The NSW Government has released a new guide to support councils in undertaking their own land audits to identify vacant operational council land that could be used to deliver affordable housing projects.
The Council Led Affordable Housing on Operational Land Guide released by the Office of Local Government provides step-by-step guidance for councils on identifying and managing affordable housing sites utilising operational land – from planning through to construction and delivery.
A major barrier to building more affordable housing is the high cost of acquiring well-located land. Council owned sites such as former depots or unused facilities that are well serviced and close to public transport can be ideal locations for affordable housing to support low-income households.
The guide provides detail on delivery options available to councils to release and manage operational land for affordable housing and how councils can form partnerships with entities such as government agencies and housing providers to maximise the impact of affordable housing.
It also includes case studies showcasing successful affordable housing projects led by councils to meet the needs of their communities. For example, Shoalhaven City Council transformed surplus council land in Bomaderry into 39 affordable housing units, while Lismore City Council is partnering with Landcom, Homes NSW and a community housing provider to construct 56 new affordable housing units.
The NSW Government has set five-year housing completion targets for 43 local government areas in Sydney, the Illawarra-Shoalhaven, the Lower Hunter and Central Coast, and a single housing target for Regional NSW. In the draft Sydney Plan, out on exhibition at the moment, local affordable housing contribution schemes have been mandated for all councils in Sydney to increase the delivery of affordable homes within their communities.
This guide also supports the objectives of the National Housing Accord by encouraging councils to increase housing supply and affordability at the local level.
By harnessing under-utilised operational land in partnership with the NSW Government and community housing providers, councils can make a substantial impact in addressing the state’s housing crisis and deliver access to homes for people in need.
The guide is available here: https://www.olg.nsw.gov.au/wp-content/uploads/2026/02/Guide-for-Council-Led-Affordable-Housing-on-Operational-Land.pdf
