Couple told two modular homes on one block makes it an 'estate'

On a half-empty suburban block sits an incomplete Australian dream, suspended in planning limbo.For two years Caitlin Holme and Chris Robinson have been trying to build a modular home on a large subdivided block they bought with Ms Holme's sister.The problem is, Ms Holme's sister has her own modular home there.Wollongong City Council has ruled that having two modular homes on the property met the definition of a "manufactured housing estate".A modular home is built on the rear of the block in Bulli. (ABC News: Grace Crivellaro)"I think not many people realise there was this weird thing," Ms Holme said."Like suddenly two houses means it's a manufactured housing estate?"It's not a caravan park."The decision has left the couple paying rent and a mortgage while raising two young children."We don't want to give up on the plan of living next door to my sister and her family, it's too good of a dream to walk away from at the moment," Ms Holme said."The reality is housing prices are more expensive and our generation has to be a bit more creative about how you make that a reality."But I think [with] everything we've been through in this process, we're not super optimistic anymore; we still just feel so up in the air."Chris Robinson and Caitlin Holme want to build on their subdivided lot. (ABC News: Grace Crivellaro)The couple bought into the 1,840m2 block in 2024, hoping each family could have its own home while sharing the land.Ms Holme's sister's modular home had already been placed on the back end of the block.The plan was to place another modular home at the front."It felt like an amazing way we could live in a beautiful spot and make it easier in terms of costs," Ms Holme said."This idea was planted when I was pregnant with our first child who is now four ... now we've got our second, and she's just turned one."An aerial view of the Bulli block. (Supplied)The couple's dilemma comes while the NSW government embraces modern methods of construction as a way to speed up the supply pipeline in a housing crisis. In May it announced a proposed shake-up of building laws, quoting the Commonwealth Productivity Commission, which estimated modern construction methods could cut building costs by up to 20 per cent and halve construction times.Ms Holme and Mr Robinson were confident their application would be approved because the same modular home builder had delivered dual occupancy projects in other NSW council areas, including in Port Stephens. But it was rejected.The existing modular home was built in a factory before being assembled on the block. (ABC News: Grace Crivellaro)Wollongong City Council determined that putting two modular homes on the site fell within the definition of a manufactured housing estate."The Wollongong Local Environment Plan permits one such modern method of construction (MMC) development per allotment within the current zoning," a spokesperson said in a statement. "More than one MMC home presently constitutes a manufactured housing estate which is not permissible under the current zoning. "Planning legislation does not allow a council to approve a prohibited use."After consulting a town planner, the family subdivided the block and resubmitted the proposal, but it was rejected again for the same reason."It feels like we're still in purgatory," Mr Robinson said."I feel like we did everything that was asked of us. We followed the state and federal government's advice to move out of the city."They're spruiking modular housing. We ticked all those boxes and now we're just waiting."Building reformsThe NSW government has introduced new building laws designed to remove the distinction between modular and traditionally built homes for planning approvals.Building Minister Anoulack Chanthivong said the reforms would create a single approval pathway regardless of how a home was constructed."It will establish a new building approvals pathway that will no longer be determined by the construction method, so a house will be treated as a house whether it be prefabricated, traditionally built or a combination of both," he said in a statement.The minister said the reforms would reduce red tape, speed up approvals and help deliver homes.Wollongong City Council said it had advocated for clearer legislation for approving modular builds."Further detail is required and [the] council is looking forward to the new legislation clarifying definitions and planning pathways that will better enable us to consider modular housing applications," a spokesperson said in a statement.Paul Scully says building reforms should clear up inconsistencies between councils on approving modular homes. (ABC News: Madalyn Date)"This includes vagaries within the definitions and requirements for manufactured homes and manufactured home estates."Planning Minister Paul Scully said the proposed reforms should resolve the issue faced by the Bulli family."When you've got this anomaly … that modern methods of construction aren't dealt with in the same way as traditional methods of construction, we've got to deal with that," he said."If we pass the bill … that uncertainty gets resolved."