Agenda of Extraordinary Council - Tuesday, 30 September 2025

Extraordinary Council Meeting

30 September 2025

Item No: C0925(2) Item 1

Subject: Post Exhibition - Our Fairer Future Plan - Council's approach for new housing in the Inner West

Prepared By: Simone Plummer - Director Planning

Authorised By: Matthew Pearce - General Counsel

RECOMMENDATION

1. That Council endorse Our Fairer Future Plan - Council's approach for new housing in the Inner West, subject to the post-exhibition amendments detailed in this report and Attachments 1 – 3, and submit it to NSW Government for implementation via a State-led fast track approval pathway for the following suburbs:

a) Annandale,

b) Ashbury,

c) Ashfield,

d) Balmain,

e) Balmain East,

f) Birchgrove,

g) Camperdown,

h) Croydon,

i) Croydon Park,

j) Dulwich Hill,

k) Enmore,

l) Hurlstone Park,

m) Lewisham,

n) Lilyfield,

o) Newtown,

p) Petersham,

q) Stanmore,

r) Summer Hill,

s) Sydenham, and

t) Tempe.

2. That Council endorse Our Fairer Future Plan - Council's approach for new housing in the Inner West, subject to the post-exhibition amendments detailed in this report and Attachment 1 – 3, and submit it to NSW Government for implementation via a State-led fast track approval pathway for:

a) Haberfield

3. That Council endorse Our Fairer Future Plan - Council's approach for new housing in the Inner West, subject to the post-exhibition amendments detailed in this report and Attachment 1 – 3, and submit it to NSW Government for implementation via a State-led fast track approval pathway for:

a) Leichhardt

4. That Council endorse Our Fairer Future Plan - Council's approach for new housing in the Inner West, subject to the post-exhibition amendments detailed in this report and Attachment 1 – 3, and submit it to NSW Government for implementation via a State-led fast track approval pathway for:

a) Marrickville

5. That Council endorse Our Fairer Future Plan - Council's approach for new housing in the Inner West, subject to the post-exhibition amendments detailed in this report and Attachment 1 – 3, and submit it to NSW Government for implementation via a State-led fast track approval pathway for:

a) Rozelle

6. That Council endorse Our Fairer Future Plan - Council's approach for new housing in the Inner West, subject to the post-exhibition amendments detailed in this report and Attachment 1 – 3, and submit it to the NSW Government for implementation via a State-led fast track approval pathway for:

a) St Peters

7. That Council delegates the Director Planning to make editorial, formatting and technical modifications to the Plan prior to submission in accordance with Council’s resolutions.

8. That Council immediately request the NSW Government to:

a) Remove the application of the Transport Oriented Development (TOD) and the Low- and Mid-Rise Housing (LMRH) reforms from the Inner West Local Government Area;

b) Replace these reforms with Our Fairer Future Plan - Council's approach for new housing in the Inner West (as amended post-exhibition); and

c) Decline State Significant Development Applications using the TOD or LMRH controls until Our Fairer Future Plan has been implemented.

9. That the Croydon Housing Investigation Area Masterplan be reviewed following discussions with Burwood Council and brought back to Council for further consideration and re-exhibition.

10. In order to support Our Fairer Future Plan the following policy work commence to be brought to Council for consideration prior to exhibition:

a) A new Local Infrastructure Delivery Plan and update to the Inner West Contributions Plan to cater for the increased local infrastructure demands across the LGA;

b) A harmonised Development Control Plan based on both feedback from development stakeholders and the Draft Design Guides; and

c) The Inner West Affordable Housing Policy be reviewed as outlined in Attachment 1 Engagement Outcomes Report.

11. That Council write to the NSW Government state agencies and public authorities to seek commitment for state infrastructure delivery, for schools, public transport, regional open space, health infrastructure and utilities, to be aligned with the timing and scale of housing development, and that Inner West community wellbeing, equity, and sustainability are prioritised.

STRATEGIC OBJECTIVE

This report supports the following strategic directions contained within Council’s Community Strategic Plan:

2: Liveable, connected neighbourhoods and transport

EXECUTIVE SUMMARY

This report presents the outcomes of the public exhibition of Our Fairer Future Plan (the Plan) -Council’s strategy for new housing in the Inner West, and recommends updates based on community feedback. The Plan proposes an alternative approach to the NSW Government’s Transport Oriented Development (TOD) and Low and Mid-Rise Housing (LMR) reforms.

Our Fairer Future Plan was publicly exhibited from 21 May to 6 July 2025. Council received 3,146 submissions, including survey responses, written submissions, petitions, and feedback from stakeholder organisations and public authorities.

