Wollongong MP and planning minister Paul Scully has hit back at suggestions the government's reforms do not go far enough in addressing housing affordability in the Illawarra.
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Yesterday, the government confirmed changes to zoning rules around 18 of stations including at Corrimal in the Illawarra.
The changes would permit apartment buildings of up to six storeys within 400 metres of the station, with a requirement that two per cent of any development over 2000 metres be set aside as affordable housing in perpetuity.
Housing Trust CEO Michele Adair said the changes would "do nothing" to increase the supply of affordable housing.
"Two per cent is manifestly inadequate."
Mr Scully said the changes to zoning around stations was only one part of the government's wider suite of reforms.
"It works in with the other measures that we've got in place, and you've got to remember that starting at two per cent is already greater than zero."
Mr Scully cited changes that would allow additional heights if apartments are affordable and relaxed pathways for social and affordable housing as other measures that would improve affordability.
At the same time, property groups have said the two per cent provision may impact the viability of redevelopment proposals, and have said the affordable element should be time limited.
"While we absolutely support the need for more affordable housing, there is also some concern around the requirement for affordable housing to be held in perpetuity under the Two Tier Program as it will place further pressure on already strained development feasibilities," Property Council Illawarra regional director Michelle Guido said.
"For this to work, the Government needs to rethink the approach to managing and monitoring affordable housing stock."
The Urban Development Institute of Australia made a similar point, noting that two per cent, particularly in smaller projects, would be less than a single unit, making the requirement "impractical".
"We encourage the Premier and the Minister for Planning to closely monitor the uptake of the TOD program in the coming 12 months and commit to making improvements that will help improve development feasibility if it becomes clear it is not delivering as hoped," UDIA NSW acting CEO Gavin Melvin said.
However, Mr Scully said he was confident in the design of the reforms and that the two per cent figure could instead go up.
"We're committed to increasing it," he said.
"The bottom line is, when you've got complaints from some people that it doesn't go far enough and complaints from others that it goes too far, we've probably got the balance right."
Wollongong Lord Mayor Gordon Bradbery has called for the NSW government to rule out increased densities around North Wollongong station, due to flooding concerns, and to consider Coniston and Unanderra instead, but Mr Scully said all locations were on the table.
"The period for North Wollongong was pushed off for a year so we can do some of that fine grained planning in conjunction with Wollongong City Council," he said.
"With respect to Coniston and Unanderra, we've taken on board those suggestions."
