Urban Development Authority Act to implement Government's Housing Affordability Strategy

By Alexis Coleman.

Key Points:
The Act implements the Government's Housing Affordability Strategy, which is aimed at achieving better housing affordability through improvements to the State's planning and development system, land supply and infrastructure funding system.

There is a generally accepted definition of affordable housing which provides that housing costs should not exceed 30 percent of household income, however that figure is currently at approximately 34 percent for Queensland. Approval periods for medium density development can be as long as 21 weeks in parts of the State and up to 30 weeks for broad hectare subdivision approvals. A report published by the Property Council of Australia in January 2007 concluded that housing affordability was being adversely affected by the combination of excessive delays, uncertainty and high compliance costs in the development assessment process.

It appears that the Government's housing strategy and recently tabled Act are trying to address these significant factors in housing affordability in Queensland.

The Urban Development Authority Act 2007 (Qld) intends to implement the Government’s Housing Affordability Strategy. The Strategy is aimed at achieving better housing affordability in Queensland through improvements to the State's planning and development system, land supply and infrastructure funding system.

The main features of the Act include:

• The Urban Land Development Authority - the Act establishes an Urban Land Development Authority. Under the Act, urban development areas ("UDA") may be declared by regulation. Once such a declaration is made, a development scheme for the area must be prepared by the Authority and an interim land use plan will regulate development in the UDA until the development scheme is in place. Development in UDAs will be assessable under the development scheme, rather than under the Integrated Planning Act 1997 ("IPA"). A development application for development in a UDA will essentially go through the same processes an IDAS application goes through under IPA, however UDA development applications are made to, and are assessed by, the authority. There are appeal rights attaching to decisions of the authority. It is envisaged that through the UDAs, the Authority will be able to plan, undertake, promote, co-ordinate and control the development of certain areas of land in Queensland for urban purposes, and thus presumable improve housing affordability. One way this is expected to be achieved is through the power of the Authority to fix charges for infrastructure or provide and pay for infrastructure.
• Regional plans - the Act inserts a new Part 5A into Chapter 2 of IPA, which provides for regional planning in designated regions. The new Part provides that "designated areas" be prescribed under a regulation. The regional planning Minister is required to prepare a regional plan for each designated area, and local governments will need to amend their planning schemes to reflect any regional plan.
• Master Planned Areas - Pursuant to new Part 5B, the regional plan or the planning scheme may identify an area as a master planned area. Master planned areas may also be created by declaration. According to the Act's explanatory notes, these areas are:

"specifically aimed at high growth areas where binding, detailed planning is both possible and desirable, and where the investment of the combined resources of State and local government upfront in the process can deliver measurable benefits in terms of environmental outcomes and development efficiency."

• The local government is required to prepare a structure plan for the master planned area, which must be part of the planning scheme and be an integrated land use plan which sets out the broad environment, land use, infrastructure and development intended to "guide detailed planning for the area". The structure plan can include a regulated State infrastructure charges schedule and must specify any master plans required to be made for the area. The introduction of State infrastructure charges is one of the most controversial aspects of the Act, and it appears somewhat at odds with the Act's intention to improve housing affordability, that owners and occupiers could have State infrastructure charges imposed on them.
• A master plan is required to be prepared for development in a master planned area and requires the approval of local government. The master plan includes an area code and states the level of assessment required for development. Part 5B sets out the requirements for making an application for a proposed master plan and such requirements may include assessment by State "participating agencies".
• The IPA is proposed to be amended to provide for an approvals process for development applications in declared master planned areas. Decisions on such a development application may not be contrary to the relevant master plan. The new Part 5B sets out the requirements for approval of a development application in a master planned area, however relevant requirements under IDAS will still apply to the application.
• A local government can enter into an agreement with owners or occupiers of land in a declared master planned area in relation to funding the preparation of the structure plan. The local government may also levy a special charge for making a structure plan.