![\"Cara](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/2eac2150a6ec06998d97d1d31f89fa5d196e1074.png\")
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October 20, 2026 \u2014 5:30am<\/p>\n
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Remove items from your saved list<\/a> to add more.<\/p>\n No gift articles left<\/p>\n You’ve used all of your gift articles. 3 more will become available on the 1st of every month.<\/p>\n Close<\/p>\n AAA<\/p>\n Victoria will receive $350 million to improve community infrastructure in growing suburbs and regional hubs, making it the first state to qualify for the federal government\u2019s bonus aimed at improving services.<\/p>\n The funding commitment to improve liveability comes as former New York mayor Bill de Blasio warns that new developments across Melbourne need to have 25 per cent mandated affordable housing to help tackle the city\u2019s housing crisis.<\/p>\n De Blasio says in a speech to be delivered at this week\u2019s Melbourne Assembly civic forum at Federation Square that affordable housing supply around the world has failed to keep up with population, employment changes and pricing.<\/p>\n \u201cA city without enough affordable housing will simply fail,\u201d he says.<\/p>\n \u201cThe private sector will never produce enough housing for working-class families on its own.<\/p>\n Related Article \u201cOnly with an aggressive public sector role can enough affordable housing be built and preserved.\u201d<\/p>\n De Blasio will deliver his speech in the company of Prime Minister Anthony Albanese, who in a separate address to the assembly will reveal that Victoria is the first state to qualify for a financial bonus under the National Housing Accord.<\/p>\n Albanese is to say that under the New Homes Bonus scheme, Victoria will receive $350 million in federal funding to be invested into community infrastructure in growth suburbs and regional areas.<\/p>\n \u201cThis program is open to every state and territory \u2013 and I encourage them to follow Victoria\u2019s lead,\u201d the PM says in his speech.<\/p>\n The bonus is based on new modelling by the National Housing Supply and Affordability Council. The modelling shows that despite Victoria currently lagging by about 6000 homes in its annual quota for new dwellings built, an acceleration in construction is expected to deliver a five-year total of 287,000 new homes by July 1, 2029 \u2013 nearly 32,000 more than the state\u2019s minimum target under the accord.<\/p>\n Albanese will foreshadow further measures by the federal and Victorian governments to help more first home buyers enter the housing market.<\/p>\n De Blasio says market forces should not be left to determine the type and number of homes being built.<\/p>\n He introduced mandatory inclusion zoning policies during his time leading New York City, enabling private developers to construct higher or denser buildings than would normally be allowed in exchange for a commitment that about 25 per cent of new units would be affordable housing.<\/p>\n \u201cThis can be used to great effect in a high-value city like Melbourne,\u201d de Blasio says.<\/p>\n The City of Melbourne has advocated such zoning in the past, but Lord Mayor Nick Reece announced plans to abandon these targets, arguing current economic conditions would cause the policy to constrain housing supply.<\/p>\n The state government has drawn criticism for using a limited version of inclusionary zoning where it can fast-track residential projects \u2013 overriding the ability of communities or councils to contest them at VCAT \u2013 on the condition that private developers include 10 per cent affordable housing in new projects.<\/p>\n However, developers can bypass the requirement to build affordable housing<\/a> by instead paying a fee of 3 per cent of the project\u2019s value into a government housing fund.<\/p>\n \u201cAffordable housing\u201d in Victoria refers to private rental stock offered at a minimum 10 per cent discount to the market rate for moderate-income earners for a set number of years only.<\/p>\n Planning Minister Sonya Kilkenny and opposition planning spokesman David Southwick both declined to comment on whether Victoria should take up the 25 per cent affordable housing target.<\/p>\n Kilkenny instead said the government\u2019s Development Facilitation Program had so far delivered 16,000 new homes of which 18 per cent were affordable homes.<\/p>\n \u201cThe best way to make homes more affordable is to build more of them, and Victoria continues to build more homes than any other state,\u201d Kilkenny said.<\/p>\n Southwick said the Liberal Party wanted to lower property taxes.<\/p>\n \u201cOur team\u2019s housing plan is about lowering costs, delivering greater choice and restoring confidence to our construction sector,\u201d he said.<\/p>\n![\"Former](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/6a8b8530bc6cd17e6b5e4b179c45fa516579aa5f.jpeg\")
Former New York mayor Bill de Blasio (centre) and 15-minute city pioneer Carlos Moreno take in the sights of Melbourne with Age journalist Cara Waters.Eddie Jim<\/p>\n![\"Former](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/f7c505cd978eb44542cfcb66287049ccc247d5d7ef384dc63e6e4b5a425d47a0.jpeg\")
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