Affordable housing is housing that is appropriate for the needs of a range of very low to moderate income households, and priced (whether mortgage repayments or rent) so these households are able to meet their other essential basic living costs.

Social housing is an umbrella term that includes both public housing and community housing. It is rental housing that is provided and/or managed by government or non-government organisations.

If you are paying more than 30 per cent of your gross income on housing needs, you are in housing stress. A household can experience rental stress or mortgage stress.

The primary segment of the community that require access to affordable housing are those that fall within the low and very-low income households. This can often include people in lone person or single parent households, older people, persons with a disability, people born in non-English speaking countries and people outside of paid employment.

A household can access affordable housing if they meet the household income thresholds that are set annually by Order of the Governor in Council. Occupants can be at any stage of their lives and in need of affordable housing. As a result, dwellings should be designed to adapt the changing needs of its occupants and priced at a level which is affordable relative to the income of its occupants.

Income ranges for very low to moderate income households, 2020

Homelessness is about not having a home and includes if someone’s current living arrangement:

• Is in a dwelling that is inadequate
• Has no tenure, or if their tenure is short and not extendable
• Does not allow them to have control of or, access to space for social relations.

Having a home means a sense of security, stability, privacy, safety, and the ability to control living space.

Contrary to popular belief, most people who experience homelessness aren’t rough sleepers (living on the streets). In fact, rough sleeping only makes up around 7% of homelessness while the remainder is hidden homelessness, that is, people sleeping in cars, rooming houses, couch surfing, or staying in other temporary types of accommodation.

Social and affordable housing is provided by government bodies, the community housing sector and private market developers.

Most social housing is public housing operated by the Victorian Department of Health and Human Services (DHHS). Community housing is also a form of social housing that is generally managed by community housing providers for people with low incomes, including those eligible for public housing.

Community housing providers are also owners and managers of affordable housing. The community housing sector can borrow money and seek capital funding from federal and state governments to expand the stock of housing they own and operate.

Affordable housing can also be provided by private market developers by negotiating a percentage of new developments to provide affordable housing on site. The affordable housing could be managed by the developer or be leased to a community housing provider to manage and operate.

While not common, and not occurring in Bayside, some Councils in Victoria own, manage and operate their own affordable housing stock.

The cost of living in Bayside has continued to increase over the years and this has affected the ability of residents to be able to comfortably live within our municipality without being forced into housing stress.

Lower income households make a fundamental contribution to the economic and social life of the municipality and should not be forced out of the Bayside community due to the lack of affordable housing.

If there is an increase in supply of social and affordable housing, this will enhance Bayside’s key worker retention. If there is no intervention, the number of workers commuting every day will continue to increase, becoming significantly unsustainable, placing strain on the local economy and creating exclusion in the Bayside community.

The development of Council’s Draft Affordable Housing Strategy has been informed by community consultation through the development of the Bayside Housing Strategy 2019; a series of workshops and discussions with Councillors; and the preparation of a Background Report that provides an overview of the key drivers, issues and opportunities relating to affordable housing.

The methodology undertaken to prepare the Draft Affordable Housing Strategy is identified in the Background Report, which you can read here.

Council recognises housing as a key policy domain in the Council Plan 2017-2021 and has prepared several plans and strategies that support affordable housing. Council also advocates to the State and Federal Government to increase the quantity and quality of social housing in Bayside.

Council does not currently own, manage or intend to directly invest in social and affordable housing, and this is not recommended in the Draft Affordable Housing Strategy.

However, as the level of government closest to our community, we play a key role in continuing to advocate to State and Federal government, facilitating partnerships, developing policy, implementing planning tools and continuing to provide support and initiating contact to specialist services to assist residents.

Bayside's Housing Strategy identifies areas where housing growth and diversity is encouraged to be directed. These areas are generally within activity centres, well serviced by public transport, and accomodate a diversity of uses including retail, commercial and health services. Council already has Structure Plans in place for all activity centres within Bayside. These plans have been produced to guide future development by implementing the vision, objectives and strategies for each activity centre in Bayside. Medium and high-density residential development will continue to be directed to these areas, ensuring that households in these locations will have good access to shops, public transport and other services.

The Draft Affordable Housing Strategy supports Council’s existing planning framework by encouraging and incentivising the delivery of affordable housing in new developments, particularly in Housing Growth Areas, Activity Centres and Strategic Redevelopment Sites.

While the Draft Strategy recommends higher-density development continues to be directed to housing growth areas, activity centres and strategic redevelopment sites, it does not mean that proposed development in these locations that provide for affordable housing will be automatically supported. The appropriate planning assessment process will continue to apply.

You can view Bayside’s Structure and Development Plans here.

This Draft Affordable Housing Strategy does not recommend that Council construct and manage new social or affordable housing. Rather, it guides how Council will encourage the housing sector to provide quality social and affordable housing developments within appropriate locations in Bayside.

Council is considering ways to offer surplus Council-owned land to accommodate social and affordable housing.

An action in the Draft Affordable Housing Strategy is that during the sale process for Council-owned surplus sites, Council will investigate an Expression of Interest process with social and affordable housing providers to offer them an advanced opportunity to purchase or lease the land. The terms and process will require further consideration and the full impact will need to be considered in detail, as the particulars may vary from site to site.

Inclusionary zoning generally refers to statutory planning controls requiring development proponents to incorporate certain facilities or features on their site, or pay a cash-in-lieu contribution for this obligation to be discharged off-site.

An action in the Draft Affordable Housing Strategy is for Council to advocate to the Victorian State Government to introduce state-wide mandatory inclusionary zoning to support the delivery of affordable housing as part of appropriate mixed use and residential projects.

Homes for Homes is an independent, not-for-profit organisation established by social enterprise The Big Issue. Under the Homes for Homes initiative, homeowners voluntarily agree to a caveat on their property and make a tax-deductible donation at the time of sale of 0.1 per cent of the sale price (for example, a $750 donation on a $750,000 sale). As a voluntary initiative, the homeowner can opt-out of Homes for Homes at any time.

Revenue from the caveats is then aggregated by Homes for Homes in the state or territory in which they were raised to fund social and affordable housing projects.

Key actions in the Draft Affordable Housing Strategy are to promote and raise awareness of Homes for Homes, and consider processes to make a Homes for Homes contribution a condition of a planning permit, where it is not possible for a multi-dwelling development, such as an apartment complex, to include affordable housing.

A Section 173 Agreement is generally set out as conditions or restrictions on the use or development of the land and can be negotiated between the developer and the planning authority during the planning assessment process. An agreement can be a requirement of a Development Plan Overlay or conditioned on a Planning Permit for development.

An action in the Draft Affordable Housing Strategy is for Council to increase its promotion of Section 173 Agreements as tools to achieve affordable housing outcomes and develop a plan to increase the take-up across private development.