Contributions for affordable housing—the Act, s 7.32
48 Contributions for affordable housing—the Act, s 7.32
The following requirements are prescribed for the imposition of conditions on a development consent granted under this Part—
the consent authority must be satisfied the development will, or is likely to, reduce the availability of affordable housing in the area,
if the condition requires the payment of a contribution—the contribution must be determined in accordance with this section.
The amount of the contribution must be calculated in accordance with the following formula—
where—
C is the contribution payable.
L is the total number of bedrooms in a low-rental dwelling and boarding rooms that will be lost by the proposed development.
R is the replacement cost calculated as the average value of the first quartile of sales of strata properties in the local government area in which the development is to take place, as specified in the 4 most recent editions of the Rent and Sales Report.
For development involving a boarding house that the consent authority has assessed as not being financially viable—
if the rental yield is 3% or less—no contribution may be sought, and
if the rental yield is more than 3% and less than 6%—the contribution payable must be reduced by being calculated in accordance with the following formula—
where—
C is the contribution payable.
X is the contribution that would be payable under subsection (2).
RY is the rental yield.
In this section—
rental yield means the rental yield for a period, expressed as a percentage, determined by the consent authority in accordance with the following formula and taking into account the Guidelines for the Retention of Existing Affordable Rental Housing, published by the Department in October 2009—
where—
RY is the rental yield.
Y is the gross rental income from the boarding house for the period.
E is the total expenses for the boarding house, excluding expenses that have been charged to residents, for the period.
D is the capital depreciation of the boarding house for the period.
V is the total value of the boarding house were it to be purchased for the purposes of continuing its use as a boarding house.
U is the estimated cost of carrying out work referred to in section 47(2)(f)(ii).
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