With rising house prices seeing many locals priced out of the rental market, Byron Bay’s Council is turning to new options for low-income housing.
The Council is reportedly considering setting up a Community Land Trust model (CLT) on two Council-owned sites in Mullumbimby – the old Mullum hospital and Lot 22 – so the land could be used for affordable housing.
Under the plan being considered, the land would be owned by a community based, not-for-profit entity, while the building would be owned or leased long-term by an individual household.
By taking out the cost of the land, the price of the housing goes down.
The CLT would charge an ongoing ground lease to the householder – but this could be subsidised to ensure that the housing remains affordable for people on low incomes.
“CLTs offer householder’s many of the benefits of home ownership, including householder’s control over a dwelling, security of tenure and transfer of occupancy rights, and the potential for some asset wealth building,” Council staff wrote in a meeting agenda.
“The ground leases on which the homes are built are inheritable, and properties on leased land can be bought and sold at prices determined by a resale formula spelled out in each CLT’s ground lease.”
The local paper reports that the proposal is likely to draw criticism from some in the local community – including that the site could be used for dedicated seniors’ housing – but it is another example of affordable housing that could challenge retirement villages and land lease communities.
