Local Government Guide to Developing an Affordable Housing Strategy

Introduction:

Local Planning Schemes and Affordable Housing Strategy are therefore very important to facilitate affordable housing at a local level. Local governments are instrumental in ensuring local residents are able to access a range of diverse housing options based on their needs. “While national and state planning policies and initiatives are required to help address the issue (of affordable housing), the diversity of housing needs and varying local housing market conditions meant that affordable housing strategies and their implementation often need to be locally driven”. 

This guide is a resource to assist local governments to develop an Affordable Housing Strategy to ensure the adequate provisioning and diversity of affordable housing. The guide includes a range of tangible measures councils can use to achieve more favorable housing options for their residents.

The guide explains what an affordable housing strategy is and why they are important for local governments; how to undertake a housing market analysis and read demographical data; and how to turn this analysis into strategies for action to facilitate more affordable housing. The ultimate aim of the guide is to create a dynamic Affordable Housing Strategy tailored specifically to individual council needs.

What is Affordable Housing?:

The definition of what is meant by affordable housing is integral to the understanding of the policy commitments and objectives which need to be included in local government documents. These objectives should be adopted by council through the implementation of a local Affordable Housing Strategy.

Affordable housing:

is housing which is affordable for households in lower or middle parts of the income scale (Disney, 2007). This housing also must be reasonably adequate in its standard and location for these households and “does not cost so much that such a household is unlikely to be able to meet other basic living costs on a sustainable basis”.

What is an Affordable Housing Strategy?:

An Affordable Housing Strategy is a supplement for a local housing strategy. It focuses on resourcing and directing planning actions, including policy formulation, to address the community’s need for affordable housing. Each strategy consists of a detailed range of practical responses, including initiatives specific to the area, as well as further prospects for housing reforms. It identifies key inhibiters and challenges to achieving affordable housing revealed while undertaking research into current and future needs.

Affordable Housing Strategy:

An Affordable Housing Strategy should also identify where current policies and strategies have failed or need amendment to facilitate better housing diversity. It is also very valuable to consider partnerships with community organizations, as there has been a disconnect between local governments and support networks in local areas.

Housing Needs Analysis:

The Housing Needs Analyses forms part of the local housing strategy. They include a needs analysis, policy objectives and strategies to achieve these goals, including land use planning strategies. Tasks associated with developing the Affordable Housing Strategy include:

research housing needs and supply;

research the degree of unmet housing need through affordability or appropriateness;

develop council policies and an Affordable Housing Strategy;

develop and convene an Affordable Housing Reference Group and Advisory Committee;

research affordable housing funding opportunities; and,

develop partnerships with government, business, private and community sectors in the planning and development of affordable housing projects.

Target low and moderate income households:

The need to determine what is low and moderate income is necessary to adequately plan housing for this group. „Low and moderate-income households‟ have incomes below 120 per cent of the gross median income of all households. This category can be sub-divided into incomes below 50 percent of the median („very low-income‟) and between 50 to 79 percent („low income‟); and between 80 and 119 percent („moderate income‟).

Data needed for housing needs and market analyses:

Housing needs and market analyses should focus on four key areas:

1. Demography (population and household characteristics)

2. Economy (industry, income and occupation trends)

3. Supply (dwelling types and tenures, new development approvals)

4. Market (rent and sale prices and availability)

Demographic Conclusions into Affordable Housing Strategy for Action:

Is there a balance between housing supply and demand across all tenures? Is the housing appropriate and affordable? If the answer is no, more questions need to be asked and a change of housing stock may be required:

Is there a large amount of new housing likely to be required to meet forecasted demand?

Is the existing housing stock/land supply a good match for the demographic profile (that being a broad demographic profile)?

Is there a group that misses out?

Has there been a marked loss of low cost housing stock?

Are there large concentrations of low-income households in the area?

Is affordability a major issue?

Conclusion:

An effective affordable housing strategy will need to foster partnerships and create resourcing mechanisms that will enable and facilitate private and community provision. Policy development and finance capacity building are also key factors, along with stable support from Council (Housing and Urban Research Institute of WA, 2008).

Also Read: Contribution of the Republic of Turkey for the Report of The Special Rapporteur on Adequate Housing – Un General Assembly