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Responding to Homelessness

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1 Responding to Homelessness
Jane Monk, Director Innovation and Reform

2 and what could we be doing about it
Census of 2011 WHY? and what could we be doing about it

3 Melbourne is the fastest growing city in Australia

4 Melbourne is one of the world’s most expensive cities to own a dwelling
Significant implications for affordability and equity Affordability out the window and increasingly out of reach for a majority What is affordable housing/housing affordability? Housing stress indicators (e.g. 30/40 rule) National sport to watch our house prices go up – but no good for affordability because indicative of a lack of supply to meet demand. However, we needed to get to stage where median house prices in middle ring became high enough make it realistic to choose an apartment over a dwelling on price and location (eg close to shops, recreation and transport). So if you need a 2 bedroom (or even single bedroom) and can only get 3 bedroom house at $750,000, a 2 bedroom apartment at $450,000 of single at $350,000 makes sense. We can now see move to apartments in middle ring – so long as new residential zones don’t dry up middle ring land supply. VPA precincts will make key contribution

5 Melbourne’s medium density housing market has been slow to develop
Going forward: 25,000 – 30,000 pa. (most of this in metro Melbourne) Melbourne got behind in its supply of new dwellings – long planning processes for development in existing residential areas – third party notice and review. Melbourne’s apartment market is very immature; Only 4% of Melbourne housing market is 4 Storey and above According to Charter Keck Cramer, apartments in buildings of four or more levels as a percentage of total housing stock in Melbourne is only 3.3%. Sydney (10%); Chicago (30%); Greater London (35%); Toronto and Vancouver (40%) and even Los Angeles (35%) are significantly more mature apartment cities. A shift to a much more diverse and affordable housing supply, which includes apartments and townhouses, will be critical to the long term economic viability and liveability of Melbourne. 1930s–1940s: The modernist movement of the ‘30s and ‘40s, led by architects Roy Grounds, Frederick Romberg and Best Overend, who embraced the need for compact living by designing studios and one-bed apartments. Overend’s Cairo Apartments in Fitzroy (1936) and Grounds’ Moonbria in Toorak (1940–41) are two excellent examples of apartment buildings from this era. 1950s–1960s: Planning controls were relaxed to allow three- and four-storey apartment buildings to be constructed throughout the suburbs with little or no participation from architects. This coincided with the construction of commission flats during the ‘60s as part of the Housing Commission of Victoria’s Slum Reclamation Program (HCVSR) 1970s–1980s: The government responded to community concern about the HCVSR in 1971 with an amendment to the planning scheme that effectively eliminated the delivery of apartments for the following twenty years. During these years, the primary growth in Melbourne’s housing supply was detached dwellings in the fringe of the city. 1990s–2000s: In the early ‘90s, housing developments in inner-city Melbourne began to grow in number, particularly in former industrial areas such as Southbank. Part of this growth is attributed to the City of Melbourne’s Postcode 3000 policy initiated in 1992 that actively encouraged residential development within the boundaries of City of Melbourne. The scheme rapidly added to the supply of apartments in the city. Post the global financial crisis, the apartment market in Melbourne has entered a new stage of growth with fundamentally different drivers to what it has experienced previously. Sam Nathan, Director of Projects from Charter Keck Cramer, observes in a recent article on the topic, “the Melbourne apartment market is trading in two distinct contexts: a Global Melbourne (across the central city region) and a Local Melbourne (across the city fringe and suburban regions)”. In relation to the central city region, Sam explains that “the apartment market is increasingly driven by the greater participation of offshore developers, offshore capital and offshore apartment purchasers. Globally, apartments are emerging as a conduit for capital transfer and asset diversification traded more as financial commodities and ‘safe haven’ instruments rather than for their fundamental real estate attributes. Melbourne (together with Sydney and Brisbane) is now competing with global cities (e.g. London, New York, Singapore) and other emerging global cities (e.g. Vancouver and Toronto) for a slice of global residential capital.” Future requirement (avg p.a to 2050)



