City of Melbourne supports mandatory inclusionary zoning

CHIA Vic has commended the City of Melbourne  for its call for the introduction of mandatory inclusionary zoning, which would see developers compelled to include social and/or affordable housing in their projects.

The council’s Future Melbourne committee this week endorsed a submission to the Victorian Government’s Ministerial Advisory Committee on Planning Mechanisms for Affordable Housing that made the case for mandatory inclusionary zoning, at a rate to be determined by modelling, and with a cash-in-lieu option. This option would be complemented by flexibility for local governments to increase the minimum requirement where there was strategic justification and evidence of need.

The submission also called for local governments to be able to provide a voluntary uplift incentive in strategic development areas to encourage developers to include even more social and affordable housing than the level set for the state.

Currently, local governments in Victoria are able to negotiate with developers to include social and affordable housing, but the Affordable Housing Agreements are voluntary.

CHIA Vic CEO Lesley Dredge says making inclusionary zoning mandatory could play a key role in reducing the massive gap between supply and demand for social and affordable housing in Victoria, where the waitlist for social housing as at September this year was sitting at 44,152 households – and growing.