Woollahra Council Car Parks
Affordable Housing Feasibility Assessment
In 2014 Woollahra Municipal Council commissioned HillPDA to investigate the redevelopment of two car parks at Wilberforce Avenue and Ian Street, Rose Bay (Subject Site). The original project examined the feasibility of redeveloping the Subject Site to include community space, car parking, and residential apartments.
In 2016 Council agreed on an Option which was to lease the Subject Site under a Project Delivery Agreement (PDA) in return for 37 car spaces, 153sqm Retail and a 99 year lease of the residential stratum.
In May 2018 Council was granted planning approval for this site. The Planning Proposal was conditional to resolution E which requires Council to consider inclusion of affordable housing (AFH) in the development. Council asked HillPDA to review this request in light of the studies previously undertaken as well as reports prepared by Currie & Brown.
An evidence based study was crucial to calculating and justifying the contribution amounts made to Council with/without the inclusion of affordable housing units.
Our value add
HillPDA’s Study provided recommendations on:
- Market advice on the test sites that informed sale prices used in the feasibility analysis
- Advice on the outcome of the feasibility studies tested
- Contribution rate(s) for inclusionary zoning provisions
- Cash contribution generated by adjustments to the affordable housing rates.
The outcomes and recommendation from this Study provided the evidence to allow Council to make an informed decision with regard to the cash contribution they would receive with the inclusion of varying levels of affordable housing. The results of the financial feasibility models highlight the reduced cash contribution (RLV) the developer can afford to pay Council given the introduction of AFH units. As more AFH units are incorporated into the development the cash contribution Council receives decreases. Importantly, the proposed cash contributions rates are based on a robust feasibility analysis to demonstrate how the contribution rates can achieve the affordable housing objectives without unacceptable impacts on development feasibility.
- Market research & appraisal
- Affordable housing studies
- Feasibility assessment
- Financial modelling
Client: Woollahra Council
Project date: 2018
For more information, contact Martin Hill, Director