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STIRLING CITY CENTRE_ HOUSING STRATEGY Prepared for Stirling Alliance 19 October 2010

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STIRLING CITYCENTRE_HOUSING STRATEGY

Prepared for Stirling Alliance19 October 2010

Stirling City Centre Housing Strategy - Draft

G:\pro\pla\02\PPP0255\12 Reports\12A Reports\Housing Strategy\101019 Stirling City Centre Housing Strategy Final Draft.docx

Document Control

Version Date Revision Type Reviewed by Approved by

A 01/09/10 Draft for client review DM CM

B 19/10/10 Final draft DM DM

Contact

Mike Mouritz Head Sustainable Futures [email protected] Davis Senior [email protected] Morgan Senior [email protected]

HASSELLPodium Level, Central Park152 – 158 St Georges TerracePerth WAAustralia 6000T +61 8 6477 6000F +61 8 9322 2330© October 2010

HASSELL LimitedABN 24 007 711 435

Stirling City Centre Housing Strategy - Draft

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Section Page

1 __ Introduction 11.1_Background1.2_Stirling City Centre1.3_Purpose1.4_Policy Context

1.4.1_ Directions 2031 and ActivityCentres Statement of Planning Policy 4

2 __ The Housing Challenge 52.1_Population Growth

2.1.1_ Directions 2031 Targets 72.2_Housing Types

2.2.1_ Affordable Housing 82.2.2_ Single Bedroom Housing 102.2.3_ Family Housing 102.2.4_ Short Stay Accommodation 102.2.5_ Student Housing 112.2.6_ Aged Persons Housing 12

2.3_Housing Affordability2.3.1_ Cost of Provision 132.3.2_ Housing Affordability in StirlingCity Centre 132.3.3_ Transit Oriented Developmentand Affordable Living 162.3.4_ Housing Design 17

2.4_Housing Providers2.4.1_ State Government HousingAuthorities 182.4.2_ Community HousingAssociations 182.4.3_ Community Land Trusts (CLT) 182.4.4_ Others 18

2.5_Interest of Providers in Stirling CityCentre

2.5.1_ Affordable Housing 192.5.2_ Student Accommodation 192.5.3_ Seniors and Aged Care Housing19

3 __ Mechanisms for DeliveringAffordable Housing 20

3.1_Types of mechanisms3.1.1_ Public Private Partnerships 203.1.2_ Property Covenants 213.1.3_ Shared equity schemes 213.1.4_ Subsidies 22

3.2_Sources of Funding3.2.1_ Commonwealth Government 223.2.2_ State Government 23

3.3_Publicly Owned Land3.4_Planning Controls

3.4.1_ Inclusionary Zoning 243.4.2_ Development Standards 243.4.3_ Dwelling Density 253.4.4_ Plot Ratio 253.4.5_ Design Guidelines 253.4.6_ Developer Contributions 26

3.5_Other Mechanisms and Incentives3.5.1_ Discounts 26

3.5.2_ Fast Tracked Approvals 263.5.3_ Non-Planning Statutory Controlsand Requirements 26

3.6_Facilitation and Demonstration3.6.1_ Affordable Living 263.6.2_ Affordable Development 27

4 __ Housing Targets 284.1_Precincts4.2_Targets for Stirling City Centre4.3_Southern Precinct4.4_Station Precinct4.5_Northern Precinct4.6_Osborne Park Precinct4.7_Western Precinct4.8_Woodlands Precinct5 __ Strategy 375.1_Overview5.2_General Strategies

5.2.1_ Planning controls 375.2.2_ Further research and advocacy385.2.3_ Aged Persons’ Housing 385.2.4_ Affordable Housing 395.2.5_ Family Housing 405.2.6_ Single Bedroom Housing 405.2.7_ Student Housing 405.2.8_ Short Stay Accommodation 41

6 __ Conclusion 42

Appendices

i _____ Appendix ADefinitions 43

ii _____ Appendix BPopulation forecasts by suburb 47

Content

Stirling City Centre Housing Strategy - Draft

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Stirling City Centre Housing Strategy - Draft

1 ____ Introduction

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11.1_Background

The population of Perth is forecast to double by 2050. Housing this population will be a major urban planningchallenge that will impact on transport demand, environmental management, employment and economicdevelopment and the provision of community facilities and services. The Stirling City Centre (Figure 1) is identified asa Strategic Metropolitan Centre, within which retail, commercial, health, education, entertainment, cultural,recreational and community facilities and higher density housing will be concentrated in a compact urban form that isintegrated with public transport.

Stirling City Centre has the advantage of including a significant amount of publicly owned land in close proximity toStirling Station and major transport routes. The extent of publicly owned land will be a significant advantage forachieving a well integrated and high intensity activity centre with sufficient housing to accommodate the newpopulation.

In December 2009, the City of Stirling adopted a Local Housing Strategy, which sets out the City’s vision andobjectives for the provision of housing within the municipality over the next five years and beyond. The issues andprinciples of the strategy are applicable to local area planning, in which key issues within local areas are to beidentified and addressed. Recommendations of the strategy will be implemented through appropriate mechanismsincluding planning policies and scheme provisions.

The City’s vision for housing is stated in the Local Housing Strategy, as follows.

The City of Stirling will accommodate its population in socially inclusive and environmentally sustainable communitiescharacterised by housing that is recognised as being attractive, sustainable, and appropriate to the needs of itsresidents. An increasing share of new housing provision will be integrated with public transport and commercial andcommunity facilities, and the built environment in all areas will become increasingly pedestrian friendly.

The Local Housing Strategy identifies seven key focus areas, stated as follows:

1. Housing provision and needs_There is a significant increase in the provision of single and two bedroom dwellings_A greater proportion of appropriately located dwellings incorporate Universal Design principles

2. Community housing provision and housing affordability_Housing affordable to tenants and owner-occupiers is developed in the municipality_A constructive partnership is fostered between the City and community housing providers

3. Sustainability of the built form_Sustainable design features are incorporated in new and existing housing_Building materials are recycled for use in new buildings_Existing residential areas are retrofitted to reduce auto-dependency_Development and building designs to conserve water and energy

4. Employment and transport_The availability of locally based employment matching the skills of the resident workforce increases_Integration of housing and employment is achieved in the City’s mixed-use developments_A modal shift towards walking, cycling and public transport occurs amongst the City’s resident workforce byimproving the accessibility of employment areas

5. Adaptation to climate change and energy supply vulnerability_Housing and the built environment are adapted for projected changes to climate_A robust urban form and economic structure develops which helps protect residents and businesses from theeffects of major energy and water price increases and supply disruptions

6. Design qualities of infill housing_Medium and high-density areas assume an aesthetically pleasing form_High quality parks and public spaces offset the reduction of private open space_The character of heritage precincts and individual heritage buildings are preserved

7. Directions 2031 implementation_Higher density residential dwellings are integrated with shopping centres and commercial precincts_Population densities increase within the ped-sheds of activity centres and corridors_Commercial centres offer a greater range of services and employment and are integrated with open spaces andstreets

1 ___ Introduction

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2The Stirling City Centre is a local area within the City of Stirling, and is also a Strategic Metropolitan Centre in theactivity centres hierarchy for metropolitan Perth and Peel. The Stirling City Centre Housing Strategy is in effect adetailed application of the city-wide Local Housing Strategy that takes into account the particular issues andopportunities applicable in the Stirling City Centre. The outcomes of the housing strategy inform the Stirling CityCentre Structure Plan and further detailed planning of precincts within the centre.

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31.2_Stirling City Centre

The Stirling City Centre is approximately 3.28 sq km and located approximately 6.5 km north-west of the Perth CBD.The area is generally bound by Karrinyup Road to the north, Telford Crescent, King Edward Road and Selby Streetto the east, John Sanders Drive to the south and Clematis Street and Odin Roads to the west. This is illustrated inFigure 1.

Stirling City Centre represents a major opportunity to provide a significant amount of additional housing toaccommodate projected population growth in the City of Stirling and the central sub-region of metropolitan Perth.There is great potential for the largely underdeveloped area surrounding the Stirling Railway Station to become avibrant transit oriented mixed use centre providing employment and living opportunities for a diverse community; afact that has been recognised since at least 1992, when the northern suburbs railway was first opened.

Figure 01_Stirling City Centre

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41.3_Purpose

The primary aims of the Stirling City Centre Housing Strategy are to:_Clarify and justify the target of 25,000 residents in the Stirling City Centre_Provide targets for:_Affordable Housing_Single Bed Housing_Family Housing_Short Stay Accommodation_Student Housing_Aged Persons Housing

_Provide a brief overview of the impact of housing location on housing affordability_Investigate mechanisms for delivery of affordable housing_Identify mechanisms to achieve housing targets in all precincts of the City Centre

This strategy sits within the context of the Local Housing Strategy for the wider City of Stirling area.

1.4_Policy Context

1.4.1_Directions 2031 and Activity Centres Statement of Planning PolicyThe highest strategic land use planning document for Perth and Peel is Directions 2031 and Beyond: MetropolitanPlanning Beyond the Horizon. It is the guiding document for planning of the Stirling City Centre as it provides aframework for the detailed planning and delivery of housing, infrastructure and services necessary to accommodatepopulation growth up until 2031.

An important element of the spatial framework is the identification of a network and hierarchy of activity centres thatprovides a more equitable distribution of jobs, services and amenity. Stirling City Centre is identified as a ‘StrategicCity Centre’, which is a high order activity centre intended to provide a mix of retail, office, community, entertainment,residential and employment activities serving a local and regional population.

Directions 2031 aims to accommodate 47% of all new dwellings within existing built up areas. Stirling City Centre willplay an important role in achieving this objective as it has significant potential for new residential and employmentprovision. This Housing Strategy can be instrumental in helping achieve the goals of Directions 2031.

Complementing Directions 2031 is a review of the State Planning Policy (SPP) relating to metropolitan centres. StatePlanning Policy 4.2 – Activity Centres for Perth and Peel is the overarching State policy that will be used by theWestern Australian Planning Commission and other decision makers to implement the recommendations ofDirections 2031 as they relate to activity centres.

The SPP places a high priority on establishing a coherent and complementary urban form and design outcome forplaces. The aim is to create diverse mixed use centres that attract investment, employment and people. Higher-density housing should be incorporated in activity centres to establish a sense of community and increase activityoutside normal business hours. Both commercial and residential growth should be optimised through appropriately-scaled buildings and higher-density development in the walkable catchments of the centre.

Housing potential within the walkable catchment of activity centres should be optimised, having regard to localcontext and housing supply targets.

The principles that underpin Directions 2031 and the Activity Centres Policy relating to sustainable urban form andcommunities are integral to planning for Stirling City Centre.

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52.1_Population Growth

Accommodating the significant population growth expected in the Perth region to 2031 and beyond represents ahuge challenge. It has been estimated that the combined population of the Perth and Peel regions will reach2.2 million by 2031, an increase of over half a million. Directions 2031 attempts to address the challenge ofaccommodating population growth in a manner that is sustainable for communities, the economy and theenvironment by setting a target for a high degree of infill development within a network of highly connected activitycentres, of which Stirling City Centre will be one of the most significant in the inner urban area.

Demographic profiling and forecasting by Macroplan1 suggests that the population of the City of Stirling will increasestrongly in the future, in line with the metropolitan trend. Low growth (0.7% annual growth) and high growth (2.0%)scenarios were run that predict between 35,000 and 108,000 additional residents in the City of Stirling localgovernment area by 2031, translating to a need for between 15,100 and 47,000 additional dwellings overall.

The Stirling City Centre area had a population of approximately 2,570 at the 2006 Census2. Population in the City ofStirling as a whole has grown 2% annually since 2006, which is significantly faster than the metropolitan area growthover the same period. This growth has been driven in part by the prominence of the area as a major employmentcentre, and its close proximity to the Perth CBD.3

Population growth within Stirling City Centre will not follow a normal trajectory as the area is undergoing significantredevelopment that will actively promote housing provision at higher than average densities. The target population of25,000 has been set to achieve an appropriate density for a major activity centre and to accommodate a significantamount of forecast population growth in the established inner urban area. The primary relevance of the make-up ofthe existing City of Stirling population for the smaller and less diverse Stirling City Centre is to inform the likely profileof future population. This will have implications for the mix of housing types that will be required.

Stirling City Centre straddles four suburbs – Innaloo, Stirling, Woodlands and Osborne Park. Although forecasts havebeen prepared for these suburbs (refer to Appendix B), no specific profiling has been undertaken for Stirling CityCentre. The bulk of the current population of each of the affected suburbs currently resides outside of the Stirling CityCentre. This is because relatively little of the city centre is presently developed for housing of any kind (refer toFigure 2).

