Planning Minister Nick Champion has written to the State Planning Commission, urging them to consider and adopt changes to a Practice Direction that would place this obligation on the Local Government sector to avoid previous planning mistakes.
The planning reforms would require councils to be satisfied construction of common roads has occurred as part of all relevant development conditions, before greenlighting land division certificates which allow developments to proceed.
The reforms – sparked by the collapse of builder Felmeri Homes – would mean the sale of individual lots and builds could only begin after required common road infrastructure was in place.
The proposed changes, now before the State Planning Commission, would give additional protection to homebuyers along with the confidence they would be able to access their land, enabling their homes to be built.
The new rules would apply to all community title subdivisions of six lots or more where a private road was needed to connect new homes.
Current rules allow councils to approve community developments prior to the construction of common road infrastructure servicing homes, with some councils failing to bind developers to deliver the roads or provide a financial security bond if the works are not completed.
The failure of the Local Government sector led to homebuyers in Adelaide's south, stranded by Felmeri's collapse, unable to complete their unfinished houses after the developer failed to build an internal road – until the Government stepped in last month to finish the roadworks, allowing builders and owners to access the sites.
The O'Halloran Hill development was originally approved in 2015 by the City of Marion as the planning and development authority. Subsequent approvals were provided by council in 2020, effectively severing the link between enabling lots to be sold and construction of the road.
The planning reforms that have been requested by Minister Champion aim to avoid the same issue in the future while providing more security for families purchasing homes within community title developments – mandating standard conditions on relevant development approvals to ensure projects go ahead.
The Commission, an independent planning body which issues certificates to allow developments to proceed – based on council advice that all relevant conditions have been met – will consider the Minister's request at their next meeting on 5 October 2023.
The reforms would then come into effect following the meeting if approved.
As put by Nick Champion
We don't want a repeat of the gut-wrenching experience families went through when Felmeri collapsed, leaving them in a dire situation that was not their fault.
Families deserve to build their dream home without worrying about a lack of access preventing them from finishing their works.
This reform will make it clear to councils and developers they have a responsibility to play their part in building future communities as our government tackles the housing crisis.
Our planning system is agile but in circumstances like this it can step in when needed to ensure new homes are supported by the required infrastructure and key services.
As put by Andrea Michaels
The Felmeri situation was appalling and these reforms will help ensure that other families won't have to go through the nightmare that the homebuyers at O'Halloran Hill went through.
The Government continues to investigate Felmeri and will prosecute, if there are grounds to do so.
As put by Erin Thompson
The stories of the families devastated by the collapse of Felmeri Homes are heartbreaking.
I'm proud that this Government stepped in when the community needed help, allowing the homeowners to get on with their builds and move into their homes without further delay.
But this should have never happened.
I have called for changes in this space to safeguard homebuilders, and I am pleased Minister Champion has taken swift action to protect South Australian homebuyers now and into the future.
