The Affordable Housing Initiative proposes an amendment to planning regulations (SEPP Affordable Rental Housing 2009) so that multi-dwelling housing is permissible in the R2 Zone provided that a proportion of the dwellings are designated as affordable rental housing. This means that single lots could be developed (but kept low-rise) to provide a small number of townhouses (3-10 dwellings), removing the need for lot amalgamation and limiting large – scale development in low- rise residential areas. Permitting multi-dwelling construction in the R2 Zone, on the condition that a proportion of the development is designated as affordable rental housing, provides an incentive similar to that of a floor space bonus however geared towards the townhouse-style dwelling. This scale of development will attract small developers and individuals, broadening the scope of those participating in the provision of affordable housing.