1 Macroplan Australia Pty Ltd, July 2010, Retail Sustainability Assessment – Draft Report, for Stirling Alliance2 Syme Marmion and Co, January 2010, Scarborough Beach Road Population and Land Use Study, for Department of Planning3 Macroplan Australia Pty Ltd, July 2010, Retail Sustainability Assessment – Draft Report, for Stirling Alliance

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6

Figure 02_Existing residential development and focus area for additional population – 800m radius from Stirling Station

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72.1.1_Directions 2031 TargetsDirections 2031 aims to accommodate 47% of new housing for projected population growth in infill developmentwithin established urban areas. This will make better use of established hard and soft urban infrastructure, andreduce the sprawl of urban development into agricultural and other valuable land. Stirling City Centre is within theCentral Sub-Region for which a 29% increase in population to 2031 is forecast, translating to an additional 121,000dwellings from the number that existed in 2008. The related Activity Centres Policy (SPP 4.2) identifies residentialdensity targets for the different categories of centre within the centres hierarchy.

For Stirling, a residential density of at least 30 dwellings per gross hectare4 is sought within an 800 metre radius of itsnominal centre (201 hectares total – refer to Figure 2 – or 169 gross hectares approximately), with 45 dwellings pergross hectare the desired target. This translates to between 5,070 and 7,605 dwellings within the 800 metre radius. Ifthis density could be achieved over the total Stirling City Centre area of approximately 327 gross hectares, a dwellingtarget of between 9,810 and 14,715 is implied.

The average household occupancy rate adopted for the Stirling City Centre is 1.8 people per dwelling. (The currentaverage for the City of Stirling is approximately 2.3 across all housing types, however this is forecast to decrease asis the trend metropolitan-wide)5. Using this lower rate, the implied population target for Stirling City Centre is between17,636 and 26,455 by 2031.

It is noted that the Stirling City Centre will have a higher proportion of apartments than average, and this housingtype typically has a lower occupancy rate than the currently predominant detached housing type. The dwellingoccupancy ratio is highest for detached houses (more likely to be occupied by family groups) and lowest forapartments. Only 11.7% of the total dwelling stock in the City of Stirling overall currently comprises apartments. Theaverage apartment houses only 1.5 people. The target occupancy rate is therefore ambitious, but as providinghousing suitable for a wide range of household types is an aim for Stirling City Centre, and this will include providinga proportion of larger apartments suitable for families and communal living, achieving this rate is still possible anddesirable.

The target population for 2031 that has been adopted by the Stirling Alliance is 25,000 residents across a broaddemographic to be accommodated within Stirling City Centre. This ambitious population target translates to adwelling target of approximately 13,888 – say 13,900, an increase of more than 12,000 dwellings on the currentamount.

This is a very significant increase that will require a very different approach to housing from that taken in the past,including significant dwelling densities, more apartments and mixed use developments, and targetted strategies toensure housing that is affordable for different age and income groups and household types.

4 Gross hectares is defined by the Activity Centres Policy as being the area of zoned land under the region planning scheme (MRS), ie: excluding the area reserved for parks,railways, public purposes and regional roads. It is noted that net density (or R Codes) equivalents are generally two to three times the number of dwellings per gross hectare.5 forecast.id, June 2010, City of Stirling Population and Housing Forecasts, for City of Stirling

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82.2_Housing Types

Identifying the quantum of dwelling units required to accommodate the target population is just the beginning of thehousing challenge. Identifying the types of dwellings required to meet the needs of the desired diverse andsustainable community over time is another. To do this requires an appreciation of the likely characteristics of thecommunity to be housed.

There are currently 1,625 dwellings in the Stirling City Centre. In 2006, approximately 52% of the then 1,169dwellings were detached houses, 19% semi-detached, and 29% apartments, reflecting current zonings anddensities.6 Current housing provision does not provide sufficient housing choice for the different lifestyle needs andincome brackets that will be required to make up a sustainable community.

The number of dwellings required in the Stirling City Centre and the density they will be required to achieve can notbe realised if detached and semi-detached houses continue to be the dominant housing type. There is a clearimperative for the largest proportion of new housing to be apartments. The physical form of these apartments interms of bulk, height and scale will vary but will have to provide housing for the full range of household types – lonepersons, couples, groups, and families; lifestyle stages – students, young couples, families with dependents, emptynesters, active aged, and frail aged; and income groups.

The Stirling Alliance has broadly identified the types of housing to be addressed in this strategy as:_Affordable Housing_Single Bed Housing_Family Housing_Short Stay Accommodation_Student Housing_Aged Persons Housing

Each of these housing types is defined in Appendix A, and briefly discussed in the following sections. The StirlingAlliance has identified targets for Affordable Housing (30%), Single Bed Housing (20%) and Family Housing (25%).

2.2.1_Affordable HousingRising housing prices in Australia have led to significant problems of housing affordability, particularly for those onlow or moderate incomes. Housing that costs more than 30% of a household’s income is generally considered to be‘unaffordable’, but because housing costs vary between different geographic areas (and from site to site), whatconstitutes ‘affordable’ will vary both by income and location. Housing in some high value areas may be unaffordableto households with relatively high incomes.

The issue of location is important, for although there may be a relatively high supply of ‘affordable’ housing in fringeareas, workers may not be able to afford (time and price wise) to get to work if that housing is too far away. As aconsequence, employers may have difficulty attracting staff to fill jobs, and this has potentially wider impacts on theeconomy and on social outcomes. For example, if teachers, police or health-care workers can’t afford to live neartheir work place, standards of community service and security can suffer. This problem has seen the issue of ‘keyworker housing’ emerge, alongside discussions of social and public housing. Hence income alone is not a goodmeasure of ‘affordability’.

‘Affordable housing’ is required that covers all dwelling types to suit the needs of the population, that is – singlebedroom dwellings, family housing and aged and dependent persons accommodation.

Social housing is a sub-set of affordable housing. The Department of Housing is currently the main provider of socialhousing in Stirling with approximately 400 homes within the City Centre project area and or nearby. Some are familyhomes occupied by a single person. An advantage of increasing supply of social housing in the area would be toprovide choices for people living in homes that have become too big for them, to downsize into a housing type thatbetter suits their needs whilst enabling them to stay near family and friends and in familiar surroundings. It would alsofree the existing residence for redevelopment or for family use.

The target set for the Stirling City Centre is to provide 30% of housing within the affordable housing continuum. Forthe Stirling City Centre this would equate to 3,300 homes of the 13,900 new homes built. This is an optimistic target

6 Syme Marmion and Co, January 2010, Scarborough Beach Road Population and Land Use Study, for Department of Planning

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9in the current Western Australian context, when most Government projects (eg: East Perth Redevelopment) have astretch target of 15%. Assuming that the population of Stirling City Centre will be broadly representative of the widerpopulation, it can be expected that approximately 20% of households7 will fall within the lowest two income quintilesand hence potentially be eligible for assistance to obtain ‘affordable’ housing, according to Department of Housingcriteria. However not all households within this income range require or will seek housing assistance.

Further work is desirable to clarify whether 30% is an appropriate or achievable target for Stirling. An assessment isrequired that is beyond the scope of this current work, to quantify the market for and type of affordable housing thatwould be appropriate without creating an undesirable imbalance in the future community profile, and withoutadversely affecting development viability for this and other types of desirable development (residential and non-residential).

In terms of location, the distribution of affordable housing will have to meet the requirements of its intended residentsand hence is likely to be broadly distributed. However locations highly accessible to public transport and employmentwill be particularly suitable due to the lower levels of vehicle ownership of low income households. This can beinterpreted as being within a five minute walk of high frequency public transport routes (approximately 400 metres).On this basis almost all of the Stirling City Centre is highly desirable for affordable housing. Figure 3 shows the partsof Stirling City Centre that will be within 200 metres or approximately two and a half minutes walk from highfrequency public transport.

03_Locations within 200m of highfrequency public transport will beparticularly attractive for affordableand aged persons’ housing

Figure 03_

7 http://www.abs.gov.au/ausstats/[email protected]/mf/6523.0 accessed 19/08/10. In 2007-08, the Australian Bureau of Statistics estimated that 20.1% of households fall within the twolowest income quintiles.

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102.2.2_Single Bedroom HousingAverage household size is declining across Perth, and this is projected to continue. Declining average householdsizes have significant implications in terms of use of houses and demand for housing. 67% of all dwellings in the Cityof Stirling were occupied by only one or two people in 2006, with 32.5% occupied by only one person8. This indicatesa case for providing a greater number of one and two bedroom dwellings.

The Stirling Alliance target for this form of housing is 20% of all dwellings, which in view of the ever-increasingnumber of single person households, should be considered as a minimum.

2.2.3_Family HousingNotwithstanding that the dominant housing type in the City of Stirling (and also at present in the Stirling City Centre)is detached single houses, traditionally considered appropriate for families with children, there are few alternativesavailable for families who do not want or can not afford this form of housing. Furthermore, the densities required tomeet targets for the city centre can not be met if this form of housing continues to dominate.

Families take many forms. In the City of Stirling in 2006, couples with dependents comprised 24.4% of allhouseholds, couples without dependents 27%, lone parent families 9.5%, other families (perhaps extended familiesor families with dependent parents or adult children still at home) 2.2%, and group households (unrelated adults andmultiple family groups) 4.5%.

The target set for Stirling City Centre is for 25% family housing. Family housing can be assumed to require aminimum of three bedrooms and good provision of private open space (courtyards or balconies – a design standard)and access to public open space and schools (a locational criterion). Figure 4 (overleaf) highlights locations that willbe a couple of minutes walk from major areas of open space, and five minutes walk from the proposed primaryschool and ten minutes from the proposes combined primary and secondary school.

Other design criteria may also be appropriate for family housing. These might include the availability of communalfacilities within housing development, the ability to move freely between floors of a building (allowing socialisationamongst children), internal dwelling configuration, bedroom size and number of bathrooms (to accommodate sharehouseholds), and amenities such as storage, or easy access to the ground floor and/or outdoor communal recreationspaces. These should be researched and if necessary, included in design criteria for family housing.

The target set by the Stirling Alliance for Family housing is 25%, which is roughly equivalent to the current proportionof couples with dependents households.

2.2.4_Short Stay AccommodationShort stay accommodation is designed or intended for occupation on a temporary basis. It includes servicedapartments and for the purposes of this housing strategy, also includes hotel and motels. The value of this form ofaccommodation in an activity centre is that recreational and business visitors add economic vitality. Strategic exportoriented businesses (the kind that dominate the Perth CBD and that is needed in Stirling City Centre to meetstrategic targets for employment) often require accommodation for business visitors within reasonable proximity.Recreational visitors (tourists) generally seek close proximity to an attraction (eg: the ocean, the city centre) or goodaccessibility to attractions.

On this basis, if specialised short term accommodation is to be provided within the Stirling City Centre, it will requireexcellent access to the railway station and close proximity to high amenity such as a park and/or a vibrant retail andentertainment precinct. This makes the Station Precinct, within 200 metres of the railway station, the mostappropriate location for short term accommodation.

Provision of short stay accommodation will be dependent on market demand and commercial viability for a developerand an operator. In recent years there have been very few new hotels built in Perth despite unmet demand, due tothe high costs of construction and operation making it difficult for new operators to enter the market and even forsome existing operators to undertake significant renovations. It is possible although an untested proposition, thataccommodation built very close to Stirling Station and provided with high localised amenity could be an attractivealternative for visitors with business in the Perth CBD, where land and construction prices have prevented new hotelconstruction for several years.

8 forecast.id, June 2010, City of Stirling Population and Housing Forecasts, for City of Stirling

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11Provision of at least one hotel or serviced apartment operation within the City Centre would be desirable. Thedesirable size (number of rooms) for such an operation will require further research to determine.

04_ Areas 200m from major areas ofpublic open space and walkingdistance from proposed schoollocations.

2.2.5_Student HousingA diverse population is sought within the Stirling City Centre, and students will bring added vibrancy to thecommunity. A key component of this will be the provision of housing suitable for students living away from theirfamilies. As students are seldom wealthy and typically work part time to support their studies, they need affordableaccommodation.

Student accommodation takes many forms: studio or one-bed flats for single occupants, student housingcooperatives, private board in-house or in detached ‘granny flats’, shared houses, and traditional serviced studentaccommodation. ‘Granny flats’ or ancillary accommodation are ideal for students but due to current definitions limitingoccupation of this sort of accommodation to family members, it is technically illegal for non-related people to occupythese spaces.