Community feedback provided support for increased housing supply, walkable neighbourhoods, and revitalised town centres. However, concerns were raised about traffic congestion, infrastructure strain, heritage impacts, parking, overdevelopment and equitable distribution of density. There was a clear desire for more affordable housing, open space, and social infrastructure. Council officers have reviewed and analysed submissions to identify key themes and site-specific matters in the Engagement Outcomes Report (Attachment 1) and Masterplan Post Exhibition Changes (Attachment 2).

It is recommended that the Plan be updated as discussed in Attachments 1-3, for example:

· site-specific changes to zoning, height and density controls

· change to heritage

· new or revised design guidance provisions

· updated amalgamation requirements

· updates to affordable housing requirements

The review of the Plan has also resulted in excluding certain sites from proposed uplift, including some new sites for uplift as well as modifications to the exhibited planning controls for specific sites based on post-exhibition urban design testing outcomes.

This report also responds to other items required by the August 2025 Council resolution including:

· Economic modelling on feasibility of affordable housing contributions

· Recommendations to amend Council’s Affordable Housing Policy

Further, this report seeks Council’s endorsement to submit the Plan, subject to changes outlined in this report and Attachments 1-3, to the NSW Department of Planning, Housing, and Infrastructure (DPHI) for finalisation via a fast-track State-led pathway. Next steps for implementing Our Fairer Future Plan including preparation of the supporting Development Control Plan and updates to Infrastructure Contributions Plan are also outlined in this report.

BACKGROUND

Our Fairer Future Plan is a Council-led alternate approach to deliver more housing in the Inner West. It responds to the housing crisis and State Government’s Housing Reforms - Transit Oriented Development (TOD) and Low-Mid Rise Housing (LMRH).

In October 2023, Council received a letter from the Minister for Planning and Public Spaces highlighting the housing crisis and the need to update planning controls to support new housing. In December 2023, the NSW Government launched the TOD Program to accelerate housing delivery by increasing density around 38 train stations, of which 5 are in the Inner West - Bays West (TOD Part 1 Accelerated Precinct), Ashfield, Croydon, Dulwich Hill and Marrickville (TOD Part 2).

Council was granted a deferral to introduce its own approach for Ashfield, Dulwich Hill and Marrickville Stations until December 2024 and Croydon Station until January 2025. This approach needed to meet or exceed the theoretical housing capacities allowed by the NSW Government’s controls for TOD locations.

Separately, the NSW Government is leading preparation for the TOD Part 1 Accelerated Precinct for Bays Precinct, with more information expected for public consultation in later 2025.

At the Council meeting held on the 20 May 2025, Council resolved the following in part, in relation to the Exhibition of the Fairer Future Plan:

1. That Council endorse for exhibition Item, including supporting technical studies, as shown at Attachment 1 and Appendices 1- 11, in accordance with the endorsed Community Engagement Plan for the following suburbs in the Inner West Local Government Area.

2. That Council delegate the Director Planning to make any minor editorial/ formatting/ technical modifications to the package prior to public exhibition.

3. That Council process submissions contemporaneously during the exhibition period and provide an update at every Councillor briefing until the August Council meeting.

4. That following the conclusion of the exhibition period, an engagement outcomes report be brought back to Council for consideration prior to submitting the Council-led “Fairer Future for the Inner West” Plan to NSW Government for implementation through a State-led fast track approval pathway.

5. The final “Fairer Future for the Inner West” plan is to be reported back for adoption to the August 2025 Council meeting.

6. That the final plan should be amended to make the acquisition of new housing stock, owned by Council in perpetuity, be made the highest priority for public benefits to be achieved through developer contributions. This is to be reflected in the plans tabled for adoption.

7. That Council defer consideration of any changes to planning controls in the suburb of Croydon pending consultation with Burwood Council to identify how to harmonise controls across Croydon.

8. That Council note that following the adoption of the “Fairer Future for the Inner West” Plan that a new stage (stage 2) of investigations will be required for areas not examined under the plan so far.

9. That Stage 2 of the “Fairer Future for the Inner West” Plan will commence immediately after the adoption of the Stage 1 and include:

a. Incorporating the 3,000 - 5,000 new homes in the Bays Precinct;

b. Increasing density on Parramatta Road;

c. Increasing density on main streets, heavy and light rail stations not examined fully in Stage 1; and

d. completion of the further technical investigations required for the ‘additional housing opportunity areas’.

10. That Council makes available a video explainer on how to read the Fairer Future Plan and attachments.

11. That Council appoints a single point of contact from within the Strategic Planning team for Councillors and Members of Parliament.

