Pacific Link Housing will partner with Central Coast Council to deliver more affordable rental housing at The Entrance.
The project is a key initiative from Council’s Central Coast Affordable and Alternative Housing Strategy, which was published in 2019.
Pacific Link Housing has been working with Council for many years on developing the strategy with an objective to build new, much-needed housing on the Central Coast, including on Council-owned land.
Council will transfer land at 23-25 Ashton Ave to Pacific Link for $1 for the project.
Pacific Link Housing Chairman Wal Edgell said he looked forward to progressing the development pipeline and working with Council, local architects, consultants, contractors and the local community in developing affordable housing and potential community space.
“The proposed development will benefit all of the community, from both a social and economic perspective, and provide secure housing to those in greatest need in our community,” he said.
Council Administrator Rik Hart said the strategy was a comprehensive plan addressing initiatives across the housing continuum, from homelessness through to home ownership, providing pathways for a range of households, from very low through to moderate incomes.
He said Pacific Link Housing demonstrated a strong understanding and empathy of requirements in line with the strategy.
Pacific Link Housing CEO Ian Lynch, said the proposal would have an integrated tenancy mix, largely comprising affordable housing for key workers, with other tenancies along the housing continuum.
“The partnership will be a positive step forward to help address the acute shortage of affordable rental housing we are experiencing on the Central Coast,” he said.
“We are pleased to see progress made since the inaugural Central Coast Housing Forum held in September 2022, which brought together over 100 business leaders from industries affected by the housing shortage.”
In addition to its core tenancy management services, Pacific Link Housing is committed to delivering a continuous development pipeline of mixed tenancy housing.
Council CEO David Farmer said the three parcels of land that comprise 23-25 Ashton Ave have a current book value of $2.1M and are classified operational; the transfer will result in an asset disposal loss in the 2023/24 financial year.
“Council is in a position to be able to do this due to (its) improved financial performance,” Farmer said.
“Council has received higher than anticipated income on its investments which can be used to offset this loss on asset disposal.
“Council strongly believes that this decision is the one which is ethically responsible and will be of great benefit to the Central Coast community which is key to Council’s overall commitment.
“The desired outcome of this project is to create an affordable housing development that offers social and affordable housing to 70 per cent of the tenants and limits private tenancy occupants to 30 per cent.
“It should be noted that it is typical for grants of land at nominal prices to be awarded in circumstances of developments of affordable homes.”
Farmer said the contract for sale will include a sunset clause for substantial completion to be completed within three years of the transfer, or the land to return to Council ownership.
Administrator Hart said there was a common misconception that affordable housing refers to social or community housing.
“This is not true – affordable housing is much more than this and a diverse mix of housing types is required to meet the needs of our community,” he said.
“Over half (63 per cent) of all households on the Central Coast earn below $2000 a week and need affordable housing.”
Pacific Link Housing will own and manage the property in the long term, providing asset and tenancy management as well as the coordination of wrap-around support services as needed.
Terry Collins