The trend in student housing is towards large dwellings with five or more bedrooms with individual ensuites, and ashared living and kitchen area. Formalised/purpose built student housing is typically provided on-campus but issometimes and increasingly provided off campus. Although desirable, consultation to date indicates that thelikelihood of a tertiary education campus locating within the Stirling City Centre and providing on-campus housing isnot high. In the event that a tertiary education provider does seek to locate in the area, this position would likelychange.

However many students seek accommodation that provides a broader cultural experience and range of activity thana traditional campus would offer. As many students work part-time, good access to employment is also attractive. Onthis basis, there is potential for the inclusion of student accommodation within the Stirling City Centre.

Purpose built student housing would be best located within easy walking distance of high frequency public transport.However provision of purpose-built student housing is unlikely if there is no tertiary education institution nearby. Avariety of housing options within the precinct may offer students an opportunity to live in the Stirling City Centre.

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122.2.6_Aged Persons HousingAnalysis9 shows that the proportion of people aged 60 or over will increase across the City of Stirling, as it will do inthe general population. In 2006, 14.2% of the population was aged 65 or over. This proportion will grow to 15.2% by2016 and 17.7% by 2021. This implies an increase in demand for housing appropriate for older people with differentlevels of independence. At present within the Stirling City Centre there are three specialist aged persons housingcomplexes in the form of villa and unit developments, apartments and a residential lodge, accounting forapproximately 310 dwellings.

Research and discussion with aged housing providers and local residents has indicated a shortage and lack ofvariety in seniors housing and aged care services in the Stirling area. Some providers see the future for agedcare/retirement housing moving away from ‘gated’ residential developments to more mixed-used with seniors livingwithin the city looking out onto active spaces and enjoying the city lifestyle and easy access to cafes, services andshops. However there is also still demand for single-use accommodation. The quantum of this demand requiresfurther research to determine.

Housing choice is likely to be valued by the elderly and other members of small households, and could enable manymore people to ‘age in place’ by continuing to reside in close proximity to their existing social support networks,friends and family, and when necessary transfer to some form of assisted accommodation.

‘Active aged’ persons will have a range of housing preferences according to their household composition, whereas‘frail aged’ will likely require more assistance either from home-visit services like meals-on-wheels and communitynurses (requiring good physical access for these services), or from nursing home-type facilities.

Good public transport access will be desirable for seniors who do not drive, as will proximity to daily needs such asshopping and health services.

01_Aegis Shawford Lodge is one ofthree existing aged personsresidential developments in theStirling City Centre.

9 City of Stirling, July 2010, Local Housing Strategy 2010, for City of Stirling

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132.3_Housing Affordability

2.3.1_Cost of ProvisionThe cost of providing housing, which directly affects affordability, will be influenced by several factors, depending onwhether the housing is new or established, for sale or for rent. These include10:_Finished land costs - the cost of purchasing the undeveloped land and development costs such as site preparationand earthworks

_Construction costs – the cost of building and fitting out the development_Professional fees - include planning, engineering and design costs_Service connection costs - includes water and sewerage connection costs_Infrastructure charges - includes water and sewerage headworks upgrades and reticulation, and charges forinfrastructure such as parks and open space, streetscape, waterways, community facilities, roads and publictransport

_Development and planning fees – cost of approvals including development application, building certification andcompliance fees

_Local Government taxes and charges - rates_State Government taxes and charges – includes stamp duty, Land Tax, water rates_Federal Government taxes and charges - includes Goods and Services Tax_Gross development return - the difference between the house and land purchase price less the summation of theother cost components

_Marketing costs_Management costs (rental)_Cost of finance, including holding costs_Profit expectations of the owner/seller_Market conditions

Clearly, the cost of providing housing will affect the price charged to purchase or rent it – and hence housingaffordability.

These factors should therefore be controlled or mitigated by the City of Stirling and the Stirling Alliance as the agentsfor planning and redevelopment of the Stirling City Centre and its ongoing management, to the extent possible.

2.3.2_Housing Affordability in Stirling City CentrePrivate developers will naturally seek to make the highest returns on their investment, and without an incentive to dootherwise this is likely to result in a lack of diversity in housing type, especially as the new City Centre becomes moredesirable and land values increase apace.

The ideal is a greater number of affordable rental and owner-occupier housing in locations accessible to civic andcommercial facilities and public transport. This housing should meet the needs of residents, and therefore embrace avariety of designs, including homes of different sizes and styles, reflective of diverse households.

A report prepared for the (then) Department for Planning and Infrastructure in 200711 highlighted that Perth washistorically seen as an affordable city compared to Sydney and Melbourne but that in 2006 the economic boom led tomajor house price growth in Perth. According to the Third Annual Demographia International Housing AffordabilitySurvey (2007), Perth was ranked number eleven of the least affordable cities in the world. Twenty seven percent ofhouseholds in the Perth region are paying more than 30 percent of their income on housing costs (known as ‘housingstress’).12

As an ever-greater proportion of household incomes cover rent and mortgage repayments, the amount of ahousehold’s disposable income available for discretionary spending also declines. This will diminish effectivedemand for goods and services, resulting in lower levels of local economic activity than would otherwise be the case.Attracting workers may also prove increasingly difficult, particularly if employees on lower incomes are ‘pushed out’into urban fringe areas that may be too remote from workplaces for the displaced workers.

10 AEC Group, October 2008, Breakdown of Housing Costs in South-East Queensland, for Local Government Association of Queensland11 Cali Kay Gorewitz, 2007, Affordable Housing and TOD in the Perth Region (Unpublished), for Department for Planning and Infrastructure TOD and Affordable HousingReference Group.12 Dunckley, Mathew, “Housing stress hits home countrywide”, 29 June 2007 pg 16

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14In 2010 this situation has changed little. With the median house price in Perth Metropolitan Area currently around$500,000, housing affordability has become a key issue as the Australian dream of home ownership moves out ofsight for low income earners.

The median house price in Stirling (suburb) is $715,000 (May 2010, down from $955,000 in December 2009) whichis considerably higher than that of Perth as a whole13. The Innaloo median house price as at March 2010 was$550,000 (Source, REIWA). The table below illustrates the price range of one and two bed apartment and unitswithin the vicinity of the study area.

Table – Sample price range of units and apartmentsSuburbGlendalough Osborne Park Innaloo Tuart Hill Woodlands

Bedrooms 1 - 2 1 - 2 1 - 2 1 - 2 1 - 2Min price $725,000 $775,000 $890,000 $817,000 $1,050,000Max price $381,000 $475,000 $530,000 $600,000 $265,000Median price $417,000 $489,375 $552,487 $556,176 $767,500Average price $472,667 $775,000 $890,000 $817,000 $714,375Sales Count 6 8 39 17 8Sales Period 31 Mar 2009 -

31 Mar 201031 Mar 2009 -31 Mar 2010

31 Mar 2009 -31 Mar 2010

31 Mar 2009 -31 Mar 2010

31 Mar 2009 -31 Mar 2010

Data source: REIWA website July 2010

This illustrates the challenge of home ownership, particularly for key workers or middle-income households liketeachers and police officers, who are not eligible for social housing.

01_Existing housing in Stirling City02_Existing housing in Stirling City03_Existing housing in Stirling City04_Existing housing in Stirling City

01_ 02_

03_ 04_

13 Anon. 2010, Housing Issues: Affordable homes in sustainable communities, for Stirling Alliance

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15The cost of rental accommodation is illustrated in the following table.

Table – Sample weekly rental prices (second quarter, 2010)Suburb Type No. Bedrooms Number Suburb Median Perth MedianGlendalough House 1-2 1 $330.00 $320.00Glendalough House 3 1 $360.00 $350.00Glendalough Other 1 4 $290.00 $280.00Glendalough Other 2 7 $295.00 $340.00Glendalough Other 3 3 $420.00 $390.00Innaloo House 1-2 7 $310.00 $320.00Innaloo House 3 14 $420.00 $350.00Innaloo House 4 2 $490.00 $420.00Innaloo Other 2 1 $420.00 $340.00Innaloo Other 3 34 $420.00 $390.00Innaloo Other 4+ 3 $520.00 $450.00Osborne Park House 1-2 2 $315.00 $320.00Osborne Park House 3 5 $310.00 $350.00Osborne Park House 4 1 $450.00 $420.00Osborne Park House 5+ 1 $330.00 $450.00Osborne Park Other 1 15 $240.00 $280.00Osborne Park Other 2 23 $305.00 $340.00Osborne Park Other 3 7 $380.00 $390.00Osborne Park Other 4+ 2 $550.00 $450.00Tuart Hill House 1-2 4 $305.00 $320.00Tuart Hill House 3 9 $365.00 $350.00Tuart Hill Other 1 2 $238.00 $280.00Tuart Hill Other 2 30 $300.00 $340.00Tuart Hill Other 3 14 $370.00 $390.00Tuart Hill Other 4+ 2 $275.00 $450.00Woodlands House 1-2 1 $300.00 $320.00Woodlands House 3 10 $400.00 $350.00Woodlands House 4 4 $625.00 $420.00Woodlands Other 2 3 $350.00 $340.00Woodlands Other 3 2 $498.00 $390.00

Data source: REIWA website http://reiwa.com.au/research/rental-survey.cfm August 2010 – “Other” includes units and apartments

Another factor affecting housing affordability is the overall reduction in the percentage of public housing within theCity of Stirling, which has declined from 7.2% of total housing stock in 1991, to representing only 4.5% in 2005. TheDepartment of Housing also competes in the market for land and dwellings so is affected by rising property values.

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162.3.3_Transit Oriented Development and Affordable LivingAffordability relates to far more than just the cost of purchasing, financing and operating housing. The cost to buildand maintain infrastructure is ultimately borne ratepayers and taxpayers. The cost of transport as it relates to housingis also important. A cheaper house in a fringe location is not necessarily affordable if the location requires multiplecar ownership, frequent trips and long commutes.

Well located housing helps reduce the cost of living by reducing the need to own or access private transport as moretrips can be made on foot or using public transport. Transport is a major cost of living for most households, and thedistance to employment and other frequently accessed destinations will increase travel cost (and time).

Integration of transport – especially public transport - and housing is a central planning concern that can producecost efficiencies as well as provide environmental benefits through reduced emissions and energy use. Transitoriented development incorporating well designed mixed use development within close proximity to public transporttherefore has excellent potential to positively affect housing affordability. Features will typically include:_rapid and frequent transit service_a mix of residential, retail, commercial and community land uses_high quality pedestrian and cyclist friendly public spaces and streets providing high degree of access, permeabilityand legibility

_medium to high density development within 800 metres (ten minutes walk) of a transit station_reduced rates of private car parking provision

There are significant benefits to creating affordable housing at Stirling City Centre, which has excellent potential fortransit oriented development. Research from international case studies and interviews with stakeholders in the Perthregion undertaken14 in 2007 identified that transit oriented development can help:_Overcome Perth’s car dependence_Low and middle-income households save money on transport_Boost transit ridership_Reduce roadway congestion and car use_Decrease consumption of fossil fuel_Reduce new infrastructure costs_Mitigate environmental damage in urban fringe locations

However, as the benefits of living in transit oriented development become increasingly realised and appreciated, it isinevitable that land and housing values will increase. Also known as gentrification, this process brings with it the riskof housing becoming less affordable to more people. Therefore strategies must be put in place early to guarantee asupply of affordable housing that is not subject to the vagaries of the real estate market, in perpetuity.

14 Cali Kay Gorewitz, 2007, Affordable Housing and TOD in the Perth Region (Unpublished), for Department for Planning and Infrastructure TOD and Affordable HousingReference Group.

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172.3.4_Housing DesignThe design of housing can influence its upfront affordability, its suitability for a variety of households over time, andthe cost of adapting it to suit either changing household composition or changing lifestyle needs. For example, theability of a person to ‘age-in-place’ or occupy the same home for many years will be affected by both the need tophysically adapt the dwelling, and the cost of doing so. The Australian Bureau of Statistics reports that thepercentage of individuals with a disability increases significantly with age, rising to more than half for people agedover 60.15 Hence, it is increasingly likely that every home will be required to respond to the needs of a person with aphysical limitation, whether they are a primary resident or visitor.

