Northern Beaches Council has voted to drastically reduce affordable housing requirements in Frenchs Forest from 10 per cent to three per cent, after a last-ditch attempt to reverse the decision failed at an extraordinary meeting last week.
In exchange, Council wants to be the first to introduce new affordable housing requirements across new developments on the Northern Beaches – but there’s a catch: they need State Government approval.
The proposed scheme would require three per cent affordable housing on most developments under the State’s new Low-Mid Rise (LMR) policy and two per cent on other higher-density developments. If approved, this would be the first time affordable housing contributions apply Northern Beaches-wide, though at much lower rates than originally planned for areas like Brookvale.
But first, why is the Forest levy being watered down?
Frenchs Forest was identified as a key location for housing growth, particularly for essential workers (nurses, police, bus drivers, teachers, etc). So back in 2021, a mandatory, in perpetuity, 10 per cent housing contribution levy was put in place to make sure there is enough affordable housing.
There will be no change to the requirement that the future Frenchs Forest town centre site owned by NSW Government provide 15% of new housing as affordable housing.
Mayor Sue Heins used her casting vote in November’s council meeting to settle a split vote over a decision to bring the required affordable housing minimum for a Frenchs Forest development from 10 to three per cent.
A later attempt by Green councillors Ethan Hrnjak, Kristin Glanville, Bonnie Harvey and Miranda Korzy plus Your Northern Beaches’ Joeline Hackman to overturn that decision was unsuccessful, meaning the three per cent will stand.
The current state of affordable housing (or lack of) on the Beaches
The lack of affordable housing for essential workers like police, bus drivers, teachers and nurses on the Northern Beaches has become a critical issue.
In 2022, the Department of Planning endorsed Council’s Affordable Housing Contributions Scheme as a way for Council to levy for affordable housing through its Local Environmental Plans (LEP). Developers must contribute to this levy (in perpetuity) either as a complete dwelling (like an apartment) or as an equivalent monetary contribution.
In a nutshell, Council is seeking to reduce this in some areas but counterbalance by introducing it into others.
There is also the NSW Government’s affordable housing scheme, which was introduced earlier this year as part of the Low to Mid Rise (LMR) Housing policy in identified town centres (you can read more about that here). Developers can opt in to allocate ten per cent as affordable housing for 15 years in exchange for an additional 30 per cent building height and floor space.
What changed at Forest?
With rising building costs and rising interest rates, the 10 per cent scheme is no longer feasible according to developers, but also by an independent review commissioned by Council. Which is why there are 239 apartments approved by Council to be built, but no construction happening.
The decision to drop it to three per cent aims to get buildings built and to stop having Frenchs Forest residents living in limbo.
Residents told Manly Observer they were stuck in limbo, with houses falling apart around them, but no construction happening as developers couldn’t make the development financially viable with Council’s mandatory contribution.
After a lengthy debate and several versions of the motion put to the vote, Council voted to reduce the housing contribution levy to three per cent.
“I’d like to thank Council for the extensive work they’ve done to achieve what the residents of the Frenchs Forest ward, who have been adversely affected by the current regime, actually want,” independent councillor Vincent De Luca, who moved the motion, said.
“The Frenchs Forest precinct has been a total failure. While 239 apartments have been approved for development, none have been executed, and that says a lot.
“If we are truly interested in seeing any affordable housing initiatives, we have to facilitate construction.”
Mayor Heins had to use her casting vote to approve the motion as the issue divided Council.
“As someone who lives in the area and has lived and breathed this, I am very aware and very appreciative of the residents who came to speak on the issue,” Mayor Heins said.
“I find it frustrating to listen to people who haven’t lived through it. A lot of these people have put their lives on hold. The world was a different place when [this levy was introduced], and these poor people’s lives have been in limbo.
“I find it frustrating to listen to people who haven’t lived through it. A lot of these people have put their lives on hold. The world was a different place when [this levy was introduced], and these poor people’s lives have been in limbo. So, I ask that most of you, or as many of you as possible, please support this.”
Council will need to submit the affordable housing planning proposal to the Minister for Planning and Public Spaces for Gateway Determination. The amendments to the Affordable Housing Contributions Scheme, together with the planning proposal, will then go on exhibition. Once all of that is done, it will then be reported back to Council for adoption, before going back to the Minister to amend the LEP.
‘Let’s write some angry letters’
Council has also voted to write what Northern Beaches Council Mayor, Sue Heins called “angry letters” to the Department of Planning, Housing and Infrastructure over recent large-scale State Significant Developments (which Council has little say in) and on recent environmental planning reforms.
Mayor Heins said that in streamlining the planning process, the State is prioritising housing over community planning.
Council voted to write to state officials on two areas of planning concern.
First, Council unanimously voted to voice their concern to the Minister for Planning and Public Spaces about the “proliferation of state-led approval pathways created by the NSW Government”, which are resulting in significant local community and environmental impacts, and lack genuine co-design with the community and Council on planning outcomes.
While the conversation started with recognising the recent protest against Indigo by Moran’s senior housing development in Narrabeen (read more here), Council included other state significant developments that by-pass Council and community input. These included the Patyegarang ‘Lizard Rock’ proposal, Westfield’s Brookvale proposal, 100 South Creek Road in Cromer, and 159-167 Darley Street West in Mona Vale.
Mayor Heins pointed to these developments as the first of many to come.
“We are going to see a tsunami of these coming to our community,” she said during the Council meeting.
She added that there is confusion in the community about the various planning pathways (like LMR Policy, State Significant Developments, and Housing Development Authority) and Council’s role, which she limited to being able to write “angry letters”.
“We are not alone in our outrage, and we can write whatever we want, but the [State Government] doesn’t have to listen,” she added.
“The community needs to show its opposition to these developments that prioritise housing over community planning.”
Council also voted to write to the NSW Premier, the Leader of the Opposition, the Minister and Shadow Ministers for Planning and Public Spaces, as well as the NSW Members for Pittwater, Wakehurst and Manly, over concerns with the passing of the Environmental Planning and Assessment (Planning System Reforms) Bill 2025.
The letter will express concerns about centralising planning powers and reducing the roles of councils, independent panels and community consultation with the introduction of the Development Coordination Authority (DCA) and the Housing Delivery Authority (HDA).
The DCA will centralise agency referrals and advice on development applications to the NSW Planning Secretary, replacing the requirement for input from up to 14 state government agencies. While the HDA will oversee the facilitation of the delivery of state significant housing development applications and rezoning requests and will include the Planning Secretary and two members appointed by the Minister.
The streamlined assessment pathway, Council said, prohibits consideration of environmental impacts, site suitability and public interest.
Concerns about a lack of safeguards regarding transparency, protecting threatened species and habitats, the indirect impacts of a development and assessing bushfire risk were also raised in the motion.
Finally, limits to Council assessment timeframes and community participation were also noted.
Subject to NSW Government endorsement, Council will exhibit the proposed amendments for public comment in early 2026. Outcomes from the public exhibition a will be reported back to Council, with the final amendments expected to be adopted later in 2026.
Written and researched why Avi Vince with Kim Smee
