In April, the City of Sydney asked for feedback about the future of housing in its LGA. This followed a discussion paper about Council’s role in housing.
Sydney Cohousing made the following submission.
Sydney Cohousing is an incorporated association representing Sydney locals who want to live more collaboratively, sustainably, and affordably in urban Sydney. We have members from all walks of life whose experiences range from that of young professionals being gradually priced out of the city, to those who have experienced or are currently experiencing homelessness, and suffering from extended social housing wait lists.
Many of our members live in the City of Sydney. We care very much about the city being a place even the most marginalised can call home, and not worry that they will be uprooted from it or stop being able to afford their rent. Only when people feel secure in their home can they contribute fully to their neighbourhood.
Cohousing is about resident-led governance and designing for community. We believe this is best done when housing is delivered by non-speculative, collaborative and cooperative organisations. We think Council should consider three ideas for the future of housing:
1. Support cohousing
- Council should adopt a definition of cohousing as a planning tool
- Council should make planning resources available for eligible cohousing community groups
2. Support co-operative and non-market housing
- Support for limited-equity co-operative housing is part of the “2030-2050 vision plan”, and Council should continue to work toward this
- Council should work towards a pilot project of a Limited Equity Housing Cooperative on leased Council land
- Council should advocate with State government and other councils to pool resources to innovate and develop this model
3. Support collaborative, community-led approaches
- Research shows that co-operative housing leads to improved social outcomes
- International experience demonstrates how policies can allow community groups to participate in housing development proactively
- Council should take these factors into account when shaping housing policy
Support cohousing
There is not only a housing affordability crisis, but a loneliness epidemic, including among our ageing neighbours. We urge Council to consider ways to incentivise cohousing approaches that support community connection, ageing in place, and cost of living benefits by more sharing of resources.
Cohousing is a collaborative process, and also a design response, that focuses on building community. Key elements of cohousing projects are:
- Involvement from future residents at the earliest stages of a project;
- Private spaces for residents (not commune or co-living)
- Shared spaces (e.g. a common house, meeting room, shared garden)
- Sustainability through increased resource sharing (fewer cars, appliances, etc.)
For more information, please see: Cohousing Australia: Planning support for cohousing
We urge council to consider:
- Adopting a formal definition of cohousing projects as has been done in other jurisdictions.
- Providing planning support for groups beginning cohousing projects within the LGA.
Support co-operative and non-market housing
Council has acknowledged that market-based housing will not solve the present crisis. From North America, to South America, to England and Europe, experience shows that co-operative housing can promote long-term affordability and security, with comparatively less government funding.
These ideas are already in Council’s 2030-2050 plan, and Council must continue to act on this commitment. We urge you to accelerate work on alternative ownership models such as community land trusts and co-operatives, as part of encouraging the non-market private housing sector.
In recent years there have been several reports on the value of limited-equity co-operatives for Australia:
- What Australia can learn from European affordable co-operative rental housing models
- How Feasible is a New Generation of Housing Cooperatives in Australia?
- Uniting and Fern report: Limited-equity affordable housing (provided to Council)
Key features:
- In limited-equity co-operatives, residents pay for some equity (or a share) in the co-op, in the range of $300-$50,000.
- The co-operative collectively owns the building, although it may lease the land.
- Co-op members have a “right-to-reside” which means as long as they abide by the rules of the co-operative, and pay residency and maintenance charges, they can stay as long as they like. Residency charges (essentially rents) are set by the co-op members, usually based on unit size and other cost factors, not on income.
- Residents can choose to move into larger or smaller dwellings within the same building, when available, if their circumstances change. If they leave the co-op they are refunded their initial share.
Critically, limited-equity housing cooperatives remain affordable in the long term by removing the possibility of profiting from increasing land values.
Note that Limited-equity co-operatives are distinct from social housing “co-operatives” (a few of which exist in the City of Sydney), managed by Common Equity but owned by the NSW govt, not the co-operative members themselves.
Collaborative housing
We believe that Council should take inspiration from overseas experience that shows members of the community, ordinary people, can help deliver housing projects in partnership with experts and developers. Council support can make this happen.
For a detailed look, see: A proven policy roadmap for delivering more affordable & better quality housing supply
Co-operative housing is uniquely democratic, and depends on active participation by residents. Research from Western Sydney University has demonstrated many benefits to residents from Australia’s existing CHP-run co-operatives: The Value of Housing Co-Operatives in Australia (2024)
This research shows the benefits that can come from co-operative participation of residents, including:
- skills development;
- employment and educational outcomes, as a result of that skills development;
- satisfaction with housing stability, quality, and security;
- greater social capital;
- sense of health and wellbeing, including that of children;
- sense of agency, empowerment, and voice.
These benefits would also be seen by residents in Cohousing and Limited Equity co-operative projects, as we are urging you to consider.
Co-operative housing has seen broad societal support overseas, from across the political spectrum. We believe it will too here, and overcome the social license issues that can come with large-scale top-down development.
Sydney Cohousing has been gathering interest in a pilot co-operative project from local residents. We believe that a participatory process, where future residents work together to co-design housing, has demonstrated real benefits in overseas examples.
Council should encourage these approaches to community-led housing development, and not rely only on developer-led or CHP-led projects. This will involve ongoing engagement and support for community groups (like ours), but again, we know that people want the kind of sustainably constructed, mixed use, long term affordable developments that Council wants. We, the community, can help you deliver it.
Recommendations for Council
Council cannot develop housing itself, but it can materially support new models that are known to work elsewhere.
- Adopt a definition of cohousing so that community-led projects can benefit from tailored planning support.
- Educate council staff on limited equity co-ops, so that they understand the opportunities this model provides, and the key differences with existing social housing co-ops.
- Develop a financial model in participation with experts for a limited-equity housing cooperative. This is the next step towards Council’s stated goal of exploring this model. This should include collaboration with Community Housing Providers to enable a project with a true mix of income affordability.
- Identify land which could be leased long-term (50 – 75 years) by a limited-equity co-operative.
- Establish a pilot project in partnership with local community groups like ours.
The City of Sydney could lobby the NSW government to recognise limited-equity models and develop pathways for the establishment of this sector.
Council can also demonstrate leadership by supporting the development of the first limited-equity co-operative in Australia, and advocate for this model to be adopted by other councils.
If you want to support our work advocating for more collaborative, sustainable and affordable housing solutions, get in touch!
The image at the top of this post of a photograph of a block of flats on Cowper Street near Wentworth Park. The model was photographed at Sydney Town Hall by our member Daniel.