydney is the “second least affordable city in the world” and “the 859th densest.” This stark reality underscores the need for increased housing availability.

At a recent event organized by the Centre for Independent Studies, Minns articulated the necessity for a change in mindset regarding density in Sydney. He pointed out that vibrant communities around the world often feature greater density than Sydney currently does, emphasizing that public perception needs to shift to embrace more sustainable urban growth.

As these councils navigate the complexities of housing provision, their strategies may set important precedents for local governance and community development across the region.

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