‘It’s a tsunami’: Councils angry at plans to fast-track 70,000 homes

The Minns government faces a growing backlash against its powerful three-person housing authority that has fast-tracked the path to approval for more than 70,200 homes, as councils warn the wave of development will erode critical commercial precincts and strain infrastructure.

In the past seven months, the NSW Housing Delivery Authority (HDA) has sent 187 major residential proposals on a “state significant” development assessment process that bypasses local councils, leaving the government’s planning department to scrutinise projects designed to boost housing.

Planning Minister Paul Scully said it was appropriate the government took a direct role in assessing large dwelling proposals given the size of the state’s housing challenge, and Sydney’s position as “the second most expensive city on the planet”.

But opposition is mounting among councils, who say they have been “sidelined” while developers are “rubbing their hands with glee”.

Hills Shire Council Mayor Michelle Byrne said the authority had placed about 14 projects in the area that would deliver nearly 6000 new apartments on the fast route to approval since February.

“The state government is approving homes with the same restraint as someone tapping their credit card on a big night out,” she said.

“It feels good at the time, but they’re not thinking about the consequences.”

The Minns government formed the authority in November to accelerate approval and delivery times as it faces an uphill climb to meet its National Housing Accord target of 377,000 new completed homes by mid-2029.

The authority, which started taking expressions of interest from developers in January, can approve spot land rezonings and large residential projects simultaneously. It comprises Premier’s Department secretary Simon Draper, Planning Department secretary Kiersten Fishburn and Infrastructure NSW chief executive Tom Gellibrand.

Byrne said the panel had sped up a potential 5936 dwellings in buildings up to 40 storeys, “drastically” increasing the amount of housing in Castle Hill, Norwest, Rouse Hill and Baulkham Hills.

“This fast-tracked approach will force another 12,000 residents into our already strained town centres, which are buckling under overburdened roads, schools and community facilities,” she said.

Chief among the projects causing alarm in the fast-growing region is a proposal for a site on Brookhollow Avenue at Norwest. Developers previously submitted plans for a mostly commercial complex of several towers topping 23 storeys, and 76 dwellings. But an application for 800 apartments in blocks up to 37 storeys was lodged with the authority and recommended for the faster approval pathway.

“This is a perfect example of the HDA’s approach: ignoring local infrastructure needs and bypassing proper planning in the name of housing supply,” Byrne said. She said locals had been “sidelined” and developers “allowed to bypass council and local planning policies that were put in place for a reason”.

“They’re probably rubbing their hands with glee,” she said.

North Sydney Mayor Zoe Baker expressed alarm at eight residential projects representing more than 2000 apartments declared state significant after the authority’s recommendation.

“It’s not going to stop at eight,” she said. She warned of “a tsunami of projects” and pointed to three residential proposals around North Sydney train station that were separately considered by the HDA.

“Best practice place-making would have those sites considered together, and there being some careful planning around design excellence and public benefits of through-site links and how they would all work together as a precinct,” she said.

She also said the influx of residential development in commercial areas would “totally undermine the decades of careful planning to ensure there is employment land in CBDs across Greater Sydney”.

Scully said the panel was recommending projects that met minimum size criteria, could be assessed and built quickly, were well located with enabling infrastructure and included affordable housing.

He said state-significant projects included a community consultation period, and generated local and state infrastructure contributions to fund roads, schools and services.

“The NSW government has introduced strict timeframes on each declaration with use it or lose it provisions that require DAs to be submitted within nine months of a [state significant] declaration and construction to commence a year if the project is approved,” he said.

Gellibrand has previously said the panel’s role was to assess applications quickly.

“The trick for us … is just don’t muck around. Does it meet the criteria? Yep – go, next,” he said. “Everyone knows you don’t waste time in a crisis.”

On the Mid North Coast, the authority sidestepped Kempsey Shire Council when it recommended a proposal for a seniors housing project of 101 homes in South West Rocks.

Deputy Mayor Julie Coburn said: “Having the control of the actual [development application] process being taken out of local council hands is a little alarming. We’re just gifted with whatever they’re going to gift us.”

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