Rezoning changes could slow down housing production

30 August 2016

The announcement today by the NSW Minister for Planning that significant changes to the current land rezoning process will commence on 1 September 2016, has left the development industry confused, says the Urban Taskforce.

 

“Two days notice for major changes to how planning proposals for rezoning are to be prepared, assessed and processed will leave existing applicants with significant costs of rework,” says Urban Taskforce CEO, Chris Johnson. “The tone of the announcement implies that it is applicants that have been at fault in delaying the processing of planning proposals but much of the fault actually lies with the state government’s slow and inconsistent planning system.”

“The new policy is difficult to locate on the Department of Planning’s website. A new ‘Guide to Preparing Planning Proposals’ includes the revised “strategic merit test” announced by the Minister. This appears to be a check list which asks that the application is ‘Consistent with a relevant council strategy’ but the whole point of the previous Pre-Gateway rezoning process was to enable proposals to be submitted where local councils were opposed to the change of zone.”

“The new rezoning policy makes it clear that rezonings will not be supported if the Local Environmental Plan is less than 5 years old unless there has been new infrastructure or changes in demographic trends. It also states that draft district or corridor plans cannot be used to justify strategic merit where it is proposed to have another exhibition of the plan.”

“Proposals like the government’s plan for New Parramatta Road which has been out as a draft for some time would appear to be not something the industry can rely on. The development industry needs clarity on just when a draft plan can be used to justify strategic merit.”

“The Urban Taskforce supports the need for rezoning through a planning proposal process and we are optimistic that the improvements announced by the Minister will help applicants who are proposing significant investment in new housing. The improvements to processing times are positive although it is unclear just how this will occur if it is based on local decision makers resolving matters without the involvement and oversight of state bureaucrats.”

“While decisions will be made by Planning Panels the briefing reports to these panels are prepared by local councils who may be negative about a proposal. The advice provided to the Planning Panels also needs to be independent. The Urban Taskforce has previously called for Sydney to have 6 District Planning Centres of Excellence to provide the independent, expert advice to the planning panels when required”

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