Suburban Rail Loop to deliver more affordable homes after sector pressure

Victoria’s peak body for community housing has claimed victory after the state government’s decision to change developer rules for the Suburban Rail Loop, saying the move will result in more affordable homes.

Originally, developers were able to build at higher densities in the Suburban Rail Loop East Precincts if they provided a public benefit including commercial space or health/medical offices, improvements to public spaces like laneways or open space, or affordable housing.

But after pressure from Community Housing Industry Association Victoria, the government has changed the rules for the SRL precincts, where developers will now only be able to increase density if they build or fund social and affordable housing.

CHIA Vic CEO Sarah Toohey said the change to the SRL’s voluntary public benefit uplift scheme is a win for renters.

"Renters priced out of the private market just got a win from the Suburban Rail Loop,” Ms Toohey said.

“Developers building bigger and higher in the SRL precincts now have to contribute to building more social and affordable housing too.

"The Victorian government has listened to us and to the evidence. The long-running voluntary developer contribution scheme in place for the Melbourne CBD and Southbank has delivered zero affordable homes, and would have delivered zero in the SRL precincts if nothing changed.

“Under the old rules, higher density in the SRL precincts allowed developers to choose offices over homes, but now social and affordable housing is the only choice.

“This is a real step forward for Victoria’s developer contribution schemes - one that will deliver more homes that people can actually afford to rent when major developments happen.

“But it shouldn't stop here. Developers can afford to contribute to the essential infrastructure of social and affordable housing. It shouldn’t be an opt -in just for those trading up for density."