12. That the Plan be exhibited for a minimum of 6 weeks.

Further, at the Council meeting held on the 19 August 2025, Council resolved the following:

1. That Council hold an Extraordinary Council Meeting on Tuesday 30 September 2025 at 6.30pm at the Ashfield Service Centre to consider the detailed engagement outcomes report for the Our Fairer Future Plan, and amendments recommended to the Our Fairer Future Plan in response to the submissions received by Council.

2. That Council publish the agenda on Tuesday 16 September 2025 for the Extraordinary Council Meeting to be held on Tuesday 30 September 2025.

3. That Council hold the Public Forum on Monday 22 September 2025 at 6.30pm at the Ashfield Service Centre for the Extraordinary Council Meeting to be held on Tuesday 30 September 2025, and publicise details about the Public Forum on Council’s website.

4. That Council request that any person wishing to speak at the Public Forum on Monday 22 September 2025 make an application to speak by 2pm on the day of the Public Forum.

5. That officers provide economic modelling including an assessment of feasibility, housing yield and scale of development in order to update the affordable housing requirements for Our Fairer Future Plan. This economic modelling should consider the feasibility of requiring affordable housing contributions at 5%, 10%, 15%, 20% and 30%.

6. That officers include in the Fairer Future report for the September 2025 meeting recommendations as to how the Affordable Housing Policy should be amended in response to community and organisation submissions.

7. That officers include in the Fairer Future report for the September meeting a timeline for progressing the development of Council owned sites for conversion to not-for-profit housing through partnerships with the Community Housing sector as well as the state and federal governments.

8. That in response to the community consultation, officers include in the Fairer Future report for the September meeting a table of issues, outcomes of urban design modelling and testing by technical experts with recommendations and rationale to either validate or update the proposed planning control relating to land uses, heritage, Floor Space Ratio (FSR), height, setback and building envelope controls.

9. That officers include in the Fairer Future report an assessment of the expansion of eligibility of all tiers of Community Housing Providers (CHPs) for the management of affordable housing.

10. That officers include in the Fairer Future report and assessment of expanding the affordable housing scheme being applied Local Government Area (LGA) wide.

DISCUSSION

Our Fairer Future Plan is comprised of three key components which aim to inform the proposed changes to the Inner West Local Environmental Plan (IWLEP) 2022 and future Inner West Development Control Plan (DCP):

· Residential review
The focus of the residential review is to improve consistency and transparency in how residential zones are applied across the LGA and bring alignment between the height of building and densities within the residential zones.

· Masterplanning of Housing Investigation Areas supported by various technical studies
The masterplans focus on areas in proximity to transport and local well-serviced centres, to deliver a place-based approach for increased housing density. The plans offer a place-based alternative to the State Government’s “one size fits all” approach. These Council led masterplans can deliver more housing with high quality urban outcomes. By focusing on the local area, walkability, and good design, the plans balance growth with the needs of the community. This helps make sure that new development supports the vibrant, diverse, and liveable places that people value in the Inner West.

The areas identified as opportunities for uplift within Inner West include:

o Stage 1 - Marrickville, Dulwich Hill, Ashfield and Croydon (note: Croydon has been deferred as per the Council resolution of May 2025)

o Stage 2 - Summer Hill, Lewisham, Petersham, Stanmore, Leichhardt, St Peters, Sydenham and Tempe.

· General amendments

Other general amendments are proposed to the IWLEP 2022 including changes to land use zones, development standards (e.g. HOB and FSR exceptions), affordable housing provisions, key site provisions, unlocking faith owned land for the provision of affordable housing, land reserved for acquisition and development incentives.

Community Engagement

An extensive and inclusive community engagement program was undertaken to support the public exhibition of Our Fairer Future Plan from 21 May to 6 July 2025. The consultation was designed to ensure that residents, property owners, businesses, and stakeholders could understand the implications of the Plan and provide meaningful feedback.

The engagement program included 11 community drop-in sessions across the Inner West, 8 service centre drop-ins, and 313 one-on-one "Speak with a Planner" appointments. Council also responded to 342 phone enquiries and 123 emails during the exhibition period.

Promotional efforts included letters to all property owners and occupants, digital and print newsletters, social media campaigns, explainer videos, and an interactive mapping tool. All exhibition materials were made available online and in hard copy at Council libraries and service centres. Refer to Attachment 1 for more details regarding the Engagement Approach.

Engagement Outcomes & Analysis

Our Fairer Future Plan received a total of 3,146 submissions, including 1,623 online survey responses and 1,523 written feedback via email and mail, reflecting strong community interest and participation. These included individual submissions, organisation submissions, proformas, petitions, and input from Local Democracy Groups. Throughout the documents the use of the term submissions means any written feedback received whether by survey, email or correspondence.

