Granny Flats and Section 94 Contributions Explained

Hornsby Council were charging Section 94 contributions for granny flats, but last week decided to exempt them if the construction costs are under $100,000.00.
We build granny flats all over Sydney, all built on site and designed to blend into the surrounding environment.
Most are brick / tile so look like little cottages.

Anne.


Hi Anne,
I started this thread and I would ask you not to spam it with personal advertising.

Hornsby Council hasn't charged Section 94 levies for over a year.
Nice ad^
 
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Hi Anne,

I had a quick look at your website and noticed your Victoria design offers a "Optional attic ladder with roof storage in high pitched colorbond roof"

In the picture I also notice a window
http://www.gardenhomes.com.au/images/stories/Victoria_3D.jpg

Is installing that window legal? Wouldnt the certifier consider this to be "habitable" space?

I guess where I am coming from is what is stopping the person from then changing the ladders to a proper stair case. Its not like its an exterior feature, so its much harder for someone to check up whether its been put there legally.

Brazen, do you have any thoughts on this?
 
Hi Garden homes,

I had a quick look at your website and noticed your Victoria design offers a "Optional attic ladder with roof storage in high pitched colorbond roof"

In the picture I also notice a window
http://www.gardenhomes.com.au/images/stories/Victoria_3D.jpg

Is installing that window legal? Wouldnt the certifier consider this to be "habitable" space?

I guess where I am coming from is what is stopping the person from then changing the ladders to a proper stair case. Its not like its an exterior feature, so its much harder for someone to check up whether its been put there legally.

Brazen, do you have any thoughts on this?

Good question nek.

Two thoughts:
1. The roof space could never be considered as habitable space since the roof pitch is very low, like 15 degrees. You need minimum 2.4 m internal wall height (averaged over the width in attic rooms), so that space wouldn't be added onto habitable 'floor space'. BUT it would be considered as additional 'ancillary space'; so it may affect the overall calculations for permissable floor space.

2. You could 'leave the ladder out' until after approval so the roof space wouldn't be considered as used for anything.

There's nothing stopping you from adding a ladder to gain access to your roof space and there's nothing stopping you from adding some kind of window to your roof cavity either. Just ensure its properly sealed from the elements and vermin I suppose.
 
Interesting stuff.

I can see how you can get away with adding a roof window like this.

But the moment you add a proper window (not one in the roof cavity, but along the wall (like the one here - above the door), wouldnt that just set off alarm bells causing it to be treated as "ancillary space"

As for roof pitch, is it possible the change the pitch, say the roof starts off at 35 degrees, but then decreases to 15 degrees say 1.5 from the highest point, therefore reducing the actual height of the structure, but gives more using space in the attic due to the increased pitch at the edge of the roof.
 
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Roof lights are ok. A window, even a dormer window in the roof cavity shouldn't be a problem. Some houses have dummy dormers for that special look as well. It all comes back to whether she's a habitable space or not. You can designate it as decorative I suppose. It shouldn't stop you adding a window. Remember that the roof space has trusses and other supporting members so it would be obvious that the space isnt for living in.

Changing the pitch like you mentioned sounds like a 'dutch gable' or perhaps a 'quaker' roofline like this:
http://www.sydneysheds.com.au/quakersbarns.html
These I have done in rural settings for people and the upper storey or mezzanine is indeed calculated as habitable floor space.

Also worth noting is that oce you reach 3.8 m in height you must triple your rear setback from the allowed 3 m to around 9 m or more to accomodate a taller granny flat. i.e. 3 m + 3x(additional over 3.8)~6 m = 9 m rear setback (11 m on blocks larger than 900 sq m); so this is very restrictive for pretty much all residential lots.
 
Hi just wanted to add to the list of councils.

Spoke to Botany Council a young planner who didn't give me her name but was helpful. There is no section 94 contribution for a granny flat if it is for use by a family member. However if it is being build to be rented out then it is $20k. She made it sound as if this is something that is going to be standard across the state (?) being put in legislation soon, etc.

cheers Brad
 
Hi just wanted to add to the list of councils.

Spoke to Botany Council a young planner who didn't give me her name but was helpful. There is no section 94 contribution for a granny flat if it is for use by a family member. However if it is being build to be rented out then it is $20k. She made it sound as if this is something that is going to be standard across the state (?) being put in legislation soon, etc.

cheers Brad

Hi Brad,

It does vary from Council to Council. They each have their own contribution plan..which kinda sux.

This is what the Department of Planning has to say on the matter:
http://www.planning.nsw.gov.au/LinkClick.aspx?fileticket=vldAEayqCeY=&tabid=313&language=en-AU

Q. Do section 94 development contributions apply?
A. The AHSEPP does not affect the levying of development contributions under section 94 of the Environmental Planning and Assessment Act 1979.
 
Is there still no contribution in Blacktown?

And does this differ from a construction certificate which I'm told is required in Blacktown Council ( was told an approximate cost $3,500-$5,000)?
 
Is there still no contribution in Blacktown?

