Council
12 June, 2026
Councils call for loans scheme to help unlock housing supply
Wollondilly and Camden councils have joined calls for a $5 billion no-interest loans scheme to fund new infrastructure.
Wollondilly and Camden councils have joined calls for a $5 billion no-interest loans scheme to fund new infrastructure.
Eight councils from the Greater Sydney region are calling on the State Government to implement the scheme so they can fast-track new infrastructure and unlock housing supply.
They say construction of roads, stormwater and other infrastructure would help unlock 70,000 in their own municipalities alone and would help NSW meet its target of 377,000 new homes under the National Housing Accord.
Details of the Unlocking Homes plan were released this week by Local Government NSW (LGNSW).
Under the plan, the NSW Government would provide a $5 billion interest free facility for councils to deliver essential infrastructure and councils would repay the loan funds once they start receiving developer contributions.
The councils are also calling on the NSW Government to forward-fund $3 billion worth of infrastructure in growth areas with costs recouped progressively from Housing and Productivity Contribution receipts.
They also want an update to the list of infrastructure that developer contributions can be used for so they can deliver social infrastructure including libraries, childcare facilities and swimming pools.
LGNSW president Darcy Byrne said the system for building new infrastructure needed for new homes was “broken” and needed to be “remade”.
“We agree with the NSW Government that the housing crisis is the number one challenge facing the state but we also know that too little infrastructure needed for new homes is making the crisis worse,” he said this week.
Cr Byrne – the mayor of Inner West Council – said trying to tackle the housing crisis without new infrastructure was “like fighting with one hand tied behind your back”.
“By making no-interest loans available to councils to build basic infrastructure right now the Government could turbo charge housing construction in green fields sites while still recouping all the funding from developer contributions paid to council when the homes are built.
“This is a fiscally responsible solution for the NSW Government, which can access lower interest loans than councils, and will benefit from billions of dollars in stamp duty revenue when the homes are completed.”
Besides Wollondilly and Camden, the Unlocking Homes plan also targets the municipalities of Campbelltown, Liverpool, Penrith, Blacktown, The Hills and Hawkesbury.
According to LGNSW, 1526 new homes have been built in Wollondilly since July 1, 2024 and another 653 dwellings have been approved but work is yet commence.
It says ‘enabling infrastructure’ would pave the way for another 23,306 new homes – almost half of them in the Wilton Growth Area.
Loan funds would be used to upgrade the Wilton wastewater system and to undertake work on the Picton Road/Hume Highway interchange and Wilton Park Road.
In Camden, 2650 new homes have been completed since July 1, 2024 with another 785 new homes approved.
Another 6000 new homes could be delivered in the Leppington Town Centre with supporting infrastructure including major works on the Dickson Road corridor.
Cr Byrne said funding arrived too late under the current system.
“That means housing is delayed, communities wait longer for facilities and the cost only goes up,” he said.
“The NSW Government has the power to fix this.
“By backing LGNSW’s proposals and partnering with councils, it can unlock the infrastructure needed to get housing moving.”
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