Developing sustainable affordable housing: a project level analysis

138 Pages·2012·1.48 MB·English

by  Ilan Wiesel

Developing sustainable

affordable housing:

a project level analysis
authored by
Ilan Wiesel, Gethin Davison, Vivienne Milligan,
Peter Phibbs, Bruce Judd and Michael Zanardo
for the
Australian Housing and Urban
Research Institute
UNSW-UWS Research Centre
February 2012

AHURI Final Report No. 183
ISSN: 1834-7223
ISBN: 978-1-921610-95-0
Authors Wiesel, Ilan University of New South Wales
Davison, Gethin University of New South Wales
Milligan, Vivienne University of New South Wales
Phibbs, Peter University of Western Sydney
Judd, Bruce University of New South Wales
Zanardo, Michael University of Sydney
Title Developing sustainable affordable housing: a project level analysis
ISBN 978-1-921610-95-0
Format PDF
Key words sustainable, affordable housing
Editor Anne Badenhorst AHURI National Office
Publisher Australian Housing and Urban Research Institute
Melbourne, Australia
Series AHURI Final Report; no.183
ISSN 1834-7223
Preferred citation Wiesel I. et al. (2012) Developing sustainable affordable housing: a
project level analysis, AHURI Final Report No.183. Melbourne:
Australian Housing and Urban Research Institute.

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ACKNOWLEDGEMENTS
This material was produced with funding from the Australian Government and the
Australian states and territory governments. AHURI Limited gratefully acknowledges
the financial and other support it has received from these governments, without which
this work would not have been possible.
AHURI comprises a network of universities clustered into Research Centres across
Australia. Research Centre contributions, both financial and in-kind, have made the
completion of this report possible.
The authors would especially like to thank those eight not-for-profit housing
developers whose projects are examined in this study. Research of this kind would
not be possible without their full support. The authors are also particularly grateful to
Michael Zanardo (University of Sydney) whose expertise in affordable housing design
has enriched the study. Helpful comments were also received from two academic
reviewers.

DISCLAIMER
AHURI Limited is an independent, non-political body which has supported this project
as part of its programme of research into housing and urban development, which it
hopes will be of value to policy-makers, researchers, industry and communities. The
opinions in this publication reflect the views of the authors and do not necessarily
reflect those of AHURI Limited, its Board or its funding organisations. No responsibility
is accepted by AHURI Limited or its Board or its funders for the accuracy or omission
of any statement, opinion, advice or information in this publication.

AHURI FINAL REPORT SERIES
AHURI Final Reports is a refereed series presenting the results of original research to
a diverse readership of policy-makers, researchers and practitioners.

