In a push to boost housing supply and affordability in accordance with the National Housing Accord, the NSW Government has introduced the Environmental Planning and Assessment (Housing Delivery Authority) Order 2024 (‘HDA Order’). The HDA Order has established the Housing Development Authority (‘HDA’) which will lead a streamlined State Significant Development (‘SSD’) approval pathway for major residential development projects, allowing new homes to be delivered more quickly to the community.
According to a media release by the NSW Government, under the SSD pathway, assessment timeframes could be cut down by more than a year. Importantly, the new pathway will lead to greater opportunities for first-home buyers and renters to enter the property market.
What does the HDA do?
The HDA liaises with the Minister for Public and Planning Spaces and other public authorities regarding the granting of approvals, concurrences, advice or referrals under the EPA Act to enable the carrying out of residential development projects. In particular, the HDA is responsible for considering proposals against its own HDA criteria and advise the Minister whether a proposed development should be declared as a SSD.
How does the HDA work?
- Expression of Interest: To engage with the HDA pathway, applicants can submit an Express of Interest online to the HDA for major housing developments above an estimated development cost of $60 million in Greater Sydney and $30 million in regional NSW.
- Evaluation against Criteria: EOI applications considered monthly against the HDA EOI Criteria. The HDA must be satisfied the proposal meets the criteria before it makes recommendation to the Minister to declare the project SSD or SSD and concurrent rezoning pathway.
- Determination made: Minister determines if the proposal is state significant.
- Issue of Industry Specific SEARS: If declared, the Department of Planning, Housing and Infrastructure issues Secretary’s Environmental Assessment Requirements (SEARs) within 7 days.
- Application: Applicant lodges application with DPHI within 9 months.
- SSD Assessment: The Department of Planning, Housing and Infrastructure commences SSD assessment, and concurrent spot rezoning (where applicable).
- Public exhibition: The SSD and concurrent rezoning (where applicable) are publicly exhibited.
- Approval: The Minister (or delegate) approves SSD and concurrent rezoning (where applicable) within 275 days.
As part of a commitment to maintain transparency and integrity of the HDA process and EOI considerations, HDA’s recommendations for any proposals will be published.
What type of developments are considered?
The HDA EOI criteria appears to prefer sites that:
- Are well located and serviced
- Deliver high yield housing, such as multi-dwelling housing, residential flat buildings, seniors housing, shop top housing
- Have an estimated development cost of more than $60 million in the Greater Sydney region or $30 million elsewhere.
- Are largely consistent with development standards and do not exceed standards by more than 20%.
- Demonstrate capability to commence development within 12 months of approval
What does this mean for Councils?
The HDA is a big step towards streamlining the process for rezoning required to enable major residential developments. It is an alternative pathway for the existing regionally significant development pathway that is assessed by councils and determined by planning panels.
This new assessment pathway will reduce the number of large complex development applications that Councils are required to assess each year. By no longer requiring involvement in this process, Council resources can be more efficiently delegated to less complex development applications.
Ultimately, the operation of the HDA is expected to fast track processes and lead to a more efficient system of approving and constructing major residential housing projects within New South Wales.
At Matthews Folbigg Lawyers, our team of experts can provide advice on Local Government, Environment and Planning matters. For more information, please contact our Local Government team on 02 9635 7966.