· Council officers undertook a comprehensive and methodical review of these submissions. Officers analysed both data from survey responses and detailed insights from free-form submissions to ensure a balanced and inclusive understanding of community sentiment.

· Submissions were received through two main channels: structured surveys hosted on the Your Say Inner West and open-ended email feedback. While 51.5% of participants responded via surveys (which included specific questions and the opportunity to add free form text), the other 48.5% provided feedback via email/mail.

· Given this even distribution between the survey and email input, it is important to note that a purely quantitative analysis of the survey data does not accurately represent the full diversity or depth of community feedback. Therefore, the Engagement Outcomes Report presents a thematic analysis that integrates both forms of input—ensuring that all voices are captured and responded to appropriately, regardless of submission format.

· Submissions are grouped thematically, including housing supply, affordable housing, infrastructure, transport, heritage, sustainability, flooding, and community wellbeing. Officers identified common concerns and areas of support, as well as site-specific feedback.

· Where appropriate, additional urban design testing, feasibility analysis, and technical studies were commissioned to assess the implications of proposed changes and community suggestions.

· Each theme has been reviewed in detail, and Council officers have prepared responses to the matters raised. These responses have been informed by technical, financial, environmental, and social considerations.

· Where warranted, officers have recommended updates to proposed planning controls, infrastructure delivery mechanisms, and design guidance. These are described in the Engagement Outcomes Report in Attachment 1.

· Further, a large number of site-specific submissions were received in relation to the masterplan which have been addressed by the technical urban design consultants and detailed in Attachment 2.

Engagement Outcomes Report

Submissions included a mix of support, concern, and constructive suggestions, reflecting the community’s deep investment in the future of the Inner West. While many welcomed the Plan’s ambition to address the housing crisis, others raised important questions about infrastructure, scale of development, heritage, amenity, and equitable growth. Some submissions raised site-specific concerns or suggestions.

Key themes raised in submissions are listed below. Detailed summary of submissions, responses and actions/recommendations are addressed in detail in Attachment 1.

1. Housing and Uplift

2. Affordable Housing

3. Residential Review – Harmonising of zoning and height controls Supply and Density

4. Housing Diversity

5. Traffic transport and parking

6. Infrastructure – local and state

7. Heritage

8. Sustainability and environment

9. Flooding

10. Environmental constraints and conditions

11. Economy and business

12. Broader policy issues - planning process and governance

13. Impacts on existing community

14. Public engagement and community consultation process

15. Other matters

16. Organisation / Public Authority / Group submissions

Masterplan Post Exhibition Changes

Submissions have been summarised into key matters, with Council officers providing responses and recommendations. These include refining building heights and densities to address concerns about overdevelopment, privacy, and amenity.

Urban design testing was undertaken to ensure appropriate transitions between zones and to protect solar access and local character. Site-specific changes are detailed and supported by building envelope, massing, and solar access diagrams in Attachment 2, and by maps in Attachment 3.

Key changes to note include:

· Refinement of proposed Floor Space Ratio (FSRs) and Height of Buildings (HOBs)

· Zoning and HOB Corrections

· Inclusion of Heritage Items in Uplift

· Addressing Site Isolation

· Refinement of Land Reservation for Acquisition (LRA)

· Key Sites

· Clarification of Minimum Frontage Requirements

Update on Croydon

In response to the Council resolution in May, Inner West and Burwood Council officers have commenced a collaborative review of Croydon, however, further discussions are required between the two Councils. Croydon-related submissions received during the recent consultation on Our Fairer Future Plan will be considered when revisiting the proposed planning changes for the suburb.

There are no Masterplan related changes for properties in Croydon as part of Our Fairer Future Plan. However, some general changes such as minimum lot sizes for subdivision and rules for dual occupancies, are planned to apply across the whole Inner West, including Croydon.

The recommendation is to move forward with these general changes now, while masterplan work for Croydon will be considered and reported separately in the future

NSW Government’s TOD controls were switched on for Croydon in January 2025. As part of this report, removal of Croydon from the application of both the TOD and the LMRH controls is sought. This request is based on:

· the broad success of Our Fairer Future in the application of the Planning Principles endorsed by Council in 2024 and then finding more appropriate locations for suitable dwelling uplift across the LGA

· the demonstration of Council’s commitment to addressing the housing crisis

· the commitment to a separate master planning process for Croydon in collaboration with Burwood Council.

Residential Review

The Residential Review assessed residential zones in the Inner West LEP to align land uses with existing local character and harmonise zoning across the LGA. It also established height of building controls for the former Leichhardt LGA. It facilitates the creation of a single DCP for Inner West which is also critical to support the Masterplans and address the housing crisis.

