The Housing SEPP incorporates provisions of the (now repealed) State Environmental Planning Policy (Affordable Rental Housing) 2009 (ARHSEPP) to encourage retention and mitigate the loss of existing affordable housing. These provisions enable local councils to impose a levy on a development that will result in the loss of existing low-cost rental housing through demolition, alteration, change of use or subdivision.
Visit the Department of Communities and Justice website to find out how the funds collected are used.
The provisions of the Housing SEPP allow councils to levy monetary contributions to offset the loss of low-rental dwellings at any time within the 5 years preceding the lodgement of a development application. Applicants are responsible for demonstrating that a building that is proposed to be demolished, altered or strata subdivided did not contain low-rental dwellings at the relevant time.
Frequently asked questions
A ‘low-rental dwelling’ is one rented at or below the median level for that type of dwelling in the same local government area at any time in the 24-month period preceding lodgement of the development application. Median rent levels are published in the Housing Rent and Sales dashboard on the Department of Communities and Justice website.
The Guidelines for Retention of Existing Affordable Rental Housing (PDF, 163 KB), October 2009 detail how to implement these provisions, including when and how to impose a levy and what to do with the funds that are collected. The guideline is under review and, until such time as an updated version is available, any reference in that guidelines to the former State Environmental Planning Policy (Affordable Rental Housing) 2009 can be taken to mean Chapter 2, Part 3 (Retention of existing affordable rental housing) of the Housing SEPP.
Contributions can only be imposed within the Greater Sydney, Newcastle and Wollongong regions.
You may find the following resources helpful:
- Letter from the former Minister for Planning to the former Minister for Family and Community Services and Minister for Social Housing about the application of funds collected under Part 3, dated 18 April 2016 (PDF, 947 KB)
- Minister of Planning Direction under section 94G(3)(b) issued 2 October 2009 (PDF, 30 KB).
For more information, email firstname.lastname@example.org or call 02 8289 6701.
Page last updated: 15/08/2022