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Transcript of PowerHousing Australia Submission Senate Inquiry Into Affordable Housing
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Inquiry into Affordable Housing
Senate Standing Committee on Economics
Submission by PowerHousing Australia
Signature:
Name: Julie Quaass
Phone Number: 03 5441 8879
Postal Address: PO Box 122, BENDIGO Vic 3552
Organisation: PowerHousing Australia Ltd
Signatory Position: Executive Officer
Level of Authorisation: Scott Langford, Chair, PowerHousing Australia
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Executive Summary
The Australian housing system is broken. Affordability is stretched and there is an increasingsupply gap. Home ownership rates are declining, private rental is increasingly unable to offer
suitable housing for key workers and public housing is financially unsustainable and shrinking
in size as demand rises. Too few houses are built, and many are unaffordable to workers in
industries driving economic growth.
PowerHousing Australia represents large, professionally managed community housing
providers. We offer solutions to Government as ready and willing partners in addressing the
challenges of the housing system. Our proposals are not based on aspirational thinking, but
a track record of delivering around a thousand new social and affordable homes each year,
optimising government investment.
This submission is based on four inter-related themes. PowerHousing members can help
address a broken social housing system by increasing efficiencies, better utilisation of funding
available in the social housing system, transfers from public housing and entrepreneurial drive.
A sustainable system will allow new homes to be built, helping address the housing shortfall.
Development and renewal of properties by PowerHousing members creates sustainable,
vibrant communities. Together we can strengthen the economy, get more people into work
and allow industry to generate wealth.
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What can be done?
Our detailed recommendations include:
Encouraging the States to increase the scale of public housing transfers, including
targeted asset transfer, to sophisticated community housing providers with a track record
of efficiency and growth.
Creating a contestable growth fund for community housing providers as part of the
National Affordable Housing Agreement(NAHA) to drive innovation and system
efficiencies.
Promoting greater use of cross-sector partnershipsto deliver social and economically
sustainable developments, with major input from not-for-profit organisations.
Supporting the growth of new institutional investmentin affordable housing by
providing targeted support for housing bonds.
Making the National Rental Affordability Scheme(NRAS) permanent, but more
streamlined and consistent in delivery, targeted to need and with fewer loopholes. all
needed to attract investors.
Coordinating the roll-out of the National Disability Insurance Scheme, with providers
such as the members of PowerHousing playing a key role in meeting the need for
appropriate, affordable housing.
Encouraging a greater use of intermediate housing optionssuch as shared
ownership to help moderate income households move towards home ownership.
Our vis ion
Our vision is to build a sustainable system capable of meeting affordable housing need.
The 28 member organisations of PowerHousing Australia house 80,000 residents in
properties valued at over $7 billion. We have leveraged $355 million to increase housing
supply. We have a proven track record delivering new housing and quality tenancy
management. After a decade building capacity and professionalising, our model has been
confirmed as sustainable and effective in independent evaluations by KPMG, Ernst & Young
and AHURI. This success now needs to be replicated at greater scale.
PowerHousing members are trusted stewards of scarce public investment. We are
transparent in all that we do. Funding contestability means we bid competitively for new
opportunities such as capital growth funds, property transfers and NRAS incentives. This
encourages system-wide efficiencies, and widespread innovation using best practice social
enterprise approaches.
We understand the Commonwealths drive to increase housing system efficienciesat the
same time as public housing is financially unsustainable under current policy settings. This is
why we have submitted exciting positive proposals showing what PowerHousing members
can do for - and withthe Commonwealth and States.
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Table of Contents
Executive Summary .................................................................................................. i
Table of Contents .................................................................................................... iii
1 PowerHousing: Social Enterprise in Action ................................................... 1
1.1 Contemporary community housing ...................................................................... 1
1.2 Professionalising and growing the sector ............................................................. 2
1.3 PowerHousing Australia....................................................................................... 2
1.4 The International Housing Partnership ................................................................. 3
2 Building a Sustainable Social Housing System ............................................. 5
2.1 The challenge ...................................................................................................... 5
2.2 Our member organisations role ........................................................................... 5
2.3 A modern approach to public housing stock transfer ............................................ 7
2.4 Our recommendations to Government ................................................................. 7
3 Building and Managing Quality Homes ........................................................ 10
3.1 The challenge .................................................................................................... 10
3.2 Our member organisations role ......................................................................... 10
3.3 Leveraging benefits from NRAS ......................................................................... 12
3.4 Our recommendations to Government ............................................................... 12
4 Building Vibrant Communities ...................................................................... 15
4.1 The challenge .................................................................................................... 15
4.2 Our member organisations role ......................................................................... 15
4.3 Empowering our tenants .................................................................................... 16
4.4 Socially sustainable mixed communities ............................................................ 17
4.5 Our recommendations to Government ............................................................... 17
5 Building a Strong Economy ........................................................................... 19
5.1 The challenge .................................................................................................... 19
5.2 Our member organisations role ......................................................................... 20
5.3 Engaging tenants in work and training ............................................................... 20
5.4 Our recommendations to Government ............................................................... 21
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1 PowerHousing: Social Enterprise in Action
PowerHousingAustralia brings together Australias leading not-for-profit housing providers
who collectively manage over 38,000 social housing dwellings worth over $7 billion.
