Central Coast Council has taken another step in delivering its ground-breaking Central Coast Affordable and Alternative Housing Strategy by agreeing to transfer land to Pacific Link Housing Limited for them to build and deliver an affordable housing development at 23-25 Ashton Avenue The Entrance.

It was resolved at the Ordinary Council meeting on 28 February 2023 to transfer the land at 23-25 Ashton Avenue, The Entrance to Pacific Link Housing for the amount of $1, in lieu of monetary contribution towards the proposed affordable housing development.

The agreement follows Council entering into an agreement with Pacific Link Housing after a two-stage tender process which was endorsed by Council at its Ordinary Council meeting on 22 November 2022.

Council’s CEO David Farmer said the three parcels of land that comprise 23-25 Ashton Avenue, The Entrance have a current book value of $2,100,000 and is classified operational. The Transfer of 23-25 Ashton Avenue, The Entrance for one dollar ($1.00) will result in Council disposing of this asset as a loss on asset disposal for the Net Book Value of $2,099,999 in the 2023/24 financial year.

“Council is in a position to be able to do this due to Council’s improved financial performance, as shown in the financial reports presented at the Council meeting.  As reported, Council has received higher than anticipated income on its investments which can be used to offset this loss on asset disposal.

“Council strongly believes that this decision is the one which is ethically responsible, and will be of great benefit to the Central Coast community which is key to Council’s overall commitment.

“The desired outcome of this project is to create an affordable housing development that offers social and affordable housing to 70% of the tenants, and limits private tenancy occupants to 30%.

“It should be noted that it is typical for grants of land at nominal prices to be awarded in circumstances of developments of affordable homes." 

Mr Farmer said that Council’s resolution, in order to mitigate the risk of unrealised development, proposes that the contract for sale includes a sunset clause for substantial completion to be completed within three years of transfer, or the land to return to Council ownership.

“Council is totally committed to its Central Coast Affordable and Alternative Housing Strategy and the transfer of land in lieu of a monetary contribution to the project is considered an indication of how Council is working to help alleviate the housing crisis on the Central Coast, while at the same time being financially responsible and strategic.”

Council’s Administrator Rik Hart said he is pleased Council is in a financial position to be able to support the important project with Pacific Link Housing in this way, as the project will provide up to 50 critically needed dwellings plus a community facility.

“Affordable housing comprises various types of housing in both the private and public sector. It typically includes units, flats and other smaller lot dwellings that are less expensive than free standing homes,” Mr Hart said.

“There is a common misconception that affordable housing refers to social or community housing. This is not true - affordable housing is much more than this and a diverse mix of housing types is required to meet the needs of our community. Over half of all (63%) households on the Central Coast earn below $2000 a week and need affordable housing.

“Pacific Link Housing will own and manage the property in the long term, providing asset and tenancy management as well as the coordination of wrap-around support services as needed.”

Mr Hart said that he is extremely proud of Council’s resolve in tackling the issue of housing on the Central Coast.

“As we said in November when we announced the beginning of the partnership with Pacific Link Housing, we are leading the way and walking the talk.  Council’s resolution last night is a responsible one and will ultimately provide the community with affordable housing solutions.”

To view Central Coast Affordable and Alternative Housing Strategy visit https://www.centralcoast.nsw.gov.au/council/forms-and-publications/strategies-and-plans

ENDS