Developing Affordable Housing

Resources to support community housing, developers and local governments to build more affordable housing

Page reviewed

23.11.2021

100% of users

found this page useful

This webpage aims to assist developers and councils to understand the community housing industry, and how to reap the benefits of partnering with our member organisations.

CH
Community Housing
PD
Property Developers
LG
Local Government

Support for Community Housing models

Learn more

PD
Property Developers
LG
Local Government

Learn more about affordable housing

Fact Sheet for Developers

Fact Sheet for Local Government

The funding, delivery, and management of affordable housing is complex. It involves multiple players within different operating contexts, and a range of different legislative and regulatory frameworks, funding arrangements, corporate structures, economic influences, and competitive environments.

To assist the key stakeholders to better understand each other’s business models, operating constraints, and how they can work together to deliver more affordable housing, CHIA Vic has developed the following resources.

Understanding Affordable Housing and Section 173 Agreements

In 2018, the Victorian Government made amendments to the Planning and Environment Act 1987 which enabled local governments, community housing organisations and developers to negotiate Affordable Housing outcomes as part of the planning approvals process. These voluntary Affordable Housing Agreements are generally referred to as Section 173 Agreements.

CHIA Vic and the Municipal Association of Victoria (the MAV) joined forces to create a suite of resources on how to develop Section 173 Agreements. These resources are for the local government, community housing and development sectors, and are based on an enhanced understanding of the requirements of each of the sectors. The resources outline:

  • What constitutes affordable housing
  • The constraints, needs and strengths of the community housing and local government sectors
  • The practicalities of implementing the legislation
  • Options for brokering affordable housing outcomes
  • How local government and community housing can work together

In addition to the full project report, this suite of resources also includes a fact sheet on the community housing sector, fact sheet for developers, fact sheet for local government, and toolkit for planners.

Developing Affordable Housing on Leased Land

One of the ways local councils and other landowners, such as charities, support the delivery of affordable housing is through contributing land to an affordable housing project led by a community housing organisation (CHO). In many cases the third party landowner does not want to relinquish title to the land, and would prefer to provide a long-term lease to the CHO at a peppercorn rent.

To assist CHOs and landowners such as local councils to draft a lease that works for both parties – one that enables the CHO to apply for funding and debt while protecting the interests of the landowner, the funder, and the CHO – CHIA Vic led a project to develop two template agreements:

  • Agreement for Lease (AFL) Template – agreement between the landowner and CHO whilst the housing is being developed. The AFL pre-commits the parties to enter into a lease once the development is complete, and is designed to be used together with the Head Lease template.
  • Head Lease Template – lease agreement between the landowner and CHO to manage the ongoing use of the housing after construction has been completed.

Both documents include guidance notes on when and how to use the templates.

 

Toolkit

Learn more about support for community housing

CHIA Vic have developed a suite of resources to help build understanding of the reasons for resistance to affordable housing, and effective ways of building support for affordable housing.

Learn more

Affordable Housing

Resources:

Affordable Housing Agreements

PDF — 6 MB

Understanding the community housing sector

PDF — 459 KB

Toolkit for planners

PDF — 2 MB

Fact sheet for developers

PDF — 398 KB

Fact sheet for local government

PDF — 453 KB

Agreement for Lease (AFL) Template

DOCX — 195 KB

Head Lease Template

DOCX — 177 KB