On 21 May 2014, the ACCC issued a draft determination proposing to authorise, for five years, Renewal SA to sell 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.
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.
When considering the application for authorisation, the ACCC considered that the proposed arrangement is likely to result in:
- an increase in the supply of affordable housing;
- greater flexibility in the delivery of affordable housing; and
- reduced financial commitment and risk for public funds (ie. Renewal SA's) through the involvement of private developers.