In two years time, it will be mandatory that all new new high-rise apartments in Wollongong include affordable housing.
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And the amount developers need to include will get bigger every year.
The move is part of Wollongong City Council's draft affordable housing policy, which is up for debate at Monday night's council meeting.
The policy was identified as a priority in the Wollongong Housing Strategy and took into account state government changes to promote affordable housing.
Rather than look to duplicate the state government work, the council's affordable housing policy planned to address "policy gaps" and focus on those developments still assessed by council staff.
"From 2026 [the policy will] require the inclusion of affordable housing rental dwellings in larger residential developments," council business papers stated.
"Initially 3 per cent of floor space is proposed, increasing by 1 per cent per year until 10 per cent is reached on July 1, 2033.
"Development industry representatives have indicated that a phased introduction allows the market to adjust to the change."
If approved, the mandatory affordable housing requirement would start on July 1, 2026, and apply to any flat development or shoptop housing providing more than 20 dwellings.
If a developer cannot provide affordable housing on the site, they will have to pay the council an amount based on the residential sales price value of an appropriate new residential unit dwelling in that suburb.
The requirement to supply such housing would not apply to social housing provided by Homes NSW, student accommodation or affordable housing developments provided by a registered community housing provider.
The draft policy quotes the NSW Planning and Assessment Act's definition of affordable housing, noting it was "housing for very low income households, low income households or moderate income households".
At present that means a gross household income between $717 and $1721.
The policy also looked at waiving development application fees for those building emergency accommodation, accessible housing and affordable rental housing by registered providers.