Changes to mobile home regs would hit the most vulnerable

Proposed State Government changes to mobile home regulations will have unintended consequences for tens of thousands of NSW’s most vulnerable people, says a local manufacturer.

CEO of Berkeley Vale-based Van Homes Vito Russo says the planned changes could be one of the biggest housing policy blunders in NSW history.

It would affect people trying to get into the housing market and all those now struggling to meet rent increases and on the verge of being homeless.

These groups include the elderly, the young, victims of domestic violence, people with disabilities and people with mental health issues.

The current NSW legislation allows the use of a caravan or a tiny home on wheels to be used as additional accommodation in the backyard of a property without prior council approval required.

The proviso is that it must be used by a member of the household.

New laws are being considered by the State Government to introduce a time limit of six months and a size limit of 20sqm for the mobile home.

A requirement that the relevant council be notified in writing at least two days prior to installation is also proposed.

If the caravan is above that size, Council approval would be required.

And no matter the size, approval would be needed after six months.

Whether that approval would beunder Section 68 of the Local Government Act or a more stringent, costly and time-consuming Development Approval (DA) process is not yet clear.

Russo said today’s modern caravans or tiny homes are the most cost-effective form of accommodation and, for many people, the only option before homelessness.

He said there were more than 25,000 caravans or tiny homes on wheels currently being used for long-term accommodation in NSW.

“Due to the current housing crisis and under-supply of new homes being built each year, this number is estimated to increase to over 75,000 within the next five years under the current legislation,” Russo said.

He estimates that the proposed changes would create a deterrent that would see fewer than eight per cent of people who would want to use this form of accommodation proceed through the DA process.

That eight per cent estimation comes from a survey the company did with customers and potential customers at Van Homes.

“The result would be the elimination of 46,000 caravans or tiny homes being able to be used for affordable accommodation,” Russo said.

“That is approximately 15 per cent of the 314,000 homes that are required to be built over the next five years.”

Russo said rents would only continue to rise as demand outstrips supply.

“Considering the average caravan/tiny home houses two occupants, the reduction will result in 92,000 people negatively impacted and put further pressure on the Government for more social housing,” he said.

Russo said it would be far more expensive to build properties to cover the shortfall of the 46,000 mobile homes.

“Based on NSW Land and Housing Corporation (LAHC) currently having 125,000 properties valued at an average of $408K, it would require the Government to spend over $18B,” he said.

“Local councils would only be able to collect about $60M in contributions fees leaving a negative impact to the state of about $17.4B.

“This could be one of the biggest housing policy blunders in NSW history.”

Russo said with the Central Coast having an increasing number of homeless people and a rental vacancy rate of only .08 per cent, the proposed changes would negatively impact the local housing situation.

The introduction of the time and space limits are a small part of the proposed changes.

For some years, councils have been calling for a review of the framework of the Manufactured Homes Estates, Caravan Parks and Moveable Dwellings Regulations.

The Local Government Association of NSW says it is no longer fit for purpose.

“A series of LGNSW Annual Conference resolutions in relation to manufactured homes and caravan parks over recent years highlight the complexity of issues councils and others face in regulating these developments and the urgent need for reform,” the LGNSW said in a submission to the current State review.

It has called for an urgent review of standards for manufactured homes, caravans and crisis accommodation as well as recognition of the importance of caravan parks and manufactured home estates as affordable housing and the need for secure tenancy for long term residents of caravan parks and manufactured home estates.

The NSW Government says it is working to improve the planning and approval processes for caravan parks, camping grounds, manufactured homes estates and movable dwellings.

A review of the existing framework aims to simplify and streamline the planning and approval process; balance short-term tourist accommodation needs and long-term resident needs and improve the design, location and amenity of future developments.

Other amendments include consolidating many manufactured home estates and caravan park standards, because, currently, many standards are identical for the two uses, but they are split across different parts of the regulation.

“The main goal of this change is to combine similar controls while continuing to maintain separate standards as required,” the Planning Department said.

“For example, the requirements for utilities connection differ between manufactured homes estates and caravan parks.”

Other proposed amendments include updating terms and local government area names within the housing SEPP 2021; requiring all dwelling sites within estates and all permanent sites within a caravan park be provided with a fixed line, fixed wireless or satellite telephone connection; and omitting the requirements for ironing facilities within caravan parks.

Phase 1 of the review closed on January 19 and the feedback is now being considered.

Phase 2 will deal with issues of definitions and permissibility and a discussion paper will be released later this year.

Merilyn Vale