Closing soon:draft Affordable Housing Development Contributions Scheme

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Community consultation for the draft Affordable Housing Development Contributions Scheme is closing soon, on 7 June.

Mornington Peninsula Shire is looking for innovative ways to tackle the growing housing crisis that is devastating families and individuals in our community. Every member of the Mornington Peninsula Shire community deserves a safe and secure home.

A draft Affordable Housing Development Contributions Strategy has been prepared to give clear direction for how the Mornington Peninsula Shire will support and enable the delivery of more affordable housing on the Peninsula.

Affordable housing falls into two categories; one that operates in the private market with no government subsidy and the other is social housing. Social housing is the focus for this draft Strategy – that is, housing that is provided to eligible families and individuals at a subsidised and affordable rent. Social housing is owned or managed by either the State Government or Registered Housing Agencies.

This draft Strategy recommends increasing the supply of social housing through an Affordable Housing Development Contributions Scheme that requires mandatory contributions from new developments across the Peninsula. The scheme can be delivered through a change to the Mornington Peninsula Planning Scheme. Similar schemes already exist in other parts of Australia, including New South Wales.

This approach recognises social housing as essential infrastructure which new development should contribute towards. A similar approach is already applied on the Mornington Peninsula (and across Victoria) for other infrastructure, like public open space, with developers having to either provide public open space as part of their development or pay money to Council to provide it. Development contributions towards social housing currently operate on a voluntary basis, with the amount negotiated on a site-by-site basis. A mandatory requirement, set out in the planning scheme, is more consistent and transparent.

The proposed scheme would require applicants for planning permits and land rezonings to contribute 3.3 per cent of the predicted market value of their development to social housing. The contribution rate would apply to developments that increase the number of dwellings, or increase industrial and commercial floorspace, on the Peninsula.

Developments exempt from the scheme would include:

  • renovations to existing homes
  • new homes that replace an existing home
  • granny flats
  • public buildings such as schools, community facilities, recreation facilities
  • accommodation that already provides a community benefit, such as aged care facilities and rural worker accommodation
  • small-scale extensions to industrial and commercial developments.

While a mandatory, municipal-wide contributions scheme is recommended, the draft Strategy includes other options, such as limiting mandatory contributions to land rezonings only, or seeking voluntary contributions for both rezonings and planning permit applications.

Our community’s feedback through this consultation may result in further exemptions being included in any final proposal.

Funds raised would be directed towards social housing initiatives within the municipality, such as the development of new social housing projects or support for existing housing programs delivered by State Government or local registered housing providers.

This scheme could help deliver in the order of 600 to 1,000 social housing dwellings – representing between 9 and 17 per cent of total need for the Shire to the year 2041.

We want to find out:

  • Your view on social housing being considered as essential infrastructure.
  • Is 3.3 per cent of the market value too high/low?
  • Do you think the initiative should be mandatory or voluntary?
  • Should we consider other exemptions?
  • How would this scheme impact you?

How to share your feedback:

  1. Go to and take the survey online
  2. Write to us:

Affordable Housing Development Contributions Strategy

Mornington Peninsula Shire

Private Bag 1000, Rosebud, Victoria, 3939

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