PEER REVIEW STATEMENT
An objective assessment of all reports published in the AHURI Final Report Series by
carefully selected experts in the field ensures that material of the highest quality is
published. The AHURI Final Report Series employs a double-blind peer review of the
full Final Report—where anonymity is strictly observed between authors and referees.
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CONTENTS
LIST OF TABLES .......................................................................................................VII
LIST OF FIGURES ....................................................................................................VIII
ACRONYMS ............................................................................................................... IX
EXECUTIVE SUMMARY .............................................................................................. 1
1 INTRODUCTION ................................................................................................. 6
1.1 Context of study ................................................................................................... 6
1.2 Focus and purpose of the study ........................................................................... 6
1.2.1 Earlier local studies ..................................................................................... 7
1.2.2 International studies .................................................................................... 7
1.3 Research aims and questions .............................................................................. 8
1.4 A sustainability framework for analysis ................................................................. 9
1.5 Housing policy context ....................................................................................... 10
1.6 Housing market context ..................................................................................... 12
1.7 Terminology ....................................................................................................... 12
1.8 Structure of the report ........................................................................................ 16
2 SUSTAINABILITY IN AFFORDABLE HOUSING PROJECTS .......................... 18
2.1 Social sustainability ............................................................................................ 18
2.1.1 Affordability ............................................................................................... 18
2.1.2 Housing quality and wellbeing ................................................................... 19
2.1.3 Inclusion ................................................................................................... 23
2.2 Environmental sustainability ............................................................................... 25
2.2.1 Energy efficiency....................................................................................... 25
2.2.2 Active design features ............................................................................... 27
2.2.3 Water efficiency ........................................................................................ 27
2.2.4 Building maintenance ................................................................................ 28
2.2.5 Urban consolidation .................................................................................. 28
2.3 Financial sustainability ....................................................................................... 28
2.3.1 Procurement factors .................................................................................. 29
2.3.2 Operating issues ....................................................................................... 29
2.3.3 Assessing financial sustainability .............................................................. 29
2.4 Conclusions ....................................................................................................... 30
3 PROJECT ASSESSMENT METHODOLOGY.................................................... 31
3.1 Selection of affordable housing projects ............................................................. 31
3.1.1 Selection criteria ....................................................................................... 31
3.1.2 Selected projects ...................................................................................... 32
3.2 Assessment tools ............................................................................................... 35
3.2.1 Interviews with providers ........................................................................... 35
3.2.2 Design checklist and design assessment workshop .................................. 35
3.2.3 Resident survey ........................................................................................ 36
3.2.4 Focus groups ............................................................................................ 37
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3.2.5 Review of documentation .......................................................................... 37
3.2.6 Summary of key measures of project sustainability ................................... 37
3.3 Analysis ............................................................................................................. 41
4 CASE STUDIES ................................................................................................ 42
4.1 Barwon .............................................................................................................. 42
4.1.1 Physical description and tenant profile ...................................................... 42
4.1.2 Procurement phase ................................................................................... 43
4.1.3 Design features ......................................................................................... 43
4.1.4 Resident experience and satisfaction ........................................................ 44
4.1.5 Financial issues ........................................................................................ 44
4.1.6 Parking ..................................................................................................... 45
4.1.7 Social mix ................................................................................................. 45
4.1.8 Overall assessment .................................................................................. 45
4.2 Broadwater ........................................................................................................ 45
4.2.1 Physical description and tenant profile ...................................................... 45
4.2.2 Method of procurement and planning process .......................................... 46
4.2.3 Design and environmental performance .................................................... 47
4.2.4 Resident experience and satisfaction ........................................................ 48
4.2.5 Planning amendments .............................................................................. 49
4.2.6 Financial issues ........................................................................................ 50
4.2.7 Overall assessment .................................................................................. 50
4.3 The Clyde .......................................................................................................... 51
4.3.1 Physical description and resident profile ................................................... 51
4.3.2 Procurement phase ................................................................................... 51
4.3.3 Design features ......................................................................................... 51
4.3.4 Residents experience and satisfaction ...................................................... 52
4.3.5 Financial issues ........................................................................................ 52
4.3.6 Social mix ................................................................................................. 53
4.3.7 Overall assessment .................................................................................. 53
4.4 Eleanor .............................................................................................................. 53
4.4.1 Physical description and resident profile ................................................... 53
4.4.2 Procurement phase ................................................................................... 54
4.4.3 Design features ......................................................................................... 54
4.4.4 Residents experience and satisfaction ...................................................... 55
4.4.5 Financial issues ........................................................................................ 55
4.4.6 Overall assessment .................................................................................. 55
4.5 Hastings ............................................................................................................. 56
4.5.1 Method of procurement and planning process .......................................... 56
4.5.2 Design and environmental performance .................................................... 57
4.5.3 Resident experience and satisfaction ........................................................ 57
4.5.4 Financial issues ........................................................................................ 58
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4.5.5 Overall assessment .................................................................................. 58
4.6 Livingstone ......................................................................................................... 59
4.6.1 Physical description and tenant profile ...................................................... 59
4.6.2 Procurement phase ................................................................................... 59
4.6.3 Design features ......................................................................................... 60
4.6.4 Resident experience and satisfaction ........................................................ 60
4.6.5 Financial viability and trade-offs ................................................................ 61
4.6.6 Social mix ................................................................................................. 62
4.6.7 Overall assessment .................................................................................. 62
4.7 Paramount ......................................................................................................... 62
4.7.1 Physical description and tenant profile ...................................................... 62
4.7.2 Method of procurement and planning process .......................................... 63
4.7.3 Design and environmental performance .................................................... 63
4.7.4 Resident experience and satisfaction ........................................................ 64
4.7.5 Financial issues ........................................................................................ 64
4.7.6 Overall assessment .................................................................................. 65
4.8 Swan .................................................................................................................. 65
4.8.1 Physical description and tenant profile ...................................................... 65
4.8.2 Procurement phase ................................................................................... 65
4.8.3 Design features ......................................................................................... 66
4.8.4 Resident experience and satisfaction ........................................................ 66
4.8.5 Overall assessment .................................................................................. 66
4.9 Summative review of project characteristics ....................................................... 66
4.9.1 Social sustainability conclusions ............................................................... 67
4.9.2 Environmental sustainability conclusions .................................................. 68
4.9.3 Financial sustainability conclusions ........................................................... 68
5 DISCUSSION OF ISSUES AND THEMES ........................................................ 77
5.1 Types of providers ............................................................................................. 77
5.2 Site selection ..................................................................................................... 78
5.3 Design and environmental performance ............................................................. 79
5.4 Leverage ............................................................................................................ 84
5.5 Planning risks .................................................................................................... 85
5.6 Development risks ............................................................................................. 87
5.7 Rent setting ........................................................................................................ 88
5.8 Tenant access.................................................................................................... 90
5.9 Social mix .......................................................................................................... 90
5.10 Tenant participation in project management ....................................................... 92
5.11 Funding maintenance......................................................................................... 93
5.12 Review ............................................................................................................... 94
6 SUMMARY AND IMPLICATIONS ..................................................................... 95
6.1 Summary of findings .......................................................................................... 95
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6.2 Implications for practice ..................................................................................... 97
6.2.1 Affordable housing design and development guidelines ............................ 98
6.2.2 Skills development .................................................................................... 98
6.2.3 Tenant engagement .................................................................................. 99
6.2.4 Asset management ................................................................................... 99
6.2.5 New products ............................................................................................ 99
6.3 Implications for a sustainable affordable housing policy ..................................... 99
6.3.1 Needs based planning for growth ............................................................ 100
6.3.2 Social benefits framework ....................................................................... 100
6.3.3 Access to land ........................................................................................ 101
6.3.4 Planning approval ................................................................................... 101
6.3.5 Environmental performance .................................................................... 101
6.3.6 The impacts of private financing .............................................................. 102
6.4 Implications for research and professional development .................................. 103
6.4.1 Development of industry performance benchmarks and standards ......... 104
6.5 Final comments ................................................................................................ 104
REFERENCES ......................................................................................................... 106
APPENDICES ........................................................................................................... 115
Appendix 1: Housing design quality survey ............................................................... 115
Appendix 2: Tenants survey ...................................................................................... 122

