The NSW government has set a target of 30 per cent affordable and social housing in all new residential development on government land, but the quota will not apply to its huge Honeysuckle HQ project.
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Premier Dominic Perrottet and Minister for Infrastructure and Cities Rob Stokes released a discussion paper on Thursday outlining targets for housing, jobs, transport and digital connectivity in the "six cities mega-region" of Newcastle, the Central Coast, Illawarra and western, central and eastern Sydney.
"Housing targets need to be more ambitious to address supply challenges, and I want to ensure that all new residential development on government land includes 30 per cent social, affordable and diverse housing," Mr Stokes said.
The discussion paper identifies a "mismatch between supply and demand for types of housing". It says 25 per cent of a city's housing target should be high-density dwellings within 800 metres of a "strategic centre or transport hub", and that a set proportion of these should be affordable housing.
It also says the Greater Cities Commission will work on "new financing mechanisms" to increase affordable housing "with a 10 per cent affordable housing target for all rezonings where there will be a housing uplift".
The 30 per cent quota will apply only to new developments on crown land and not the final 2.6-hectare waterfront release at Honeysuckle.
The government called for expressions of interest last year for Honeysuckle HQ, one of the largest projects in the city's history. It will announce the successful proponent in mid-2023.
Imposing quotas for social and affordable housing affects the price the governments can ask developers to pay for crown land.
Newcastle MP Tim Crakanthorp said Honeysuckle HQ and the Hunter Park redevelopment at Broadmeadow were an opportunity for the government to show it was serious about ending the housing crisis.
"In Newcastle alone there are almost 1400 applicants waiting for social housing, and there is a chance to make a significant dent in that wait list," he said.
"The dribs and drabs coming to the region are far too little, far too late, and with rising cost of living it's very likely the housing crisis is only going to get worse."
Mr Crakanthorp said the Store and East End redevelopments on what was once government land were a missed opportunity to provide cheaper housing.
"If you take a look at all the CBD high-rises, you'll see very little effort there to include housing that is accessible to people on a lower income," he said.
"Despite all the noise they've been making, we're yet to see this government come to the table with an idea or solution that will make a real impact on the situation we're facing locally."
The government said the Greater Cities Commission discussion paper was a starting point for "deep" consultation before it finalised the Six Cities Region Plan in 2023.
"Newcastle's renaissance over the last 10 years has made it globally significant, and this plan will deliver the infrastructure, the services and the housing needed to take it to the next level," Mr Stokes said.
"Newcastle stands on the edge of a new industrial age, and the community should be involved in shaping that evolution."
The discussion paper includes a target of 2056 for a high-speed rail network linking the "six cities", a push for better digital connectivity and innovation districts in Newcastle, the Central Coast and Wollongong.
The Newcastle Herald understands an innovation precinct could involve John Hunter Hospital, Hunter Park or the emerging offshore wind power industry.
"Initiatives such as ... investment into the expansion of the University of Newcastle and the Hunter-Central Coast Renewable Energy Zone aim to set up the regions for a transformation to increased knowledge intensive jobs in the years to come," the paper says.
The document emphasises the government's policy of developing Port Kembla before Newcastle as the state's second container terminal after Port Botany.
"Port of Newcastle will continue its global role in energy exports as it transitions from coal to hydrogen as well as grows and diversifies its trade base over the next 20 years," it says.
It says the Six Cities Region Plan and subsequent individual "city plans" will "support the extended program to improve public transport [in] Newcastle".
Mr Stokes said the cities had to reduce their dependence on cars.
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