Posted on October 27, 2024 by Katie Mortimer

Release of Report on the Inquiry into the Development of the Transport Oriented Development Program

Last week the NSW Legislative Council’s Portfolio Committee No. 7 – Planning and Environment released its report into the Development of the Transport Oriented Development (TOD) Program (TOD Inquiry).

The TOD Inquiry was self-referred by the Committee. The terms of reference included inquiry and reporting on the development of the TOD program, particularly the:

• analysis, identification or selection of the 8 TOD accelerated precincts and the 31 TOD precincts where new Chapter 5 of the State Environmental Planning Policy (Housing) 2021 applies.
• probity measures established,
• development of the policy approach by the NSW Government,
• consultation undertaken with councils, joint regional organisations and communities during the preparation of the TOD program,
• information control protocols, property disclosure requirements and management, and release of information prior to official publication,
• adequacy of measures to deter and punish the misuse of confidential market sensitive government information and the future processes that should be put in place,
• heritage concerns associated with the program, including the concerns of the Heritage Council,
• enabling infrastructure capacity for every station selected or considered as part of the program,
• impact on localised environment and amenity values caused by the program,
• and others – set out in the terms of reference here.

The Committee received 232 submissions with public hearings occurring in May, June and July.

The TOD Inquiry is divided into 4 Chapters. Chapter 1 sets out the background to and an overview of the TOD Program. Chapter 2 examines the process to develop the TOD program focusing on the transparency and probity of the process to select the proposed TOD precincts. Chapter 3 considers the appropriateness of the TOD Program as a response to the housing crisis, including evidence on its likely impact on the supply and affordability of housing. Chapter 4 considers the adequacy of planning and funding for community infrastructure to support density under the NSW Government’s housing reforms, issues of design standards and building quality, and stakeholder concerns about the TOD program’s impact on the character and heritage value of affected communities.

Committee’s Recommendations

The Committee made 10 recommendations:

1. That the NSW Government continue to work in collaboration with local councils and key stakeholders on building community understanding of housing reforms, including the TOD program
2. That the NSW Government continue to work with stakeholders, including local councils and development industry representatives, to clarify how the TOD SEPP will operate alongside existing planning controls, and update the existing guidelines should there be any further uncertainty
3. That the NSW Government consider evidence on drivers of housing affordability and ensure that detailed planning for the current and any future TOD precincts is tailored for specific localities and considers how the program can best promote housing supply that meets community needs
4. That the NSW Government develop a package of measures to address current constraints impacting on residential construction in New South Wales
5. That the NSW Government continue the work on a framework for affordable housing under the TOD program
6. That the NSW Government continue to address the broad range of issues contributing to the housing crisis, noting in particular:
   • continued investment in public housing
   • continued involvement of Government in delivery of different housing typologies
   • maintaining design standards and building quality for apartments
   • continuing progressing legislation to reform the rental market and make renting fairer for all renters
   • reviewing the operation of strata title to minimise legal complexity and financial risk for apartment owners, and provide for possibility of future urban renewal.
7. That the NSW Government consider focusing infrastructure funding through the Urban Development Program to areas of growth, including TOD locations, to ensure that community infrastructure and amenity needs are delivered alongside housing
8. That the NSW Government maintain the existing robust design and building standards throughout new housing reforms to ensure long term liveability of new developments
9. That the NSW Government investigate measures to encourage the delivery of family-friendly apartments as part of its housing reforms
10. That the NSW Government:
    • continue to maintain commitment to 40 per cent urban tree canopy cover across Greater Sydney by 2036
    • release further guidance for local councils and industry on managing and minimising mature tree and canopy loss during development, including appropriate compensatory measures for replacement

When commenting on recommendation 8, the Committee acknowledged stakeholder concern regarding building standards, thermal performance, and design principles in the TOD program. The Committee stated:

The evidence presented provides a compelling case for maintaining robust design and building standards, particularly concerning thermal performance, energy efficiency and overall liveability. Relaxing these standards to assist in housing development would potentially result in longer term issues of poor-quality housing stock.

The TOD Inquiry contrasts with the recent Productivity and Equality Commission report: Review of housing supply challenges and policy options for New South Wales. The Productivity and Equality Commission report has drawn publicity over the recommendation that to create a ‘pro-housing regulatory environment’ the NSW Government should:

As a priority, relax design-related requirements in the Apartment Design Guide that weigh on feasibility, such as car parking, solar access, and minimum apartment size requirements. Expand the use of design guides to support high-quality design while overriding more restrictive local government controls. 

A response to the TOD Inquiry from the NSW Government is due to be provided by 15 January 2025.

We will post further then, including on how the NSW Government reconciles the recommendations above.

You can read the Committee’s report here: Development of the Transport Oriented Development program

You can contact Katie Mortimer on 8235 9716 to discuss this post.