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LIST OF TABLES
Table 1: Policy rules and guidelines applying to affordable housing projects, NSW,
Queensland and Victoria .................................................................................... 14
Table 2: Projects selected by selection criteria .......................................................... 34
Table 3: Participants in surveys and focus groups .................................................... 36
Table 4: Key sustainability measures and assessment tools ..................................... 39
Table 5: Selected social indicators, affordable housing projects ................................ 70
Table 6: Selected environmental indicators, affordable housing projects ................... 73
Table 7: Selected financial indicators, affordable housing projects ............................ 75
Table 8: Increasing leverage ..................................................................................... 85

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LIST OF FIGURES
Figure 1: Affordable dwelling types included in sample ............................................. 33
Figure 2: Household types among survey participants .............................................. 38
Figure 3: Main household income source of survey participants................................ 38
Figure 4: Typical long run maintenance expenditure pattern on residential building .. 94

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ACRONYMS
ABCB Australian Building Codes Board
ACT Australian Capital Territory
AHURI Australian Housing and Urban Research Institute Ltd.
ATO Australian Tax Office
BASIX Building Sustainability Index (New South Wales)
BCA Building Code Australia
CHP Community Housing Provider
COAG Council of Australian Governments
CRA Commonwealth Rent Assistance
DHS Department of Human Services
DA Development Application
ESD Environmentally Sustainable Design
FaHCSIA Australian Government Department of Families, Housing,
Community Services and Indigenous Affairs
LUPTAI Land Use and Public Transport Accessibility Index
NAHA National Affordable Housing Agreement
NatHERS Nationwide House Energy Rating Scheme
n.d no date
NBESP National Building and Economic Stimulus Program
NFP Not-for-profit
NRAS National Rental Affordability Scheme
NSW New South Wales
WELS Water Efficiency Labelling and Standards
ResCode Residential Code (Victoria)
SEPP State Environmental Planning Policy (NSW)
SHI Social Housing Initiative
m2 square metre(s)
TPC Tenant Participation Compacts

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