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Background


Inner West Council is committed to taking action to address the ongoing challenge of housing affordability in our community.

As part of this work, Council has developed a new draft Affordable Housing Policy to help guide how we increase the supply of affordable housing in a way that is practical, evidence-based and capable of delivering real outcomes.

This draft Policy seeks to update and replace the existing Affordable Housing Policy (adopted 2022).

At its meeting on 28 April 2026, Council resolved to put this draft Policy on exhibition for 35 days and seek feedback from stakeholders and the community.


What’s included in the Policy


Purpose and Objectives of the Policy

The draft Policy aims to increase the provision of Affordable Housing in the Inner West.

We want to protect and increase the supply of housing stock that can be affordably rented or purchased by very low-, low-, and moderate-income households by promoting housing diversity, equity, liveability and sustainability within the Inner West.

The draft Policy includes:

The draft Policy proposes the following priorities:

  • an Affordable Housing Contribution Scheme (AHCS) is proposed to apply to any land where Inner West Local Environmental Plan 2022 (Inner West LEP) is changed due to a Council or state-led process to enable or increase housing capacity.
  • any developer-led proposal that aims to enable or increase housing capacity on a property should contribute to Affordable Housing
  • strategic partnerships with the community housing sector to develop and manage Affordable Housing
  • a ‘Governance and Distribution Framework’ will outline how Affordable Housing (funds, dwellings or land) can be distributed to the community housing sector,
  • identification of Council-owned land that is surplus to requirements or with the potential to be repurposed for Affordable Housing, in partnership with the community housing sector
  • advocacy to NSW Government for an increase in subsidised housing (such as Affordable Housing) in the Inner West Council area and at a minimum for no net loss of Affordable Housing following any redevelopments.

The draft Policy identifies the following target tenant groups, subject to also meeting income requirements for Very Low-, Low- and Moderate-income households:

  • key workers and employees working shifts
  • older people, including older women and long-term residents of the LGA
  • young people, including those with a social, cultural or economic association with the LGA
  • certain families, including sole parent families, and women and their children escaping domestic violence
  • Aboriginal and Torres Strait Islander peoples
  • people with special housing or access needs, including people with a disability, those at risk of homelessness, and people from culturally and linguistically diverse communities
  • artists and cultural creators.

The draft Policy details the following requirements:

  • Where a proposal aims to enable or increase housing capacity 10% of the new or additional floorspace is required as Affordable Housing contribution
  • Contributions can be money, dwellings, or land (or a combination of these).
  • Monetary contributions are preferred and are calculated using a dollar rate based on location. 
  • Dwellings should be of a quality suitable to Council and its nominated Community Housing Provider.  
  • Land should be at least 800m2 and not contain any hazards or environmental constraints.  

The draft Policy proposes the following approach:

  • Contributions are gifted or dedicated free of cost to Council 
  • Contributed dwellings remain Affordable Housing in perpetuity, or until replaced with other Affordable Housing dwellings elsewhere in the Inner West Council area 
  • Monetary contributions are paid to, pooled and managed by Council 
  • Council will nominate a Community Housing Provider who will own and manage affordable housing funds and stock on Council’s behalf.

The draft Policy contains the following advocacy positions:

  • advocate for a minimum target of 30% of new dwellings on government-owned land, to be designated as subsidised housing (affordable and/or social housing) in perpetuity
  • work with Property NSW for securing underutilised or surplus government land suitable to contribute to Affordable Housing supply and supporting social infrastructure
  • continue to collaborate with other councils and actively lobby NSW Government to encourage a more comprehensive approach to the provision of Affordable Housing
  • advocate for cash contributions paid in lieu of a loss of low-rental housing under the State Environmental Planning Policy (Housing) 2021 (Chapter 2, Part 3) within the Inner West Council area to be retained by Council.

The following changes are proposed:

Category

Current Policy

Draft Policy

Contribution Rate for Developer-Led Housing Proposals

  • 15% of new housing floorspace where feasible.
  • 10% of additional residential floorspace.

Contribution Method

  • On-site dwellings preferred.
  • No requirements specified.
  • Monetary contribution allowed.
  • No land option.
  • Monetary contribution preferred.
  • ‘In-kind’ options include completed dwellings and land. Requirements for both specified.

Monetary Contribution Calculation

  • 50% of land value increase captured. Via Planning Agreements between Council and developer.
  • Calculated by multiplying:

- Proposed new housing floorspace

- Contribution Rate (%)

- Dollar Rate (based on location)

Indexation

  • No fixed formula for contribution indexation.
  • Annual indexation (linked to median Strata prices).
  • New rate calculated by:

- Old rate x (updated medium price / former median price).

Target Tenant Groups for Affordable Housing

  • Same groups as draft Policy, this policy did not include artists and cultural creators.
  • Now includes artists and cultural creators.

Governance and Administration of Affordable Housing

  • Affordable Housing stock is owned by Council and managed by nominated Community Housing Provider.
  • Affordable Housing Fund created in 2020.
  • Fund receives Community Housing Provider rental surplus and monetary contributions from developments.
  • Affordable Housing stock and funds will be owned by nominated Community Housing Provider, under funding agreement and Governance and Distribution Framework.
  • Funds pooled centrally by Council and redistributed to nominated Community Housing Provider.

Frequently Asked Questions



Document library


Prefer to see a hard copy?

Between Monday and Friday, 8.30am and 5pm, the following sites have hard copies available:

  • Ashfield Service Centre 260 Liverpool Road
  • Petersham Service Centre 2-4 Fisher Street, Petersham
  • Leichhardt Service Centre 7-15 Wetherill Street Leichhardt



More information


Contact us

Have questions or want to learn more about this project, contact:

Contact Information
Name Strategic Planning Team
Phone 02 9335 2187
Email planning@innnerwest.nsw.gov.au

Speak with a Planner

Project stages

  • Timeline item 1 - active

    Open

    This consultation is open for comment

  • Timeline item 2 - incomplete

    Under Review

    Contributions to this consultation are closed for evaluation and review.

  • Timeline item 3 - incomplete

    Council decision

    Council will consider a report including community feedback before it makes its final decision.

What happens next?

A report summarising the feedback and proposed changes will be presented to Council with the final Affordable Housing Policy for decision. Everyone who provided feedback will be notified when the report is scheduled to be considered by Council.


Have your say


You can provide feedback by:

  • Completing the form below
  • Emailing to planning@innnerwest.nsw.gov.au
  • Posting to c/o Strategic Planning, Inner West Council, Po Box 14, Petersham NSW 2049
  • Calling us on 02 9335 2187

Other ways to provide feedback:

  • Call a FREE Interpreter or the National Relay Service, Monday to Friday between 9am-4pm and provide our phone number 02 9335 2187
  • Free Interpreter call TIS National on 131 450
    • Voice relay call 1300 555 727
    • TTY call 133 677
    • SMS relay call 0423 677 767

Last day to provide feedback is 7 June 2026


Feedback form

To complete the form please create an account to join, or login to an existing account. The Your Say Inner West account is separate from other Council accounts.