State Environmental Planning Policy (Affordable Rental Housing) 2009
51 Contributions for affordable housing
(1) For the purposes of section 94F (1) of the Act, this Policy identifies a need for affordable housing on land within the Sydney region and on land within the local government area of Newcastle or Wollongong City.(2) For the purposes of section 94F (3) (b) of the Act, this Policy authorises a condition to be imposed under section 94F of the Act if:(a) the consent authority, when determining a development application referred to in clause 50 (1), is satisfied that the proposed development will or is likely to reduce the availability of affordable housing within the area, and(b) the condition is imposed in accordance with the scheme for dedications or contributions set out in subclauses (3) and (4).(3) If a condition is to be imposed under this clause, the amount of the contribution is to be calculated in accordance with the following formula:
where:C is the contribution payable.L is the total number of bedrooms in a low-rental dwelling and boarding rooms that will be lost by the proposed development.R is the replacement cost calculated as the average value of the first quartile of sales of strata properties in the local government area in which the development is to take place, as specified in the 4 most recent editions of the Rent and Sales Report.(4) Despite subclause (3), where the development application relates to a boarding house that the consent authority has assessed as not being financially viable:(a) if the rental yield is 3 per cent or less, no contribution can be sought, and(b) if the rental yield is more than 3 per cent and less than 6 per cent, the contribution payable is to be reduced by being calculated in accordance with the following formula:
where:C is the contribution payable.X is the contribution that would be payable under subclause (3).RY is the rental yield.(5) In this clause:rental yield means the rental yield for a period (expressed as a percentage) determined by the consent authority in accordance with the following formula and taking into account the guidelines:
where:RY in the rental yield.Y is the gross rental income from the boarding house for the period.E is the total expenses for the boarding house (excluding expenses that have been charged to lodgers) for the period.D is the capital depreciation of the boarding house for the period.V is the total value of the boarding house were it to be purchased for the purposes of continuing its use as a boarding house.U is the estimated cost or carrying out work as determined under clause 50 (2) (f).