Further details have now been provided about the NSW Government’s fast-track approval pathway for new housing development. Like the introduction in Queensland of Ministerial powers to declare State facilitated development applications, the initiative is aimed at unlocking additional housing supply by fast-tracking developments.
Key Takeaway Points:
- The NSW Government has established a Housing Delivery Authority and created an approval pathway for new housing development.
- Access to the approval pathway is by way of an EOI process which is open for submission from 8 January 2025.
- EOI submissions will be assessed by the Housing Delivery Authority against criteria addressing housing location, yield and speed to market.
- If an EOI submission is successful, a standardised set of environmental assessment requirements will be issued which the proponent is required to address.
- The proposal is to be assessed by the Department of Planning, Housing & Infrastructure and decision given by the Minister for Planning and Public Spaces.
In our recent Rede, we commented on the announcement of the establishment of a Housing Delivery Authority to oversee development applications for major residential housing projects across NSW.
These are applications for new housing developments above an estimated development cost of:
- $60 million in Greater Sydney; and
- $30 million in regional New South Wales.
Consistent with the commitment to a ‘short and sharp consultation process’, the NSW Government has this week released further information about the pathway and the criteria against which proponent expressions of interest (EOIs) will be considered. EOIs will be open for submission from 8 January 2025.
A successful EOI submission will mean the developer proposal will be eligible to be formally lodged as state significant development, assessed by the Department of Planning, Housing and Infrastructure and determined by the Minister for Planning and Public Spaces.
The application can include a rezoning proposal that will be considered concurrently with the application for development approval.
The Housing Delivery Authority (which presently comprises the departmental heads of the Premier’s Department, the Department of Planning, Housing & Infrastructure and the CEO of Infrastructure NSW) will consider the EOI submission and make a recommendation to the Minister, who will decide whether to declare the proposal.
The Housing Delivery Authority will meet monthly to consider EOI applications.
The EOI process requires proponents to address matters of ‘location, yield and speed to market’. Some of the criteria that, in our view, stand out are:
- that the proposal is for a type of ‘high-yield housing’, including multi dwelling housing, residential flat building, seniors housing or shop top housing;
- that the proposal is largely consistent with development standards, specifically that it does not exceed applicable development standards by more than 20% (if it does, a rezoning proposal will be required);
- that the proposal is well-located, including, for regional areas, that the development is within 800m walking distance of land in a Local Centre, Commercial Centre or Mixed use zone;
- that the proponent has a commitment to commence the development, being:
- a demonstrated capability to lodge the application within 9 months of the Secretary’s Environmental Assessment Requirements being issued; and
- a demonstrated capability to commence development within 12 months of approval.
It is said that there will be flexibility by the Housing Development Authority in applying the criteria to evaluate the EOI submissions.
If an EOI submission is successful, the Minister will make a declaration for the proposal as ‘state significant development’.
Within 7 days of that declaration, the Department will issue the Secretary’s Environmental Assessment Requirements (SEARs). The SEARs set out the requirements for the environmental impact assessment to be prepared by the proponent. These are being standardised for housing developments.
A number of NSW councils have been vocal in opposing the changes which take away a significant consent authority function, however the NSW Government has taken the position that it will alleviate pressure of local council “experiencing resourcing and skill shortages in development assessment”.
We look forward to seeing the EOIs that are submitted to the Housing Delivery Authority and whether developers are interested in taking up this new pathway to development approval.
Contact our NSW planning law expert, Vanessa Walsh, for assistance regarding the implications of the new approval pathways. Vanessa is an experienced NSW planning law practitioner. She advises on all aspects of planning approvals, including voluntary planning agreements and in Land and Environment Court merits appeals for local government and private clients.
