NSW Government Housing Reforms
The NSW Government is addressing the housing shortage through planning reforms that have affected the permissibility, built form scale and approval processes of housing across NSW. Further changes aim to increase affordable housing. Some of these reforms affect the North Sydney local government area (LGA).
- TRANSPORT ORIENTED DEVELOPMENT (TOD) PROGRAM
The Transport Oriented Development (TOD) program focuses on delivering more housing near metro and rail stations. This is so more people can live close to transport, jobs and services. There are two parts to the program:
- TOD Accelerated Precincts: Crows Nest is one of eight precincts in the metropolitan area that have been subject to a state-led design and rezoning process
- Amending State Environmental Planning Policy (Housing) – the ‘TOD SEPP’, to enable higher-density housing within 400m of 37 other station precincts (these changes do not apply to the North Sydney LGA)
Crows Nest state-led rezoning
On 27 November 2024, the NSW Government rezoned land around the Crows Nest TOD precinct. The state-led rezoning provides:
- capacity for 5,900 new homes (in addition to the 3,200 already rezoned under the previous St Leonards and Crows Nest 2036 Plan)
- capacity for approximately 2,500 new jobs
- a minimum of 3% affordable housing in all new residential development and between 5% and 18% for key sites
- floor space ratios (FSRs) of up to 20:1
- a range of building heights from 6 up to 62 storeys
Tall, mixed-use and commercial towers will be concentrated along the Pacific Highway from St Leonards Station through to the Five Ways intersection at Crows Nest. A 62-storey tower will be located on the Royal North Shore Hospital site in Willoughby local government area. 18-storey towers are now permissible along Clarke Street in front of Hume Street Park in Crows Nest Village.
The Crows Nest TOD precinct extends west to Lithgow Street, River Road and Gillies Street in Wollstonecraft. This area will support a mix of 6 to 16-storey apartment buildings.
A potential new open space has been identified for the corner of Christie and Oxley Street.
Council submissions
You can read Council’s submission in response to the original proposals exhibited between July and August 2024.
Council staff are currently working through the details of post-exhibition changes that have been made to North Sydney’s planning controls. We will provide more information to help you understand how the changes may affect you in the coming weeks.
You can also read Council's previous correspondence with the Department of Planning regarding a mechanism to fund essential community infrastructure for the Crows Nest TOD precinct submission and the Department's response.
As it becomes available, further information will be shared in the Latest news section of Council’s website.
2. Low and Mid-Rise Housing Reforms
In parallel with the TOD Program, the State Government has also released the low and mid-rise housing reforms. An explanation of this proposal is included in this link and outlines the extent of reforms being proposed to allow additional forms of low and mid-rise housing to be permitted.
The proposal seeks to increase development capacity on all land located within proximity of a “station or town centre precinct.” These precincts are to encompass the following land:
- within 800m walking distance of a heavy rail, metro or light rail station; or
- 800m walking distance of Commercial Centre (Zone E2) or Metropolitan Centre (Zone SP5); or
- 800m walking distance of the Local Centre (Zone E1) or Mixed use (Zone MU1), but only if the zone contains a wide range of frequently needed goods and services such as full-line supermarkets, shops and restaurants.
Key implications arising from the reform:
Height limits of up to 6 storeys and floor space ratios of 3:1 are being proposed, which would effectively enable increased height and density overriding the Council’s local planning controls.
- Within the station and town centre Precincts, the proposal would permit Residential Flat Buildings (up to 6 storeys) within the R3 Medium Density Residential zone (current height limit of 8.5m); and allow manor houses and multi-dwelling housing within the R2 Low Density Residential zone, which are currently prohibited under North Sydney LEP 2013.
- Although a merit-based assessment will continue to apply to developments involving heritage items and Heritage Conservation Areas, it is understood that the proposed controls under the low and mid-rise reforms will effectively prevail over Council’s local controls.
A full assessment of the implications of the proposed reforms was considered by Council at its meeting of 12 February 2024. Council resolved to make a submission opposing to the proposed reforms and request further consideration be given to addressing a number of matters to ensure that adverse impacts on the wider community are minimised. A copy of Council's submission can be found here.
Submissions to the NSW Government for this Program closed on Friday 23 February 2024.
2.1 Refinement Paper
In response to submissions made to the draft Low and Mid-Rise Housing proposal, the DPHI released a Refinement Paper and requested Council to complete a Feedback Form to assist the DPHI in determining appropriate Station and Town Centre Precincts under the reforms. Council staff responded to this request on 15 May 2024.
Key changes under the Refinement Paper include:
- To collaborate with councils to confirm suitable station and town centre precincts;
- Development standards to not apply to employment zones;
- To collaborate with councils to determine applicability to the R1 zone;
- No change to the applicability to heritage items or conservation areas;
- Exclude high-risk flooding lands;
- Exclude high risk bushfire lands;
- Exclude land subject to other high-risk hazards; and
- Recalibration of FSR and height standards.
On 18 June 2024, Council considered a Notice of Motion at an Extraordinary meeting, due to concerns relating to Council’s response of 15 May 2024. Council resolved to prepare and submit a revised response to further articulate its endorsed position. Council's revised response was sent to the DPHI on 21 June 2024
The State Government has recently advised that the low and mid-rise housing reforms will come into effect later in 2024.
3. Community Information Evening
Council arranged a Community Information evening so that Council staff could provide an overview of the proposals and broadly how they may impact the North Sydney LGA. This event was ticketed but also recorded and made available on Council's website.
Click here for information from the evening.
4. LEGISLATIVE ASSEMBLY SELECT COMMITTEE ON ESSENTIAL WORKER HOUSING
The NSW Government has established a Committee to inquire into and report on options for essential worker housing in the State. The Committee’s inquiry will focus on establishing an appropriate definition of essential worker housing for the NSW Government to adopt, as well as identifying options to increase housing supply for essential workers. The Committee’s terms of reference can be viewed here.
While the work of the Committee is separate from the Transport Oriented Development Program and Low and Mid-Rise Housing Reforms, there are some clear shared thematic threads (for example, the need for affordable housing and the importance of ensuring any planning response is nuanced and place-based).
Council made a submission to the Committee, outlining general matters for consideration, consistent with Council’s endorsed policy position. A copy of Council’s submission can be found here. Submissions closed on Friday 13 September 2024. The Committee is due to report their findings by 7 March 2025.