An additional $23.9 million investment is set to fast-track thousands of new homes in regional areas, as part of a package to support local councils to deliver infrastructure and strategic planning to support housing growth.
From today, councils outside of Greater Sydney can apply for funding through round four of two key programs:
- Low Cost Loans Initiative – up to $20.9 million available to help councils deliver critical infrastructure like roads, parks, and enabling infrastructure to support new housing by covering 50 per cent of interest costs on loans
- Regional Housing Strategic Planning Fund – up to $3 million in grants to support local planning projects that unlock new housing and improve affordability
Grants under the Regional Housing Strategic Planning Fund range from $20,000 to $250,000, supporting work such as housing strategies, masterplans, development control plans, and infrastructure contributions.
Housing supply pressures have impacted regional NSW, making it harder for people to buy or rent a home.
In 2024, the NSW Government set new housing targets for housing delivery across the state, including a target for regional NSW of 55,000 homes by 2029.
The projects funded under these programs will make sure the homes delivered are supported by enabling infrastructure such as water and sewer infrastructure, stormwater drainage, new local roads, kerb and gutter and footpaths.
To date, the Regional Housing Strategic Planning Fund has invested $11.25 million across 60 projects in 49 councils, supporting plans that will help deliver new homes across regional NSW.
The Low Cost Loans Initiative has helped to support nearly 60,000 homes and deliver $262 million in local infrastructure projects in regional NSW – with the NSW Government contributing $8.2 million in interest subsidies to date.
Examples of previous successful projects include:
- $239,239 Regional Housing Strategic Planning Fund grant to Byron Shire Council to assess affordable housing options around Byron Bay’s central business district
- $111,041 interest reimbursement through the Low Cost Loans Initiative to Griffith City Council to fund $13 million worth of infrastructure for 62 new homes
- $2.98 million in interest reimbursement under the Low Cost Loans Initiative to Queanbeyan-Palerang Regional Council for the $86 million Ellerton Drive Extension
This is all part of the State Government’s plan to build a better NSW with more homes and services, so people have somewhere to live and in the communities they choose.
Applications for both programs close on 12 December 2025. To apply, visit NSW Planning.
For more information, visit Regional Housing Strategic Planning Fund and the Low Cost Loans Initiative.
NSW Minister for Planning and Public Spaces, Paul Scully, said that infrastructure unlocks housing, and this investment is about making sure regional NSW has the roads, water, sewerage and community facilities it needs to support housing growth.
“The NSW Government’s planning reforms such as the Housing Delivery Authority and NSW Housing Pattern Book are gaining popularity in regional NSW, this initiative will support that housing growth,” Scully said.
“By backing councils to deliver these projects sooner and at a lower cost, we’re helping to deliver more homes for people who want to live, work and stay in the regions.”
NSW Minister for Regional NSW, Tara Moriarty, said that regional areas are growing fast, but without the right infrastructure, homes can’t be built.
“This investment will help councils deliver the water, sewer, drainage and local roads that are essential to unlock housing,” Moriarty said.
“We know housing supply is one of the biggest challenges facing regional communities. By supporting councils to deliver enabling infrastructure sooner and at a lower cost, we’re helping families, key workers and young people find a place to call home in the regions.”
