The Housing Delivery Authority (HDA) is now active as part of the New South Wales Government strategy to address housing shortages and accelerate residential development. It aims to streamline the approval process for large-scale residential projects to meet the State housing targets within the Housing Accord period, ending in June 2029.

The HDA seeks to manage the planning pathways for key housing developments through the structured State Significant Development (SSD) pathway. It’s core objective is to identify and approve high-yield housing developments, focusing on projects in the Greater Sydney area worth at least $60 million and those elsewhere in NSW valued at $30 million.

What is the Process?

The seven-step process includes:

1. Expression of Interest: The applicant submits a form outlining the proposal and addressing the key criteria.
2. Evaluation: The HDA evaluates the submission and recommends an approval pathway to the Planning Minister.
3. State Significant Declaration: The Planning Minister declares the proposal state significant unless it is declared to follow the existing DA pathway through Council.
4. SEARs: DPHI issues industry-specific Secretary’s Environmental Assessment Requirements (SEARs).
5. Application: The applicant submits an SSD application to DPHI within nine months.
6. Assessment: DPHI assesses the application, including any concurrent spot rezoning, with a public exhibition.
7. Decision: The Planning Minister or delegate determines the application.

What are the Key Criteria for the Expression of Interest?

The selection of projects through the Expression of Interest follows the below criteria:

• High-Yield Housing: multi-dwelling housing, residential flat buildings and shop-top housing.
• State Significant Development: Refers to projects that meet specific development cost thresholds.
• Development Standards Compliance: Developments exceeding standards by more than 20% are excluded unless tied to a rezoning proposal.
• Commitment to Commence: Requires proof of the ability to submit a development application within nine months of receiving SEARs and start construction within 12 months, targeting active developers.
• Land Tenure Security: Requires clear ownership or the option to purchase all land involved.
• Existing Contribution Schemes: Development must pay contributions as per Councils’ existing contributions plans.
• Previously Refused Proposals: Must address any previous reasons for development refusal.
• Well-Located: The land must be located in accessible areas, near public transport or urban centres, aligning with the ‘in-fill affordable housing’ pathway.
• Servicing: Developers must demonstrate that the land is well-serviced by essential infrastructure.
• Environmental Hazards and Constraints: Excludes land mapped as bushfire-prone or in flood planning areas, limiting development options.
• Affordable Housing Commitment: A portion of the development must provide affordable housing for low to moderate-income households, as per planning instruments.
• Rezoning for Significant Changes: If a proposal exceeds development standards by more than 20% or conflicts with planning instruments, a concurrent rezoning proposal is required.

What Has Changed?

The pathway brings more residential schemes into the remit of the SSD process; assessed by DPHI and determined by the Planning Minister or delegate. Whilst the department previously assessed residential development valued at over $100 million, this was removed under the Part 3A reforms in 2011. Bringing large-scale residential developments back to DPHI and Minster demonstrates the NSW Government’s commitment to the delivery of new homes.

Is the Process Right for my Project?

Part of the HDA criteria requires a demonstrated ability to proceed with an application within nine months of the issue of SEARs and a demonstrated capability to commence the development within 12 months of approval. Accordingly, the process is geared towards schemes financed with limited post-approval modifications.

As part of the commitment to the HDA pathway, the development must contribute to the supply of ‘affordable housing’.

The HDA pathway is a temporary measure to help deliver new homes faster during the Housing Accord period ending in June 2029.

If you have any questions about this new residential pathway and how it can benefit your development, contact the Ratio NSW team today.