For those with some form of disability, common tasks can be unnecessarily limited by the physical design of adwelling. A number of design approaches exist:1. The ‘Universal House’ which is usable by as many people as possible without the need for specialisation.2. The ‘Accessible House’ which meets the Australian Standard AS1428.1-2001 Design for Access and Mobility

and is able to accommodate wheelchair users in all areas of the dwelling.3. The ‘Adaptable House’ which adopts the idea of a ‘Universal House’ and in addition is able to be easily adapted

to become an ‘Accessible House’ when required.

An adaptable house accommodates lifestyle changes without the need to demolish or substantially modify theexisting structure and services. As well as single storey houses, two or more storey houses and apartments can alsobe suitable for adaptation. It simply requires foresight at the design stage.

The Australian Standard for Adaptable Housing, AS4299 provides guidance for designing dwellings to accommodatevarying degree of physical ability over time.

The National Dialogue on Universal Housing Design, brings together representatives from all levels of government,and key stakeholders groups from the ageing, disability and community support sectors and the residential buildingand property industry.16 National Dialogue members have agreed to pursue an aspirational target that all new homeswill be of an agreed Universal Housing Design standard by 2020. A Strategic Plan to assist in this effort sets out aprogram to help realise the benefits of Universal Housing Design.

Livable Home Design Guidelines have been developed to help industry and government to build homes that canrespond to the changing needs of households by providing an important opportunity to avoid or reduce the costsassociated with retrofitting homes to improve design and function.

The Guidelines include a hierarchy of options that can be applied. The first level, Silver, comprises six core UniversalHousing Design elements. Gold level contains additional universal design elements, and in addition to new homes isalso intended to eventually apply to all new social and affordable homes that receive government assistance orfunding for construction. Platinum level is intended to provide an aspirational set of guidelines for those wishing todesign houses with optimum accessibility features in mind.

Review of these guidelines for potential application in Stirling would be appropriate.

15 http://www.yourhome.gov.au/technical/fs32.html accessed 18/08/1016 http://www.fahcsia.gov.au/sa/housing/pubs/housing/Pages/national_dialogue_on_universal_design__strategic_plan.aspx accessed 23/08/10

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182.4_Housing Providers

2.4.1_State Government Housing AuthoritiesUnder the Commonwealth State Housing Agreement, social housing refers to both public housing, which is deliveredby state and territory housing authorities, and community housing, which is generally provided by the not-for-profitsector.

Government owned and managed housing is provided under the Commonwealth State Housing Agreement in theform of both mainstream public housing and indigenous housing. There has been a steady decline in public housingstock due to various changes in public housing over the past ten years, which have combined to decrease theavailability of funds for public housing, and restrict the pool of people eligible to receive it. Another consequence hasbeen the decline in the acceptability of public housing to the wider community.17

In Western Australia, the Department of Housing is the government agency responsible for social housing provision.It manages a number of programmes.18

2.4.2_Community Housing AssociationsCommunity housing differs from public housing in that the tenancy and dwelling management is run by a community-based service provider, rather than by state and territory governments.

Through offering long-term leases and security of tenure, providing support and referral services, and also byencouraging occupant involvement in management and maintenance, community housing is able to provide many ofthe social benefits of home ownership on health and well being. Some Community Housing Associations alsosupport the transition from rental to home ownership, allowing tenants who have developed their earning capacity topurchase their property from them and using the capital to develop another unit of affordable housing elsewhere.This could either take the form of an outright purchase, a limited equity deed, or a share in the association.

There are several different not-for-profit organisations in the Perth Community Housing sector. These include Habitatfor Humanity, Access Housing Association, and Foundation Housing. The most appropriate groups to partner withwould be those groups that are endorsed Community Housing Growth Providers. These not-for profit housingdevelopers are able to work with investors to attract Commonwealth rental assistance for its customers as well as taxconcessions for new developments through schemes such as the National Rental Affordability Scheme. Theproviders must be registered as charities and hence are exempt from many taxes and charges, making itapproximately 20% less expensive for them to provide housing product. These providers can also borrow moneyagainst their asset base – something the State can’t or won’t do.

2.4.3_Community Land Trusts (CLT)A community land trust (CLT) is a non-profit, community-based corporation committed to the permanent stewardshipof land and the permanent affordability of any housing located upon its land. Land acquired by a CLT is never resold.It is retained by the CLT, held in trust for the community. Any residential or commercial buildings already located onlands acquired by a CLT or any buildings later constructed on these lands are not retained by the CLT. They are soldoff to organisations or individuals who are leasing the CLT’s land. The owner or a house, a condominium, or a multi-unit residential or commercial building located on a CLT’s land holds a deed for the building and a lease for theunderlying land.19

There are a number of other Community Land Trust approaches that could be explored if the Stirling Alliancechooses to foster the establishment of such a model, however to date this form of housing tenure has had limitedapplication in Australia to date.

2.4.4_OthersIn other jurisdictions, local government is often directly involved in affordable housing provision, however to date thishas not been much pursued by Western Australian local governments. The City of Perth is currently undertaking ademonstration project, and direct intervention in housing provision by local government is likely to become morecommonplace. Partnerships with housing management organisations are likely to be the most frequent model.

17 Select Committee on Housing Affordability in Australia, June 2008, A good house is hard to find: Housing affordability in Australia18 http://www.housing.wa.gov.au/19 http://www.livelocal.org.au/experiment/189/community-land-trust, accessed 18/08/10

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192.5_Interest of Providers in Stirling City Centre

The Stirling Alliance undertook an investigation into housing needs that included interviews with potential providers,to determine the attractiveness of the Stirling City Centre for the provision of various housing types.20

2.5.1_Affordable HousingDiscussions with providers of affordable housing indicates that there is the funding, will, and demand to take upaffordable housing provided within the Stirling City Centre.

The Department of Housing is currently the main provider of social housing in Stirling. Both social housing andaffordable rental properties are built and managed by such providers as Foundation Housing, Mission Australia andothers. These entities manage social housing on behalf of the government but are also involved in development andsometimes pre-development of property for other entities who are attracted by tax and other incentives to enter thesector. There is a general perception that the State Government is keen to get greater involvement of the not-for-profit organisations in providing social housing. These organisations provide a broad spread of housing across theState and achieve lower tenant turnover due to improved tenant management and better matching of tenants toproperties.

A key challenge for providers of affordable and social housing is the acquisition price of land. It is highly likely thatsome form of discount (or subsidy) on the price of land will be necessary to enable these providers to enter themarket in Stirling City Centre. This will have to be factored into the business case/s for the development of StirlingCity Centre.

2.5.2_Student AccommodationLittle interest was expressed by the traditional providers of student housing such as universities and Campus Living,who provide on-campus accommodation. However, it was recognised that not all students wish to live on or near thecampus.

Certain sectors of industry, predominantly the TAFE sector, do not provide student housing opportunities on campus.TAFE has indicated that they would support student accommodation within the Stirling City Centre and would refertheir students to the providers. Universities that have on campus accommodation would not be directly involved inmarketing housing within the Stirling City Centre to their students, however as nearly all contemporary students workat least part-time in order to afford their studies, this makes the placement of student accommodation near potentialemployment areas a high priority and may be something the Stirling City Centre can offer that locations more closelyassociated with the universities can not. This is more likely to be the case if the type of accommodation offered is thatwhich students seek.

2.5.3_Seniors and Aged Care HousingDiscussions with retirement village providers indicated that they would all be very interested in developing a newretirement project in the area. This could include both nursing home and affordable aged housing. There was alsointerest expressed in the concept of providing a non-aged nursing home for people with severe disabilities includingacquired injuries.

Initial discussions have indicated a high level of interest from both the profit and non-profit aged care sectors forfacilities in the project area. The area offers both developers and residents a high level of amenity, access andservices which are the key criteria for aged care.

20 Bodhi Alliance, June 2010, Socio-economic Opportunities for Stirling City Centre, for Stirling Alliance

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20In any given area there will be sectors of the market who can not afford to pay for (purchase or rent) housing atprevailing market prices. Some of this market will qualify for public (non-profit) housing– if it is available – but otherswill simply be priced out unless some form of subsidised housing is provided. That it is necessary to identifymechanisms for delivering affordable housing highlights the fact that without intervention, the market will not providesuch subsidies.

Subsidies will generally target one or more of the factors influencing the cost of providing housing (refer to 2.3.1).Subsidies may take several forms:_Taxation relief, rent assistance and home purchase assistance_Direct discount on the price charged for housing_Discounted land price and/or construction costs resulting in ability to charge lower amount without affectingdevelopment viability

_Grants for provision of affordable housing_Grants for ongoing operation of affordable housing_Concessions and development incentives

The aim should be to create sustainable affordable housing rather than relying substantially on tentative pilot andone-off projects, however in the early stages of the new era of affordable housing in Western Australia,demonstration projects are likely to be necessary.

3.1_Types of mechanisms

3.1.1_Public Private PartnershipsPublic Private Partnerships (PPPs) involve a contract between a public sector authority and a private party, in whichthe private party provides a public service or project and assumes substantial financial, technical and operational riskin the project. PPPs are increasingly being used to construct schools, health care facilities, prisons and infrastructurebecause they reduce the risk to Government and provide economic opportunities to the private sector. PPPs involvethe private sector partner providing a 'bundle' of services such as design, construction and maintenance. The choiceof form depends on factors such as the government's objectives, the nature of the project, the availability of finance,and the expertise that the private sector can bring. They tend to be viable only for large-scale/ high capitaldevelopments.

There are various types of PPP for infrastructure in Australia, such as21:

_Traditional Design and ConstructionThe Government, as principal, prepares a brief setting out project requirements before inviting tenders for thedesign and construction of the project. Private sector contractors undertake to design the project in accordance withthe brief, and construct it for an agreed sum, which may be fixed or subject to escalation.

_Operation and Maintenance ContractThese projects involve the private sector operating a publicly-owned facility under contract with the Government.

_Lease - Develop - OperateThis type of project involves a private developer being given a long-term lease to operate and expand an existingfacility. The private developer agrees to invest in facility improvements and can recover the investment plus areasonable return over the term of the lease.

_Build - Own - MaintainThis type of arrangement involves the private sector developer building, owning and maintaining a facility. TheGovernment leases the facility and operates it using public sector staff.

_Build - Own - Operate - TransferProjects of the Build-Own-Operate-Transfer (BOOT) type involve a private developer financing, building, owningand operating a facility for a specified period. At the expiration of the specified period, the facility is returned to theGovernment.

_Build - Own - OperateThe Build-Own-Operate (BOO) project operates similarly to a BOOT project, except that the private sector owns thefacility in perpetuity. The developer may be subject to regulatory constraints on operations and, in some cases,pricing. The long term right to operate the facility provides the developer with significant financial incentive for thecapital investment in the facility.

21 Government of South Australia, Department of Health, New Royal Adelaide Hospital FAQ Sheet Public Private Partnerships, fromhttp://www.newrah.sa.gov.au/downloads/PPP.pdf, accessed 19/10/10.

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21The effectiveness of PPPs for the provision of new affordable housing has not been extensively tested in Australia,although it has been used in the redevelopment or refurbishment of areas formerly dominated by public housing (eg:the Department of Housing ‘New Living, programme).

3.1.2_Property CovenantsCovenants placed on the title of a property can set the conditions for resale to protect affordability. Covenants maylast forever or for a specified period of time. Covenants can require the owner-occupant to resell the property tosomeone from a specified pool of income eligible buyers for a specified, formula-determined price. The covenantmay also contain a pre-emptive option, giving a not-for-profit developer, a public agency, or some other party the firstright to repurchase the homeowner’s property at the formula-determined price.

Covenants may be required as a condition of planning approval.

3.1.3_Shared equity schemesBroadly, shared equity schemes allow consumers to obtain part equity in a home by sharing the overall cost with anequity partner; either a financial institution or a government backed provider. The involvement of an equity partnerhelps to reduce the overall costs involved in a mortgage, and thus improves housing affordability. Two differentmodels are:_The individual equity model, which allows individual households to enter arrangements with equity partners in orderto reduce mortgage repayments and the size of the deposit. At the time of sale, the partner recoups their equity loanplus a proportion of the capital gain. In some variants of this model there is an opportunity for households tostaircase their way to ownership by progressively buying out their partner.

_The community equity or subsidy retention model, which preserves ongoing affordability by limiting the resale valueof properties through the use of a predetermined formula.22

The Department of Housing operates shared equity schemes (First Start), where the government combines with aprivate lender and first-time home buyers to co-fund the home.

22 AHURI Research and Policy Bulletin Issue 124, April 2010, How can shared equity schemes facilitate home ownership in Australia?

