Councils polarised on housing

By Meg Hill

The City of Melbourne has sought to lift its affordable housing benchmark while neighbouring councils moved in an opposite direction following the state government’s announcement of a $5.3 billion social housing program.

City of Melbourne councillors will consider plans to increase the supply of affordable housing in their municipality on December 8. A strategy proposed by council management would mandate up to 25 per cent of all future residential development on land owned by the council be dedicated to affordable housing.

The policy is a step up from the council’s 2014 housing strategy which committed to providing up to 15 per cent of dwellings on council-owned land available for affordable housing. The policy resulted in the expected 40 affordable apartments in Southbank’s Boyd redevelopment and 48 at the Munro development next to Queen Victoria Market.

The boost is an explicit nod to the state government’s recent social housing announcement. A report from council management said the strategy was updated following the announcement “to reinforce council’s commitment to partner with the Victorian Government, community housing providers and industry to deliver more affordable housing within the municipality”.

The strategy’s framework contrasts sharply with comments from representatives of the neighbouring Cities of Stonnington, Boroondara and Bayside following the state government announcement.

The Age reported that Boroondara Mayor Garry Thompson, Stonnington chief executive Jacqui Weatherill and Bayside Mayor Laurence Evans complained councils and local residents were sidelined by the fast-tracked initiative that gave the state government – not local councils – the final word on development proposals.

But City of Melbourne Lord Mayor Sally Capp said the current lack of affordable housing puts pressure on our city’s housing options and impacted key workers and people who were underemployed or unemployed.

“Independent analysis shows that Melbourne had a shortfall of at least 5500 affordable rental homes in 2019,” the Lord Mayor said.

“We recognise that a vibrant and inclusive city relies on a diverse community and a range of housing options.

“It’s expected that the COVID-19 pandemic will lead to an even greater demand for affordable homes in the short term.”

The proposed strategy would also commit council to leasing one of its owned sites to develop an affordable rental housing project •