Key strategy to fix housing #5
Ring-fence a set portion of density uplift to be permanently affordable housing
To genuinely address housing affordability, we need a reliable pipeline of affordable land. Late last year the Labour and National parties announced a housing density deal. It is to change relevant planning laws for greater bulk and heights in many places across Aotearoa. This provides a golden opportunity to enable land for affordable housing!
Where land has a planning allowance change which enables increased density, and therefore potential private profit, a portion should be ring-fenced to be permanently affordable housing. This portion should be equitable across all larger developments above a certain size. This approach should exclude the increased development potential of the family home. This newly created value could take the form of money, land or completed housing, known as inclusionary housing. It must be used for housing that remains permanently affordable. The entity which should receive this portion of density uplift is the local Community Land Trust (see our previous post #4).
This Infographic highlights how long it will take our average incomes to catch current average house prices (published Jan 2022).
Source: Adapted from Community Housing Aotearoa and ThinkPlace Wāhi Whakaaro.
For the full Inclusionary Housing flyer including the above infographic see here.
Forever Affordable Homes has covered this issue (also called inclusionary zoning) in a previous blog.
Inclusionary housing (also known as inclusionary zoning). Source: Mississauga
If we don't catch a part this nationwide upzoning, we are are giving away the biggest opportunity to create affordable housing in a lifetime!
Steps you can take to ensure this affordable housing opportunity is caught includes:
Contact David Parker MP as Minister for the Environment. He is responsible for the reforms to the Resource Management Act. This Act could make provision for nationwide inclusionary housing.
Contact Megan Woods MP as lead for housing stressing the importance of equitably sharing this increase in value with those in need for now and into the future.
Let the shadow housing Minister Nicola Willis know that the agreement her party made with the Labour party must include provision for sharing this otherwise private profit more fairly.