PowerHousing members have raised $355 million in debt to increase housing supply. We
deliver high quality services to tenants, help build cohesive communities and use
contemporary financial approaches to increase the stock of social and affordable housing
1.1 Contemporary community housing
Community housing is
affordable rental housingprovided by not for profit
organisations at below market
rent for low and moderate
income tenants. It forms an
integral part of Australias
housing system by providing
housing options which are
affordable, secure and
responsive to the needs of the
neighbourhood. The membersof PowerHousing understand
that successful outcomes for
tenants depend on building
strong and resilient
communities, not just houses.
They work closely with local
service agencies to build social
cohesion in what were often
areas of social and economic
disadvantage.
As exemplars in the community
housing sector, PowerHousing
Members are locally grounded
in and accountable to their
communities. They
acknowledge that secure and
affordable housing is a major
factor in stabilising the lives of
Housing for all
Unity Housings Northern Region Affordable RentalInitiative is a strategic partnership targeting new build keyworker housing. This will support expanding industries andfoster economic development for regional South Australia.The initiative incorporates housing for older South
Australians and people living with disabilities.
The project offers each of the 80 Unity homes a 1.5kWphotovoltaic solar generation system to reduce tenantelectricity bills by up to 50%. The project is an innovativepartnership driven by Unity between the Commonwealth andState Governments, three regional councils, the corporate
sector and three Regional Development Australia offices.Due for completion by mid-2014, the $20.7 million projectinvolves building a total of 102 properties, 22 of which will besold to the market, 60 will be rented to key workers and 20to older South Australians and people living with a disability.
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tenants and this leads to better health, employment opportunities and improved financial
stability. Community housing brings local, effective, flexible customised and innovative
management to communities.
1.2 Professionalising and growing the sectorCommunity housing has undergone a period of rapid change in recent years, best
demonstrated by the significant growth of PowerHousing members. The sector has grown,
diversified and professionalised and the broader industry network has expanded and
strengthened. Rapid growth has occurred with the transfer of dwellings from state and
territory governments as well as developing new housing supported by Nation Building funds
and through the National Rental Affordability Scheme (NRAS). Both the transfer of assets
from government and the upsurge in development have built the capacity of the larger
organisations, enabling them to raise private finance to further grow supply.
There has also been a marked change in the role of community housing organisations - from
a tenancy management model to a sophisticated model of tenant engagement and
management, community development, asset management and property development. They
now form alliances, joint ventures and special purpose vehicles. They work in partnership
with government, the private sector and philanthropic organisations.
PowerHousing members are modern and efficient with sustainable business models. They
operate within government imposed regulatory systems and are subject to the same
governance and regulatory rigour as major private companies. They employ professional
staff and have highly skilled boards of directors. Greater capacity and professionalism
positions these contemporary organisations to participate at much greater scale in theprovision of affordable housing.
1.3 PowerHousing Australia
PowerHousing Australia is the
national network of leading
growth community housing
providers who develop and
manage social and affordable
housing. Our members deliver arange of dwellings that meet the
needs of a diverse range of
tenants whilst focusing on
building strong and sustainable
communities, stimulating local
economies and providing jobs.
PowerHousing began in 2005
with recognition amongst a group
of Chief Executives of the scale of the emerging housing crisis and the enhanced capacity oforganisations to provide solutions if they collaborated to share knowledge and resources. It
PowerHousing at a glance
80,000 housing residents 28 member organisations
$355 million debt raised Assets managed $7.2 bn
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has developed into a unique forum for peer to peer exchange and collaboration amongst
housing professionals who are committed to improving lives through the provision of
affordable housing.