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223.1.4_SubsidiesEvery site will have different land costs and development opportunities associated with potential densities,environmental constraints, car parking, relationships to other properties, etc. The proportion of a development thatcould be made affordable will depend on the constraints of the site and the rent or price that can be achieved for theaffordable through supply and demand subsidies. Possible subsidies will have to be worked out on a site-specificbasis between governments, developers and builders and potential management agencies, eg: a housingassociation.23

Examples of supply subsidies:_Capital Subsidies_Discounted land_Density bonus_Land tax exemption_Stamp duty exemption_Government/philanthropic grants

Examples of demand subsidies:_Rent assistance_Rate exemptions_Cross subsidy from market rent units_Tax exemption for charitable status

A combination of subsidy incentives is likely to be appropriate. Some of these are discussed separately in this report.

3.2_Sources of Funding

3.2.1_Commonwealth GovernmentTwo avenues are presently available at federal level:1. The National Rental Affordability Scheme (NRAS)24 is a long term commitment by the Australian Government to

invest in affordable rental housing. The Scheme seeks to address the shortage of affordable rental housing byoffering financial incentives to the business sector and community organisations to build and rent dwellings tolow and moderate income households at 20 per cent below market rates for 10 years. NRAS aims to:_increase the supply of new affordable rental housing_reduce rental costs for low and moderate income households_encourage large scale investment and innovative delivery of affordable housing.

The Australian Government has committed $1 billion to the Scheme over four years to stimulate construction ofup to 50,000 high quality homes and apartments, providing affordable private rental properties for Australiansand their families. The Stirling Alliance could work with investors to provide potential locations for application ofthis scheme. Income levels for eligible NRAS tenants are generous and accommodate a range of low tomoderate income earners. The income limit for a single adult is $42,386 per annum, increasing to $100,768 perannum for a couple with three children. NRAS also allows for tenant salary increases of 25 per cent above theincome limits. Round three closes 31 August 2010; round four closes 14 December 2010.

2. The Housing Affordability Fund will invest up to $512 million over five years to lower the cost of building newhomes25. The Fund's focus is on proposals that improve the supply of new housing and make housing moreaffordable for home buyers entering the market. It will address two significant barriers to the supply of housing:_Holding costs incurred by developers as a result of long planning and approval waiting times_Infrastructure costs, such as water, sewerage, transport, and open space

23 Terry Burke, undated paper, Measuring Housing Affordability, for Swinburne Monash AHURI Centre, Swinburne University of Technology24 http://www.fahcsia.gov.au/sa/housing/progserv/affordability/nras/Pages/default.aspx25 http://www.fahcsia.gov.au/sa/housing/progserv/affordability/nras/Pages/default.aspx

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23The Fund will target greenfield and infill developments where high dwelling demand currently exists or isforecast. Proposals will be assessed against transparent, needs-based selection criteria with priority given toproposals that improve the supply of new moderately priced housing and demonstrate how cost savings arepassed on to new home buyers. Round 2 of funding (now closed) gave the preference to:_Transit-Oriented Developments_Public housing estate redevelopment projects (ie: create a mixed community through building or redevelopingaffordable homes for private ownership).

3.2.2_State GovernmentAt the State level, the Department of Housing currently promotes four separate community housing programs:_Crisis Accommodation Program - provides capital funds for short to medium term rental accommodation for peoplewho are homeless and in crisis.

_Community Housing Program - provides capital funds for community managed long term rental accommodation forpeople on low to moderate incomes.

_Community Disability Housing Program - provides capital funds for rental housing for people with disabilities whorequire support in order to live independently in the community

_Joint Venture Housing Program - involves a pooling of capital resources for the provision of long term community-managed low income rental housing.

The Joint Venture Housing Program is targeted towards organisations that have resources to contribute to thedevelopment of rental accommodation options for people on low incomes. In a typical arrangement the organisationprovides the land and some capital, whilst the Department of Housing contributes to the construction of theproperties. Other arrangements can be made between parties through negotiation. Because both parties in a jointventure make a substantial capital contribution, each has an equity stake in the assets. Other features of the JVHPinclude:_Joint tenancy allocations process_Partner organisation retains all rental revenues and takes full responsibility for tenancy and property management_Standard term of JV agreement is 25 years_Title to the property typically rests with the organisation26

3.3_Publicly Owned Land

Offering publicly owned land to the market subject to the provision of a specified housing type can be an effectiveway of achieving affordable housing or other desired outcomes.

Government owned land suitable for affordable housing within the Stirling City Centre can be identified and offeredfor sale with specific contractual requirements to meet a predetermined percentage of affordable housing. This ismay require some form of discount on the sale price in return for delivery of a specified amount and/or type ofaffordable housing, however this will depend on the financial model used and it will be necessary to first identify thetype of housing sought and the sites to be offered before the exact nature of subsidy can be determined.

3.4_Planning Controls

The land use planning framework is important to support implementation of a housing strategy. Planning controls areplanning scheme provisions and policies that can be applied to proposed developments. They can take the form ofrequirements or can provide incentives for the inclusion of desired attributes in a development. A balance needs tobe struck, as overly onerous requirements could have the affect of limiting development by making it unviable orotherwise unattractive for a developer to proceed. When this happens, no-one wins.

Examples of planning controls that can be applied to housing include:_Inclusionary zoning_Development standards_Density_Plot ratio_Design Guidelines_Developer Contributions

26 http://www.housing.wa.gov.au/400_761.asp, accessed 19 October 2010

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243.4.1_Inclusionary ZoningInclusionary zoning is a planning control or policy which requires a certain percentage of units in a new developmentor a substantial rehabilitation that expands an existing building to be set aside as affordable units. This may becompulsory or voluntary. In the case of voluntary provision, a bonus density is available as an incentive. This is amarket-dependent strategy that will have more impact when more homes are being built. The advantage ofinclusionary zoning or planning provisions is that it creates affordable housing units without isolating poor andworking households into economically segregated communities.

Affordable housing generated through inclusionary zoning may be required to be permanently affordable, which canbe achieved through a deed restriction such as a covenant.

As an alternative to the provision of on-site affordable units, the opportunity may be provided for a developer to buildaffordable units elsewhere in the community, or contribute to a fund used to build affordable housing (cash-in-lieu).

Inclusionary zoning could also require special consideration for proposed developments that would involve removalor demolition of particular types of housing, such as affordable rental housing, which would have to be defined in theplanning scheme. This would be a way of avoiding incremental depletion of existing stocks of affordable housing.

3.4.2_Development StandardsScheme provisions relating to development standards are intended to ensure a minimum quality of development forthe benefit of the whole community, but in some cases can add to the cost of development and adversely impact onthe affordability of housing (and other land uses). Development elements commonly dictated by planning schemesinclude the amount of landscaping required, the amount of parking, site coverage, unit size, and boundary setbacks.

The R-Codes address matters such as streetscape, building design, boundary walls, site works, building height,external fixtures, special purpose and aged persons dwellings and parking provision, amongst others. Some of theserequirements are limiting and counter-productive to city-centre development of the type envisaged for Stirling CityCentre. They tend to result in larger dwellings that are intrinsically more expensive (less affordable) than might benecessary or appropriate for some households.

ParkingParking requirements that are unnecessarily high impose a substantial burden on developers, new businesses orexpanding businesses in areas where activity density and land values are high.

Reduced parking requirements encourage people to ride transit and walk. In addition, it makes more land availablefor other uses, such as affordable housing. Parking standards within transit oriented developments such as StirlingCity Centre should reflect the greater likelihood of transit use and lower levels of car ownership in suchdevelopments. Parking policies should also reflect that car ownership varies among different housing/occupier types.

Parking standards for affordable housing and aged persons dwellings can and should be significantly reduced.However the provision of easily accessed and adequate amounts of parking for residents’ visitors (which couldinclude home support services as well as friends and family) will be important for ‘visitability’ of residentialdevelopments.

Allocation of car parking for co-operative (shared) cars would help facilitate establishment and use of co-operativeparking schemes.

Requirements for the provision of secure bicycle parking and end-of-trip facilities in developments will make it moreattractive for occupants to choose cycling for transport.

StoragePost occupancy evaluation of housing in False Creek North, Vancouver, Canada27, found that inadequate storageprovided in apartment buildings was a source of dissatisfaction for affected residents. R-Codes requirements of aminimum 4 sqm may not be adequate for apartments intended for families and larger households. A differentrequirement could be specified in Stirling for family housing.

27 C. Wenman et al, College for Interdisciplinary Studies, School of Community and Regional Planning, c. 2008, Living in False Creek North: From the Residents’ Perspective

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253.4.3_Dwelling DensityRelated to the concept of inclusionary zoning (see 4.4.1), density bonuses may be used as an incentive to provideaffordable housing and enable increased profit to developers. The Residential Design Codes already allow for a 50percent density bonus for the provision of housing for people over 55, single bedroom apartments of minimum 60sqmgross area, and dependent persons’ housing.28

The extent of density bonus and/or the type of housing that can earn a density bonus could be extended beyond thatwhich is currently available in the R-Codes. Acceptable design solutions to achieve additional density for affordablehousing should be identified.

Density bonuses will only be effective if the market conditions make it worthwhile (profitable).

3.4.4_Plot RatioThe amount of development floor space permitted on a development site is controlled by plot ratio. Plot ratio bonusesare frequently used as an incentive to encourage provision of desired uses or facilities with a public benefit. Plot ratiocan be effective as an incentive for the provision of housing in circumstances where other uses (usually commercialand/or retail) are a more attractive (profitable) than housing. In these cases, an additional amount of non-residentialfloor space is offered in exchange for provision of residential units.

There are two ways in which this mechanism can be applied to encourage housing. One is as a percentage bonusover and above the maximum usual permitted plot ratio on a site, for the provision of housing. As housing per se maynot be an unattractive development option in Stirling City Centre, this form of bonus may be better targeted ataffordable housing. It would be important to have a policy that guides the circumstance under which bonus plot ratiowill be granted. Acceptable design solutions to achieve additional plot ratio for affordable housing should beidentified.

The second way in which plot ratio can be used as an incentive for housing provision is to allocate a base plot ratioand an upper level that can be achieved if a minimum amount of the additional plot ratio is residential. For example, abase plot ratio of 2.0:1 for non-residential development and up to 3.0:1 if a minimum of 0.5:1 of the total developmentis residential. This could be as ‘as of right’ provision embodied in the planning scheme. The actual amount of bonusoffered should be determined after examination of both market (to determine what would be attractive) and the likelybuilt form outcomes (to ensure that application of bonuses will not result in unintended negative impacts).

3.4.5_Design GuidelinesDesign guidelines can specify requirements for different development types and different localities, to ensure thatdevelopment meets minimum standards of design to achieve a desired built outcome. They are frequently used byplanning authorities as a supplement to or substitute for planning scheme provisions relating to the design ofbuildings and the public realm. The intention is usually to provide for a high standard of amenity for residents, thecommunity, and the environment.

Design guidelines can be very detailed and include requirements for the design and layout of dwellings, includingfinishes and materials.

Whilst design guidelines can ensure a minimum standard of design they are sometimes criticised for stiflinginnovative design, techniques, technologies and materials, or alternative solutions. Design guidelines may also(inadvertently) preclude forms of development and thereby restrict diversity in the community. They can add to thecost of development, affecting affordability.

Alternatively, design guidelines can be used to ensure that a diversity of dwellings and facilities is provided.

It is important that the intention of the design guidelines is clear and that they contain sufficient flexibility to allowacceptable alternatives. Care is required to include only elements that contribute towards the desired outcome,leaving room for choice and flexibility in other elements. Risk-based or performance-based approaches are morelikely promote affordable housing than overly prescriptive requirement.

28 The R-Codes were prepared by the Western Australian Planning Commission (WAPC) following a comprehensive review of the Residential Planning Codes of WesternAustralia (1991 Codes) and provide a comprehensive basis for the control, through local government, of residential development throughout Western Australia. The R-Codesminimise the need for local governments to introduce separate planning policies and also play an important role in guiding the WAPC in determining subdivision applications.

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263.4.6_Developer ContributionsDevelopers can be required to contribute towards the cost of infrastructure and community facilities. State PlanningPolicy 3.6 Development Contributions for Infrastructure (SPP 3.6) sets out the manner in which developercontributions can be requested, and seeks to provide consistency and transparency in the manner and purposes forwhich contributions are sought and calculated. Development contributions will be calculated and applied as:_standard conditions of subdivision_conditions of development_legal/voluntary agreements

As a way of supporting residential development in Stirling, developer contributions could be sought for the provisionof structures and facilities that support the effective functioning of communities and neighbourhoods, such as:_sporting and recreational facilities_community centres_child care and after school centres_libraries and cultural facilities

It will be necessary to prepare a community infrastructure plan for the area and supporting documentation, beforedeveloper contributions for community infrastructure can be requested.