8 Melbourne’s Future Housing Requirements
Significant task ahead 7.7 million residents in Melbourne by 2051 (Victoria in Future data) 1.6 million dwellings required by 2051 – double the dwellings in 20% of the time Need for diversity and affordability 560,000 (~15,000p.a) to be delivered in Central City, Urban Renewal Precincts, National Employment Clusters and Metropolitan Activity Centres as part of Priority Precincts Since 2011 have been completing over 50,000 dwellings per year (over 10,000 apartments over 5,000 town-houses and over 30,000 houses). For around an extra 100,000 population per year. Structural deficit of at least 32,000 dwellings from years of not keeping up Central: 42,000 General Infill 261,000 Precincts 0 Greenfield Eastern: 98,000 General Infill 85,000 Precincts Northern: 187,000 Greenfield GAs 63,000 General Infill Southern: 134,000 Greenfield GAs 109,000 General Infill 86,000 Precincts Western: 217,000 Greenfield GAs 49,000 General Infill 56,000 Precincts

9 Homelessness – what is it?
Not about having a home – ‘home’lessness, not rooflessness ABS –a person is homeless if current living arrangement: is in a dwelling that is inadequate; or has no tenure, or tenure is short and not extendable; or Has no control or access to space for social relations

10 How big is the problem? Over 23,000 Victorians experience homelessness on any given night.
They include: families with children young people older people single adults people with disabilities people in regional and rural Victoria people in urban neighbourhoods. City of Melbourne StreetCount Survey 7 June 2016 – 160 volunteers recorded 247 sleeping rough – 74% increase on two years ago (142) (195 men and 35 women)

11 Infrastructure Victoria - Draft 30 Year Strategy ‘Strong case for substantially increasing supply of social housing’ 75,000 to 100,000 at risk households do not have access to affordable housing Housing rental assistance to stay in private rental market. Refurb/rationalise public stock and stock transfer to community housing sector Provide alternate planning approvals process for affordable housing Inclusionary zoning or incentives to deliver affordable rental in high and medium density locations (inclusionary for Govt land) Significantly expand access to crisis and transitional accommodation (with support services)

12 2016 Budget -$152m to fund recommendations of Family Violence Royal Commission
Immediate funding of $152 million to ensure women and children escaping family violence have greater access to housing: $25 million over two years for construction of 180 new crisis accommodation places and upgrades of existing accommodation $21 million over two years to transition existing refuges to the new core and cluster model with 24 hour staffing at up to six refuges $50 million for rapid housing assistance -180 new social housing properties and leasing for up to 124 dwellings $16 million in for rental assistance to help access private rentals $40 million over two years for tailored responses for victims of family violence, including support to stay safe at home In April 2016, Government announced immediate funding of $152 million to fund key recommendations from the Royal Commission into Family Violence to ensure women and children escaping family violence have greater access to housing, the funding breakdown is: $25 million over two years for accommodation for the homeless, supporting construction of 180 new units of crisis accommodation and upgrades of existing accommodation $21 million over two years to begin redeveloping existing refuges to the new core and cluster model and to provide 24 hour staffing at up to six refuges $50 million for rapid housing assistance, providing 180 new social housing properties and leasing for up to 124 dwellings $16 million in for rental assistance to help access private rentals

13 State Housing Affordability Strategy Imminent
State already committed $120m funding for related projects including: $23 million grant program with the registered housing sector to increase short-term housing for the homeless. (purchase 60 and lease up to 70 properties) EOI closed 29 September 2016 and submissions being reviewed.   $60 million to increase social housing units on vacant or under-used land owned by the Director of Housing. $30 million to kick-start redevelopment of Flemington housing estate and regeneration of its 22 walk up flats. $5 million towards purchase of City Gate Apartments in St Kilda

14 How can planning and development sector respond?
Continue to support and build supply, and build supply and build supply… is there an apartment glut? Bring the media and community on board – its for their own families and friends – and has never impacted house prices! Support government’s immediate responses to homelessness quick fixes – making places available for short term shelter where support services can be brought in. Clauses 52.22, and 52.24 Introduce faster approvals processes for social housing projects – per Nation Building, post GFC initiative – Cl 52.41 Codes for medium density housing – eg Small Lot Housing Code Innovate and lower construction costs, including quicker and cleaner construction through modular, off site and timber construction and streamlined construction management systems (BIM). Continue to innovate in the greenfield market with more density and diverse product – town houses and apartments to increase supply and keep prices down

15 Opt-in process - social housing applications
Based on former Cl Government Funded Social Housing. In nominated locations a public and/or private sector project with agreed level of affordable or social housing, or aged care, can opt-in for fast track process. Minister, or selected agency case manages application with advice from standing, planning and design review committee Project to meet nominated standards – eg setbacks and height to abutting residential development. Projects to include at least ? 15% of dwellings or floor space for leasing at x% below market for 10 years, or made available to community housing association at construction cost (or x% below market cost). Projects can include affordable dwellings provided in response to floor space ratio bonus provision.  Open to applicant to engage with community prior to lodging application. Otherwise application exempt from notice and 3rd party review

16 No permit for small scale accommodation
Since 1980s has been as of right for use of small scale accommodation in residential areas Recent confusion over permit for ‘development’. Should only require ‘development’ permit for heritage overlay etc.

