Planning reforms to clear the path for more higher-density housing will have little impact in Wollongong, although the city's lord mayor says improved transport infrastructure is needed to realise these plans.
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The changes will also open the door to six-storey apartment blocks in parts of Kiama and Shellharbour.
Planning Minister and Wollongong MP Paul Scully has announced new measures to boost NSW's housing supply by allowing two homes on a single lot, such as duplexes, in all low-density residential areas across the state.
In the Illawarra and Shoalhaven, as well as Sydney, the Central Coast and Newcastle, terraces, townhouses and two-storey apartment blocks will be allowed in low-density areas near train stations and town centres.
Mid-rise apartment blocks of up to six storeys will be permitted within 800 metres of transport hubs, town centres and employment areas in medium-density housing zones in the 'Six Cities' region.
These new rules will override the local environmental plans (LEPs) of councils that do not already permit such housing in these zones; the LEPs that go beyond these new controls will remain in force.
Mr Scully said Wollongong could "do a bit more" and that was why it was included in the plan.
Wollongong Lord Mayor Gordon Bradbery said the proposed changes were in line with what was already permitted in the city's LEP.
However, Cr Bradbery said the city faced some geographical and environmental challenges such as flooding and landslips, and transport infrastructure was not adequate in parts.
He cited the suburbs north of Thirroul as an example, where the only road in and out is the often congested Lawrence Hargrave Drive.
Without corresponding transport infrastructure, Cr Bradbery said, some plans to increase housing density around certain town centres and train stations could not progress.
A Kiama Municipal Council spokesperson said the council was keen to plan for growth and ensure it was supported by essential infrastructure.
"The support of the state government to ensure this infrastructure provision is imperative if density is to be increased at appropriate locations," the spokesperson said.
They said the council was working through the proposed changes to understand if they could be addressed in the Kiama LEP.
The Shellharbour and Kiama LEPs both allow for "multi-dwelling housing" in low- and medium-density residential zones, but building height limits currently in place close to train stations and town centres look set to be overrode by the changes.
As an example, the area bordered by Burroo and Koona streets in Albion Park Rail is a medium-density zone close to the train station, but the current height limit is nine metres - far short of a six-storey building.
Similarly, a medium-density zone in central Kiama close to the train station will also become eligible for six-storey buildings under the changes.
A Shellharbour City Council said the council "has and will continue to monitor its planning framework to ensure that it continues to meet the changing needs of our community".
The government says the reforms will allow for up to 112,000 new homes across the Illawarra, Sydney, the Central Coast and Newcastle - 30 per cent of the 377,000 new homes NSW needs to deliver by 2029 under its Housing Accord obligations.
Government briefing documents revealed earlier this year that the state government projected a shortfall of 134,000 new dwellings over five years.
"This is about making sure that blocks that are zoned for a particular type of density will deliver the density that they were intended to deliver," Mr Scully said.
A new State Environment Planning Policy (SEPP) will set the height, floor space ratio, and minimum lot size requirements.
The proposed reforms will go on public exhibition next week, with the government hoping to implement the changes by mid-2024.