Conceivably, developer contributions could be sought for the provision of affordable housing by a third party, as analternative to its direct provision within a development. Contributions would be paid into a dedicated fund that couldbe used to directly build affordable housing, or provide funds for its purchase or construction by an affordablehousing provider. A case would have to be made to the Western Australian Planning Commission under SPP 3.6 toallow contributions of this kind.

3.5_Other Mechanisms and Incentives

3.5.1_DiscountsDiscounts on various planning authority imposed costs for new developments could be offered as an additionalincentive to developers who comply with the affordable housing provisions. This could include developmentassessment fees and developer contributions. The City of Brisbane, for example, offers such financial incentiveswhen 100% affordable housing is provided in a development. For proposals including a proportion of affordable andmarket housing, financial incentives are calculated on a pro-rata basis. Funding is not provided unless a covenantand management plan or other acceptable arrangement, has been established, and developments will be subject toa requirement that the affordable housing component remain affordable for the long term use (minimum 10 years).

3.5.2_Fast Tracked ApprovalsAs time taken to obtain determinations of applications can add a significant cost to developments (holding costs), theability to approve a speedy approval for certain types of desirable developments can be an important incentive.Notwithstanding that all applications should be processed in the most efficient manner possible, developmentsincorporating a minimum affordable housing component could be exempt from certain referral or assessmentprocesses and/or have ‘as of right’ status that makes approval quicker.

3.5.3_Non-Planning Statutory Controls and RequirementsA review of building related controls and standards administered by the local government could identify requirementsthat deter building owners and developers from providing affordable housing. For example, health and buildingrequirements for such housing forms as lodging houses may be very prescriptive and costly to implement. Riskbased or performance criteria would allow flexibility, particularly for the conversion of existing buildings.

3.6_Facilitation and Demonstration

Facilitation might take a number of forms, but would primarily involve bringing together various government and non-government players with the aim of delivering demonstration projects.

3.6.1_Affordable LivingMechanisms that support affordable living might be supported. One example would be car share schemes, whichnow operate in over 600 cities worldwide and are becoming increasingly popular. They help to reduce householdcosts by reducing the need to a car through offering shared use of a car. Car share schemes provide a network ofvehicles in both on-street and off-street parking spots which can be used 24 hours a day, seven days a week, and

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27booked out by members for a few hours to a number of days. One car share vehicle can reduce congestion anddemand for parking by replacing up to ten privately-owned vehicles.

In Stirling, such a scheme could be fostered by provision of dedicated car share parking spaces at on-street and off-street locations.

3.6.2_Affordable DevelopmentOne of the challenges facing provision of higher density housing is construction costs. This is a particular challengein Perth, where according to Trevor Sanders29 of construction cost consultants Ralph Beattie Bosworth, constructioncosts for multi-storey residential buildings are currently 10% - 20% higher than in other major capital cities. There isopportunity for the Stirling Alliance to champion the demonstration of innovative construction techniques. This mightinvolve seeking expression of interest for demonstration of modular building techniques. In the context of economicdevelopment in the Stirling City Centre, the existing concentration of residential and construction related businessesmakes this a particularly relevant opportunity.

29 Trevor Sanders, pers. Comm. 08/10/10

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284.1_Precincts

For planning purposes, the Stirling City Centre is divided into six precincts. Population and housing targets for eachof these precincts are required to inform detailed area planning. The six precincts are shown in Figure 3. Thedistribution of housing across the precincts will vary depending on the characteristics of the precinct and theavailability of land for redevelopment.

4.2_Targets for Stirling City Centre

This section seeks to allocate and distribute dwelling targets across the precincts within the Stirling City Centre.

The Stirling City Alliance has set targets for population, and proportion of affordable, singe bedroom and familyhousing for the Stirling City Centre. These are:_Population target – 25,000_Affordable dwellings – 30% of dwellings_Single Bedroom – 20% of dwellings_Family Accommodation – 25% of dwellings

The ‘affordable’ category is of course not mutually exclusive of the other two categories.

Applying the dwelling density targets for a Strategic Metropolitan Centre from the Activity Centres Policy for Perthand Peel (minimum 30 per gross hectare, desirable 45 per gross hectare) would result in a target of between 9,798and 14,697 dwellings overall, as shown in the following table for each precinct. The lower target would be insufficientbut the upper target would have the potential to meet the population target of 25,000.

Implied Dwelling Targets from Activity Centres PolicyDwellings/grosshectare

Implied precinct yield Total

Southern Station Northern OsbornePark Western Woodlands

30 1,419 2,949 681 1,830 2,061 858 9,79845 2,129 4,424 1,022 2,745 3,092 2,317 14,697

The ability to achieve these targets assumes an equal capacity for new development in each precinct, which is notreal. As large parts of Stirling are already developed, potential realisable dwelling yield to achieve the overall targetshas been assessed based on an estimate of developable area within each precinct, excluding an allowance forexisting and future roads and public open space, and taking into account the provision of required commercial, retailand space for other uses. Developable land includes land that is currently developed, as well as currently vacantland. Clearly though, undeveloped land has greater potential for realising targets sooner, as it does not rely onexisting development being removed or reconfigured.

Due to the overlap/non-exclusivity of categories of housing, there are issues related to setting targets for each type ofat this stage._Estimates of future population profile have not yet been commissioned, making the ‘market’ for some housing typesdifficult to define. Some families, aged persons and single-bedroom candidates will also fall within the ‘affordable’classification.

_Some aged persons will never occupy specially purposed aged persons housing but remain in other forms ofhousing (including single-bedroom, family and other types of dwelling), therefore it would not be appropriate tosimply forecast the aged portion of the population and target that amount.

_As with aged persons housing and for similar reasons, the proportion of specific student housing required can notbe forecast with any degree of confidence.

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29

Figure 03_Stirling City Centre Precincts

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30Recognising that 30% is a ‘stretch’ target for affordable housing, figures are also provided for 15% affordablehousing, which is the target used by other public agencies in Western Australia. This is considered to be a morerealisable and appropriate target. As shown in the following table, there is a considerable difference between the two.

Affordable Housing Targets at 15% and 30%Precinct Affordable Housing

15% 30%Southern 315 630Station 675 1,350Northern 165 330Osborne Park 375 750

Western 375 750Woodlands 180 360TOTAL 2,085 4,170

The areas of greatest development potential in the short and medium term are those areas that are presentlyundeveloped, and which for the most part are in public (government) ownership. While a target of 30% could beachieved in the precincts where there is a significant amount of publicly owned land – namely the Southern andStation Precinct – there is a risk that unless substantial controls could be put on both the quality of development andthe demographic characteristics of occupants, such a result could create social imbalance and also lower real estatevalues in the city. It is considered more realistic to target 15% affordable housing across most precincts.

Achieving 30% in the Station and Southern precincts with their significant amounts of publicly owned land, and 15%in the other precincts would result in an overall supply of 3,075 affordable units, or 22% of total target housing supply.The impact of such provision on the development market and on the ultimate community profile is something that willrequire further research to assess.

It will be important to carefully consider how affordable housing will be distributed across client groups, includingsocial, public and key workers so as not to create a social imbalance. It is noted that Department of Housing policy isfor the Department to control no more than 10% of housing stock in any area. This policy was developed in responseto social problems that have developed in areas exceeding this ratio.

The following table summarises targets for all precincts, which are detailed in the following sections.

PrecinctCurrent

DwellingsTotal Target

DwellingsEstimatedPopulation

AffordableHousing

SingleBedroom

20%

FamilyAccommodation

25%Southern 49 2,100 3,780 630 420 525Station 169 4,500 8,100 1,350 900 1,125Northern 280 1,100 1,980 165 220 275OsbornePark

0 2,500 4,500 375 500 625

Western 727 2,500 4,500 375 500 625Woodlands 400 1,200 2,160 180 240 300TOTAL 1,625 13,900 25,020 3,075 2,780 3,475

The specific manner of provision and distribution of each housing type within individual precincts will be the subject ofdetailed area planning. In each precinct there may be specific sites identified exclusively for housing or mixeddevelopments. This will require an assessment and appreciation of the three dimensional form of development thatwill be required to accommodate not only the number and type of dwelling units sought but also all other (non-residential) activities such as shops and offices. Plot ratio (floor area to site area ratio), dwelling density and heightcontrols will be required that do not limit the ability of developers to realise the targets within viable developments.

It is highly probable that densities and plot ratio will have to be allocated on a site-by-site basis, rather than throughapplication of ‘blanket’ controls. This means some sites may have higher densities and/or plot ratio than others.

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314.3_Southern Precinct

This precinct presently incorporates Westfield Innaloo shopping centre, Bunnings Warehouse and various retail andrestaurant complexes along Scarborough Beach Road. It incorporates approximately 31.5 ha of developable land,approximately 16 ha of which is currently occupied by large format retail (Westfield, Bunnings and retail on the formerNookenburra Hotel site). Existing residential includes a small number of older houses and Shawford Lodge and AgedCare, lodge-style aged persons accommodation, operated by Aegis Aged Care Group.

The intention is for this precinct to be the main ‘shopping area’ of the city centre, serving the local population and thesurrounding districts. The existing shopping centre will be redeveloped over time to provide a more street-based(rather than internal, mall-based) shopping environment. Ellen Stirling Boulevard will become a pleasant, low vehiclestreet dominated by pedestrian traffic and public transport. Some commercial, entertainment and residentialdevelopment will extend the hours of activity beyond standard weekday business hours. The precinct will connectseamlessly at its northern edge into the city core and railway station.

Due to the significant amount of existing development, the most significant redevelopment potential will be ongovernment owned land between Ellen Stirling Boulevard and the new Stephenson Avenue alignment –approximately 7 ha - and redevelopment of the strip development along the southern side of Scarborough Beach Rd– approx 1.4 ha. This provides 8.4 ha of potentially developable land.

New housing in this precinct will necessarily have a high density (dwellings per hectare), which will take the form ofapartments. These are likely to be mainly within mixed-use buildings that include non-residential uses such as retail,offices, and other commercial spaces, although some may be exclusively residential, depending on the finalconfiguration of lots created and the layout of developments.

Features of this precinct relevant to housing:_Proximity to high frequency public transport on Scarborough Beach Road, Ellen Stirling Boulevard and StephensonAvenue

_Close to significant retail_Potential views across proposed greenway public open space (high amenity)_High volumes of traffic on Scarborough Beach Road – potentially less attractive for housing in these locations_Large amount of Government-owned land especially around Stephenson Avenue alignment

This precinct will be particularly suitable for affordable housing.

Precinct SummaryExisting dwellings 49Gross hectares 47.3 haExisting dwelling density per gross hectare 1Nett area (approx) 31.5 haExisting dwelling density per nett hectare 2Target dwelling yield 2,100Average nett density required to achieve target (approx) 67 dw/haAffordable target (30%) 630Single bedroom target 420Family accommodation target 525Population target 3,780

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324.4_Station Precinct

This precinct is focused around the Stirling station. It incorporates approximately 44.6 ha of developable land. Theexisting developments within the precinct include the City of Stirling Administration and Civic Centre and IKEA. Alarge portion of the land is the old Hertha Road rubbish tip site (approximately 20 ha).

Stirling Station is the busy heart of the city centre and the precinct around it will be the focus for the most intenseactivity and development. It will be the focal point and interchange for local and regional public transport (buses,trains and taxis, and potentially a light rail system), and will be characterised by a scale and intensity of built form thatis matched to the high level of activity – it will be the visual and economic centre of the city. In the area aroundStirling Station the predominant sensibility will be of office and commercial activity – it will be the ‘business’ part ofthe city, although some residential development will be encouraged.

The remediated and redeveloped former land fill site will be a transition between the intensity and scale of the citycentre around the station, and existing low scale, low density residential areas to the east and north. It will be thecivic, cultural and community hub of Stirling, characterised by built form scaled to mediate between the city core andthe existing residential areas. It will have predominantly residential development, shaped by a linear park/stream thatis an important element of the overall city green corridor. This area will have its own core that brings together localschool/s, civic and cultural activities around a central park around the existing City of Stirling offices. Good physicallinks will be established between the city centre and adjacent precincts.

The main focus of future development will be the former landfill site. Resolving contamination and geotechnicalissues will take some time. It is also assumed that in the long term the IKEA site will redeveloped. It is assumed thata proportion of development land will be dedicated to commercial uses and the remainder will be largely mixed usedevelopments incorporating apartments.