The height of building investigations that underpinned the Residential Review were derived from the building envelopes in Leichhardt DCP 2013. However, some two-storey dwellings were located on sites proposed for a 7 metre Height of Building (HOB) due to this historical inaccuracy. In response to submissions, Council officers reviewed those properties to ensure the proposed controls reflected the existing building on site as shown in the revised maps (Attachment 3).

Economic Feasibility & Affordable Housing

Following the August Ordinary meeting of Council, Atlas Economics was engaged to provide a feasibility analysis and economic modelling (Attachment 4) in order to update the affordable housing requirements of Our Fairer Future Plan.

Whether a development can contribute to affordable housing depends on whether it’s financially feasible. This feasibility is influenced by the property's current value and what kind of development is permissible. While affordable housing requirements are a positive goal, development is unlikely if the rate is not feasible.

Feasibility is challenging in the Inner West context due to high land values, small lot sizes and fragmented lots which need to be amalgamated before any redevelopment can occur. This adds to the amalgamation premium costs for these sites.

Modelling by Atlas Economics shows that:

· While the 2% rate proposed is not feasible everywhere now, it is feasible for some property types and will become more feasible over time. A phased in approach to higher rates could be considered particularly in areas where feasibility is more favourable – this has been included in Our Fairer Future Plan.

· A higher affordable housing contribution rate of 5% is only feasible for one site in Ashfield (138-158 Liverpool Road, 25-29 and 41-43 Norton Street) due its large size.

· Extending the contribution to the entire LGA and/or increasing rates elsewhere is unlikely to result in additional affordable housing as it would make development unfeasible.

· There is an inverse relationship between the cost of land and the density required for development to be feasible. Development up to FSR 9.6:1 or approximately 40 storeys would be required in town centres to allow an affordable housing contribution rate of 10% to be imposed.

· The threshold for requiring affordable housing contributions can be reduced from 2000 to 200m².

As exhibited the Affordable Housing Contribution rate is proposed to be:

· 2% on commencement of the proposed amendments

· 3% after 2 years of commencement and

· 5% after 5 years.

Based on the analysis of Atlas and in order to signal to the market Council’s expectations with respect to affordable housing contributions, a modest increase phased in over time is recommended at 0.25% annually for 4 years. The affordable housing contributions rate will be included as a new clause in the LEP and will be the subject of monitoring and analysis over time for appropriateness.

A separate piece of work will be undertaken to update the Inner West Affordable Housing Policy to reflect policy changes since its adoption in 2022. This will include revised implementation pathways to maximise the creation of affordable housing, including highlighting the role that CHPs can play in the management and delivery of affordable housing.

A revised Affordable Housing Policy will investigate the following changes:

· The impact ownership (Council or Not for Profit CHP and Tier) has on the feasibility and flow on effect of creating greater opportunity for affordable housing in the LGA.

· Provision of in-kind or cash contributions by developers

· The effectiveness of developing new affordable housing or buying existing buildings

· Defining key/essential worker housing

· Setting rent – based on a percentage of income or a discount on market rent

· Including a schedule specifying a dollar value for contribution rates

A submission was received from Homes NSW regarding the uplift and development opportunity of their affordable / social housing site at 438 Illawarra Rd Marrickville. Modelling has further uplifted this site and a recommendation is included to ensure that there is no net loss of existing affordable and social housing on this site.

Local Infrastructure and Open Space

Community feedback highlighted concerns about the adequacy of local infrastructure to support proposed housing growth. There was strong demand for new sports fields, child-friendly spaces, and shaded playgrounds, particularly in high-density areas. Additionally, the community called for improved active transport infrastructure, including safe pedestrian paths, protected bike lanes, and better lighting and accessibility features which are delivered over time through an Infrastructure Contributions Plan. Accordingly, a new plan will be brought to Council in response.

Provision of community infrastructure is proposed in the plan through the use of three main mechanisms – being acquisition of land by Council, Public Realm Incentives, and Key Sites. These mechanisms outline the benefit to the community that will be provided by the development. They also create a clear link between accessing uplift and the provision of this benefit to Council on behalf of the community. Another advantage of these mechanisms is that they provide the benefit as the density is being realised.

The mechanisms for the creation of infrastructure are discussed in more detail below.

Land Reserved for Acquisition

The exhibited Our Fairer Future Plan proposed both full and partial Land Reserved for Acquisition (LRAs) for the provision of either open space or to facilitate public domain improvements, including wider footpaths, landscaping, tree planting, and enhanced active transport connections.

