A landowner can approach Council with a proposal that included an affordable housing outcome secured by a section 173 agreement for example, as part of their permit application or a rezoning proposal.
A Responsible Authority should not use an Affordable Housing Agreement as a proxy for undertaking the necessary strategic planning work to determine where and how affordable housing should be facilitated through the planning scheme.
The decision by a landowner to enter a legal agreement with the Responsible Authority that commits the landowner to achieving an affordable housing outcome on a site must be voluntarily entered into.
Parties to the agreement:
At a minimum, an Affordable Housing Agreement secured by a section 173 agreement needs to be between the Responsible Authority and the landowner. A section 173 runs with the ownership of the land, so it remains in place even if the land or dwelling is sold.
The developer and applicant do not need to be part of the Affordable Housing Agreement (unless they are the landowner) but they are likely to be involved in negotiations.
The Affordable Housing Agreement does not have to include the end recipient of the affordable housing (such as the Director of Housing, a Registered Housing Agency, or another housing provider) as a party to the agreement.
However, it is very important that any Affordable Housing Agreement that relies on the involvement by the end recipient of the affordable housing in the future, is able to be executed by that organisation.
Entering into an Affordable Housing Agreement that relies on the end recipient of the affordable housing (such as the Director of Housing, a Registered Housing Agency, or another housing provider) to make significant purchases or to manage a property that does not meet the needs of their tenants, may fail at the execution of the agreement.