❓ Question regarding affordability provisions in State Government joint venture land developments, specifically concerning the proportion of land reserved for lower-income buyers and associated financial arrangements. The answer clarifies that affordability clauses exist, but the government doesn't directly subsidise developers for providing affordable land.
AnsweredQoN 2729Legislative Council
QuestionView source ↗
With reference to joint venture land developments between the State Government and private companies, I ask -
(1) Is a proportion of each development reserved for buyers on lower incomes?
(2) If no to (1), why not?
(3) If yes to (1), -
(a) how is the proportion and price of that land calculated; and
(b) does the state government effectively pay the private developer in the contract to make this lower priced land available?
(4) If yes to (3)(b), -
(a) where; and
(b) how are these subsidies accounted for?
(1) Is a proportion of each development reserved for buyers on lower incomes?
(2) If no to (1), why not?
(3) If yes to (1), -
(a) how is the proportion and price of that land calculated; and
(b) does the state government effectively pay the private developer in the contract to make this lower priced land available?
(4) If yes to (3)(b), -
(a) where; and
(b) how are these subsidies accounted for?
AnswerView source ↗
Answered
12 October 2010
Responded by
Leader of the House representing the Minister for Housing
Response time
35 days
The Department of Housing advises:
(1) Affordability clauses are included in Joint Venture agreements to ensure that a specified percentage of lots are made available at or below a certain price deemed to be affordable for low and moderate income households. The number of sales in accordance with this clause is a key performance indicator for each Joint Venture.
(2) Not applicable
(3) (a) The minimum requirement to provide affordable land in joint venture developments varies between a 10% and 20% presence across the whole development. The calculation to determine the affordable land price akes into account the relationship between income, interest rates and the costs of land and housing collectively; as well as affordability issues regarding the entry price and maintenance of the loan.
(b) The State Government does not pay the private developer to make the lower priced land available.
(4) Not applicable
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
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(1) Affordability clauses are included in Joint Venture agreements to ensure that a specified percentage of lots are made available at or below a certain price deemed to be affordable for low and moderate income households. The number of sales in accordance with this clause is a key performance indicator for each Joint Venture.
(2) Not applicable
(3) (a) The minimum requirement to provide affordable land in joint venture developments varies between a 10% and 20% presence across the whole development. The calculation to determine the affordable land price akes into account the relationship between income, interest rates and the costs of land and housing collectively; as well as affordability issues regarding the entry price and maintenance of the loan.
(b) The State Government does not pay the private developer to make the lower priced land available.
(4) Not applicable
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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