The only properties currently proposed for full, voluntary acquisition are in Greenbank Street, Marrickville. Submissions regarding this are addressed in the Engagement Outcomes Report, and the recommendation remains to purchase the properties in order to extend the provision of open space for McNeilly Park. This does not mean the Council is going to take the land or force it to be sold. If the owner ever decides voluntarily to sell, then Council has the option to buy it first at market price.

Regarding property identified for acquisition in part, in response to community concerns about the implications of this approach, and following further internal review, the recommendation is to replace partial acquisitions with a new mechanism called ‘Public Realm Incentives – Mandatory’ (PRIM). The proposed uplift that was exhibited for these sites, or as recommended post exhibition, will now be available only if the PRIM is provided to Council. The significant difference between partial LRA and PRIM is that via the PRIM mechanism the uplift is more directly linked to the provision of the land for community benefit.

Key Sites

Key sites are a relatively new tool used by local councils to link specific community benefits like public open space or infrastructure improvements to development opportunities through rezoning. The key site mechanism allows Council to define the required upfront. This gives developers a clear understanding of what is expected in return for increased development potential.

Detailed feedback was received for certain Key Sites. Post-exhibition urban design testing has recommended changes to key sites including reorganisation based on updated land ownership and updates to FSRs and HOB controls. For example, Key Sites 1–3 in Dulwich Hill are recommended to be reconfigured to better reflect ownership patterns and achieve solar access targets. Proposed height at Key Site 6 - Woodbury St, Marrickville has been recommended to be reduced to 12 storeys. Supporting proposed LEP controls and Design Guide requirements are recommended to be updated to reflect new building envelopes and public space provisions.

Parking & Traffic Impacts

Community feedback showed mixed views on public car parks, proposed parking rates and traffic congestion on local roads. No public car parks are proposed for removal under Our Fairer Future Plan. Instead, planning controls are being recommended to enable future development opportunities, or a broader range of uses. These potential development opportunities will be subject to further consultation and parking studies.

In response to submissions about parking, refinements are now recommended. A tiered approach to car parking rates on future development sites has been developed based on access to public transport:

· Lower maximum parking rates apply to areas within 400 metres of major train stations (Dulwich Hill, Marrickville, and Ashfield).

· Slightly higher rates apply to areas further from public transport.

This proposed tiered approach for car parking rates is key to overall reduction in traffic congestion. The updated approach also includes provisions for accessible parking in adaptable dwellings, electric vehicle (EV) charging infrastructure, and car share spaces. If Council supports this approach, the Design Guides will be updated to reflect these changes.

Conclusion

Our Fairer Future Plan represents a locally tailored response to the housing crisis, balancing the need for increased housing supply with local considerations. The extensive engagement program has demonstrated the community’s deep interest in shaping the future of the Inner West, with over 3,100 submissions received and hundreds of residents participating in drop-in sessions, planner appointments, and surveys.

Community feedback has highlighted both support and concern—many residents welcomed the plan’s place-based approach, emphasis on walkability, and commitment to infrastructure delivery, while others raised issues around parking, traffic, heritage, and the scale of proposed development. Council officers have carefully reviewed all submissions and recommended a series of updates to planning controls, infrastructure delivery mechanisms, and design guidance to reflect community priorities and ensure balanced outcomes. These are outlined in Attachments 1-3.

The successful implementation of the Plan will require ongoing collaboration between Council, the NSW Government, and the community. While Council has committed to delivering local infrastructure and planning controls, many critical services—such as schools, hospitals, and public transport—fall under state responsibility. Council will continue to advocate strongly for timely investment in these areas to support sustainable growth.

Upon Council’s consideration of Our Fairer Future Plan, the attachments and relevant technical reports will be updated in accordance with the Council resolution and provided to the Department of Planning, Housing and Infrastructure for finalisation.

To support the implementation of this Plan it is recommended that Council:

· Progress preparation of a consolidated Inner West DCP incorporating the Design Guide provisions.

· Update the Infrastructure Delivery Plan and Local Infrastructure Contributions Plan to align growth with infrastructure provision.

· Review the affordable housing policy as outlined in the report

FINANCIAL IMPLICATIONS

There are no financial implications associated with Council’s budget directly associated the implementation of Our Fairer Future Plan as outlined in the report.

ATTACHMENTS

1.⇩	Engagement Outcomes Report
2.⇩	Masterplan Post Exhibition Changes
3.⇩	Proposed LEP Maps
4.⇩	Economics and Feasibility Report

Extraordinary Council Meeting

30 September 2025

Item No: C0925(2) Item 3

Subject: Our Fairer Future Plan - Development of Affordable Housing on selected Council Car Parks

Prepared By: Scott Mullen - Strategic Investments & Property Manager

Authorised By: Ryann Midei - Director Property and Major Projects

RECOMMENDATION

That Council receive and note the report.