Features of this precinct relevant to housing:_Proximity to high frequency public transport on Stephenson Avenue, Cedric Street and Ellen Stirling Boulevard_Proximity to Stirling Station_Location of future combined high school and primary school (north of railway)_Proximity to and potential views across proposed greenway public open space (high amenity)_Large amount of Government-owned land especially the former Hertha Road landfill site

This precinct will be particularly appropriate for family housing (north of railway), aged persons’ housing andaffordable housing.

Precinct SummaryExisting dwellings 169Gross hectares 98.3 haExisting dwelling density per gross hectare (approx) 2Nett area (approx) 44.6 haExisting dwelling density per nett hectare 4Target dwelling yield 4,500Average net density required to achieve target (approx) 101 dw/haAffordable target (30%) 1,350Single bedroom target 900Family accommodation target 1,125Population target 4,500

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334.5_Northern Precinct

The precinct north of the former landfill will remain as primarily a hospital and residential area, with improved linksback to the city’s centre for residents and hospital employees and visitors. It will be characterised by Osborne ParkHospital and residential development that is similar in scale and intensity to current residential development in thearea.

The precinct incorporates approximately 30.5 ha of developable land, including the Osborne Park Hospital (11.9 ha),which it is assumed will not be redeveloped to include housing. The former council depot has been redeveloped inrecent years for housing at a zoned density of R30 with some R40, and this is unlikely to be redeveloped in theforeseeable future. The main potential for new housing will be land on the south side of the hospital with proximity tonew development and open space on the former landfill site, and the gradual redevelopment of existing olderhousing north of the hospital.

Features of this precinct relevant to housing:_Proximity to high frequency public transport on Stephenson Avenue and Cedric Street_Proximity to Osborne Park Hospital_Proximity to future combined high school and primary school (in Station Precinct)_Considerable amount of recent housing development north of City of Stirling Civic Centre

This precinct will be particularly suited for aged persons housing or supported accommodation related to the hospital,and family housing.

Precinct SummaryExisting dwellings 280Gross hectares 43.4 haExisting dwelling density per gross hectare (approx) 6Nett area (approx) 30.5 haExisting dwelling density per nett hectare 9Target dwelling yield 1,100Average net density required to achieve target (approx) 36 dw/haAffordable target 165Single bedroom target 220Family accommodation target 275Population target 1,100

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344.6_Osborne Park Precinct

This precinct is within the existing Osborne Park industrial area. It incorporates approximately 40.3 ha of developableland. The existing uses within the area are a mixture of light industry and bulky good warehouse facilities.

The area south of Scarborough Beach Road relates strongly to the Herdsman Business Park, and its future planningand development will be coordinated with that for Herdsman. North of Scarborough Beach Road, this precinct willbecome the transition between the industrial activities of Osborne Park to the east and the intense ‘city centre’activity of the western precincts. The connection of existing streets across Stephenson Avenue will make these areashighly accessible to the amenity and services of the city centre. The precinct will be characterised by a mixture ofcommercial development and pockets of medium to high density residential development focussed around localparks. A primary school will be required that may share some parkland as playing fields. High quality architecture willoverlook and capitalises on the amenity provided by the pedestrian friendly, public transport priority StephensonAvenue, and the green corridor link.

The main focus of future development will be redevelopment of the industrial uses. Resolving possible sitecontamination and potential interim non-compatibility of uses will mean redevelopment to commercial and residentialwill take some time. A new more fine grained road structure is also required to facilitate development. Some siteswithin the area are in strata ownership, which will make redevelopment more difficult. Detailed area planning for thisprecinct will provide the necessary detail to progress planning.

Features of this precinct relevant to housing:_Proximity to high frequency public transport on King Edward Road and Stephenson Avenue_Road and pedestrian links to main shopping and business area around Stirling Station and Ellen Stirling Boulevard_Proximity to major linear public open space – high amenity_Location of future primary school

The precinct will be particularly suitable for high density family housing.

Precinct SummaryExisting dwellings 0Gross hectares 61 haExisting dwelling density per gross hectare (approx) 0Nett area (approx) 40.3 haExisting dwelling density per nett hectare 0Target dwelling yield 2,500Average net density required to achieve target (approx) 62 dw/haAffordable target 375Single bedroom target 500Family accommodation target 625Population target 4,500

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354.7_Western Precinct

This precinct comprises of the existing residential area west and north-west of the Westfield Innaloo shopping centreand the Mitchell Freeway north of Cedric Street. It incorporates approximately 45.2 ha of developable land. Thepredominate existing land use within the area is a mixture of single residential and grouped dwellings (triplex) thathave occurred in response to the present R40 coding of the area. Approximately 25% of the area has already beendeveloped in this form. Redevelopment of this relatively new development is unlikely in the foreseeable future, andthe predominant strata-title ownership will also make any redevelopment slow. Geneff Village, an aged personscomplex operated by the Bethanie Group offering a small hostel and 69 villas, is located in the precinct.

This precinct will be the ‘inner city’ neighbourhood - a medium to high density residential area that takes advantageof the excellent amenity offered by the existing La Grange Dongara Reserve. It will be characterised by high qualitymedium to high density residential buildings focussed around the existing park. There will be excellent accessibility tothe city core, retail and associated activities via high quality, pedestrian friendly streets, designed to discouragethrough traffic.

The main focus of future redevelopment will be in line with the local area plan developed for the area in consultationwith current residents and land owners. This has identified a potential development pattern and built form guidelinesthat provide for dwelling densities mainly focused from R40 to R60, with some existing higher density areas.

Features of this precinct relevant to housing:_Central existing large park has high amenity value and potential_Proximity to city centre amenities of shopping and business_Established residential population including two aged persons’ complexes_Significant amount of low scale medium density housing in strata title tenure – change is likely to be incremental

This precinct will be particularly suitable for aged persons’ housing.

Precinct SummaryExisting dwellings 727Gross hectares 68.7 haExisting dwelling density per gross hectare (approx) 11Nett area (approx) 45.2 haExisting dwelling density per nett hectare 16Target dwelling yield 2,500Average net density required to achieve target (approx) 55 dw/haAffordable target 375Single bedroom target 500Family accommodation target 625Population target 4,500

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364.8_Woodlands Precinct

This precinct comprises of the residential area south of the Scarborough Beach Road and surrounding the InnalooMegaplex cinema complex. It incorporates approximately 22.4 ha of developable land. The cinema site isapproximately 6.8 ha. Much of the remainder of the precinct is already developed for housing at R30 and R20.Parkland Villas, operated by Lend Lease Primelife, includes 185 villas and 55 apartments for aged persons and issituated on a site of approximately 4.6 ha in Liege Street.

New development in this precinct will predominantly be on the cinema site, which has land surplus to requirements.In the future, if the cinema complex relocates, the whole site could be redeveloped for a new medium to high densityresidential neighbourhood with mixed use development facing Liege Street. In the meantime, the surplus land can beredeveloped for these purposes. The new development would be well connected to the surrounding urban fabric andbenefit from adjacency with the southern parts of the green corridor/urban stream and Herdsman Regional Park. Theopportunity to improve links between Liege Street and Odin Road through redevelopment of this precinct wouldassist in realising the dispersed regional traffic model. The precinct would be characterised by quality medium to highdensity residential development, scaled to integrate with the exiting low density, low scale residential neighbourhoodsto the west and south. Quality mixed use development would front Liege Street, and well landscaped new streets,paths and parks will provide amenity and links with the surrounding area.

Features of this precinct relevant to housing:_Cinema site – short term potential for development of surplus land; long term potential for relocation of cinemas_Separated from main part of city centre by Scarborough Beach Road – a major barrier to movement_Established residential population including aged persons’ complex with potential to redevelop_Due to existing development and fragmented ownership, change of existing residential is likely to be incremental

Precinct SummaryExisting dwellings 400Gross hectares 28.6 haExisting dwelling density per gross hectare (approx) 14Nett area (approx) 22.4 haExisting dwelling density per nett hectare 18Target dwelling yield 1,200Average net density required to achieve target (approx) 54 dw/haAffordable target 180Single bedroom target 240Family accommodation target 300Population target 2,160

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375.1_Overview

There are two imperatives for housing in the Stirling City Centre that the strategy seeks to deliver. These are:1. Sufficient quantity and diversity of housing to accommodate approximately 25,000 people2. Sufficient quantity and diversity of housing that meets targets and the definition of ‘affordable’ housing

The keys to successful implementation of any housing strategy will be consistent leadership, effective partnershipswith State government and private developers, and the ability to leverage internal and external funding.

Application of a combination of mechanisms will be required to achieve the targets. There is still a considerableamount of work necessary to confirm the likely market and the development considerations that will influence viabilityof developments within Stirling City Centre. Only when this is better understood will it be possible to frame and applyspecific mechanisms with reasonable confidence.

The strategies are broadly grouped according to their applicability to a particular type of housing.

5.2_General Strategies

_ResourcingDedicate adequate skilled, knowledgeable resources to further develop and implement the housing strategy,including developing and maintaining relationships with key industry players, monitoring future rounds ofGovernment funding for applicability, and seeking opportunities for partnerships with developers or housingproviders.

_Visitor ParkingInvestigate ways of ensuring that adequate amounts of easily accessible parking for visitors are available within orin close proximity to residential developments. The convenience, for both residents and visitors, of accessing visitorparking is important for maintaining social networks; even more so for residents who may have restricted mobility(such as aged or disabled residents). This should be considered in the context of a parking strategy that seeks toreduce the provision of private parking within developments. (It is noted that such a strategy has been prepared).

5.2.1_Planning controls

_Housing PolicyPrepare and adopt an Affordable Housing Policy that defines and sets out the requirements, incentives, and optionsavailable for the provision of Affordable Housing within the Stirling City Centre. This policy is required as a priority,so that it can be factored into development decisions by the private sector and before land values are affected bythe increased development opportunities that the Stirling City Centre Structure Plan will precipitate.

_Develop a housing policy that explains the objectives of and defines the diversity and types of housing sought.

_Prepare and adopt a policy or policies on requirements, incentives, and options available for the provision ofadaptable, universal and accessible housing. It is suggested that there could be a requirement for 100% groundfloor apartments and a minimum of 10% dwellings overall to comply with the design requirements of AS 4299.

_PermissibilityEnsure that residential development is an ‘as-of-right’ land use throughout the Stirling City Centre, with the onlycontrols relating to relevant design standards and provision targets.

_Housing DensityInclude minimum density requirements in local area plans for precincts capable of realising total dwelling targets.This may require site-by-site consideration. It is proposed that maximum density is not stipulated in planningprovisions, but that design quality is a pre-eminent development control mechanism.

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38_Plot RatioOffer a plot ratio bonus for the provision of residential development within mixed use developments in the Southern,Station and Osborne Park precincts. For example, a base plot ratio can be achieved for the provision of non-residential development, and additional non-residential floor space can be achieved if a minimum amount ofresidential development is also provided above the base plot ratio. The appropriate quantum of bonus will have tobe worked out during detailed local area planning.

_Variations to the R-CodesIn developing planning controls for the Stirling City Centre ensure that the Residential Design Codes, if used (notrecommended), are varied or that performance criteria are used. Currently allowable densities, definitions,‘acceptable criteria’ and limits on some forms of housing will not be appropriate to meet the density and diversitytargets for the area. In particular, provisions relating to minimum dwelling size (60 sqm for single bedroomdwellings), minimum levels of residential car parking provision (2 per dwelling) and ancillary accommodation (onlyrelated persons can occupy) will be counter-productive if applied.

_Amend the definition of ancillary accommodation to allow occupation by any person (not just members of thefamily).

_Design StandardsDevelop design guidelines to ensure adequate but not excessive performance standards for residentialdevelopment of various types. Mixed use buildings incorporating residential should have separate entries andadequate vertical movement systems for the building population.

5.2.2_Further research and advocacy

_Affordability MarketUndertake research into local housing market and demographic profile to establish ‘affordability’ benchmarksappropriate to the population and determine greatest need (rental/purchase, dwelling size, target groups.

_Current levels of provisionEstablish current levels of provision of target housing types in area (rental, social, supported accommodation, etc).

_Development CommunityEstablish contact and develop relationships with the development community to identify interest in producingdifferent housing types in Stirling.

5.2.3_Aged Persons’ Housing

_Aged PopulationResearch current provision and forecast likely future size and profile of aged population in order to identifyproportion of aged-specific housing provision required.