We have a diversity of members
ranging from organisations whosemain activity is housing provision to
multi service agencies which have a
housing division. The common
element is the commitment to
address housing need through
growth of supply, best practice in
housing and community
development, and excellence in
tenancy and asset management.
Throughout the year we hold
forums for groups including Chief
Executive Officers, Chief Financial
Officers, Asset and Development
Managers and Operations
Managers who come together to
network and share knowledge and
expertise.
An Exchangeis held annually andprovides opportunities for other staff
and Board Directors. In addition
PowerHousing advocates on behalf
of members and provides financial
benefits through aggregated
purchasing of advice and services,
research and benchmarking of
services.
1.4 The International Housing Partnership
PowerHousing is the Australian member of the International Housing Partnership, a
collaboration between more than 175 leading not-for-profit housing and community
development organisations in Australia, Canada, the United Kingdom and the United States.
Collectively the International Housing Partnership manages more than one million properties
which provide affordable homes for some 2,500,000 people.
A hand-up for the homeless
Western Australian based Foundation Housinghas justfinished building the first purpose built Foyer in Australia aspart of a consortium with Anglicare and the Central Institute ofTechnology. The Foyer provides secure affordableaccommodation and support for 98 young homeless people,including 20 young mothers. Housing is provided on the basisthey must be actively engaged in education, training oremployment. Foyer is a very successful model for youthhousing which has only recently been established in Australia.
Funding for the project came from a variety of sources. $20million capital build from Commonwealth funds, leased crownland from State Government, $3 million from Lotterywest forpartner office space and fit out, $10m from BHP for supportprogrammes with $10 million matching State funds. We alsowere successful in being awarded 98 NRAS incentives for thisproject. Ground floor commercial space will also help with theoverall financial viability of the project.
The first tenants moved in February 2014. We are nowworking toward the development of a Foyer in Broome withthe same consortium. We have secured land and are nowbeginning to talk to a number of potential corporate sponsors.The Broome Foyer will have an indigenous focus working withchildren from remote communities.
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The International Housing Partnership is a dynamic forum for peer to peer exchange
amongst housing leaders in the four countries. Each year it holds an international Exchange,
attended by executives from all four countries. Leading up to this event, the partnership
organises international workgroups which research practice in defined areas in each country
to inform the Exchange. The 2013 Exchange was held for the first time in Australia and
attracted over twenty Chief Executives from the US, UK and Canada, the largest group of
senior housing executives ever to visit Australia, to share knowledge and learning with
PowerHousing members. In addition to the Exchange a number of chief executives were
hosted by PowerHousing members as Thinkers in Residenceto spend time within the host
organisation and offer a critique of their practice.
The international exchange is being held in London in 2014. The overarching theme will be
the New Generation of Housingreflecting the considerable change and transition in the
housing sector in all four countries. The two bodies of work being developed by the
international workgroups are capital raising and leadership. As in 2013 we will survey
members across the four countries on succession planning and the leadership skills neededto move to a new generation of housing organisations.
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2 Building a Sustainable Social Housing
System
Long term structural problems with the public housing system have led to economic
inefficiencies in terms of value for money, and social inefficiencies in the failure to meet
demand for affordable housing. By contrast, PowerHousing members have shown their
model is financially sustainable, and can allow for growth in property numbers
2.1 The challenge
The Australian public housing system is unsustainable. For example, the NSW Auditor
Generals 2013 report Making the best use of public housing found public housing stock is
ageing and increasingly not fit for purpose, there is not enough funding available for
necessary maintenance and as a result houses are being sold to meet funding shortfalls.
Reports in 2012 by the Victorian Auditor General, and by KPMG in South Australia, found the
same.
The social housing portfolio faces simultaneous problems of under-occupancy in some
locations, and over-crowding in others. Growing numbers of tenants are single people,
people with disabilities and elderly tenants. In contrast much social housing built from the
1940s to 1980s is larger family homes, away from support services or jobs.
The model of dominant or monopoly State Housing Authorities providing social housing is not
considered by many, including the Auditors General, to be viable any longer. A shift to a
multi-provider system with strong community housing providers such as the members of
PowerHousing is a necessary paradigm shift to build a sustainable system.
2.2 Our member organisations role
Community housing organisations now manage around one fifth of social housing in
Australia - double the proportion of a decade ago. Most growth has been of PowerHousing
member organisations, often through the transfer of tenanted properties from the public tocommunity housing sector.
