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Major residential housing projects will be will be fast tracked as the NSW government plans to bypass council approval with the establishment of its new Housing Delivery Authority.
Premier Chris Minns announced the major change to the state’s planning system on Friday, saying it would introduce simultaneous state-led approval pathway for large new residential housing developments and rezoning processes from early next year.
Mr Minns said the policy would give the state government “a significant and legitimate say in our housing future”.
“Both assessments will be done by the state, and in the process bypass local councils, potentially cutting years off the approval process for much needed housing in NSW,” he said in his speech to The Daily Telegraph’s Future Sydney Bradford Oration on Friday.
“Broadly the policy development is following a simple principle – we need to allow new housing in parts of Sydney and regional NSW where housing is currently most feasible.
“The pathway will not be, and cannot be, for every single application above the threshold.
“But if the NSW government receives an application that delivers on the state’s housing priorities, then this process will allow for spot rezoning to get on and build those homes.
“And I need to say this, even if the application would not have been allowed under the local council’s planning controls.”
The new Housing Deliver Authority will be established within the Department of Planning, Housing and Infrastructure.
It will cater to new housing developments with 100 or more homes on average that has above an estimated development cost of $60m in Greater Sydney and approximately $30m for projects of 40 or more homes on average in regional NSW.
Mr Minns said proposals in this pathway would not be required to be considered by councils for development and would benefit from an approval timeline that was potentially reduced by years.
“Now, I acknowledge that this is a big step forward and a significant change from the status quo,” he said.
“Because of this reform, the state will be assuming a larger say over the direction of major housing projects within NSW.
“And like any big change, I’m sure some people will push back against it.
“But we’re making this call because we don’t have any time to waste.
“Housing is the defining challenge of this age. A problem that breeds other problems.”
The government’s plan to also change the rezoning process aims to reduce the number of large complex development applications councils are required to assess each year.
Mr Minns said the HDI will relieve the pressure from councils, which have to deal with many development applications that can in some circumstances be held up for years.
“In the three years from July 2021 to July 2024, the average council assessment time for medium density residential apartments grew by 50 per cent,” he said.
“So, in that period of time, things have gotten worse, not better.
“And I think it’s important to say that the fault just doesn’t lie with every council.
“Some councils are taking on average, just 23 days to assess development applications. Some are taking 462 days.
“It’s clear for at least some councils, they believe that they’re curators of a museum, never to be changed.”