GROUNDED SUBMISSION TO “BIG IDEAS FOR VICTORIA’S FUTURE”

As housing affordability continues to challenge Victoria, we presented a visionary submission to the state’s “Big Ideas for Victoria’s Future” inquiry. Our submission focuses on innovative, community-driven solutions that can deliver long-term affordability, resilience, and sustainability to regional and urban areas.

Community Land Trusts (CLTs): A Path to Perpetual Affordability

At the heart of our recommendations is the Community Land Trust (CLT) model, which offers a revolutionary approach to housing. CLTs separate land from housing ownership, allowing communities to retain control over land and keep homes affordable for generations. This model captures public subsidy and community-created land rents, channelling them back into the Trust to reduce debts and expand affordable housing stock.

In Victoria, CLTs could be a useful sidestep to skyrocketing land prices. By reducing the deposit gap by up to 60%, CLTs make homeownership achievable for more people, whilst locking in affordability over multiple generations through a resale formula that ties sale prices to local wage growth.

“The logical progression is to allow for community focused groups and smaller NFPs who may not be registered Community Housing Providers to also be granted such confidence via legislation." 

Streamlining Affordable Housing Through Policy Reforms

Grounded also proposes critical reforms to Victoria’s planning processes, including:

  • Simplifying the Section 173 process for landholders committed to affordable housing, reducing red tape for ethical developments.
  • Supporting community-led exception sites, where landholders donate property to create affordable housing, bypassing traditional market-driven developments.
  • Incorporating mandatory inclusion policies into all new developments to ensure that affordable housing is prioritized and maintained over time.

These policies would empower local councils and communities to take charge of housing development, ensuring that regional towns have the resources to thrive.

Planning Flexibility for a More Resilient Future

Our submission also calls for greater flexibility in planning laws, particularly in rural areas where affordable housing options are scarce. By allowing smaller landholders to subdivide properties for affordable housing development, Victoria can address both housing shortages and the challenges of climate resilience.

Conclusion: Building a Housing Future for All

As Victoria faces an unprecedented housing crisis, Grounded is advocating for bold, innovative solutions that put communities first. Our submission to the “Big Ideas for Victoria’s Future” inquiry is a call to action for government, developers, and communities to work together to create a housing ecosystem that prioritizes long-term affordability, resilience, and sustainability.

Let’s build a future where housing is a right, not just an investment!

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