Part of the reason for the growth has been driven by the need for funding. Community
housing tenants, unlike their equivalents in public housing, can often claim Commonwealth
Rent Assistance (CRA). This is a key demand-side subsidy that is efficient and effective,
targeting support to where it is needed most. Coupled with efficient management,
PowerHousing members can run a social housing portfolio at sustainable levels whereas in
the public housing sector losses would be incurred.
For the last decade our members have raised private bank finance. This provides additional
funds to clear maintenance backlogs and build new social and affordable rental housing. The
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borrowing does not
appear on Governments
balance sheet, nor
impact on public sector
credit ratings, and can be
sustainably repaid from
future rental income.
PowerHousing members
have raised hundreds of
millions of dollars of
loans that bring addition
capital to the social
housing sector, at a time
when public spending is
being rationed.
PowerHousing members
run their organisations as
effective social
enterprises that are
accountable to the
community, to
governments and to their
tenants for the
effectiveness of the
service provided.
Furthermore, with the
move to the National
Regulatory System for
Community Housing in
2014, providers will be
subject to strong
oversight by regulators acting at arms length to State Governments. Government can
therefore be satisfied that public investment is protected, and the highest business and
ethical standards are followed.
As independent social enterprises, each with their own set of accounts published to ASIC
standards, it is easy to compare the cost base and efficiency of PowerHousing members.
Successive administrations in the Commonwealth Government have been frustrated with a
perceived lack of accountability for funds handed to the States for social housing. There are
few comparable metrics published on inputs and outputs, and no reliable data on outcomes
for tenants and neighbourhoods. PowerHousing members offer a more transparent and
accountable option as recipients of public investment.
Where our member organisations own their own properties, they can strategically manage
their asset portfolios. This involves becoming involved in re-development and renewal
Transfer and renewal of public housing
Hume Community Housing, a PowerHousing member with over1,700 properties in NSW, successfully bid for the first stage of amajor renwal project at Telopea in Western Sydney. Located in anarea with a high concentration of public housing, Hume receivedmanagement and title transfer of 152 newly development units,across three blocks. Hume used NRAS funding for the project,creating a mix of community and affordable housing.
Hume is actively partnering with the State Housing Authority,tenants and local service providers to establish a communityconsultation program and engagement strategy. This will helpcreate long term sustainable community programs targeting youth,disadvantaged tenants and create safer communities. It will alsosupply local infrastructure such as a community centre through acapital works program.
Through a carefully considered and planned approach, Hume nowacts as a community anchor in Telopea in a way that would not
have been possible if the housing had remained in the publicsector. There are now close links with the local council and someneighbouring residents - both groups had initially opposed theredevelopent project.
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schemes, increasing residential densities and delivering new supply configured to meet the
demands of a changing population..
PowerHousing members are well placed to take a lead in cross-sectoral partnerships.
Member organisations frequently work with different levels of Government, with Government
agencies and with the private sector. This is in part due to the commercial acumen andentrepreneurial approach of community housing managers and their ability to enter into more
genuine partnerships with commercial developers than would be possible for public housing
authorities. PowerHousing members partner with the private sector to enable new
development and ensure increasing supply of good quality, affordable housing.
2.3 A modern approach to public housing stock transfer
Transfers of tenanted social housing dwellings to community housing providers are not new.
A 2013 AHURI report estimated there has been over 21,000 homes transferred to mid-2012.
Around half of these involved the transfer of both asset title and management, and half were
just management outsourcing. Although both transfer types increase the scale and efficiency
of the recipient community housing provider, without asset transfer there are limits to how
much private finance can be raised and how strategically the asset portfolio can be run.
Over the last two years several State Governments have embarked on ambitious programs
of outsourcing management of large public housing portfolios to the community housing
sector. These programs are generally on a large scale, of 500 or more properties in each
portfolio, and structured as complex transactions with a series of community stabilisation and
affordable property development obligations.
In 2012 Tasmania began the trend with a public tender to outsource management of 500
homes to a not-for-profit organisation, followed by a further three portfolios of 1,200 homes in
2013. PowerHousing members have been active in these transactions, building on their
ability to establish cross-sector consortia to professionally manage projects.
On an even larger scale, Queensland Government is currently reviewing bids to transfer 4,850
homes in the Logan region. They also announced in July 2013 that 90% of their entire public
housing would be managed by non-government housing groups by 2020. In 2013 South
Australia followed Tasmania and Queensland, tendering the outsourcing of two public housing
portfolios of around 500 dwellings. Other States are likely to follow suit in the future. These are
appropriate approaches to reforming the social housing sector. PowerHousing members fully
support the principle behind these initiatives; the creation of a larger scale multi provider
system.
