Public exhibition of the planning proposal to amend Bega Valley Local Environmental Plan 2013 (BVLEP 2013) Clause 4.1A 'Minimum site areas for dwellings, multi dwelling housing and residential flat buildings' took place between 20 August 2021 and 19 September 2021.

One agency submission and 19 public submissions were received during the exhibition period.

Council said the LEP clause 4.1A was a barrier to increasing housing diversity and if amended could also streamline the development assessment and approval process.

Several concerns were raised in submissions including that smaller size building blocks would result in overdevelopment or reduce amenity in villages and towns, that blocks of flats in villages and low-density areas would detract from the reasons for living there or negatively affect land value.

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Other concerns related to more cars and boats being parked in streets, changes to setbacks and lot sizes, the mental impacts of living too close to other people, the potential for formation of low rental ghettos, reductions in tree canopy and privacy and the potential problems with the provision of water and sewer infrastructure, medical facilities, schools and green play areas to service the increase in population.

In response council staff said that permitted land uses were controlled by the land use table and this planning proposal did not seek to change the land uses that are permitted in each zone.

The planning proposal does not include any changes to the minimum lot size that applies to subdivision of land. There are no changes proposed to existing height of buildings controls or floor space ratio which combined serve to limit the total floor area based on the size of the lot, staff said.

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The planning proposal will increase the number of units that can be approved on land that is zoned R3 medium density residential and B4 mixed use to increase housing diversity on land with capacity for more intensive development.

Staff said that the impacts of each subsequent development application including potential effects on neighbours and the locality would be assessed on a case-by-case basis with each DA. Future development may be subject to upgrades to the water and sewer network and contributions will apply towards the provision of public infrastructure.

Council said the change was "unlikely to result in adverse amenity impacts for the community" because site density was controlled in the R2 and R3 zones through mapped floor space ratio standards.

Existing development controls such as minimum landscaping requirements, view sharing considerations, overshadowing controls and similar provisions work to control amenity and character, which will continue to apply when new development is considered.