Red tape binds shop top solution to Hobart homelessness

WHILE

welcoming this week’s housing summit there must be some serious consideration of a number of issues we in the Hobart City Council are seeing regularly. Those issues relate to the Building Code, overcomplicated planning provisions, holiday accommodation, the Tenancy Act, and the under-utilisation of open space carparking or “air space rights”. These are just some of the issues brought to the HCC but sadly either the reports have ended up on the shelf, or some are simply not taken seriously.

You don’t have to look far to see there is a vast amount of empty shop top space in and around the CBD that could be developed but because of the Building Code it is extremely difficult and costly to undertake the required refurbishments and upgrading. While these spaces remain vacant, solutions could be found to solve the Building Code issues surrounding these vacancies that prevent them from being used to help solve the housing crisis. It requires the will of both local and state governments to work with property owners and the building industry to come up with solutions.

At the same time, there are a number of HCC and privately owned open carparks which can be developed into housing. While still retaining car parking, there are plenty of examples in and around the city but more could be done to see this airspace developed into apartments. Granted there will need to be some amended planning conditions that allow more mid-range apartments to be built on site, increase the density factors and undertake spot rezoning, but with some foresight these sites are also possible solutions to assist with our current crisis.

The allocation of bonus plot ratios and increasing the density factor for developers who provide components of their development as either low to mid-range cost of housing or rental accommodation is also a way of encouraging more development. The most frustrating issue for developers whether small or large-scale is the over complicated planning schemes, the building codes, the costs associated with every obstacle from a proposed development to planning/ building approval. If we really want to see more housing development the process must be simplified rather than continuing with the current bureaucratic process that is compounded by political interference based on personal opinions rather than sensible and logical planning decisions.

The planning approval process needs to be taken away from local government and administered by an independent body similar to the planning tribunal where experts make these decisions rather than professional bureaucrats who are at times overridden by political expediency.

We know there has been an explosion of Airbnb homes which has eaten into the residential accommodation market. There is no doubt the nature of Airbnb has created a shortage in the long-term rental market which also needs addressing.

What is frustrating for

Obstacles to more housing are well understood and must be tackled, writes Marti Zucco

landlords, most of whom are just small investors, is how some renters use the Tenancy Act to stay for extended periods without paying rent. Only recently I had two people who expressed this frustration. One who had his home on Airbnb and decided to revert to long-term rental is now facing the issue of having to seek an expensive legal path to force tenants to pay their rent. This is a constant problem landlords face when a tenant stops paying rent and promptly advises the landlord of their rights.

There are a multitude of stories of tenants taking advantage of the Tenancy Act to remain on someone else’s property and in some cases, take possession for months without paying rent. This is the most common frustration for landlords. In my opinion, this could be part of the reason many have sought a change in the use their properties to the short-term holiday market and Airbnb.

Since my own move to holiday apartments rather than rental accommodation, I have had no experiences of the long-term rental market. But understandably, it has taken a number of apartments off the long-term rental market.

While the housing summit is welcome, without considering the vast number of issues surrounding longterm rentals and the obstacles owners and developers face, the summit could end up being nothing more than a talkfest.

The development process needs to be far more streamlined and planning and building application costs need to be reviewed. The Tenancy Act needs a significant overhaul that could ensure all parties in the rental market are protected including revisions to accommodate holiday accommodation. The other considerations could be the potential for stamp duty and land tax holidays for properties used for long-term rentals as well as changing the rating system from assessed annual value to a land rate base.

There are a number of shop top reports sitting on the HCC’s shelves so maybe this is a great place to start. Let’s sort out how we can adapt the planning and building codes to see these empty spaces used appropriately, and many for what they were built for in the first instance.

Marti Zucco is an alderman of the City of Hobart.