The NSW Government has released a practical framework to help councils undertake land audits and identify vacant operational land suitable for affordable housing projects.
Published by the Office of Local Government (OLG), the Council Led Affordable Housing on Operational Land Guide provides step-by-step guidance on managing sites from planning through to construction and delivery.
High land acquisition costs remain a major barrier to affordable housing development. Council-owned sites such as former depots or unused facilities, particularly those close to public transport and services, can offer well-located and cost-effective opportunities to support low-income households.
The guide outlines delivery models and partnership options, including working with government agencies and community housing providers, to maximise project outcomes.
It also features case studies demonstrating successful council-led projects. Shoalhaven City Council converted surplus land in Bomaderry into 39 affordable housing units, while Lismore City Council partnered with Landcom, Homes NSW and a community housing provider to deliver 56 new homes.
The guide aligns with the NSW Government’s housing completion targets across Sydney, the Illawarra-Shoalhaven, Lower Hunter, Central Coast and Regional NSW, and supports mandated affordable housing contributions outlined in the draft Sydney Plan.
It also complements the objectives of the National Housing Accord by encouraging councils to lift local housing supply and affordability.
NSW Minister for Planning and Public Spaces, Paul Scully, said all levels of government had a role to play.
“All levels of government need to play their part to help address the housing shortage,” Scully said.
“The NSW Government’s land audit identified several sites that are no longer being used that can deliver thousands of new homes, and with this new guide, councils are being asked to do the same.
“This builds on the work of our Infill Affordable Housing Scheme, the delivery of build-to-rent homes for essential workers and mandated minimum affordable housing inclusions in Transport Oriented Development areas,” he said.
NSW Minister for Local Government, Ron Hoenig, said surplus council assets could play a key role in boosting housing supply.
“Former council depot sites and other surplus buildings often sit on valuable land that could be better utilised for much-needed housing,” Hoenig said.
“This guide provides councils with the information and tools to address housing affordability in their area.
“Affordable housing is critical for fostering community diversity, boosting local economies and promoting long-term sustainability,” he said.
NSW Minister for Housing and Homelessness, Rose Jackson, said the guide would help councils turn intent into action.
“This is what solving the housing crisis looks like – looking at every angle and removing barriers,” Jackson said.
“We are working constructively with councils that want to build more affordable housing, and this guide provides the tools to help get projects off the ground and build a better future for young Australians,” she said.
By partnering with the NSW Government and housing providers and making better use of operational land, councils are expected to play a stronger role in addressing housing affordability and supporting vulnerable residents.
The guide is available via the Office of Local Government website.
