The bigger problem,say councils,is that developers only act on their permits when it suits them economically. Labour and supply costs,skills shortages,rising interest rates,building company closures and competition from major infrastructure projects have undermined investor confidence.
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Councils are increasingly reporting developers seeking extensions to existing planning permits – most are meant to be acted on within two years – because the conditions have not been right to start work.
At Whitehorse in Melbourne’s east there are currently 420 active planning permits that have not been acted on,including for the Vicinity group’s 51-level mixed-use tower in Box Hill.
Mayor Mark Lane said the council wanted to share its local knowledge and technical expertise with the government “to get planning reforms right”.
“But we believe we are the right people to manage development within our city,” said Lane,who is a member of the Liberal Party. “We have the professionals and expertise and local knowledge here to do just that.”
In the city’s west,Maribyrnong Mayor Sarah Carter – a prominent Labor figure – has also defended her council’s planning record. She stressed that the council approved a vast majority of residential permits and that most were decided by officers under delegation.
“The proposition that council has contributed to the issue of housing supply by not approving permits is untrue and the data shows that,” said Carter. Maribyrnong council data shows that there are 206 active residential planning permits that have not been acted on.
Councils are pressing the state and federal governments to shoulder more of the responsibility for housing supply – especially more social and affordable housing – including pushing for mandatory inclusionary zoning.
The City of Melbourne has also highlighted its planning record and the fact that in the heart of Melbourne,there are active permits for almost 100 residential sites that have not been acted on – 118 residential buildings and almost 22,000 apartments where work has not begun.
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But while the council has been forthright,including calling for mandatory inclusionary zoning this week,it is also having to defend its record as a housing provider.
Its flagship housing agency,Homes Melbourne,has not built a single home since it was created to tackle an affordability crisis almost two years ago. Homes Melbourne was launched in 2021,is headed up by chief executive Vijaya Vaidyanath and has seven other employees.
Vaidyanath toldThe Agelast year that Homes Melbourne was undertaking a “targeted response” to housing. “We are ... looking at the spectrum of ... housing needs because it’s a crisis now,” she said. “We have key workers who are not able to afford a place in the City of Melbourne.”
But in its most recent annual report,the council said “zero” progress had been made on a broader goal to build 100 new social and affordable housing units on council land by 2025.
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The council’s 2020 Affordable Housing Strategy outlines a series of key priorities to achieve over the next decade.
The second key priority action is to use another council site for a supported housing project to address homelessness. The council has dedicated a $12 million building for its Make Room project,which will provide 50 studio apartments for homeless people,but it is still fundraising philanthropic donations to convert the building.
A third commitment is to ensure that up to 25 per cent of all future residential development on council-owned land is affordable housing.
But the council’s proposed $1.7 billion redevelopment of the Queen Victoria Market announced in June has only 15 per cent of the residential tower earmarked for affordable housing.
Lord Mayor Sally Capp said housing was primarily the responsibility of the state and federal governments,and that the council would continue to work with them and the private sector to address the housing crisis.
She said Homes Melbourne has a focus on “advocating to and collaborating with” governments,businesses,the not-for-profit sector and the community to drive and increase the supply of well-designed,safe and affordable housing.
“Council has a bold plan on housing reform that will create new pathways out of homelessness and deliver more affordable housing for those who need it most,” she said. “This includes a review of council-owned land and land owned by others for more affordable housing,including key workers.”