Affordable Housing Contributions

Providing affordable rental housing is a key part of Randwick City's planning strategy. It helps:

  • ensure lower income households continue to live and work locally in the Randwick LGA
  • facilitate a socially diverse and inclusive community
  • support the economy.

Affordable Housing Contributions Scheme

As part of the planning strategy and Randwick LEP 2012 an Affordable Housing Contributions Scheme applies across the Kensington and Kingsford town centres and also within the Housing Investigation Areas. When development consent is granted, developers must contribute to an affordable housing levy (See Clause 6.25, 6.26 and 6.27 of Randwick LEP 2012). “Excluded development” is exempt from the payment of the levy.

The clauses should be read in conjunction with the relevant affordable housing plan:

Kensington and Kingsford Town Centres Affordable Housing Plan PDF, 816.31 KB  (adopted on 10 December 2019)

Housing Investigation Areas Affordable Housing Plan (2023) PDF, 9292.72 KB (adopted on 20 June 2023).

The plans outlines how we will manage the schemes, operational details and who is eligible for tenancy.  And the types of development which are exempt from a levy.

What is a contribution?

Contributions include:

  • an in kind contribution - a built unit (with a minimum total floor area of 50sqm) to be used as affordable rental housing with any remainder being paid as a money contribution or
  • a money contribution to be used for boarding houses and serviced apartments.

Contribution rates

Kensington and Kingsford Town Centres

The following contribution rates apply to the Kensington and Kingsford Town Centres:

For development applications lodged from 13 August 2020 and up to and including 13 August 2022, the affordable housing contribution rate is 3% of the total floor area of the development used for residential purposes.

For development applications lodged after 13 August 2022, the affordable housing contribution rate is 5% of the total floor area of the development used for residential purposes.

Total floor area is defined in clause 6.25 of the Randwick LEP 2012.

Housing Investigation Areas

The following contribution rates apply to the Housing Investigation Areas:

Housing Investigation AreaPercentage of total floor are used for residential purposes
North Kensington5%
West RandwickLand zoned E1 Local Centre: 3%
High Street3%
Magill Street3%
Kingsford South3%

Monetary Contributions

Council’s preferred contribution is by way of an in-kind dedication to Council of completed dwellings in accordance with Council’s Affordable Housing Plans.  Monetary contributions apply where the calculated total residential floor area to be dedicated is less than 50m2 or developments where there is no subdivision such as co-living housing. The following equivalent affordable housing contribution rates apply for residential uses until 30 June 2024:

3% = $393.75 per sqm
5% = $656.25 per sqm

The monetary contributions rate is indexed twice a year in January and July according to the following Plans:

Kensington and Kingsford Town Centres Affordable Housing Plan PDF, 816.31 KB

Housing Investigation Areas Affordable Housing Plan (2023) PDF, 9292.72 KB.

Goals

The scheme aims to provide about 200 affordable rental units for low to moderate income households within the town centres over the next 15 years.

More information

Contact the strategic planning team on 9093 6992 for further information.

Last Updated: 12 January 2024
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