Key Learning Objectives
- Understand the concept of land value capture (LVC)
- Learn about the key principles and rationale for LVC
- Explore the ways in which LVC has been used effectively in different Australian and overseas jurisdictions
- Understand the legal context and requirements of LVC
- Learn about the development of good policy frameworks to support LVC implementation in different jurisdictions
- Develop a practical understanding of how LVC can be applied in your State context including:
- How to calculate land value uplift (LVU) in different development scenarios
- How to reasonably share or apportion LVU between developers and public authorities for public benefit
- Mechanisms for LVC such as voluntary planning agreements, mandatory capture, developer levies and other agreements
- Administrative procedures to ensure fairness and transparency
- Work through real case studies to make sure you have the skills to implement what you have learned.
About the Course
The intensive 2-day course is designed to equip participants with an understanding of the background and principles that underpin land value capture (LVC), and to provide practical skills to implement or understand LVC in their own State or development context.
LVC has been used effectively in some Australian and overseas jurisdictions to ensure that a reasonable share of the land value uplift that results from rezoning of urban land to higher value uses or from infrastructure improvements is captured for use as a public benefit. This is generally in the form of affordable housing or public infrastructure. However, LVC has not been applied as widely in some Australian states as others, and there is much to learn from overseas examples and from local government authorities that have been more proactive its application.
The affordable housing crisis affecting a number of Australian capital cities and regional areas has now increased interest in the use of LVC to make sure that some of the additional value created through the planning system can benefit the whole community. Likewise, constraints on public funding of infrastructure are leading State and local governments to explore how LVC can be used more effectively.
This course will provide participants with an understanding of the background to LVC, key principles and the ways that it has been implemented in Australia and overseas. It will help participants understand the legal and practical context to LVC in their State, and what a good policy framework for State or local implementation looks like.
A case study approach using real examples will show participants how land value uplift and apportionment are calculated, what mechanisms can be used to capture a share of uplift, and administrative procedures that should be used support its capture. Worked examples will support participants to develop practical skills to apply in their own context.
Who Will Benefit
This course will be of particular interest to State and local government authorities that are seeking to fund affordable rental housing and public infrastructure using reasonable, equitable and legal methods of LVC.
Private sector developers, community housing associations and others seeking to improve their understanding of this mechanism and its practical application will also benefit from the course.
Understand the fundamentals of Land Value Capture
- How is LVC defined?
- What is its history?
- What are the different types of LVC?
- What are the key principles that underpin LVC?
- What is the rationale for its use in different contexts?
- Where does it work best?
- What planning and development contexts are relevant to participants?
- What has their experience of LVC been?
- Share these experiences, or their perceptions of LVC?
- What tensions do they see in the principles and potential application of LVC?
Explore the practical and legal basis of LVC in different jurisdictions
- Explore the ways that LVC has been used effectively in different Australian and overseas jurisdictions
- Understand broad legal and policy frameworks to support LVC
- Understand the legal context and requirements of LVC in [NSW, Victoria or NSW]
- Understand the types of public benefit for which LVC can be used
- How do these examples from other areas relate to participants’ context?
- What are the similarities and differences between these examples and participants’ contexts?
- Where or in what circumstances might LVC be most appropriate for participants?
- What are the priority areas for creating public benefit?
- What are the limitations to its use?
Learn how to practically implement LVC (Part 1: calculation and apportionment)
- How is land value uplift (LVU) calculated in different urban or development scenarios:
– Greenfield sites
– Infill redevelopment
– Major Brownfield redevelopment
– Major Urban Renewal Precincts
- What formulae have been developed to calculate in different scenarios?
- How is a share or apportionment of LVU between developers and public authorities for use as a public benefit calculated?
- What would a ‘reasonable share’ or LVU look like?
- Take part in a practical exercise that looks behind the formulas and spreadsheets at the assumptions and inputs to LVU calculations
- Work with basic spreadsheets to understand the numbers better
- Take part in a practical exercise to work out a reasonable share of LVU under different scenarios
Learn how to practically implement LVC (Part 2: policy)
- Review real examples of LVC policies to understand the frameworks that have been developed by others
- Understand the principles that underpin these policies
- Understand the evidence base required for good policy development
- Understand the components of good policy
Work in small groups to:
- Explore the type of evidence that would be needed to support good LVC policy
- Develop principles to underpin a LVC policy
- Develop the framework for a LVC policy
Learn how to practically implement LVC (mechanisms and procedures)
- Understand mechanisms that have been used by public authorities for LVC such as voluntary planning agreements, development levies and other agreements
- Explore the types of administrative procedures that can provide for fairness and transparency
Work in small groups to:
- Explore the type of agreements that might work best in relevant contexts
- Develop the outline of an agreement for LVC in their local context
- Develop the outline of procedures for implementation Review of the Course
- Summarise and recap on key learnings
- What have the take-home messages been for their local context?
- How could the course be improved?
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