How many trees can you plant in a dual occupancy?

Ku-ring-gai Council Ordinary Meeting of Council – 17 December 2024

GB 11

Low and Mid-Rise Housing SEPP
Proposed Dual Occupancy Provisions for
Ku-ring-gai Local Environmental Plan 2015

EXECUTIVE SUMMARY

purpose of report:To seek Council’s support to progress discussions with State government on the dual occupancy component of the Low and Mid-rise Housing reforms, namely on minimum lot sizes.
  
background:On 15 December 2023, State government exhibited theExplanation of Intended Effects: Changes to create Low and Mid-rise Housing which permitted dual occupancies on all R2 (Low Density Residential) zoned land across the LGA. On 16 July 2024 Council considered a Mayoral Minute resolving that staff review dual occupancy minimum lot sizes within the LGA. The State Government has stated it would be appreciated if a draft Dual Occupancy Minimum Lot Size is provided by 13 December 2024 and a final with Council endorsement by 14 February 2025. Council will seek an extension to these timeframes to allow community consultation. Failure to nominate a minimum lot size will result in the automatic application of the SEPP (Exempt and Complying Development Codes) 2008 minimum lot size of 400sqm.
  
comments:State Government requires the minimum lot size to be based on the LGA’s median lot size of R2 zoned lots, and capture at least 50% of R2 lots across the LGA. Hill Thalis Architecture and Urban Projects were engaged to investigate and identify lot sizes for dual occupancy development in the Ku-ring-gai LGA and consider the implications on deep soil, canopy and streetscape including within Heritage Conservation Areas. The findings from the consultant’s Study and the three Options for lot size is presented in this report for Council’s consideration.
  
recommendation:(Refer to the full Recommendation at the end of this report)That Council present the three minimum lot size Options within this report to the Department of Planning, Housing and Infrastructure to progress the next steps, including community consultation.

Purpose of Report

To seek Council’s support to progress discussions with State government on the dual occupancy component of the Low and Mid-rise Housing reforms, namely on minimum lot sizes.

Background

Housing Reforms

On 15 December 2023 – 23 February 2024, State government exhibited its Explanation of Intended Effects: Changes to create Low and Mid-rise Housing (EIE).

At the same time, the Department of Planning and Environment (now known as Department of Planning, Housing and Infrastructure (DPHI)) sent Council the Transport Orientated Development Program (TOD), outlining their proposal and timing for the mid-rise development around certain train stations including at Roseville, Lindfield, Killara and Gordon stations.

Together, the EIE and TOD documents set out a series of significant reforms which would allow for the development of a large quantity of additional housing within Ku-ring-gai and throughout NSW.

Explanation of Intended Effects: Changes to create Low and Mid-rise Housing (EIE)

The intention of the EIE was to introduce the proposed State Environmental Planning Policy (SEPP) pathway that would deliver increased low and mid-rise housing types within R2 (Low Density Residential) zones and R3 (Medium Density Residential) zones.

It is understood that DPHI will include a new section in the SEPP (Housing) 2021 to amend the Ku-ring-gai Local Environmental Plan 2015 (KLEP) and permit the additional housing typologies within the nominated zonings within 800m walking distance of nominated stations and town centre precincts.

Until this occurs, DPHI refers to the mechanism for the EIE changes as the Low- and Mid-Rise SEPP (LMR SEPP).

Council’s Submission to the EIE

Council’s submission did not support the EIE, including its blanket one-size-fits-all and non-refusal standards for:

·      Low-rise housing in the form of:

–      2 storey manor houses and multi-dwelling terraces/townhouses on all R2 (Low Density Residential) land within 800m of Roseville, Lindfield, Killara, Gordon, Pymble, Turramurra, Warrawee, Wahroonga railway stations, and 800m within the St Ives centre;

–      2 storey dual occupancies on all R2 (Low Density Residential) land across Ku-ring-gai.

·      Mid-rise housing comprising:

–      4-5 storey residential flat buildings in R3 zones within 400 to 800m of a railway station or town centre precinct.;

–      6-7 storey residential flat buildings in R3 zones and shop-top housing in E1 and MU1 zones within 400m of a railway station or town centre precinct

A lengthy submission to the EIE exhibition was prepared by staff and considered by Council on 20 February 2024. The submission was forwarded to DPHI on 21 February 2024, as per Council’s resolution.

Ku-ring-gai’s current public policies have been established to ensure that as our cities increase in density, all development occurs through a well-coordinated and evidence-based framework that:

·    protects existing biodiversity and its connectivity between the Ku-ring-gai Chase, Garigal, and Lane Cove National Parks, which define the eastern, western and northern boundaries of the LGA;

·    retains and protects existing urban canopy, and facilitates urban canopy repair;

·    recognises the importance of urban heat mitigation with intensified urban development;

·    recognises and enhances the unique qualities of the seven identified Local Character Areas for all development;

·    conserves the pre-dominant area character including those of the established Heritage Conservation Areas.

Directions from DPHI

Following Council’s EIE submission, key interactions and advice from DPHI have been as follows:

14 May 2024DPHI requested preparatory information from Council for their one-on-one workshop with Council staff to gain feedback.
22 May 2024DPHI held a workshop with Council officers on the Low- and Mid-Rise Housing Policy. The following key points were discussed:·   implications of the policy in high-risk hazard areas such as flooding, bushfire and emergency evacuation areas;·   impacts of the policy on Heritage Conservation Areas and items;·   local centres hierarchy and suitability for increased housing and inclusion in the policy.
29 June 2024(Attachment A1)Council received a letter from DPHI outlining the timetable for the implementation of the Low-and Mid-rise Housing (LMR) SEPP as follows:·   Stage 1:o Dual occupancies and semi-detached dwellings will be permitted in all R2 (Low Density Residential) zones.o Council is invited to consider and propose a minimum lot size.o Complying development lot size (400sqm) and development standards for dual occupancies under the SEPP (Exempt and Complying Development Codes) 2008 (Codes SEPP) will be switched off; but, will automatically apply to all R2 land within the Ku-ring-gai LGA on 1 July 2025 if Council has not resolved a minimum lot size.·   Stage 2:o Non-discretionary standards will apply within nominated station and town centre precincts, known as “Local Housing Areas”.o Council’s proposed minimum lot size will apply to R2 land outside the Local Housing Areas.
25 Sept 2024(Attachment A2)Council received a letter from DPHI advising the process and timing for Council to deliver a minimum lot size for certain parts of the LGA. The letter:·   Confirmed Stage 1 of the Low-and Mid-Rise Housing (LMR) SEPP commenced on 1 July 2024, through an amendment to the SEPP (Housing) 2021 where:o dual occupancies and semi-detached dwellings are now permitted on all R2 (Low Density Residential) land via a development application;o the complying development pathway under the Codes SEPP will be switched off whilst Councils consider an evidence based minimum lot size for their LGA.·   Attached a “Dual Occupancy Minimum Lot Size Form” for Council to complete. This Form stipulates the parameters for determining and submitting Council’s proposed minimum lot size:o  DPHI has stated it would appreciate a draft minimum lot size by 13 December 2024.o  DPHI would appreciate a final Council endorsed minimum lot size by 14 February 2025.o  The complying development 400sqm minimum lot size will automatically apply on 1 July 2025 where Councils fail to put forward, and have DPHI agreement, on an alternative minimum lot size.·   Sets out the considerations for developing a minimum lot size:o  DPHI requires at least 50% of R2 lots within the LGA to enable dual occupancy development;o  Council’s proposed lot sizes are to be the median R2 lot size or lower to ensure the 50% provision.·   Provides the rationale for Stage 2 of the Low-and Mid-Rise Housing (LMR) Policy which aims to:o  increase dwellings within 800m walking distance of town centres and stations, areas that are referred to as “Local Housing Areas”, by applying a minimum lot size of 450sqm, noting that Council’s proposed minimum lot size will only apply outside these Local Housing Areas;o  Introduces non-discretionary development standards for dual occupancies, terraces, townhouses and apartment buildings in the Local Housing Areas that go through the development application process. Non-Discretionary Standardsfor Dual Occupancies in Local Housing AreasLot sizemin 450m2Lot widthmin 12mCar parking spacesmin 1 per dwellingFSR0.65:1Height9.5mo  The policy is expected to commence in December 2024.



Mayoral Minute and Council Resolution

At its meeting of 16 July 2024 Council considered a Mayoral Minute (MM. 3, minute number 142 titled Housing Policy Updates (July 2024).

In relation to dual occupancy development the Mayoral Minute stated, inter alia:

·    Outside of the ‘well-located areas’, all R2 low-density residential zones in NSW with the exception of areas such as bushfire and flood-prone zones will support dual occupancies and semi-detached dwellings. These changes take effect 01 July 2024 (as part of ‘stage 1’) and the dual occupancies will be approved via private certifiers through Exempt and Complying Development.

O  13 local government areas including Ku-ring-gai are temporarily excluded from the complying development pathway as they currently “lack controls for dual occupancies, such as minimum lot sizes”. These councils have until 01 July 2025 to “consider appropriate controls for dual occupancies”, after which the complying development pathway will be turned back on with a minimum lot size of 400 sqm if these councils do not establish relevant controls.

What this means for Ku-ring-gai residents seeking to build dual occupancies

The majority of Ku-ring-gai residents who own R2 low-density residential land that isn’t flood or bushfire-prone will be able to build dual occupancies through a private certifier via the Exempt and Complying Development SEPP from 01 July 2025.

The minimum lot size of such dual occupancies in Ku-ring-gai is currently not specified. But for ‘well-located’ areas within 800m of stations and town centres, there will be non-refusal standards and controls that will be revealed as part of ‘stage 2’. As for those outside of ‘well-located’ areas, the minimum lot size will be the Exempt and Complying Development SEPP’s default of 400 sqm (for two dwellings) unless Ku-ring-gai updates its Local Environment Plan before 01 July 2025 to introduce a larger value.

As such, it is in Ku-ring-gai’s interest to update its Local Environment Plan and Development Control Plan before 01 July 2025 if it wishes to establish appropriate controls for dual occupancies that can protect our urban tree canopy, biodiversity, climate resilience and heritage.

On consideration of the matter, Council resolved in part:

B.   Staff review Ku-ring-gai’s planning controls for dual occupancies (especially with regard to minimum lot sizes) and report back to Council with the view of updating the Local Environment Plan and Development Control Plan prior to 30 June 2025.

Engagement of Consultant to advise on Minimum Lot Size for Ku-ring-gai

Following the State Government’s confirmation and advice on methodology for setting local minimum lot sizes, Council engaged Hill Thalis Architecture and Urban Projects to investigate and identify lot sizes for dual occupancy development in the Ku-ring-gai LGA.

The scope of works for the consultant included:

·    Review and testing of the dual occupancy standards of the Explanation of Intended Effects (December 2023) and the SEPP (Exempt and Complying Development Codes) 2008;

·    consider the implications of small lot sizes on deep soil and tree provision, canopy cover and streetscape character including within Heritage Conservation Areas;

·    determine lot sizes and locations to enable continued alignment with Council’s policies and strategic plans including the Local Strategic Planning Statement (LSPS);

·    calculation of Ku-ring-gai’s median lot size and distribution, excluding bushfire, TOD and heritage item areas as advised by DPHI;

·    determine a lot size that ensures dual occupancy development can be conducted on 50% of all R2 (Low Density Residential) land in the Ku-ring-gai LGA, as required by DPHI, and consider lot widths to facilitate good streetscape outcomes.

The study conducted by Hill Thalis may be viewed at Attachment A3.

Comments

Dual Occupancies in the Ku-ring-gai LGA

Ku-ring-gai Council’s planning controls have historically restricted dual occupancy development due to concerns regarding small lot subdivision patterns, their ability to support deep soil and tree provision, and impacts on the established and historical high quality character of built form in garden settings including canopy trees across the LGA and within Heritage Conservation Areas.

Currently, dual occupancy in the Ku-ring-gai LGA is limited to a number of specified sites that are over 1200sqm in area (with each dual occupancy dwelling having a minimum site area of 600sqm). The sites are also generally corner lots that enable easy access and suitable distances between driveways for street tree planting. These sites are listed in the Ku-ring-gai Local Environmental Plan 2015 – Schedule 1 Additional Permitted Uses.

The State government housing reforms now mandate LGA wide delivery of dual occupancy development on 50% of all R2 (Low Density Residential) zoned land. The 50% allocation recognises the importance of preserving key elements of local character and typologies within established Council areas.

Council now has the opportunity to propose a draft minimum lot size to DPHI. It is understood that the State government would appreciate a draft response by 13 December 2024 and a final Council endorsed lot size by 14 February 2025, however Council will be seeking an extension to allow for public consultation.

The minimum lot size refers to the minimum size of land that can be developed for dual occupancy (two dwellings attached or detached).

Failure to nominate a minimum lot size will result in the automatic application of the SEPP (Exempt and Complying Development Codes) 2008 (Codes SEPP) minimum lot size of 400sqm (which will result in each dual occupancy dwelling having a site area of 200sqm) on sites where complying development is permitted. Given that the majority of lots in the LGA are 900sqm+ and carry one dwelling, lot sizes of 200sqm per dwelling will result in highly urbanised areas with little to no landscape, deep soil and canopy which are the key elements affording Ku-ring-gai a high canopy cover, increased heat island effects and poor ecologically sound pathways connecting the various boundary National Parks across the LGA.

Clearly, the smaller the minimum lot size, the more intensive the development becomes, leading to greater challenges in maintaining deep soil areas, retaining and providing tree canopy, and ensuring adequate setbacks and the garden settings typical of Ku-ring-gai’s streetscapes.

Without a minimum lot size for dual occupancy stated in the KLEP, in areas where complying development is not permitted, such as within Heritage Conservation Areas, there will be no associated DCP controls for the assessment of development applications for dual occupancy.

Consultant’s investigation into minimum lot size

The Dual Occupancy Lot Size Study (the Study) by Hill Thalis Architecture + Urban Projects may be viewed at Attachment A3The Study has undertaken intensive mapping and testing to understand the profile of R2 lots across the Ku-ring-gai LGA and the implications of cumulative dual occupancy development.

The Study seeks to determine lot sizes and locations to enable continued alignment with Council’s policies and strategic plans. This includes the protection of ecology, movement towards minimising and mitigating urban heat island effects and net zero targets, ensuring high quality liveability standards of access to public transport and facilities, and maintaining Ku-ring-gai’s heritage conservation area character, and Ku-ring-gai’s predominant character of buildings within garden setting that include tall canopy trees.

The Study considers the different pathways and standards that will enable dual occupancy development in Ku-ring-gai, as summarised below:

  Complying Development Pathway Development ApplicationPathway
Dual Occupancy Planning Instrument SEPP (Exempt and Complying Development Codes) 2008 Low-and Mid-rise Housing via SEPP (Housing) 2021+Low Rise Housing Diversity Design GuideKu-ring-gai Local Environmental Plan 2015+Ku-ring-gai Development Control Plan
Location where the Instrument applies All R2 (Low Density Residential) sites across the LGA. R2 (Low Density Residential) siteswithin Local Housing Areas (around Local Centres)R2 (Low Density Residential) sitesoutside Local Housing Areas
Minimum Lot Size 400sqmUnless Council proposes a new minimum lot size. 450sqmTo be proposed by Council based on the presented Options in this report.



Dual occupancy development pathways

·   Why should Council propose a dual occupancy minimum lot size?

The State government’s housing reforms enable dual occupancy development to be delivered on any R2 site within Ku-ring-gai that has a minimum 400sqm lot size through the Complying Development pathway (provided the development meets the requirements of the SEPP (Exempt and Complying Development Codes) 2008)This pathway has been temporarily switched off to allow Council to consider its preferred minimum lot size.

If Council proposes a minimum lot size that is accepted by DPHI, then that new minimum lot size will apply in lieu of the 400sqm for all complying development across the LGA.

The 400sqm minimum lot size under complying development could potentially result in a typical Ku-ring-gai lot, of say 900sqm, being developed into two sets of dual occupancies – four dwellings where there was previously only one. Also noted is the increase in illegal tree removal to “prepare” sites for complying and more intensive development.

The cumulative impact of this type of development intensity will decimate the Ku-ring-gai character with inevitable canopy reduction, limited setbacks and front gardens, and fewer opportunities for street tree planting due to multiple driveway crossovers.

It is noted that complying development is not permitted within the Heritage Conservation Areas and therefore the development application process would be able to apply some control on the outcomes. To this end, Council’s Development Control Plan would require an update to ensure the provisions address this development type. It is noted that small lot sizes within Heritage Conservation Areas would significantly alter the underlying sub-division patterns that underpin the historical values.

It is therefore important that Council proposes a minimum lot size to replace the minimum 400sqm that currently applies to all complying development dual occupancies from 1 July 2025 as per DPHI advice.

Example – Dual occupancy development of a typical 900sqm lot

·   Minimum Lot Size

The DPHI guidance is that the establishment of a minimum lot size is to be based on the LGA’s median lot size of R2 zoned lots; and capture at least 50% of R2 lots across the LGA.

The Hill Thalis Study presents three options, listed below, with all options able to deliver the required 50% of R2 lots for dual occupancy development across the LGA.

–      Option 1

o  One minimum lot size across the LGA, seeking to request removal of DPHI’s minimum 450sqm lot size to Local Housing Areas.

–      Option 2

o  DPHI’s minimum 450sqm minimum lot size applies in the Local Housing Areas; and

o  a larger minimum lot size applies across the remaining LGA.

–      Option 3

o  DPHI’s minimum 450sqm minimum lot size applies in the Local Housing Areas, and

o  a larger minimum lot size applies to certain Neighbourhood Centres, and

o  an even larger minimum lot size across the remaining LGA.

The three Options provide Council with a choice of minimum lot size for dual occupancy development across the LGA. It is understood that the loss of deep soil, tree canopy and changes to the suburban built form fabric is inevitable in any reduction of lot size across the LGA.

Noting that the Options will only enable dual occupancy development on 50% of R2 zoned lots within the LGA, Council has to consider if it is better to:

–      spread the impacts of dual occupancy development across the LGA with a single minimum lot size (Option 1); or

–      concentrate the impacts in the Local Housing Areas centred on the ridgeline and St Ives Local Centres, noting these areas support remnant critically endangered Blue Gum High Forest and Sydney Turpentine Ironbark Forest and a number of Heritage Conservation Areas; and lots outside those Centres being larger and more able to deliver deep soil, canopy trees and streetscape elevations able to assimilate into the existing suburban character (Option 2); or

–      concentrate the impacts in the Local Housing Areas centred on the ridge line and St Ives Local Centres and on five Neighbourhood Centres, making the centres more urban; and lots outside those Centres being larger and more able to accommodate deep soil, canopy, setback and considered street elevations (Option 3).

The selection of any one of the Options will result in significantly better outcomes than the State Government’s proposed 400sqm minimum lot size that will apply across Ku-ring-gai for complying development from 1 July 2025 if Council does not put forward an alternative that can be agreed by DPHI.

·   What are the DPHI “Local Housing Areas”

The Study has mapped the proposed DPHI Local Housing Areas to understand the implications of the DPHI mandated 450sqm minimum lot sizes for those locations. DPHI’s Local Housing Areas are associated with Local Centres with transport links and facilities. It applies to an 800m walking distance from railway or business zones and excludes the TOD SEPP areas within 400m of certain Local Centres. The below table describes and illustrates what is interpreted to be Ku-ring-gai’s Local Housing Areas based on the information released by DPHI. These will only be confirmed when the final LMR SEPP is made.

By applying a small 450sqm minimum lot size to these areas, DPHI aims to place increased numbers of dual occupancy development close to Local Centres and transport hubs. Whilst this approach is supported, the location of the local centres and train stations on the ridgeline directly conflicts with the geography and ecology of the Ku-ring-gai LGA, and with the presence of the majority of Heritage Conservation Areas.

The 800m walking distance diameter of the Local Housing Areas results in a continuous band of intensive development along the ridgeline, with the DPHI 450sqm mandated minimum lot size affording no opportunity to provide the amounts of deep soil required for tall canopy trees and for the retention of remnant trees and continued establishment of their communities.

Ku-ring-gai’s Critically Endangered Ecological Communities (CEEC) Blue Gum High Forest and Sydney Turpentine Ironbark Forest are restricted to geology and soil types that occur along the ridge lines in the Ku-ring-gai LGA. The majority of Ku-ring-gai’s remnant trees are located along the ridgeline and have additional importance in providing biological connectivity and habitat stepping stones across the ridgeline and through areas of development, between existing reserves.

Council policies have systematically supported the increase in canopy and biodiversity corridors across the LGA in recognition of the placement of the LGA between three adjacent National Parks and in an effort to mitigate increasing climate change impacts.

In the event of any incident such as bushfire in one National Park area, Ku-ring-gai’s biodiversity corridors and remnant vegetation enables fauna to escape across the LGA into reserves and to National Parks on the other side of the LGA, thus avoiding the potential extinction of species established only in a certain location.

The proposed 450sqm minimum lot size for the Local Housing Areas places a direct threat to the retention and heath of the CEEC remnant trees, and removes the opportunity for the enhancement of canopy, midstory and groundcover planting through meaningful deep soil provision within private land developed for dual occupancy typologies.

Additionally, the presence of the significant and original fabric and subdivision pattern of Heritage Conservation Areas, historically established on rail and road links, are also under threat from the small 450sqm minimum lot size allocation within the Local Housing Areas.

DPHI has told Council that the 450sqm minimum lot size will apply to all Local Centres across NSW. Nevertheless, due to the serious and irreversible damage the denudation of the ridgeline will cause, the Consultant has investigated if it possible to deliver the required 50% of R2 lands with a lot size that does not include the mandated 450sqm Local housing Area lot size.

In considering this approach, it is noted that the same Local Housing Areas earmarked for the 450 sqm dual occupancy minimum lot sizes, are also locations that the LMR SEPP will enable other typologies including manor houses, multi-unit dwelling terraces/townhouses and 5 storey residential flat buildings. These more intense typologies would generally require more complex development processes than dual occupancy development, and therefore there is a higher likelihood that dual occupancy development will appeal to single lot owners and frustrate the future delivery of the other typologies and housing choice close to the Local Centres. Larger lot sizes for dual occupancies close to Local Centres would assist in limiting the number of lot consolidations required to deliver the other typologies in the future.

·   What considerations are given to the Neighbourhood Centres

Given Council’s LSPS indicates the potential suitability of Neighbourhood Centres for additional housing, the Study has investigated the opportunity for Neighbourhood Centres to accommodate dual occupancy development proximate to local shops and bus routes.

The Study identifies the opportunities and constraints of Ku-ring-gai’s fifteen Neighbourhood Centres and their potential to deliver targeted dual occupancy housing on potentially intermediate sized lots (larger than the 450sqm DPHI mandated Local Housing Area lots and smaller than the dual occupancy lots in the wider LGA away from shops and bus routes).

Only five Neighbourhood Centres are identified as potentially suitable for targeted dual occupancy delivery as indicated in the table and diagram below.

Six of the Neighbourhood Centres remain in the general pool of R2 land with larger dual occupancy lot sizes associated with lands away from facilities. This is due to their being earmarked for potential future rezoning due to good transport connections; or they comprise at risk sites associated with bushfire evacuation. Three Neighbourhood Centres will have no opportunity to develop dual occupancy as they have a C4 (Environmental Living) zoning, and not the required R2 (Low Density Residential) zone.

As per the LSPS, the below table and diagram indicate the grouping and suitability of the Neighbourhood Centres for dual occupancy development.

·   Minimum lot size Options for dual occupancy development in Ku-ring-gai

The Department requires Council to determine a suitable minimum lot size that is based on the median lot size of R2 zoned lots across the LGA. The minimum lot size must capture and enable dual occupancy development on at least 50% of R2 lots across the LGA.

As per the below Table, Hill Thalis has determined the number of R2 lots across the Ku-ring-gai LGA and the total number of eligible R2 lots as advised by DPHI (removing R2 lots within bushfire prone land, TOD SEPP areas and that are heritage items).


 
Number of R2 lotsMedian lot size sqm
Total number of R2 lots across the LGA25751951 sqm
Total number of eligible R2 lots under the EIE18725954 sqm
50% = 9363 lots955 sqm
Note: The total number of R2 lots excludes Bushfire, TOD SEPP and Heritage Items.

LGA wide lot numbers and median lot size

The Consultant has calculated that to meet DPHI’s 50% requirement, Council must enable dual occupancy development on at least 9363 lots within the LGA.

Three Options, illustrated below, are presented by the Consultant, all deliver the DPHI required lot numbers.

·   Options to put forward to DPHI

The Department requires Council to determine a suitable minimum lot size that is based on the median lot size of R2 zoned lots across the LGA. The minimum lot size must capture and enable dual occupancy development on at least 50% of R2 lots across the LGA.

Minimum Lot Size to capture sufficient lots to meet 50% target of 9363 lots
 OPTION 1OPTION 2OPTION 3 
All LGA955 sqm100% lots1015 sqm55% lots1075sqm41% lots 
Local Housing Areas 450 sqm (DPHI size)45% lots450 sqm (DPHI size)45% lots 
5 Neighbourhood Centres  700sqm14% lots 
Impact·  Distributes impact across the LGA·  Focuses impact on Local Centre 800m walkability distance.·  Focuses impact on Local Centre 800m walkability distances, and on 5 Neighbourhood Centres 400m walkability distances. 

Following the analysis:

o  Option 1

–   955 sqm minimum lot size will result in 477.5sqm per dual occupancy dwelling for the wider LGA.

o  Option 2

–   1015 sqm minimum lot size will result in 507.5sqm per dual occupancy dwelling for the wider LGA;

–   450 sqm minimum lot size will result in 225sqm per dual occupancy dwelling within 800m of Local Centres.

o  Option 3

–   1075 sqm minimum lot size will result in 537.5sqm per dual occupancy dwelling for the wider LGA;

–   450 sqm minimum lot size will result in 225sqm per dual occupancy dwelling within 800m of Local Centres;

–   700 sqm minimum lot size will result in 350sqm per dual occupancy dwelling within 400m of the five Neighbourhood Centres.

All three Options have advantages and disadvantages and distribute impact in different ways.

It is recommended that Council present the three minimum lot size Options within this report to the DPHI to progress the next steps, including community consultation.

Ensuring DPHI’s agreement on the Options is important as Council will only seek public comment on Options that will not be ruled out by DPHI at a later date. This reduces reputational risk to Council by avoiding the community supporting an Option that will later be cancelled by DPHI.

In particular, this applies to Option 1. DPHI has previously said they wish to apply the same approach regarding the Local Housing Areas across all Council. This OMC report seeks to once again request DPHI consideration of the issues of their standard approach given the unique circumstances of the location of Ku-ring-gai’s Local Centres, including the concentration of Critically Endangered Ecological Communities and Heritage Conservation Areas on the ridgeline where the Local centres are located.

Following DPHI’s agreement of Options, the community will be invited to provide their feedback via a public exhibition held by Council.

·   Lot width

In addition to minimum lot sizes, Hill Thalis has conducted testing of lot sizes and sites across the LGA. The Study found that the existing SEPP minimums of 12-15 m frontages were generally not able to deliver the deliver the standards of both the Explanation of Intended Effects (December 2023) (EIE) and SEPP (Exempt and Complying Development Codes) 2008 (Codes SEPP). The Study also considered the loss of Ku-ring-gai’s existing canopy resulting from the standards of the EIE and SEPP and the streetscape impacts including within Heritage Conservation Areas.

The Study found that a minimum lot width of 18m would enable small trees and some landscape areas, and 18-20m would enable larger trees and improved streetscape presentations. The wider frontages would support the delivery of dual occupancy dwellings more able to deliver the standards of both the Explanation of Intended Effects (December 2023) and SEPP (Exempt and Complying Development Codes) 2008.

Ku-ring-gai’s sub-division patterns show an overwhelming dominance of lot frontages greater than 15m. Whilst a lot frontage of 20m would be preferred to facilitate provision of large canopy trees and improved streetscapes within Heritage Conservation Areas, a minimum lot width of 18m would ensure dual occupancy development delivery across the LGA at the required quantums in the three Options, and improve outcomes that result from the current 12-15m lot frontages in the EIE and Codes SEPP.

The lot widths would deliver dual occupancy development better able to assimilate into the Ku-ring-gai context, with landscaped setbacks and spacing of vehicle crossovers enabling Council’s street tree planting plans to increase canopy tree on public domain verges to shade roads and reduce their urban heat island effects as climate change increasingly raises ambient temperatures. The inclusion of the lot width will be tabled in discussions with DPHI.

NEXT STEPS

Should Council resolve to present the three Options to DPHI and progress towards exhibition, the next steps will be as follows, noting that the timing is contingent to agreement from DPHI extending the timeframe for an endorsed minimum lot size beyond the 14 February 2025:

·    Prior to the DPHI deadline of 13 December 2024 to receive Council’s draft minimum lot size, staff provide a copy of this Report to DPHI (once it is made public) and seek a post-OMC meeting to discuss Council’s approach.

·    Council makes a Resolution (on 17 December 2024) for staff to enter into discussion with DPHI on the three Options.

·    Staff meet with DPHI to:

–      ascertain their support for the three Options;

–      clarify if DPHI will conduct any public exhibition on the amended lot sizes during any part of the process;

–      discuss a timetable for Council to exhibit the DPHI agreed Options to the community, given the DPHI 14 February 2025 deadline to receive a final Council endorsed minimum lot size.

Discussion could seek DPHI agreement with the following draft timetable:

–      a public exhibition could be held during January/February;

–      a report could be brought back to Council potentially during February, early March;

–      Council’s resolution and final Option be provided to DPHI by March 2025.

·    Council conduct a public exhibition inviting the community to provide its feedback on the Options could be conducted during January/February 2025.

·    A report be brought back to Council in an EMC during February/March 2025 to consider submissions to the public exhibition and to seek final endorsement of a preferred Option.

·    Council forwards DPHI its Council endorsed final minimum lot size Option for the LGA by March 2025. Staff seek a meeting to confirm DPHI’s agreement with the final Option.

·    During March to June 2025, DPHI works with Parliamentary Counsel to make the amending SEPP that will automatically amend the Ku-ring-gai KLEP 2015 (as well as other Sydney Councils undergoing the same process), to incorporate the new minimum lot size for dual occupancy development.

·    On 1 July 2025, DPHI switches on the complying development pathway via the SEPP (Exempt and Complying Development Codes) 2008.

·    From 1 July 2025 all residents seeking to develop a dual occupancy in the Ku-ring-gai LGA, via the complying development or development application pathway, will be required to apply the minimum lot sizes as per the final Option provided to DPHI.

Integrated planning and reporting

Theme 1 – Community, People and Culture

Theme 3 – Places, Spaces and Infrastructure

Community Strategic Plan Long Term ObjectiveDelivery ProgramTerm AchievementOperational PlanTask
C6.1 Housing diversity, adaptability and affordability is increased to support the needs of a changing community  C6.1.1 Councils planning approach to the provision of housing across Ku-ring-gai is responsive and addresses the supply, choice and affordability needs of the community and the changing population C6.1.1.1 Implement the Ku-ring-gai Housing Strategy to 2036C6.1.1.3 Identify opportunities to provide a range of housing choices and part of the implementation of the Ku-ring-gai Housing Strategy to 2036
P2.1 A robust planning framework is in place to deliver quality design outcomes and maintain the identity and character of Ku-ring-gaiP2.1.1 Land use strategies, plans and processes are in place to effectively manage the impact of new developmentP2.1.1.1 Prepare plans and strategies as required by the Local Strategic Planning Statement (LSPS)



Governance Matters

On 15 December 2023 the NSW Government exhibited the Explanation of Intended Effect; Changes to create Low and Mid Rise Housing (EIE). Under the LMR SEPP the DHPHI has provided some Councils an opportunity to consider minimum lot sizes for Dual Occupancies and semi-detached dwellings within the R2 low Density Residential Zone.

It is understood the NSW Department of Planning, Housing and Infrastructure will amend the SEPP (Housing) 2021 to amend the KLEP 2015 to permit additional housing and controls within the nominated zonings.

Risk Management

If Council does not nominate an appropriate minimum lot size for Dual Occupancies, then the NSW State Environmental Planning Policy (Exempt and Complying Development) 2008 will automatically apply with a minimum parent lot size of 400sqm, which will result in each lot having an area of 200sqm. This will make it very challenging to provide for deep soil, protecting biodiversity, tree canopy and ensuing appropriate setbacks and the retention of the garden settings that contribute to the local character of Ku-ring-gai.

Financial Considerations

The cost of preparing this report is covered by the Urban Planning & Heritage Budget.

Social Considerations

Updated and applicable planning provisions for dual occupancies in Ku-ring-gai will assist in increasing housing supply, diversity and affordability to support the needs of the changing community and changing population.

Environmental Considerations

Council’s approach to planning for dual occupancy provisions have taken into account the protection of biodiversity, bushfire, minimising and mitigating heat island effects, ensuring access to public transport and facilities and maintain the character of buildings within a garden setting that includes tall canopy trees.

Community Consultation

Council’s adopted position arising from this Report will be provided to the NSW Department of Planning, Infrastructure and Housing.

Following endorsement by the NSW DPHI, a formal Ku-ring-gai Council public exhibition process on this matter would be conducted in early 2025. A final officer’s report will be made back to Council to meet the State Government’s deadline for making the SEPP in July 2025.

Council’s Community Engagement Policy states that Council exhibitions should not begin until the third week of January (ie: 20 January) and run for a minimum of 28 days, with extensions considered for school holiday periods. 

In line with this, it is proposed that consultation would begin on Monday, 20 January 2025 and end on Wednesday, 19 February 2025, a period of 31 days.  This period would also allow sufficient time to prepare a report for the March 2025 Ordinary Council Meeting.

Activities to promote the exhibition may include:

·    Letter to all owners and occupants of land subject to Council’s residential rating category;

·    Media release;

·    Local media advertising;

·    Promotion in Council e-newsletters and social media;

·    Summary brochure and leaflet available online and distributed to Council venues; and

·    Engagement portal page, promoted via Council’s main website home page.

Engagement activities, dependent on DPHI’s agreement to Council’s proposed timeline and community interest, may also include surveys, as well as online and in person community forums to provide community members the opportunity to ask questions on a one-on-one basis with Council staff.

The number of forums and their locations will be determined following DHPI’s agreement on the options.

This engagement process is consistent with the approach taken by Council during the exhibition of the Transport Oriented Development scenarios.

It should be noted that in addition to the above, there will be a statutory consultation process on any changes to Council’s DCP.

This consultation approach will put Council in the strongest position to understand broad community sentiment in regard to these significant land-use changes.

A report on the community engagement outcomes will be prepared for the Council report.

The outcomes of the public exhibition will be prepared and reported back to Council.

At this stage it is not certain that a separate exhibition of the Draft SEPP will be conducted by the NSW DPHI.

Internal Consultation

Where relevant, other Departments of Council have been consulted in the preparation of this report.

In October 2024, Councillors were provided with an overview of the housing reforms including on the need to prepare dual occupancy provisions.

Summary

The State government housing reforms now mandate LGA wide delivery of dual occupancy development on 50% of all R2 (Low Density Residential) zoned land.

Council has the opportunity to propose a draft minimum lot size to DPHI by 13 December 2024 and a final Council endorsed lot size by 14 February 2025.

Council engaged Hill Thalis Architecture and Urban Projects to investigate and identify lot sizes for dual occupancy development in the Ku-ring-gai LGA. The Study has undertaken intensive mapping and testing to understand the profile of R2 lots across the Ku-ring-gai LGA and the implications of cumulative dual occupancy development across the LGA.

The smaller the minimum lot size, the more intensive the development becomes, leading to greater challenges in maintaining deep soil areas, retaining and providing tree canopy, and ensuring adequate setbacks and the garden settings typical of Ku-ring-gai’s streetscapes.

Failure to nominate a minimum lot size will result in the automatic application of the SEPP (Exempt and Complying Development Codes) 2008 (Codes SEPP) minimum lot size of 400sqm (which will result in each dual occupancy dwelling having a site area of 200sqm) across the LGA for complying development.

The DPHI guidance is that the establishment of a minimum lot size is to:

o  be based on the LGA’s median lot size of R2 zoned lots; and

o  capture at least 50% of R2 lots across the LGA.

The Hill Thalis Study presents three options, listed below, with all options able to deliver the required 50% of R2 lots for dual occupancy development across the LGA.

Minimum Lot Size to capture sufficient lots to meet 50% target of 9363 lots
 OPTION 1OPTION 2OPTION 3
All LGA955 sqm100% lots1015 sqm55% lots1075sqm41% lots
Local Housing Areas 450 sqm (DPHI size)45% lots450 sqm (DPHI size)45% lots
5 Neighbourhood Centres  700sqm14% lots



The three Options presented in this report provide Council with a choice of minimum lot size for dual occupancy development across the LGA.

It is understood that the loss of deep soil, tree canopy and changes to the suburban fabric is inevitable in any reduction of lot size across the LGA.

The Options illustrate different approaches to manage the impacts of the small lot subdivision that will result from dual occupancy development. The key impacts are focused around Ku-ring-gai’s biodiversity links, critically endangered tree communities, canopy cover, streetscape and character.

Noting that the Options will only enable dual occupancy development on 50% of R2 zoned lots within the LGA, Council has to consider if it is better to:

–      spread the impacts of dual occupancy development across the LGA with a single minimum lot size (Option 1); or

–      concentrate the impacts in the Local Housing Areas centred on the ridgeline and St Ives Local Centres, noting these areas support remnant critically endangered Blue Gum High Forest and Sydney Turpentine Ironbark Forest; and lots outside those Centres being larger and more able to deliver deep soil, canopy trees and streetscape elevations able to assimilate into the existing suburban character (Option 2); or

–      concentrate the impacts in the Local Housing Areas centred on the ridge line Local Centres and St Ives Local Centres, and on five Neighbourhood Centres, making the Centres more urban; and lots outside those Centres being larger and more able to accommodate deep soil, canopy, setback and street elevations can prevail across the remaining LGA (Option 3).

The selection of any one of the Options will result in significantly better outcomes than the State Government’s proposed 400sqm minimum lot size that will apply across Ku-ring-gai from 1 July 2025 if Council does not put forward an alternative that can be agreed by DPHI.

In addition to minimum lot sizes, Hill Thalis had conducted testing of lot sizes and sites across the LGA. They have determined that a minimum lot width of 18m would support the delivery of dual occupancy dwellings more able to deliver the standards of both the Explanation of Intended Effects (December 2023) and SEPP (Exempt and Complying Development Codes) 2008.  The lot width would enable dual occupancies to better assimilate into the Ku-ring-gai context with landscaped setbacks, and spacing of vehicle crossovers to enable Council’s street tree planting to include large canopy trees on public domain verges. The inclusion of the lot width will be tabled in discussions with DPHI.

Recommendation:

A.   That Council present the three minimum lot size Options within this report to the Department of Planning, Housing and Infrastructure to progress the next steps, including community consultation.

B.   That the following steps be taken by Council staff following Council’s Resolution:

i.    meet with DPHI to discuss the proposed Options;

ii.   conduct a public exhibition of the Options that are supported by DPHI.

C.   That the public exhibition results be reported to Council to seek Council’s endorsement of a final minimum lot size.

D.   The adopted minimum lot sizes for dual occupancy include a provision for the requirement of an 18 metre minimum lot width.

E.   That the Director, Strategy and Environment be given delegation to correct errors and improve clarification upon advice of the consultant Hill Thalis, that do not alter the direction of the Options.

 Rathna Rana Executive Urban Planner

Antony Fabbro Manager Urban & Heritage Planning

Craige Wyse Team Leader Urban Planning

Jacob Sife Acting Director Strategy and Environment

Attachments:A1June 2024 DPHI Letter 2024/391621
 A2September 2024 DPHI Letter – Dual Occ next steps 2024/391200
 A3Hill Thalis – Dual Occupancy Lot Size Study December 2024Excluded2024/393401
ATTACHMENT No: 1 – June 2024 DPHI Letter Item No: GB.11
ATTACHMENT No: 2 – September 2024 DPHI Letter – Dual Occ next steps Item No: GB.11

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