17 Inclusionary Zoning – can it do the heavy lifting?
What is it? Exclusionary planning practices to ‘keep the wrong people out’. A way to bring more diversity, not mono-cultural precincts. Cant be achieved by any single level of government – all have to agree their role. What unintended consequences on broader affordability?

18 Melbourne Amendment C270 – floor space ratios and Floor Area Uplift
Increase in floor area above 18:1 is Floor Area Uplift (FAU). Public Benefits Schedule (PBS) includes social housing within a proposed building, plazas or laneways or public area. Value of public benefit in PBS then compared with value of Floor Area Uplift. Floor Area Uplift measured as 10% of the gross realisation value per square metre (GRV/m2) for floor area above 18:1 ratio. Value of the Public Benefit must be equal or greater than value of Floor Area Uplift.

19 St Vincent de Paul Project - 179-191 Flemington Road – to VCAT
Application lodged June 2016 Existing use: Ozanam House & Bailly House over 2-3 levels Proposed: 11 level Homeless Resource Centre and Accommodation: 134 dwellings: 60 x 1BR short stay, 48 x 1BR medium stay and 26 x 1BR long stay apartments 45 staff 22 car parking spaces within a basement level Proposed: 20 townhouses to Chapman Street: 14 x 2BR and 6 x 3BR townhouses with 40 car spaces Expected project cost: $49.5 million

20 Polaris - Clarke Hopkins Clarke

21 Why do people become homeless? Homelessness is not a choice
Several structural factors have impacted on the steady increase in homelessness over time: Housing is less affordable than ever before for low income earners – end of the line is the homeless. After financial or family crisis, can be limited resources to find suitable alternative home. Incomes benefits and pensions have not kept pace with housing costs. Community support is under-resourced, harder to access. People who become homeless are often financially disadvantaged and have spent a lifetime paying too much for their housing. Homelessness typically occurs after a financial or family crisis results in the loss of housing, and households have limited resources with which to find a suitable alternative. Several structural factors have impacted on the steady increase in homelessness over time: Housing is less affordable in Australia than ever before for low income earners. Incomes from employment and government benefits and pensions have not kept pace with housing costs. The community supports that households need in order to remain well and stable are under-resourced, harder to access and do not always focus on keeping people housed

22 Social Housing Public housing – financed, owned and managed by State agencies (DHHS) Average waiting time of years Community housing – different types Financed and developed by the State, managed by community organisations Financed, developed and operated by community organisations OR in joint venture with State 8 registered housing associations & 34 housing providers ‘Waiting list’ numbers could be even higher (NSW its 60,000 people) Social housing residents in Victoria (2012) ‑ City of Melbourne, Future living: a discussion paper identifying issues and options for housing our community, 2013 Deloitte Access Economics 2016 Report for Property Council - In 2012 the former National Housing Supply Council estimated cumulative shortfall over the period had reached 228,000 dwellings, and forecast this to increase to around 670,000 by 2031. Social housing: ‘Social housing’ is the provision of accommodation for people who are on low incomes and in greatest need. This includes housing provided for those on government benefits, the homeless or in crisis. (sub-sets) Public housing: Housing that is financed, owned and managed by the state (DHHS). The waiting time is approximately 8.75 years (assuming correct housing affordability), 34,600 people waiting for public housing. Community housing: Provided for low to moderate-income or special needs households. The two types of community housing available are: Housing managed by community organisations, but financed, developed and owned by the state. Housing financed, developed and owned by a community organisation in its own right or under joint ventures with state housing authorities where the costs are shared. Victoria’s eight housing associations operate within this space. Community housing is currently delivered by eight registered housing associations and 34 housing providers. ?

23 The Annual Delivery Task
Where the VPA has a role; continuing greenfield – at far better quality than the past, though still working on density and access to jobs (and volume builder house design – see Wolfdeene) Still about same NUMBER in greenfield but proprtionally lees of the whole, Probably a little less in ‘not in my backyard territory (new residential zones). At least 15,000 per year in inner-city and middle ring renewal precincts/clusters Source: MPA modelling based on DTPLI and ABS population calculations

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