STRATEGIC OBJECTIVE

This report supports the following strategic directions contained within Council’s Community Strategic Plan:

5: Progressive, responsive and effective civic leadership

EXECUTIVE SUMMARY

The purpose of this report is to provide an update on Council’s progress with the development of affordable housing initiatives at selected Council owned car parks.

It is anticipated that a total of approximately 184 Affordable Housing Units may be delivered across four car park sites in Marrickville (Garners Avenue), Dulwich Hill (Loftus Street), Enmore (Edgeware Road) and Leichhardt (Hay Street) subject to key assumptions, compliance with Australian Design Guidelines and confirmation of unit configurations (e.g. studio, one-bedroom, two-bedroom and three- bedroom apartments etc.).

In this regard, Council officers have been advancing due diligence activities for these sites.

The Marrickville (Garners Avenue), Dulwich Hill (Loftus Street) and Enmore (Edgeware Road) sites are the focus of an Expressions of Interest procurement process (this process is subject to confidentiality).

These efforts also extend to the Leichhardt (Hay Street) site. A Heads of Agreement had previously been signed with Link Wentworth to develop key worker affordable housing at Hay Street. The agreement has been mutually dissolved and a new opportunity for development is being pursued with a neighboring landowner.

The program for delivering for the Marrickville (Garners Avenue) site is to be presented at the October 2025 Council meeting. It is anticipated that an agreement with a CHP could be entered into in April 2026.

It’s also worth noting that the Seaview Street Dulwich Hill carparks which are part of Our Fairer Future Plan, has been identified to provide 3,200m² for a community centre and 2,000m² for a public plaza (public infrastructure).

If Council was of the mind to reduce some of the public infrastructure on this site, up to 157 Affordable Housing Units (subject to unit configurations e.g., studio, one-bedroom, two-bedroom and three-bedroom apartments etc.), along with replacement of Council-funded public car parking could be delivered for Council.

This may take the total number of future affordable housing units to 341.

BACKGROUND

Council currently has 19 Affordable Housing Units which are managed through Link with another 6 units soon to be handed to Council and a further 2 units which form part of a Voluntary Planning Agreement.

At the Council meeting held on 19 August 2025, when considering an update report on the Our Fairer Future Plan, Council resolved in part:

“That officers including the Fairer Future report for the September meeting a timeline for progressing the development of Council owned sites for conversion to not-for-profit housing through partnerships with Community Housing sector as well as the state and federal governments.”

Council previously resolved to undertake an audit of Council owned land that could be used for affordable housing. Three sites were identified as most suitable to undertake detailed due diligence for the development of affordable housing in partnership with a Community Housing Provider (CHP).

Ernst and Young were engaged to assess the overall viability for a CHP to finance an affordable housing development on each of the three most feasible council sites.

DISCUSSION

Council officers have been advancing due diligence activities for the three car park sites, situated in Marrickville (Garners Avenue), Dulwich Hill (Loftus Street), and Enmore (Edgeware Road), which are the focus of an Expressions of Interest (EOI) procurement process (this process is subject to confidentiality). These efforts also extend to a fourth location – the Hay Street car park situated in Leichhardt. It is anticipated that a total of approximately 184 Affordable Housing Units may be delivered across these sites.

It is important to note that the details associated with these activities are sensitive in nature, and the following content has been prepared in consideration of its availability on the public agenda.

At its February 2025 meeting, Council endorsed the Marrickville site as a ‘proof of concept’ site for the preparation of detailed concept designs and development feasibility assessments. This involves conducting traffic studies in town centres to assess public parking requirements.

Council have engaged Landcom, the NSW state government development authority, as a consultant to project manage the process through a Memorandum of Understanding. This enables Council to draw on their extensive experience in site assessments to achieve viable, cost-effective, timely, and high-quality design outcomes with Community Housing Providers (CHPs).

Urbis have been engaged to undertake detailed town centre parking studies for each of the three car park sites, assessing options for retaining and/or reconfiguring public parking within a 200-metre radius of each location. These studies are subject to confidentiality. Notably, Urbis has previously conducted a similar confidential parking assessment for the Hay Street car park.

The parking studies will highlight strategies to maximise and efficiently manage public parking as the car park sites move toward approval for affordable housing development.

In all instances, maximum statutory parking requirements for the development of affordable housing will be in accordance with Council’s current Development Control Plans (DCPs).