And does this differ from a construction certificate which I'm told is required in Blacktown Council ( was told an approximate cost $3,500-$5,000)?

Do you still have to pay that amount if you go through a private certifier?
 
Is there still no contribution in Blacktown?

And does this differ from a construction certificate which I'm told is required in Blacktown Council ( was told an approximate cost $3,500-$5,000)?

Yes this is a different fee altogether.
Blacktown Council, don't charge S94 Contributions on granny flats. Its been asked elsewhere here.

Question above: The private certifier will notify Council of your approval and then its up to them to chase you if they feel you owe them this (ridiculous) levy. Id take it to the Minister of Planning if they tried it on me...or write a letter saying my mummy is going to live in it ;)
 
Hi Brazen

I was at Ryde Council today and they seemed adamant that Section 94 applies to granny flats. It's not surprising but I'm not going to take their word for it.

The thing is, I want to use a private certifier and they need to see S94 contributions paid before issuing a CDC. They also said they've never known of an exemption. The works will be <$100K.

My question is - do I provide the private certifiers with a letter requesting exemption which they then pass onto council when they notify them of works? Or should I send the letter to council and (hopefully) get a letter back approving my exemption, which I then give to the certifiers and get my CDC?

Also, have you ever had an exemption from Ryde before?

Many thanks
 
Ryde: NIL- If cost of works is under $100,000. A letter requesting the exemption must accompany the development application.

That's the situation^.
 
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I had an online chat with a Parra council. She said there will be 1% contribution charge for a $100K granny flat!
 
I had an online chat with a Parra council. She said there will be 1% contribution charge for a $100K granny flat!

Parramatta: NIL-for costs of works under $300,000

May I humbly suggest that folks need to do more than chat with other folks who (almost always) have little to no idea on how these things are calculated. Council's customer service people are prime candidates for this.

Section 94 Contribution Plans are lengthy and complicated documents. My reporting these findings here is after Ive thoroughly raed them, called Council's Financial Branch and aslo had it tested with real clients.

So Ive read and dealt with Parramatta Council's S94 Contributions several times over the last 12months and my clients (Ive done over 80 granny flats in the last year) have paid a net amount of.....zero....despite some Council's shot at the apple.

I mean, it's good that we can share each other's info but even the people @ Council often get things wrong. It's just a 9-5 job really. I often have to 'educate' Development Assesment Officer's on Building Code compliances, client's financial commitments (bonds & fees) and sometimes even Council's own development policies. Having to correct them is not quick or easy and it's really not fun. In my experience, Council employees hate to be corrected; so we do it gently and in a 'docile' manner. i.e make it seem like they knew all along :)

Bottom Line: There's always a way to save money on many areas of Development. You just need to hook up with the right people who are experts in their field.

As they say, a little information...
 
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NOTE:
As of Today (Monday 11/07/2011) Blacktown Council do charge Section 94 Levies and you can't get around it anymore like we used to- by submitting a letter from the Owner saying that a relative is moving in. This clause has been removed from their contributions policy. This means a fee of approx. $5,0-0 (for 2 bedroom dwelings) must be paid to them by the Owner.


I only discovered this today when one of my clients was refused an exemption of this crazy fee, despite a letter showing his 87 year old father is moving in :(

Not many Council's are doing this- a small handful in NSW. The Planning Dept don't like it but there's not much they can do since the Local Govt Act isnt within their jurisdiction. Sux.

This document tells of what Planning want but 'some' Council aren't playing well with others on this exorbitant and unethical fee.
http://planning.nsw.gov.au/LinkClick.aspx?fileticket=WiOaUmrV-oo=&tabid=313&language=en-US

Read Clause 1.6

"Suggested response:
a) Provide councils the option of not charging section 94 contribution charges at all or establishing a standard contribution rate across the State based on the cost of works consistent with the current methodology applied under Section 94(A) as follows:
- $0 - $100,000 - no contribution;
- $100,000 - $200,000 - 0.5% contribution;
- over $200,000 - 1% contribution.
(b) Review the practices of councils in charging for new services under other legislation in relation to the scale of the secondary dwelling proposal."


^^On top of all this, some NSW Country Councils are charging additional water-supply headworks charges and sewerage levies as well on granny flats(worth thousands of dollars)...yep. And they call it 'Affordable Housing'.
 
Well, as of March 2011 RYDE COUNCIL has also added all granny flats to the list of projects which must pay Section 94 Contributions.

It used to be that as long as the cost of works was under $100,000 you were exempt.So...

RYDE COUNCIL:Now ALL Secondary Dwellings (Granny Flats) must pay $6405.39

I just hope more Council's don'd leech onto this and start getting greedy as well.
 
HORNSBY COUNCIL:
(AS OF 15/07/11)

2.12 Exemptions
Council may exempt developments, or components of developments, from the requirement for a
contribution that include:
• Alterations and additions to a dwelling with a total value less than $100,000.
Affordable housing that meets council requirements.
Council will consider each application and determine if the application merits full or partial exemption
 
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