Funding to provide affordable housing in Wollongong

Wollongong City Council has opened up an expressions of interest process, asking businesses, organisations and others to put forward a tender to provide affordable housing to low to moderate income earners.

A pool of $5 million is available to the successful applicant or applicants.

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The housing crisis in the Illawarra and Shoalhaven is worsening, with 22,700 very low to moderate income households experiencing housing stress and a growing number waiting for social housing.

A report from Shelter NSW released last month put Wollongong (alongside Shellharbour) among the 10 worst-affected regional local government areas for housing need.

The report said more than half of low-income households in Wollongong were struggling to pay their mortgage, while 69 per cent were experiencing rental stress.

Almost 2300 households were on the social housing waiting list.

The Housing Trust is a previous recipient of the funding, putting its $4.3 million towards the construction of 17 homes for women - particularly older women and those with children - on the Princes Highway at Dapto and Dudley Street, Wollongong.

The council has approved the development applications for both projects and the Housing Trust is hopeful construction work will begin by the end of the year.

Housing Trust chief executive officer Michele Adair said it was vital that this new round of funding went to increasing the supply of affordable rental housing.

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"The project will be best led by a local not-for-profit community housing provider," Ms Adair said.

"Given how difficult, how long and how volatile building and construction are at the moment we hope that council are open to proposals to repurpose existing buildings which is the fastest way to get people into the homes they so desperately need."

Head Start Homes received $1.3 million for an initiative to help low to moderate income earners purchase a home.

It recently opened applications for the program.

Meanwhile, Wollongong City Council has just adopted its new Housing Strategy, which specified that residential developments of more than 20 dwellings must have at least 3 per cent of floor space dedicated to affordable rental housing in 2026, increasing by 1 per cent annually to hit 10 per cent by 2033.

Cr Mithra Cox moved an amendment, supported by fellow Greens Cr Cath Blakey, to increase the eventual minimum to 30 per cent.

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She said a higher target would buffer against significant loss of affordable rentals when these properties moved back to private ownership.

But the remaining councillors voted against it and the amendment was not passed.

Cr Blakey later said the target as passed was a "sad joke".

Cr David Brown said a higher target would require an amendment to the local environmental plan, and voiced concern about the sustainability of a higher figure.

The strategy also specifies that developers must allocate at least 5 per cent of floor space to affordable rental housing when they want to rezone land for significant residential development or to increase density - or they can pay the equivalent value to a community housing provider for the provision of such housing.

It outlines the waiving of development contributions for the provision of affordable rental housing and emergency housing, and says the council will advocate for more social housing.

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