The EOI process will also consider Council’s Our Fairer Future Plan as it relates to Transport Oriented Development (TOD) and Low and Mid-Rise Housing (LMRH) planning controls. This includes potential uplifts in Floor Space Ratio (FSR), Height of Building and other site-specific development incentives, which may be applicable to Council’s car park sites.

This approach enables the Marrickville site, with its existing planning and development controls—such as zoning, floor space ratio, and building height—to advance efficiently and serve as a model for future projects, offering valuable insights and lessons for subsequent developments. The Marrickville site is not dependent on the Our Fairer Future Plan outcomes; however, the approval of the Our Fairer Future Plan may provide additional development uplift that can be considered at detailed design with the CHPs.

Subject to endorsement of Council’s Our Fairer Future Plan, the process may then begin for the Dulwich Hill site, where the viability of development is contingent upon planning control uplifts.

The Enmore site will not be dependent on the Our Fairer Future Plan outcomes, as this site is not included in future uplifts and if this site is to proceed for development of affordable housing, further investigation is required to assess yield (number of units) and types.

It is anticipated that a total of 141 affordable housing units may be delivered across the three car park sites (Marrickville, Dulwich Hill and Enmore), subject to key assumptions, compliance with Australian Design Guidelines (ADG) and confirmation of unit configurations (e.g., studio, one-bedroom, two-bedroom and three-bedroom apartments etc.).

A confidential report is scheduled to be presented at the October Council meeting that will address the detailed concept designs, development feasibility assessments and town centre traffic studies. It is anticipated that an agreement with a CHP could be entered into in April 2026.

Hay Street Car Park

A Heads of Agreement had previously been signed with Link Wentworth (a Tier-1 CHP) to develop key worker affordable housing at Hay Street, Leichhardt.

Multiple attempts to activate the Heads of Agreement (HOA) signed with Link Wentworth in 2016 have been unsuccessful. In July 2025, a mutual decision was reached with Link Wentworth to terminate the partnership.

Council officers are pursuing an opportunity with a neighboring landowner to explore the potential development of Council’s property – whether in full or in part. The envisioned project aims to deliver affordable housing, create public links between Redmond and Hay Streets, and integrate shared infrastructure for greater community benefit.

Discussions are underway to explore potential collaboration and clarify each party’s objectives for the project. These talks include consideration of legal frameworks, such as public-private partnerships or joint ventures, to facilitate the delivery of shared goals.

This opportunity could potentially deliver 43 affordable housing units subject to key assumptions, compliance with Australian Design Guidelines and confirmation of unit configurations (e.g., studio, one-bedroom, two-bedroom and three-bedroom apartments etc.).

This brings the total number of Affordable Housing Units that may be delivered across the four car park sites in Marrickville (Garners Avenue), Dulwich Hill (Loftus Street), Enmore (Edgeware Road) and Leichhardt (Hay Street) to approximately 184.

An update regarding the Hay Street, Leichhardt site will be presented at a future Council meeting once additional information becomes available.

Opportunities for additional affordable housing

The Seaview Street, Dulwich Hill carparks which are part of Our Fairer Future Plan has been identified to provide 3,200m² for a community centre and 2,000m² for a public plaza (public infrastructure).

This may take the total number of future affordable housing units to 341.

Key Assumptions and Program

When developing the current affordable housing initiatives, it is necessary to consider the following key assumptions:

1. Sites having the required planning controls and land use zonings to support development of affordable housing;

2. Our Fairer Future Plan will allow changes for the Dulwich Hill site and if changes are proposed for Enmore site, a separate planning pathway will need to be investigated before development of affordable housing;

3. CHPs being able to lodge to federal funding – availability payments – for affordable housing through Housing Australia Future Fund (HAFFF-round 3) submissions which are unlikely to be opened until late-2025 or early-2026 with a minimum 6-month assessment period once closed;

4. Confirmation and approval of public car parking ‘funding envelope’ through a future Council report, on basis that CHPs will not be able to secure HAFFF-round 3 availability payments for parking that is not attached to affordable housing requirements; and

5. In the case of Hay Street, Council and landowner reaching in-principle agreements to proceed with and complete negotiations for project development and funding agreements, scopes of works and CHP operations

Accordingly, further details are necessary before a delivery timeline can be provided. The program for delivering for the Marrickville (Garners Avenue) site is to be presented at the October 2025 Council meeting.

FINANCIAL IMPLICATIONS

There are no immediate financial implications arising from the recommendations presented. However, it should be noted that advancing the identified sites will entail costs, which will be detailed in future Council reports as appropriate.

Consultancy fees associated with the EOI are funded within the current budget.

ATTACHMENTS

Nil.