Navigating the Legislation
As of recent legislative updates, In-Fill Affordable Housing projects are subject to specific requirements. Now, it is mandated that an AIQS Certified Quantity Surveyor or RICS Chartered Quantity Surveyor must prepare a detailed calculation of the capital investment value and employment rates of proposed developments in this domain.
In-fill affordable housing initiatives aim to address the pressing need for accessible housing in strategically positioned areas, catering to a diverse range of households with varying income levels.
These provisions were previously housed under the State Environmental Planning Policy (Affordable Rental Housing) 2009 but were transferred to the Housing SEPP upon its enactment in November 2021.
In an effort to further incentivise the development of affordable housing, the NSW Government introduced reforms on December 14, 2023, specifically targeting in-fill affordable housing projects. These reforms aim to encourage private developers to increase the availability of affordable housing while also delivering more market housing options.
Understanding the Capital Investment Value (CIV)
According to Clause 3 of the Environmental Planning & Assessment (EP&A) Regulation, the capital investment value encompasses all expenses required to establish and operate a project. This includes costs related to the design and construction of buildings, structures, associated infrastructure, and fixed or mobile plant and equipment. However, certain costs are excluded from this calculation:
- Amounts payable or the cost of land dedicated, or any other benefit provided, under conditions imposed under Division 7.1 or 7.2 of the Act or a planning agreement under that Division.
- Costs relating to any part of the development or project that is the subject of a separate development consent or project approval.
- Land costs (including any costs of marketing and selling land).
- GST, as defined in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth.
- Understanding these regulations is crucial for ensuring compliance and accurately assessing the capital investment value of in-fill affordable housing projects.
Capital Investment Value versus Estimated Development Cost
Introduced on March 4th, 2024, by the NSW Department of Planning, the Estimated Development Cost (EDC) plays a pivotal role in the planning process, influencing various elements such as development approval pathways, assessment fee calculations, and specific requirements for Development Applications (DAs), spanning State Significant Developments (SSD), State Significant Infrastructure (SSI), and regional local authorities. The NSW Department of Planning stipulates that development applications with an EDC exceeding $3 million must be accompanied by an EDC report.
How does this relate to the Capital Improved Value (CIV)? Essentially, the EDC now supplants the CIV definition, although the calculations and estimates remain consistent. At Archi-QS, we take pride in our expertise in preparing these reports, ensuring compliance with the latest legislation.
Why Choose Archi-QS?
- Qualified Professionals: Our team comprises qualified quantity surveyors who are members of reputable professional bodies such as AIQS. With their expertise and accreditation, you can trust us to deliver accurate and compliant reports.
- In-depth Understanding: We possess a comprehensive understanding of the Environmental Planning & Assessment (EP&A) Regulation and its requirements concerning CIV and employment calculations. This enables us to provide precise estimations while adhering to regulatory standards.
- Tailored Solutions: Each development project is unique, and our approach reflects this. We work closely with clients to understand their specific requirements and deliver customised reports that align with their objectives.
- Compliance Assurance: With Archi-QS, you can rest assured that your reports will meet all regulatory requirements outlined by the NSW Department of Planning.
Get in Touch
Ensure compliance and success for your development project with our expertise. Contact us today to learn more about how we can assist you with Capital Investment Value (CIV) assessments and Employment Estimates.
