LAKE Macquarie City Council's proposed controversial new Development Control Plan for 'sustainable development' may be illegal, the Housing Industry Association says.
The association was further concerned that the council's plan would confuse developers and impose extra costs and planning delays on new home buyers.
The council is proposing to overhaul the city's development controls to reduce greenhouse gas emissions with proposed restrictions including 600mm maximum cut and fill on sloping blocks, enforced use of energy efficient rated appliances and equipment plus enforced use of recycled materials.
The changes are described as "guidelines" and "suggestions" but Mayor Greg Piper confirmed on Friday that if adopted, they would effectively become rules enabling planners to refuse development applications that didn't comply.
Housing Industry Association acting executive director for the Hunter Clare Larkin told the Newcastle Herald last week she was concerned that the council was "stepping above its powers".
"They might not legally be able to do what they're trying to do," Ms Larkin said.
She said state law outlined that BASIX, the NSW Government's building sustainability index, overrode council development control plans.
The index sets energy and water-reduction targets to ensure new homes use less town water and fewer greenhouse gas emissions.
A council spokeswoman said the development control plan "guides future development in Lake Macquarie".
"Guidance is offered in some cases for developers who may want to achieve higher standards than those in BASIX and offer a more sustainable development," the spokeswoman said.
Ms Larkin said the council's plan must "clearly define between compulsory development controls and optional additional requirements for environmental sustainability in new homes".
She was concerned the plan could create confusion and lead to unnecessary planning delays and costly objections.
Mr Piper said he had "serious concerns" about the plan.
"Some of it is very controversial, though most of it is standard stuff but we won't support anything that makes life more difficult for development," Cr Piper said.
But he supported it going on public display for 42 days from next month to get industry and community feedback.
He wanted the council's sustainability department, which had significant input into the plan and had "basically created it", to have the opportunity to explore options to reduce greenhouse gas emissions.
Lake Macquarie councillor Daniel Wallace said the council's plan could increase house prices.
Cr Wallace said he was concerned the proposed new rules could make some planned housing subdivisions not viable.
"If you don't have cheap housing on the market, it will push the price up," he said.
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