Granny Flats and Section 94 Contributions Explained

[Rockstar]

aaahaa! well done Rockstar

What was the total cost for fire-proofing the granny flat portion? Was it an existing dwelling or had you just built this? Sorry I should know your situation from previous PM's but my mind is blank atm

Oh, and is the total cost with you doing the work, or did you pay someone to do it pls?

I ask because I get a lot of people wanting me to quote for internal (attached) granny flats but as you know it depends on the geometry/layout of the house.

Cheers m8.

It was an existing unapproved area which had been infilled under the main house. The ceiling height throughout was just a fraction under 2.4m so we had to rip out the ceilings in the living room and bedroom. Kitchen, bathroom and hallway only require 2.1m height so we just sheeted over the existing gyprock. Lounge and bedroom were resheeted using low profile battens (16mm) to ensure the 2.4m limit was satisfied. The wall between the garage and entry deck had to be double layer fyrchek (16mm + 13mm). All ceilings were one 13mm layer fyrchek. Existing timber poles (original house was pole home construction) running through GF had to be boxed in with fyrchek. The 2100x2100 glass sliding entry door had to be replaced by a solid timber door with automatic closer. Penetrations for electricals had to be tight fitting with fire mastic around. Smoke alarms had to be interlinked between top and bottom dwelling.

Gyprockers cost (labour + materials) was about 6k for fyrcheck and fire mastic sealing.
Chippy cost around 1.5k
We did painting
Electrical work will be around $500
Other materials around $500
Council DA and CC around $1200

Hope this helps,

 

[brazen]

Thankyou Rockstar, that's VERY helpful. Back on topic ...

Update on Section 94 Contribution Fees (2011):

As of Xmas 2011:
The thing that REALLY (REALLY) sucks is when a 'certain few' Council's are STILL charging their ridiculous 'Section 94 Contributions Fees'.

Some Councils have revoked the fees, for example Byron Bay used to charge something like $25,000!! for a 2br granny flat, now it's NIL. Gosford have also waived the fee.

Most NSW Councils don't charge the fee if the cost of works is under $100,000.

Councils who I know for sure charge them (even if the cost of works is <$100k) include:
Blacktown: Aprpox $4,500 for 2 bedrooms
Cessnock: Approx $4,000 for 2 bedrooms
Lake Macquarie: $10,500 for 2 bedrooms
Ryde $6400 regardless of the size.


I believe there's a few more but the levy documents are quite dynamic and do change from time to time- which only makes it even more difficult to keep track of. I mean, some of these Councils have appointed new staff positions entitled 'Section 94 Contributions Officer' just to catch jobs done through private certifiers, and make sure the Owner gets charged this fee.

It's a travesty and it should NOT be allowed.

Ridiculous, yet there's nothing anyone can do to stop it. Council's are immune and effectively given free reigh to charge whatever they like, despite publicised objections by the Dept. of Planning and various members of State Parliament. The Dept Of Councils (through the Local Govt Act) is immune to any other agency's intervention. Im no lawyer but I speak to the Department of Planning regularly enough to know they're just as frustrated as I am!

They call it the 'Affordable Rental Housing SEPP' while Council's charge this ridiculous (unaffordable) fee. I suppose it's their way of sticking it up the Dept of Planning for taking DA work away from them via the SEPP? That's just my opinion, and yes, it P$*%^*%es me right off.

I'm passionate about it because it's unjust.
Most of these^^ LGA's are not wealthy areas!
Merry Xmas to the Councils I mentioned above.

 

[Propertunity]

Just to add to the list:

Maitland City Council does charge Sec 94 contributions. Depending on the area - $7,400 to $9,800 for a 1brm and $9,900 to $13,100 for a 2brm.

Port Stevens charges also but they have a proposal before them, which if adopted, will give a 50% discount on Sec 94 contributions for granny flats.

But I do agree with Brazen. It is time that NSW Planning over-rules these charges for granny flats totally.

 

[brazen]

Just to add to the list:

Maitland City Council does charge Sec 94 contributions. Depending on the area - $7,400 to $9,800 for a 1brm and $9,900 to $13,100 for a 2brm.

Port Stevens charges also but they have a proposal before them, which if adopted, will give a 50% discount on Sec 94 contributions for granny flats.

But I do agree with Brazen. It is time that NSW Planning over-rules these charges for granny flats totally.

The Sydney Daily Telegraph had a story last week about many NSW Council's hoarding their Section 94 Contrivutions Levies. So their not even spending the money on infrastructure/parks/libraries etc..

The budget to build a granny flat in, say Blacktown, is increased by around $5,000 for the Section 94 Contributions Levy.

Thats like 4 months' rent.

 

[Kael]

The Sydney Daily Telegraph had a story last week about many NSW Council's hoarding their Section 94 Contrivutions Levies. So their not even spending the money on infrastructure/parks/libraries etc..

The budget to build a granny flat in, say Blacktown, is increased by around $5,000 for the Section 94 Contributions Levy.

Thats like 4 months' rent.

