The NSW Housing Delivery Authority (HDA) has updated the criteria for the HDA State Significant Development (SSD) pathway following a planned 12-month review of the process. The changes are effective immediately and apply to new EOIs, as well as existing EOIs that have not yet been considered by the HDA.
For applicants, developers and project teams considering the HDA SSD pathway, the update is important. It does not remove the pathway, but it does sharpen the eligibility expectations and reinforces the need for EOIs to be well-positioned, accurate and aligned with the HDA’s objectives.
What has changed?
The key updates include:
- the estimated development cost threshold of approximately $60 million now applies to Greater Sydney, Newcastle and Wollongong;
- the $30 million threshold continues to apply elsewhere in NSW;
- land-based exclusions have been formalised for some locations, including commercial cores of Sydney, North Sydney and Parramatta CBDs, and regionally significant industrial land;
- affordable housing offerings must align with, or exceed, relevant Council or State policy requirements;
- where a concurrent rezoning is proposed, affordable housing offerings must be proportionate to the development outcome being sought; and
- the Department has indicated the updated criteria are intended to provide greater clarity and help identify ineligible EOIs earlier.
The HDA EOI pathway continues to apply to major residential development proposals that meet the relevant criteria, including location, yield and speed-to-market considerations. The current guidance refers to major housing developments valued at approximately $60 million and 100 or more homes in Greater Sydney, Newcastle and Wollongong, and approximately $30 million and 40 or more homes elsewhere.
Why does this matter?
The HDA pathway has been positioned as a state-led pathway to accelerate the delivery of major housing projects across NSW. However, the updated criteria make clear that not every large residential proposal will be suitable for the pathway.
Applicants will need to demonstrate more than project scale. A strong EOI should clearly address:
- housing yield and housing type;
- site suitability;
- strategic planning alignment;
- infrastructure availability;
- capacity to progress quickly to assessment and delivery;
- affordable housing alignment;
- whether a concurrent rezoning is proposed;
- whether land-based exclusions apply;
- whether another approval pathway has already been commenced; and
- whether the project is capable of being assessed efficiently.
The Department’s guidance also notes that proposals with significant and complex site histories may take longer to assess and may not be suitable for the pathway.
Existing EOIs do not need to be withdrawn
Importantly, applicants with EOIs already submitted do not need to withdraw and resubmit their applications.
The Department has advised that EOIs submitted under the previous criteria, but not yet considered by the HDA, will be evaluated against the updated criteria. Where further information is required, the Department may contact applicants directly. The Department has also indicated that withdrawing and resubmitting an EOI may delay consideration.
SSD declaration is not project approval
It remains important to distinguish between an HDA recommendation, SSD declaration and development approval.
A declaration through the HDA pathway does not approve the proposal. It enables the project to proceed through the relevant State Significant Development assessment pathway, where the proposal will still be subject to detailed merit assessment, Secretary’s Environmental Assessment Requirements, lodgement documentation, public exhibition and determination.
This distinction is important when preparing an EOI. The EOI should be strategic and persuasive, but it should also be realistic. Overstating the proposal, underplaying constraints or failing to address likely assessment issues may create risk later in the SSD process.
What should applicants do now?
For applicants considering the HDA pathway, or with an EOI already submitted but not yet considered, the updated criteria should prompt a careful review of the proposal.
Key questions include:
- Does the project still meet the relevant EDC and dwelling threshold?
This is particularly important for projects in Newcastle and Wollongong, where the $60 million threshold now applies. - Is the site affected by a land-based exclusion?
This should be checked early, particularly for projects in CBD commercial cores, industrial lands or areas subject to specific dwelling caps. - Is the affordable housing offer clearly aligned with Council or State policy?
If a concurrent rezoning is proposed, the affordable housing offer should be proportionate to the planning uplift being sought. - Can the project genuinely progress quickly?
The HDA pathway is intended for projects capable of moving efficiently through assessment and delivery. - Is there an existing DA, Planning Proposal or other approval pathway already underway?
The Department’s guidance notes that proposals already lodged through another pathway will not be declared unless withdrawn from that alternative pathway.
Meliora Projects’ view
The updated criteria reinforce the importance of strategic front-end planning before submitting, revising or progressing an HDA EOI.
For many projects, the question is not simply whether the project is large enough. The stronger question is whether the proposal is sufficiently well-located, policy-aligned, infrastructure-ready, deliverable and capable of being assessed efficiently under the HDA SSD pathway.
A well-prepared EOI should not read like a generic development summary. It should clearly explain why the project is suitable for the HDA pathway, how it responds to the criteria, and how any planning risks can be managed through the subsequent SSD process.
How Meliora Projects can assist
Meliora Projects can assist applicants, landowners and project teams with:
- HDA pathway eligibility reviews;
- EOI strategy and positioning;
- review of updated criteria against existing EOIs;
- strategic planning pathway advice;
- concurrent rezoning strategy;
- preliminary social impact and engagement considerations;
- preparation of supporting planning advice;
- review of SSD readiness and likely SEARs implications; and
- advice on alternative pathways where the HDA pathway is unlikely to be suitable.
For projects that may be affected by the updated HDA criteria, early review is recommended before further time and consultant costs are committed.
