Delivering a Mix of Social, Affordable and Private Housing on Surplus Government Land

The Victorian Government is committed to better meeting the housing needs of Victorians by utilising surplus government land with good access to jobs and transport for the purposes of much need housing.

As part of the Government’s housing strategy, Homes for Victorians, the Department of Environment, Land, Water and Planning (DELWP) is undertaking an Inclusionary Housing Pilot (IHP) on six surplus government land parcels. The IHP will deliver a mix of social, affordable and private housing.

The land will be developed by the private sector, with social housing dwellings provided in partnership with a community housing provider. This will be done in close consultation with government departments and agencies as well as the relevant local council.

Expression of Interest (EOI)

Proposals for the development and sale of all six sites have been sought through an EOI process. The invitation to participate in the EOI was released via Tenders VIC on 8 August 2018.

Expression of Interest can be registered at Tenders VIC Current Tenders.

The shortlisted bidder(s) for all six sites will be announced in October 2018.

The successful bidders will be announced in February 2019.

Through the sale of the six sites, the IHP will deliver a minimum of 100 new social housing dwellings in addition to a percentage of affordable housing homes, with the remainder of the development to be private dwellings. Bidders will be evaluated against the objectives of the IHP to ensure that the greatest value is achieved for each site.

Frequently Asked Questions

The IHP Pilot will be conducted over five key phases:

Phase one: six suitable surplus government sites were identified as appropriate for inclusion in the IHP and divided into Tranche One and Tranche Two.

Phase two: introduced new planning controls for the four Tranche One sites – Wodonga, Boronia, Broadmeadows and Parkville. New planning controls were reviewed for each of the sites through the Government Land Standing Advisory Committee (Advisory Committee) process. These new planning controls were introduced on 5 July 2018.

Phase three: covers the Expression of Interest (EOI) for the Development and Sale of the Inclusionary Housing Pilot sites process for all six sites. The EOI process will determine the successful bidder for each site by February 2019.

Phase four: introduces new planning controls for the two Tranche Two sites – Reservoir and Noble Park. These sites will also be reviewed through the Advisory Committee process.

Phase five: involves the final commercial negotiations and execution of the development and sale contracts with the successful bidder for each site.

Phase two of the IHP (planning certainty) has been completed, with four of the six sites being reviewed by the Advisory Committee. The Advisory Committee provided their recommendation to the Minister for Planning. New planning controls were introduced on each of the four sites in Tranche One on 5 July 2018.

With the release of the EOI on 8 August 2018, the Pilot is now entering Phase three. This phase will test the capability of the development market to deliver the social and affordable housing objectives of the Pilot as well as to ensure the greatest value is obtained.

More information regarding the planning controls

Both Tranche One and Tranche Two are being presented to the market at the same time through an EOI process. In Tranche One the first four sites are presented to the market having already undergone an Advisory Committee process and have new planning controls in place.

In Tranche Two DELWP, in partnership with the successful bidder(s) will have the preferred design reviewed by the Advisory Committee at the same time as consideration of the proposed planning controls.

As a pilot, this dual approach is part of how DELWP will test and better understand the different ways social and affordable housing can be undertaken to achieve desirable outcomes.

The Planning and Environment Act 1987 (Vic) was amended on 1 June 2018 to include the facilitation of affordable housing as a core objective of this Act, in addition to the introduction of a clear definition of affordable housing.

The amendment to the Planning and Environment also classified social housing to be a form of affordable housing.

Affordable Housing is various forms of housing solutions that can include Social Housing, but also includes other housing initiatives and or support services that provide for the housing needs of very low-income households, low income households and moderate-income households.Social Housing is a combination of both Public Housing and Community Housing(as per the Housing Act 1983).

Public Housing is non-profit housing that is delivered on behalf of the Government and or the relevant department (as per the Housing Act 1983).

Community Housing is housing that is owned, controlled and or managed by a registered community housing provider.

All Social Housing provided through the IHP is categorised as Community Housing.

More information

If you have further questions please get in touch via the contact details below.

  • Expression of Interest (EOI) process:
    Inclusionary Housing Pilot
    Department of Environment, Water and Planning
    ☎ Phone: (03) 9637 8885
    ✉ Email: