The Australian Competition and Consumer Commission has issued a draft determination proposing to authorise Renewal SA to sell a section of a development site in Bowden, South Australia to Investec on the condition that 40 per cent of the dwellings are developed as ‘affordable housing’ supplied at below market rates.
This housing is to be made available to people in the moderate income category, who are often employed in the health care, social services and administrative support occupations.
Under the arrangement, Renewal SA and Investec will fix maximum rental prices and maximum sales prices (in accordance with affordable housing caps) and apply restrictive criteria for eligible participants.
“The ACCC considers that the arrangement is likely to contribute to an increase in the supply of affordable housing for people who may otherwise find themselves excluded from both the general housing market and social housing,” ACCC Commissioner Dr Jill Walker said.
“The arrangement is likely to result in little, if any, a public detriment since the development is limited to 80 dwellings in total and the maximum rental and sale prices are fixed by South Australian Government regulations.”
The ACCC is proposing to grant authorisation for five years.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Further information about the application for authorisation and the granting of interim authorisation is available on the public register.