Implementing your Affordable Housing Commitment

Implementing your Affordable Housing Commitment

May 2015

Key Steps in the Land Management Agreement Process

1. Land Management Agreement Executed and registered with Lands Titles Office

2. Developer completes an Affordable Housing Plan outlining how the affordable housing will be delivered across the project. This can be updated as the development progresses.

3. Proposal plan lodged and referral to Minister for Housing and Urban Development 4. Development Approval (DA) granted

5. Land division lodged by stage

6. Land Division Certificate of Approval issued by stage

7. Send request to Renewal SA to rescind LMA over that stage

8. Executed application for rescission returned to your nominated contact 9. Certificates of Title issued

What is the process for executing the Land Management Agreement?

2 (1) (e) in the case of an application for a development authorisation—a legally binding agreement between the developer/owner and a Minister, or instrumentality of the Crown in right of the State or Council (constituted under the Local Government Act 1999 (SA)), is in place to ensure that the sale of the Land or Dwelling complies with the requirements set out in this Notice;

Land Management Agreements under section 57 or section 57A of the Development Act1993 are used by Renewal SA to confirm the commitment to deliver 15% affordable housing in your

residential development. The standard legal agreement can be negotiated to respond to individual developments requiring variation.

Core conditions of the agreement include:

 provision of at least 15% of allotments or dwellings (house and land packages) to be affordable, which may include:

 home purchase below the price point (i.e. $304,000 for completed dwelling or house and land packages in Greater Adelaide),and/or

 land only below the price point (i.e. $136,800 in Greater Adelaide), and/or  sale to an affordable rental provider (negotiated price)

 for affordable home purchase properties a first right to purchase must be offered exclusively to eligible home buyers for a period of at least 30 days

 provision of a staging plan for larger developments showing how the affordable housing will be distributed across the site and between stages

 provision of sales reports on affordable allotments, dwellings and packages.

You will receive three originals from your Affordable Housing Project Manager. Once signed, send all three to your Affordable Housing Project Manager:

Affordable Housing, Strategy and Innovation Renewal SA

GPO Box 698, Adelaide SA 5001

Renewal SA arranges for these to be executed and noted on the land title with the Lands Titles Office. A signed original and a copy showing the Lands Title Office registration number is returned to you. In some circumstances Renewal SA attends settlement so that the Land Management Agreement is registered in series immediately after the transfer.

What is an affordable housing plan?

An affordable housing plan is a spreadsheet or staging plan outlining how your development will meet the 15% affordable housing requirement across the project. The plan must include:

 staging and distribution of the affordable housing within the development  range and diversity of land, house form and tenure

 proposed designs, livability, energy and water efficiency of the affordable housing  prices of affordable homes and allotments and any price variances sought.

An affordable housing plan must be provided to Renewal SA for discussion. Initially the plan does not have to show specific allotments - only the total number of dwellings in each stage. The plan can be revised and amended by consultation to reflect changes as the project progresses.

As the project progresses you will be asked to identify specific allotments; this provides Renewal SA a reference point for responding to planning application referrals, monitoring affordable housing sales and coordinating rescissions of the agreement for each stage.

The variation exists to assist developers to provide better quality affordable housing, both at the initial sale price and in relation to reducing ongoing living costs. In the Adelaide City council area

developments for apartments automatically qualify for the 15% variance due to their proximity to public transport and provision of higher density living.

If you’re seeking approval to use the price variance option please discuss it with your Affordable Housing Project Manager. Dwellings including a variance will need to be identified in your affordable housing plan, and supporting documentation attached to your request for approval provided to Renewal SA, as outlined in the variance fact sheet.

Note that a price variance is not available on land only product.

What are special finance products?

Renewal SA encourages innovation within the residential building industry. One option may be to develop a special finance product (such as a shared value home purchase option) to assist eligible buyers to purchase into your development.

If your plan proposes special finance products which increase eligible buyers’ purchasing power while maintaining affordable loan repayments, details must be discussed with your Affordable Housing Project Manager as soon as possible as additional processes may apply.

How do I include affordable housing in my development application?

 a copy of your Affordable Housing Land Management Agreement

 show the affordable housing allotments on your proposed plan of division

DAC will refer the application to the Minister for Housing and Urban Development’s delegate (Renewal SA) via the electronic development application lodgement and assessment system (EDALA). A fee is not charged for this referral.

Renewal SA has three weeks to respond. The response will indicate if the proposed affordable housing meets criteria for affordable housing as stated in the Affordable HousingGazette Notice and secured by agreement.

If the Development Plan includes different planning requirements for affordable housing that you propose to take advantage of (for example, reduced site area and car parking), then the relevant authority will want evidence/confirmation that the development has an affordable housing legal agreement in place before issuing Development Approval.

