Local Government NSW (LGNSW) has unveiled a proposal for a new infrastructure funding model aimed at accelerating housing delivery across Western Sydney and regional New South Wales.
The Unlocking Homes plan calls for the establishment of a $5 billion interest-free loan facility that would enable councils to bring forward the construction of essential infrastructure needed to support new housing developments.
The proposal has received backing from councils across Sydney and regional NSW, with mayors and council leaders from eight Western Sydney local government areas joining LGNSW President Mayor Darcy Byrne to advocate for the initiative.
Under the plan, councils would access no-interest loans to fund infrastructure such as roads, stormwater networks and other essential services required before housing construction can commence. The loans would then be repaid through developer contributions once projects proceed.
LGNSW argues that infrastructure funding delays are limiting housing delivery in growth areas and preventing New South Wales from meeting its housing targets under the National Housing Accord.
The proposal also calls on the New South Wales Government to forward-fund $3 billion in state and regional infrastructure in growth areas and expand the range of projects eligible for developer contributions to include community facilities such as libraries, childcare centres and swimming pools.
Byrne said infrastructure funding remained one of the biggest barriers to housing delivery.
“We agree with the NSW Government that the housing crisis is the number one challenge facing the state but we also know that too little investment in the basic infrastructure needed for new homes is making the crisis worse,” Byrne said.
“We are seeing across Western Sydney, in particular, that without up-front investment in roads, water, sewage and stormwater housing is simply not being built.”
Byrne said the proposed loan facility would allow councils to deliver infrastructure when it is needed rather than waiting for developer contributions to be collected after development commences.
“By making no-interest loans available to councils to build basic infrastructure right now, the Government could turbo charge housing construction in greenfield sites while still recouping all the funding from developer contributions paid when the homes are built,” he said.
LGNSW estimates the proposal could help unlock up to 70,000 homes across participating Western Sydney council areas alone.
The organisation said councils remain ready to work with the New South Wales Government to deliver both the infrastructure and housing needed to support growing communities.
For further background information and case studies, download the Unlocking Homes proposal.