2.4 Our recommendations to Government
The social housing system will become more sustainable as a greater proportion is run by
sophisticated community housing providers such as the members of PowerHousing.
However, for the full benefits to be realised there needs to be leadership from the
Commonwealth and coordination across States.
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Asset ownership
PowerHousing recommends that a greater proportion of future property transfers include the
passing of title to community housing providers. Management outsourcing provides
cashflows to housing providers, though without assets many banks have proven unwilling to
lend. Without bank finance, less money is available in the social housing system.
A 2013 independent review by Sphere Company used financial modelling to demonstrate
that asset ownership of 26% of a portfolio of 500 transferred properties would allow the
delivery of a further 130 new homes. This can only be achieved by growth community
housing providers such as PowerHousing members receiving title to some if not all
properties transferred.
Transferring title allows larger community housing providers to become more strategic asset
managers, tailoring social housing portfolios to social need. It also provides opportunities for
leverage to attract new capital into a resource constrained market. We recommend that the
Commonwealth offer incentives for states that transfer a percentage of properties with title tocommunity housing providers.
Funding contestabi l i ty
Reforms of NAHA should increase the proportion of funding for the social housing system
that is contestable by community housing providers. Contestability will encourage greater
system-wide efficiencies, and encourage innovation such as that demonstrated by
PowerHousing members. Better use needs to be made of current funding, waste eliminated,
systems streamlined and transparency increased. These are the core approaches of
PowerHousing members.
We recommend Commonwealth funding for the community housing sector is specifically
allocated to the sector and not captured by state housing authorities.
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3 Building and Managing Quality Homes
Professionally managed at-scale community housing providers are well placed to develop
new social and affordable housing to address market failure. PowerHousing members have
considerable experience harnessing a variety of different types of finance, including NRAS
incentives which have been used to sustainably deliver long term affordable rental housing
3.1 The challenge
With the exception of a burst of social housing construction as part of the Nation Building
Economic Stimulus, the public sector has retreated from large scale investment into social
and affordable housing. There is a gap in the delivery of well-planned and well locatedaffordable housing and with targeted support, PowerHousingAustralias members are well
positioned to respond.
3.2 Our member organisations role
PowerHousing members fill the affordability gap in the market, producing the types of
housing most in demand for very low to moderate income households. As professionally run
social businesses, we have the skills needed to deliver development projects. Many of our
senior managers, and board members, have private sector experience - including in the
property development industry. Unlike the majority of small scale community housingproviders, we both build and manage quality social and affordable housing.
Developm ent ski l ls
Most PowerHousing members have undertaken property development for at least a decade,
so have the in-house skills and systems in place. We also link closely to professional firms
such as surveyors, lawyers, consultants and financiers so we are well advised. The
regulatory systems in Victoria and NSW, and now the National Regulatory System (NRS)
across much of Australia, ensure our risk and financial controls are robust.
We differ from private sector development companies because we are not-for-profitorganisations with clear social missions. No dividends are paid to shareholders, and our staff
and management are paid fairly but responsibly. Surpluses generated on development
projects are re-cycled to achieve community commitments. Therefore when public funds are
provided to a community housing organisation we provide a mechanism for enduring
stewardship of public investment.
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Finance benefi ts
Our core community
housing business - renting
housing to lower income
Australians - is steady andconsistent. This provides a
predictable cashflow to
fund new developments,
assuming the assets are
owned rather than just
tenancies outsourced on
short term contracts. By
raising private finance, we
increase funding available
to the social housingsystem.
Private finance is only
granted to strong, well run
social enterprises such as
PowerHousing members.
Through compliance
requirements, bank lending
ensures a separate
oversight of our activitiesand an independent review
of project viability. Banks
will only lend if a project is
well considered, well
located and financially
sustainable.
PowerHousing member
organisations are able to
combine different forms of
finance to make a project
happen. We can use our
own capital, bank loans, philanthropic funds and land donations, State grants and
Commonwealth funding on particular projects.
Mixed communi t ies
We can help broaden the range of housing tenures and products available beyond the limited
choice of high-needs social housing and unaffordable private homes. Members of
PowerHousing have been at the forefront of providing new forms of affordable housing for
Developing a mixed community
In 2009 Port Phillip Housing Association(PPHA) was the
successful tenderer for the Victorian Governments AshwoodChadstone Gateway project. This involved redeveloping sixvacant sites for 210 community and 72 private homes. Byleveraging the assets and including profits from the sale ofprivate housing as well as NRAS incentives, PPHA could deliveradditional community housing as part of the project.
