In May 2026, the Inner West Council solicited public comment on its new Affordable Housing Policy. The proposed new policy would replace their previous policy from 2022.
Sydney Cohousing made the following submission to Council.
We support this draft as an improvement over the status quo. However, we want to suggest that it overlooks the opportunity to promote alternative models of affordable housing delivery.
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. Council must investigate how it can support and deliver limited-equity housing cooperatives as a more effective alternative to the current insufficient “affordable housing” paradigm.
Key facts about limited-equity housing co-operatives
This report, prepared after the City of Sydney’s Alternative Ideas Housing Challenge, describes an affordable rental co-operative model and examines its feasibility in Redfern (in 2023):
How Feasible is a New Generation of Housing Cooperatives in Australia?
- In limited-equity co-operatives, residents pay for some equity (or a share) in the co-op, in the range of $300-$50,000. (For those who cannot afford this, there are usually concessions or loans available).
- The co-operative collectively owns the building, although it may lease 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 (per square metre), not 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.
New South Wales currently has some social housing co-operatives managed by Common Equity NSW. However, Council has recognised, by promoting “affordable” housing, that social housing alone cannot address the full spectrum of housing needs. This is why we urge Council to investigate the limited-equity model as well.
Community-led approach
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.
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:
Across the four states in the project, we found that tenant-members gain benefits from living and participating in rental housing co-operatives. These benefits include:
- 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.
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 come with large-scale changes to the planning regime of an entire LGA.
Recommendations for Council
Council cannot develop housing itself, but it can materially support new models that are known to work elsewhere.
- 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 in the Inner West. 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.
Council should be pursuing these options in collaboration with nearby Councils and State and Federal government.
Further recommendations regarding the Affordable Housing Policy
We wish to endorse the following changes to the Policy, which do not relate directly to Cohousing or housing cooperatives, but which our community agrees with:
- Replace the dedication of all Affordable Housing Contributions to nominated CHP’s with a grant program open all Community Housing Providers, similar to City of Sydney’s Affordable & Diverse Housing Fund.
- Increase the percentage (%) of affordable housing contributions for any additional proposed residential floor space beyond the baseline provision in the FFP to 20%, to action Council’s commitment from the Extraordinary Council Meeting on 30th September 2025.
- Any transfer of existing Council owned housing & sale of Council land, should be based on a competitive tender process open to all not-for-profit Community Housing Providers, including Tiers 2 & 3, not just Tier 1.
- Include a requirement that a minimum of percentage (%) of housing delivered using affordable housing contributions to be allocated for low & very-low income households, to ensure our most vulnerable community members will be housed.
- Include a requirement that housing costs are to be set at no more than 30% of household income, to ensure that housing delivered using public funds is truly affordable.
- Specify a minimum floor area of 35sqm for any affordable housing to be paid as in-kind contributions, to avoid the dedication of smaller co-living units.
- Reporting of affordable housing contributions received & how it has been used should be made annually to ensure transparency for the community in the process.
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 is Nightingale Marrickville, photographed by our member Daniel.