In regards to the Section 94 Contributions levies - I completely agree! I was out looking at some properties today with a real estate agent and he agreed how stupid it was. They charge the fees, yet they don't even invest that money in THAT suburb.

In regards to Blacktown Council - I'm looking at properties in that area for the sole purpose of renovating the house and building a granny flat in the backyard. I'm looking around the Marsden Park/Riverstone/Schofields area. Just wondering if anyone knows how much the fees are now as we've been told by someone it's $15,000!

 

[Propertunity]

..... wondering if anyone knows how much the fees are now as we've been told by someone it's $15,000!

Be careful of taking advice from "someones"

In the Blacktown LGA its about $4.5K - $5K AFAIK. But really all it takes is 1 phone call to the council's contribution officer to find out.

 

[Ideo]

Be careful of taking advice from "someones"

In the Blacktown LGA its about $4.5K - $5K AFAIK. But really all it takes is 1 phone call to the council's contribution officer to find out.

Exactly.

Third hand information repeated as fact is a dangerous thing.

A little birdy has told me that the Department of Planning will not be stepping in over S.94 contributions thanks to the position of the current government that councils are awesome

 

[Kael]

Thanks for that guys

I think I've found the property I want now but we'll just wait and see what happens. In the meantime, I've contacted a few granny flat builders to see what they can do. I understand there is a maximum of 60m2 per granny flat, but is there a restriction on bedrooms?

 

[virgo]

Granny Flat

HI Kael

I saw a 3 bedder granny flat at 60sqm in Holsworthy last year...i nearly spluttered as the living area was so small...i wouldn't want to live in it myself...and i thought that the tenant turnover would be high...

But, what do i know there was a deluge of tenants lining up and it rented for cough..splutter $350 per week!!!

 

[Kael]

Oh thanks Virgo! That's good to know. You don't happen to know who built it? Small chance but it's worth asking. Haha.

 

[virgo]

Granny Flat

Hi Kael

I will Pm you

 

[devank]

I saw a 3 bedder granny flat at 60sqm in Holsworthy last year...i nearly spluttered as the living area was so small...i wouldn't want to live in it myself...and i thought that the tenant turnover would be high...

I also thought all three rooms were too tiny.. Only one person/couple could inspect a room at a time!

 

[Propertunity]

Wyong Shire waives Sec 94 Contributions until Sept 2012

Well it is official. Wyong Shire waives Sec 94 Contributions until Sept 2012.

See page 17 of the attached minutes of meeting.

Let's hope more councils see sense and do not only the same but also continue to not charge Sec 94 contributions on what is supposed to be Affordable Housing.

 

[brazen]

Well it is official. Wyong Shire waives Sec 94 Contributions until Sept 2012.

See page 17 of the attached minutes of meeting.

Let's hope more councils see sense and do not only the same but also continue to not charge Sec 94 contributions on what is supposed to be Affordable Housing.

That's awesome news! Thanks Propertunity. I'll add your post to the 'Granny flats and section 94 Contributions Explained" thread if you don't mind....Oh wait, doh this IS that thread. <slaps self on the forehead>

 

[brazen]

Just did a Granny Flat in EAST MAITLAND. Maitland Council charged my client $10,500 for a 2 bedroom granny flat, cost of works at $78,000

Another greedy Council^^

 

[bricman]

I have had personal experience of an investment company in Western Sydney who build dozens of Granny Flats a year for their clients and get their clients to sign a declaration form stating that the user of the building will be over 55 years old (think its 55)

This gets around the Section 94 Contributions, which is totally up to the local council whether they charge it or not.

If a company such as this is doing it on a regular basis, why cant individuals do the same.

The council in question is Penrith, they charge S94, even tho some departments at council say they do not!

 

[brazen]

I have had personal experience of an investment company in Western Sydney who build dozens of Granny Flats a year for their clients and get their clients to sign a declaration form stating that the user of the building will be over 55 years old (think its 55)

This gets around the Section 94 Contributions, which is totally up to the local council whether they charge it or not.

If a company such as this is doing it on a regular basis, why cant individuals do the same.

The council in question is Penrith, they charge S94, even tho some departments at council say they do not!

Hi bricman,

Penrith used to allow the stat dec as you've stated. It actually changed about 6 months ago; BUT as long as the 'estimated cost of works' as written on the application form (to your Certifier) is under 100k you don't have to pay any Section 94 Contributions at Penrith I believe now.

 

[bricman]

Interesting

My project works were estimated at $25k (correct) on the application for the DA and they still wanted to charge it, was a condition on the DA.

So they have stopped doing the declaration now, probably because of that stupid investment company taking the council for a ride, they wised up in the end after dozens of new applications!!

 

[brazen]

Just had another client get charged $5,850 in Section 94 Constributions Fees by AUBURN COUNCIL.. Now I have to try and explain this horrendous fee to a lovely Asian family who barely speak a word of English.

 

[JWR]

Are the Sec 94 Conts just for granny flats or for all developments?

i.e. would it be the same charge if under 100k if I built a house instead of a granny flat?