| Abstract: |
Rapid increases in housing costs, stagnant wage growth and limited government
funding have created a housing affordability crisis in many cities, in
particular in capital cities in Australia. Unlike elsewhere in the world where
affordable housing contributions are secured through inclusionary zoning or
other planning processes, the Australian context is largely devoid of any
mandatory requirements for affordable housing provision in new development.
Recent changes to legislation in Victoria have enabled planners to negotiate
with developers to secure voluntary affordable housing contributions by
offering alternative incentives. However, the lack of financial literacy and
understanding of development feasibility and the effects of affordable housing
provision on development viability and profit is likely to limit the success
of this change. This paper reports on the conceptual framework and development
of an Affordable Housing Negotiation Calculator to assist in educating local
and state government representatives, community housing providers and
developers about affordable housing provision and its effects on development
feasibility. It is hoped this tool will enable those decision-makers to better
negotiate positive outcomes for an increase in affordable housing while
communicating the factors that impact on development feasibility. |