The peak body representing the interests of developers is disappointed Wollongong City Council has sought to delay a medium density housing code.
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The Urban Development Institute of Australia's southern region manager Keiran Thomas spoke at the council meeting on Monday where councillors later resolved to seek another 12-month deferral for the Low Rise Medium Density Code.
The code allows one or two-storey dual occupancies, manor houses and terraces to be fast tracked and approved within 20 days under a private certifier if it meets council's planning controls.
The usual council development application process can take months to finalise for a medium density development.
The state government claims the code will increase supply, improve housing affordability, provide more housing options and will maintain the local character of neighbourhoods with a two-storey limit.
Mr Thomas said there "was nothing to fear" with the code.
"People think the code will let developers build 10 dwellings on one lot but after the code was reviewed, dual occupancies and terraces have to face the street," he said.
"People and councils think there would be medium density housing everywhere and the code would allow for developers to get around council's controls but that is not true.
"The code has been working in dozens of councils and the sky has not fallen in and the suburbs have not been inundated with medium density housing.
"This will help mum and dad developers who can use the code to get their dual occupancy built quickly. Developers are unlikely to use code because they have the capital to wait for council's development application process which will often give them a better yield."
Lord Mayor Gordon Bradbery said the code took the planning powers out of council's hands.
"Council is not anti-development," he said. "Staff take the needs to the community into consideration and works hard to defend the amenity of neighbourhoods."
Cr Bradbery said issues such as flooding, slope, land constraints would not be considered under the code.
He said the council wanted to sit down with the minister for planning to discuss how issues such as infrastructure, services and overall amenity could be addressed under the code.
He said councils need more controls to consider the context - including geography, other housing stock in the area, traffic and infrastructure - around the development when assessing low rise medium density housing applications.
However Mr Thomas said developers would still need to pay a local infrastructure contribution charge to help council fund new infrastructure for dwellings.
As reported in the Mercury, councillors have received complaints from residents in Keiraville and Thirroul objecting to medium density townhouses because of a lack of infrastructure in the area.
"The code shows the state government is heading towards a blanket approach to approvals rather than being specific to individual areas," Cr Bradbery said.
"Our authority is being challenged."
Cr Bradbery also had concerns about private certifiers approving developments because some had a bad history and "council was left to pick up the pieces".
Mr Thomas said the community mistrust of private certifiers was unfounded because only a very small percentage of complaints against private certifiers were valid and there were audits to ensure compliance of the regulations.
Another benefit of the code, Mr Thomas said would be a streamlined application process for affordable housing and aged care providers to build developments so there would be more supply and options for residents.
Cr Bradbery added that the council was conducting an housing options report to determine where the best areas for development would be including areas for affordable and social housing and wanted to wait to make major planning decisions until the report was finalised.
