Granny Flat Approval Pricing and Section-94 Contributions- What Are They and which Councils Charge these fees.
At Granny Flats Sydney, we are constantly on the lookout for ways to save our clients time and money. Today we’re talking about a sinister fee charged by some Councils in NSW, called Section 94 Contributions (or S94 Levies) Levy. These fees are purportedly charged by Councils to cover for additional load on the infrastructure when a developer builds a new dwelling. Granny flats are considered ‘dwellings’ and as such are on some Council’s radar as a way to make more money. One Council we know of has a dedicated ‘Section 94 Contributions Officer’ who’s sole purpose is to monitor Certifier Granny Flat Approvals and see where she can impose this inane fee.
We thought we’d better name and shame the few Councils still charging these fees in NSW. We feel quite strongly that granny flats in Sydney and Country NSW should not be charged these fees at all. Most Councils don’t charge them and some only charge the fee if the ‘Cost of Works’ is over $100,000, so that’s good since most granny flats don’t cost over $100,00. Unfortunately for some clients, they must pay these fees before approval can be granted by the Private Certifier. They are literally held to ransom.
It’s heartbreaking for us too in having to inform a client of these fees, since its just money gone to waste- hardly what you’d call ‘Affordable Housing’ is it? The NSW Department of Planning hate these fees as much as we do but they’re powerless to do anything about them. When a client asks me about these fees with respect to their entire building budget, I tell them the truth- that this money is taken by Council and there’s nothing they can do about it. I give them the analogy of walking into their bathroom with a wad of cash and flushing it down the toilet!
A few State Politicians have even tried to argue them out of existence in parliament (the Reverend Fred Nile is one) only to find that Councils are totally immune to being challenged on the implementation of these (ridiculous) fees.
So without further ado, lets list some of the currently known Councils who charge Section 94 Contributions
SYDNEY COUNCILS
1. Blacktown- 1 bedroom is about $3,500 and 2 bedrooms they charge about $4,500
2. Ryde- They charge around $7,000 for a granny flat
3. Auburn – They charge around $8,000
4. City of Sydney – It has ranged there recently (Councils have the right to change their fee without public notice as well!) but at last checking it was around $12,000.
5. Hornsby – They currently charge around $18,000 as of September 2013. This is the highest that we know of at the moment.
RURAL COUNCILS
6. Cessnock- Around $4,000 for 1 bedroom and around $6,000 for 2 bedrooms
7. Lake Macquarie- Around $4,000
There are a few more, but as stated above, Councils shift and change their position on the imposition of granny flat section 94 contributions ,so it’s very hard to keep up. Their policies are not a quick read either, so its hard to keep track. When you speak to a Council Officer, you’ll often get the wrong info as well.
Finally we ask that if you have recently been informed of any changes or know the price in your own Local Council area, please feel free to let us know by phone or you can post it here and we’ll make it public. I have a very long thread article on an investment forum which keeps track of these fees and people do add them for each Council as they’re made known. You can see the list HERE.
I hope this post has highlighted what is arguably the most horrendous aspect of what the state Government terms ‘Affordable Housing’ in NSW. We hope that something is done (soon) to abolish these ridiculous fees. We encourage everyone to make contact with your local member and make your complaint known- we know we have several times.
Warm Regards,
Serge Panayi- Granny Flats Sydney (NSW) Pty. Ltd.