Do I need to resubmit affordable housing information when lodging

stage plans?

When lodging each stage plan, attach a separate sheet with the final plan identifying the allotments marked for affordable housing and list the lot numbers for the affordable housing outcomes in that stage.

The Department of Planning, Transport and Infrastructure (DPTI) will contact Renewal SA for clearance via EDALA before the Land Division Certificate of Approval is issued.

When is the Land Management Agreement rescinded?

The Land Management Agreement is rescinded for each stage of your project as you prepare the Certificate of Approval and final plans to be lodged with the Lands Titles Office for that stage. In the case of apartment projects it will be rescinded in time to be lodged together with your community plan. Email a request for rescission of the Land Management Agreement to your Affordable Housing Project Manager.

Include in your email:

 the unique EDALA identification number and development number if applicable.

 the deposited plan and lot numbers marked for affordable housing if you haven’t already lodged this as a separate sheet attached to your final land division plan.

Please make the request in time for the application for rescission to be prepared and executed (estimate two week turn around).

The executed application for rescission will be returned to your nominated contact, and you will need to lodge your application for rescission with your deposit of plan of division.

Once the plan is accepted for deposit you can list your allotments, affordable house and land packages or completed dwellings for sale. Certificates of Title will be issued without the Land Management Agreement on the new titles.

Targeting to eligible buyers is available for 30 days through the Affordable Homes Program. Contact your Project Manager for more information.

What fees and charges are involved?

Applications when they are done as a whole stage or in large parcels.

 standard Lands Titles Office fees will apply when lodging rescission applications.

What assistance is available with marketing?

Your Affordable Housing Project Manager can provide marketing materials and an outline for incorporating your affordable housing product into your marketing plan. Contact your Affordable Housing Project Manager for assistance.

Who can I sell affordable housing to?

You can sell your affordable allotment or housing to any eligible buyer. This includes:  eligible home buyers through the Affordable Homes Program

 community housing providers or a not for profit housing providers  private rental investors through the National Rental Affordability Scheme  South Australian Housing Trust

 anyone else nominated by the relevant Minister

If, at the end of your 30 day exclusive listing period your product has not been purchased by an eligible home buyer – you can sell on the open market at the same price, and this will still count towards your affordable housing targets.

What is the Affordable Homes Program?

The Affordable Homes Program provides a way for eligible home buyers to locate and purchase affordable housing product. Affordable homes under the program are listed on the following websites with our distinctive ‘key’ branding, shown below.

 www.realestate.com.au  www.domain.com.au, and  www.affordablehomes.sa.gov.au

The ‘key’ signals that a property is exclusively available for sale to eligible buyers for a limited period of time and at a fixed price (minimum of 30 days unless sold prior).

For more information about selling your affordable housing through the Affordable Homes Program, speak to your Affordable Housing Project Manager.

What are the reporting requirements?

Reporting requirements are intended to be simple and based on existing project schedules and records.

A template or the report provided in the previous quarter will be sent to you each quarter for updating. These are required to be filled in for periods ending 31 March, 30 June, 30 September and 31

December, and are due within 30 days of the end of each quarter.

The report needs to show all affordable dwellings and affordable allotments sold since the last report. Please email to [email protected].

Further information

For further information about your affordable housing commitment or to discuss your Land

Management Agreement, please contact your Affordable Housing Project Manager at Renewal SA.

Tel: 08 8207 1300

Figure A: Applying and removing Land Management Deeds

Step 1: Renewal SA facilitates execution and registration of Land Management Agreement

Step 2: Consultation with Renewal SA on your Affordable Housing Plan

Step 3: Development Application Developer lodges

Development Application with assessing authority

(DAC / Council)

Renewal SA response: Does or does not

satisfy LMA

Council / DAC determination

Attaching

EDALA referral

LMA

DA granted

AH Plan by stage (sheet 1)

Developer proposes

Affordable Housing

Plan (AH Plan)

Renewal SA feedback

on AH Plan

Final AH Plan agreed

by Renewal SA and

Developer

Developer signature

Minister for Planning / delegate signature

Land Management Agreement (LMA)

Renewal SA registers LMA with Land

Titles Office

Land Management

Step 4: Land Division - Final Plan

Step 5: Rescission & Certificate of Title Developer sends

rescission request to Renewal SA

Developer lodges Final Plan with LTO

Land Title Office rescinds LMA

Renewal SA prepares rescission application under delegated HUD

authority

Attaching

Email Renewal SA

•

•

Deposited Plan no.s

•

housing in stage

CT issued Executed

application for rescission

Separate sheet on

AH Plan showing

affordable housing

allotments

Developer lodges

division plan

identifying AH

on site plan

Council / DAC

determination

Renewal SA response:

Meets requirements

Attaching

EDALA for

clearance

Certificate

of approval