_Permissibility of Aged Persons HousingMake aged persons housing a permitted use in all precincts.

_Aged Housing ProvidersLiaise with aged housing providers to identify suitable sites for dedicated aged housing developments.

_Adaptable HousingMandate through planning provisions that a proportion of all housing constructed includes adaptable dwellings asper the requirements of Australian Standard for Adaptable Housing, AS 4299.

_Universal HousingMandate through planning provisions that all housing developments incorporating eight or more dwellings include25% or a minimum of two units designed to incorporate core elements of universal design elements to ‘Silver’standard, as defined by the National Dialogue on Universal Housing Design.30

30 http://www.fahcsia.gov.au/sa/housing/pubs/housing/Pages/national_dialogue_on_universal_design__strategic_plan.aspx accessed 23/08/10

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395.2.4_Affordable Housing

_LandIdentify sites suitable for the provision of affordable housing according to criteria to be developed in consultationwith providers (eg: close proximity to high frequency public transport). Earmark and market these sites foraffordable housing projects in liaison with recognised housing providers.

_Contribute land or funds towards affordable housing projects; for example to a local housing provider with access toother funding sources. The provider could take responsibility for the acquisition and management of housing underan arrangement that also ensures that housing objectives are met. The quantum of funds necessary to facilitate‘affordable’ housing can be determined by obtaining the difference between two market valuations for and identifiedparcel of land; one an open market valuation determined by compliance with intended planning and design controls,and the other in accordance with those controls and further constraints that limit the use of that land to ‘affordable’housing in perpetuity.

_MandateRequire the provision of a proportion of units within a development above a determined size to be provided asaffordable, public or special needs housing, or specific dwelling sizes.

_Density BonusEstablish a dwelling density bonus for the provision of affordable housing.

_Plot Ratio BonusEstablish a plot ratio bonus for the provision of housing within mixed used developments.

_FacilitationConduct feasibility assessments, negotiate with land owners and bring together interested developers andmanagers, streamlining the development approval process.

_RelationshipsDevelop and maintain relationships with affordable housing providers and equity managers with a view to identifyingand acting upon opportunities as they arise.

_Encourage the Department of Housing to direct First Start and other first-time and affordable homebuyer grants intoStirling.

_Advocate engagement of a community housing organisation as tenancy and property manager for affordablehousing to ensure that it is actually providing housing to people in need. For example, properties could be headleased to a not-for-profit provider that would take responsibility for identifying eligible tenants and managing theproperty and tenancy for the agreed period.

_Housing Trust FundEstablish a ‘cash-in-lieu’ or developer contribution housing trust fund for the purpose of financing affordable housingprojects within the Stirling City Centre. Developments that do not directly provide affordable housing can contributeto the fund at a rate to be determined. The tool by which this contribution is calculated must be robust andtransparent; it will have to be developed by a suitably qualified specialist in consultation with the developmentindustry.

_CriteriaEstablish a method by which the criteria for affordable housing is linked to and updated according to changingincome levels and/or economic conditions in the community.

_Support affordable housing projects that meet identified occupancy and affordability criteria through a package ofassistance, such as density bonuses, reduced fees and developer contributions and support to secure any availableState or Federal government assistance.

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405.2.5_Family Housing

_Community Development_Prepare a community development strategy based on a community needs assessment to ensure that services,facilities and programmes are provided in the area to meet the needs of all the community, including children andyouth.

_Liaise with the Department of Education and other providers to ensure the provision of services such as schools ina timely manner to encourage families to locate in the area.

_Appropriate DesignResearch criteria and prepare design guidelines for family housing (eg: storage, access to outdoor recreation areasand aged appropriate play space, communal facilities in apartment complexes, dwelling configuration, number ofbedrooms, etc).

_Mandate ProvisionUse planning scheme provisions to require a minimum of 25% of all new dwellings are suitable for families, basedon criteria to be developed relating to dwelling size and facilities.

5.2.6_Single Bedroom Housing

_Mandate ProvisionRequire a minimum of 20% of dwellings in new apartment buildings with ten or more dwellings to be single bedroomor studio apartments, not including any short term accommodation.

_Require a minimum of 50% of dwellings in new aged or dependent persons’ developments to be single bedroom orstudio units.

_Reduced Car ParkingAllow nil resident parking bays per single bedroom or studio apartment located within 400m of a railway station orhigh frequency transit stop.

5.2.7_Student Housing

_Models of ProvisionResearch models of student housing and identify those most suited to the Stirling City Centre, with a view toestablishing design guidance and informed response to any interest by a provider in supplying this form of housingin the Stirling City Centre.

_PermissibilityMake specialist student housing a permitted use in the Station and Southern Precincts (and discretionary in otherprecincts).

_Ancillary AccommodationIn developing planning controls, permit ancillary accommodation and ‘Fonzie Flats’ in single, grouped and terracedwellings, in all precincts.

_Monitor and AdvocateMonitor interest in providing specialist student housing in Stirling City Centre.

_In the event that a tertiary education institution locates within the Stirling City Centre, actively seek providersinterested in establishing dedicated on- or off-campus student housing.

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415.2.8_Short Stay Accommodation

_PolicyDevelop a policy relating to the operation of short stay accommodation to ensure that properties are managed toavoid any negative impacts on permanent residents in the same or nearby developments.

_Location and AccessPermit the provision of short stay accommodation in the form of hotels and serviced apartments in the core part ofthe Station Precinct and identify options for taxi drop-off and tour buses in the event that a proposal for such adevelopment.

_Make other forms of short stay accommodation such as bed-and-breakfast, home-stay and private short-stayrentals permissible in all precincts.

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42Stirling City Centre is a very important element within the spatial strategy for metropolitan Perth. As a strategicmetropolitan centre, it will be expected to accommodate a considerable amount of additional housing, strategicemployment activity and amenity to support a vastly increased population.

The type and quantity of housing that will be needed for Stirling to fulfil its role in achieving a more sustainable andliveable metropolitan area as envisaged by Directions 2031 and Beyond is an untried product in this area. Themarket for it is unknown. The infrastructure to support it does not exist.

The development industry is showing signs of interest in providing commercial office space in Stirling because thereis a demand for it, and the area is well located for the purpose. For the same interest to be shown by the privatesector in the provision of housing development, significant, up-front investment in creating outstanding residentialamenity will be required. Stirling does not presently enjoy the levels of amenity that other areas where apartment andmixed use development is occurring do – areas like East Perth, Subiaco, South Perth, Scarborough Beach andCrawley. Therefore, amenity must be created. It is instructive to note that exactly such up-front investment took placein both the East Perth and Subiaco redevelopments (creation of Claisebrook Cove and undergrounding of SubiacoStation, respectively).

The development industry requires a high level of confidence and certainty, and it requires lead-time. Policy needs tobe introduced sufficiently in advance of development so that its contents and implications can be factored intodevelopment decisions.

The development of tools to calculate the amount and value of development contributions for affordable housing(whether by direct provision of housing or otherwise) is imperative to provide confidence, consistency andtransparency. This is a specialist task requiring a thorough understanding of the market and property developmenteconomics that should commence in the near future.

There appear to be three main types of opportunity for the provision of affordable housing at present. Firstly,negotiation of a demonstration project or projects with voluntary agreement by the developer, to demonstrate theviability of projects and demonstrate the capacity of the not-for-profit sector to partner with the private sector.Secondly, subsidised land price on State owned land. Thirdly, a public-private partnership for provision of affordablehousing product.

This strategy is a first step towards achieving housing outcomes in Stirling City Centre, but it is not the last.Considerably more work is required at a number of levels, as has been outlined. Achieving housing objectives willrequire strong and consistent leadership, effective partnerships between the State, not-for-profit sector and privatedevelopers, and the ability to leverage funding.

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i ________Appendix ADefinitions

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i _______ Appendix ADefinitions

_A

i ________Appendix ADefinitions

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44This section provides definitions and explanation of terminology in the affordable housing area. Some of these termsare used in this report, others are provided for future reference.

Adaptable housingAustralian Standard AS 4299 (Adaptable Housing) is current best practice in the design of housing that can beadapted to provide access for the physically handicapped. The standard specifies dimensions for door, bathroomsand other features, making the home more accessible for disabled inhabitants. The Department of Housing has setadaptable housing target of 15% of dwellings.

Affordable HousingHousing that is reasonably adequate in standard and location for households in lower or middle parts of the incomescale and which does not cost so much that such a household is unlikely to be able to meet other basic living costson a sustainable basis. It includes owner-occupied housing as well as rental housing owned by governments, non-profit organisations, corporations or individuals. As a rule of thumb, housing is considered to be affordable if the costof purchase or rental does not exceed 30% of the gross household income.

_Low-income rental: rents not to exceed 30 percent of gross income of the lowest two income quintiles_First home buyer: less than 4.85 times median annual household income._This calculation is used by the Department of Housing in land sales and the First Start shared equity program.

Affordable LivingAffordability, taking into account the total cost of living in a home. This includes rent or mortgage payments, energyand water consumption (which are impacted by building design) and the location of a dwelling, which directly impactson the cost of transport to access employment, essential services such as health and education and other dailyneeds.

Aged HousingGenerally taken to mean residential accommodation suitable for people over 55 years, which may include supportedresidential facilities, private rental, community housing, housing trust accommodation, homeowners and retirementvillages. The two major categories of aged housing are:1. Aged Care/Extra Service Facilities. Aged care is driven by the needs of clients.2. Retirement Villages. Retirement villages are established in response to market needs

Community HousingAffordable urban rental accommodation, which is responsive to client needs. It is managed by not-for- profitorganisations or local government.

Community Housing Growth ProviderRegistered and approved not–for–profit housing providers that meet State and Federal government criteria, makingthem eligible for funding and tax benefits

Family HousingThis relates to typical dwelling with multiple bedrooms (usually 3 and 4 bed dwellings) or larger 2 and 3 bedapartments that have good accessibility to private or public open space and facilities. (Some jurisdictions thatpromote higher density development specify design requirements for family suitable apartments).

Fonzie FlatStudio apartment built above a garage. A 'Fonzie Flat' is a euphemism for the type of unit occupied by 'The Fonz'above the Cunninghams’ garage in the 1970’s comedy TV series 'Happy Days'. Fonzie lived over the garage andthere was a set of stairs that led up to his apartment.

Key WorkerKey workers in broad terms are low and medium waged workers who provide essential community services, such asin the areas of health, education, transport, child care and property protection (police, fire fighters etc). Lack ofhousing affordable to these workers in reasonable proximity to the workplace makes attraction and retention of staffdifficult and has a negative impact on services available to communities.

Social Housing

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45Rental housing supported with some form of direct or indirect government subsidy that is provided for people on lowand moderate incomes. It may be owned and managed by the state, by non-government not-for-profit organisations,or by a combination of the two. It includes crisis, transitional and long term housing service. Social housing is notprovided without subsidy; it is the housing of last resort for people unable to access the private rental market orpurchase their own home.

Single Bed HousingThe Residential Design Codes define a single bedroom dwelling as a dwelling that contains a living room and nomore than one other habitable room that is capable of use as a bedroom.

Short Stay AccommodationCity of Stirling Local Planning Scheme No. 3 defines Short Stay Accommodation as a dwelling designed or intendedto be used for the purpose of human habitation on a temporary basis for a single person or single family, andincludes a serviced apartment, but does not include a Residential Building, Hotel or Motel. For the purpose of thisHousing Strategy, however, short stay accommodation includes hotel and motels as the purpose is the same.

Student Housing is housing specifically designed and developed for student accommodation needs. The bestlocation for a student housing project is actually on-campus. The next best is near campus. Other factors include:_Price is the main demand driver. Student housing is located to achieve a cost-effective solution_Access to public transport is a key locational driver_Access to additional facilities ancillary to main educational facility is also importantSource: (Pracsys, 2010)

Universal Design is defined by Disability Services Commission of Western Australia as being the design of productsand environments to be used by all people to the greatest extent possible without the need for adaptation orspecialised design.

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ii _______Appendix BPopulation forecasts by suburb

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ii _______ Appendix BPopulation forecasts by suburb

_B

ii _______Appendix BPopulation forecasts by suburb

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48Population profiles and forecasts for the four suburbs straddled by Stirling City Centre were obtained via the City ofStirling website from http://forecast2.id.com.au/default.aspx?id=270andpg=5000. These were prepared by .idconsulting Pty Ltd and are reproduced for reference in this Appendix.

Profiles are provided for:_ Innaloo_ Woodlands_ Osborne Park_ Stirling