A university's refusal to pay an affordable housing charge to council while it undergoes a multi-million-dollar renovation has been escalated to the NSW government.
The University of Sydney (USYD) has sought approval of its $5.6 million proposal for the construction of a new kitchen to accommodate 100 students and "alterations and additions" to its Abercrombie student accommodation building in Darlington.
The City of Sydney Council had supported the development application on the condition USYD pay an $80,470 affordable housing contribution fee.
All development applications in the City of Sydney local area are required to make a contribution towards affordable housing.
The university has refused, arguing the development would renew and improve existing student accommodation, rather than add new beds.
At Wednesday night's council meeting, USYD's chief university infrastructure officer Debbie McNamara asked the local planning panel to consider removing the condition "due to the unique circumstances of the proposal".
She argued that plans to increase the building's floor space for a new kitchen on ground level to 238 square metres had "automatically triggered" the charge.
She said paying the fee would set a precedent and would have "unintended consequences on the university's accommodation".
"We ask for the application to be considered on merit," she said.
The panel referred the application to Planning Minister Paul Scully's office for a decision on whether the condition would be approved or removed.
The ABC contacted Mr Scully's office for comment.
Crown Land challenge
A spokesperson for the City of Sydney Council said it was uncommon for an affordable housing contribution to be challenged by an applicant, but the university was located on state-owned land. Disputed conditions on a development on Crown Land are referred to the minister by the local planning panel when an agreement cannot be met, according to the spokesperson. "Where the applicant is a Crown authority, conditions such as the imposition of the affordable housing contribution can only be imposed with the agreement of the applicant," the spokesperson said.
A USYD spokesperson said it remained committed to providing affordable student housing and reiterated the proposal would not create additional student beds or increase occupancy. "The proposed works at Abercrombie student accommodation are focused on improving dining and communal facilities and the residential experience for existing residents in response to student feedback," a spokesperson said. "In this instance, our position is that the affordable housing contributions are not applicable as our proposal is directed at improving our existing Abercrombie student accommodation rather than creating additional housing supply."
USYD 'progressing accommodation projects'
Last October, USYD's deputy vice chancellor Annamarie Jagose announced plans were underway to create 2,000 affordable student beds over the next five years. The spokesperson did not answer specific questions from the ABC on how many beds had been delivered so far, but said it was "progressing a number of accommodation projects through planning, design and approvals".
The university was also "investing in restoring and improving" its existing accommodation through the redevelopment of 38 Victorian terraces on Darlington Road. "We're also working with purpose-built student accommodation providers to make additional places available to students while our longer-term development pipeline progresses," the spokesperson said.
USYD offers not-for-profit student accommodation with rental rates differing depending on the type of accommodation, location and length of the occupancy agreement. Generally rates are offered below private market value, with a studio at the Abercrombie priced between $515 per week on a 52-week contract and $542 on a 26-week contract. Other buildings provided by the university include the Regiment Building and Darlington House in Darlington and the Queen Mary building in Camperdown. "We remain committed to increasing affordable accommodation opportunities for students and will continue investing in projects that improve accommodation both now and into the future," the spokesperson for USYD said.
