Cabinet plan to boost social housing dumped in favour of developers

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Cabinet plan to boost social housing dumped in favour of developers
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Cabinet documents reveal a bold social housing plan was abandoned by the Andrews government in favour of measures that help developers.

The Andrews government dumped an ambitious cabinet-approved plan to lift the proportion of social housing in Victoria by almost two-thirds, opting instead to respond to the housing crisis with a voluntary, developer-led delivery of so-called affordable housing.

It would have delivered an extra 50,000 social and affordable houses over 12 years, underpinning a historic turnaround for social housing after decades of decline under both Labor and Coalition governments.percentage of social housing in Australia, with every other state and territory boasting a higher figure.

Under the plan, developers would be charged a “uniform percentage” of the value of housing projects to deliver growth in social and affordable housing. The modelling also says the impact on house prices and rents would be “negligible”, adding just 0.05 per cent to the cost of dwellings. “Mandatory inclusionary zoning is what Victoria needs to build enough social and affordable housing to end housing stress, overcrowding and homelessness,” Community Housing Industry Association Victoria acting chief executive Jess Pomeroy said.

“This ambitious and comprehensive plan will enable our industry to activate all types of housing, providing choice to Victorians while also enabling delivery of the volume of new dwellings that the market needs in order to address the affordability crisis,” Evans said.

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