The scheme provides for owners of eligible heritage-listed buildings to be awarded heritage floor space after preparing a conservation management plan and completing agreed conservation works.
The awarded heritage floor space, or HFS, can then be sold to a site that requires it as part of an approved development application. The money raised offsets the cost of conserving the heritage item.
How the scheme works
The HFS scheme applies only in central Sydney. An owner of a building which is a heritage item may apply to be awarded HFS when seeking approval for conservation works, or as part of a development that includes the land occupied by the heritage item. The granting of such an award creates HFS supply.
Developments can only achieve certain development potential if HFS is transferred or allocated from the pool of awarded HFS. The requirement to allocate HFS to a development site creates HFS demand.
Selling or transferring HFS is a private transaction between the owner and the prospective buyer. We act as the scheme administrator. The cost of legal agreements, transactions and other documentation associated with the award and allocation, or change of HFS ownership, is met by the owner and prospective buyer.
The scheme is established by the planning controls in the Sydney Local Environmental Plan 2012 (clauses 6.10 and 6.11) and the Sydney Development Control Plan 2012 (section 5.1.9) details how HFS is awarded and allocated.
HFS purchase price
The purchase price of any HFS is determined between the owner and the prospective buyer and depends on quantum and market conditions.
It's the prospective buyer's responsibility to contact the HFS owner to negotiate the purchase price.
The Heritage Floor Space update provides information about recent sales and average sale prices.
Eligibility for HFS Awards
To determine whether a building is eligible for heritage floor space to be awarded, refer to clause 6.10(2) of the Sydney Local Environmental Plan 2012 and section 184.108.40.206 of the Sydney Development Control Plan 2012.
Once eligibility for awarding HFS has been established a development application, including a conservation management plan, is lodged with us. A request for an award of HFS may accompany a development application for conservation works, where an award of HFS is registered upon completion of the works. An award may also be considered for retrospective conservation works completed for an eligible building, supported by a conservation management plan, without the need for a development application. All relevant application fees must be paid at a customer service centre.