The high quality homes have been built so there is no visibledifference between private and community housing. A mixedcommunity approach was key to integrating tenures and avoidingincome, social and educational divides between residents, and toproviding opportunities for different residents to interact. PPHAachieved a mix of household types including differing income,age and family structures to contribute to sustainable outcomes.
PPHA has implemented a local approach, managing thecommunity housing from a permanent office in the newdevelopment, with on-site tenancy managers, a facilitiesmanager and a community development manager. A communityengagement program was developed with input from the local
community, as well as a social enterprise providing education,training and jobs for young people.
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NRAS needs to be better targeted
to areas where it is needed most.
In future we recommend the value
of incentives is varied so they
deliver deepest subsidy in areas
where affordable housing is most
needed.
Despite needing minor changes,
PowerHousing considers the
principles behind NRAS to be
worthy of further support. It should
be optimised through streamlining
the scheme and making it a
regular annual or twice-yearly
bidding process. There would beless administrative burden if NRAS
was run by either the
Commonwealth, or the States - but
not both (even if the scheme
remains co-funded).
We also recommend future NRAS
rounds have a requirement that
tenancy management is
undertaken by community housingproviders with demonstrated
compliance track record such as
PowerHousing Members. This will
ensure eligibility requirements are
met, and proper controls in place.
It will also ensure steady business
opportunities for community
housing providers, even if the
development has been undertaken
by, and financed by, the private sector.
New fun ding
The Commonwealth needs to exercise greater leadership on developing further funding
sources for social and affordable housing. Although there has been research on housing
bonds by a research institute (AHURI), and a pilot project in NSW on Social Benefit Bonds,
Australia has fallen behind international best practice in financial innovation that helps
leverage private sector investment.
NRAS supporting regional communities
In 2013 Southern Cross Community Housing(SCCH)injected $7.2 million into the Eurobodalla economy on thesouth coast of NSW with the construction of 20 homes using
NRAS funding. The profile of people housed includes youngworking families, single working parents with children,working grandparents, adults and children with a disabilityand their carers, Indigenous families and the frail aged.
The ability to secure stable, affordable housing allows adiverse range of people to engage in employment,educational and other endeavours that attract and keepthem in regional areas and allow them to contribute tocommunity life and the local economy. The NRAS schemenot only provides affordable housing, but contributes to the
sustainability and future of local communities.
Each year in Eurobodalla, through its social and affordablehousing initiatives, SCCH engages around 15 localcontracting businesses contributing to the indirectemployment of 45 tradespeople, and spending $115,000directly on repairs and maintenance annually.
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To move forward introducing housing bonds, PowerHousing is working with Community
Sector Banking to develop a new product that could be used at scale by our members to
increase the supply of affordable housing. This project, and other initiatives, would benefit
from Commonwealth leadership to ensure a uniform and consistent system is created, which
is necessary as capital markets require volume. We need a consistent legal and regulatory
framework established and clear accountability to deliver effective housing bond rollouts.
These are low risk, low cost mechanisms for government to support new supply of affordable
housing.
PowerHousing would make an ideal partner to work with Government in further developing
housing bonds. In Britain a trade association similar to ourselves delivers billions of dollars
worth of bonds through a Special Purpose Vehicle. Our members have shovel ready
development schemes where housing bonds could be carefully piloted and evaluated.
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4 Building Vibrant Communities
PowerHousing Members have developed considerable expertise in creating vibrant andsustainable communities which respond to the local context and provide opportunities for
tenants and the broader community. We act as community anchors in the neighbourhoods in
which we operate, helping build individual and social capital.
4.1 The challenge
Targeting concentrated areas of public housing to the most disadvantaged has led to
concentrations of social disadvantage, and poor outcomes for tenants and communities.
Pockets of disadvantage have led to intergenerational problems of unemployment, drug and
alcohol abuse, dependency, anti-social behaviour and mental health issues.
There is also growing recognition
of the need to develop new ways
to integrate social and affordable
housing into our newly built
communities. This prevents
exclusive neighbourhoods, where
key workers who underpin the
economy cannot afford to live
close to where they work.
4.2 Our memberorganisations role
PowerHousing members have
developed considerable expertise
in responding to these challenges
and are now involved in all aspects
of building stable and vibrant
communities. They are
increasingly involved in
partnerships with government, not-
for-profit support services and the
private sector in neighbourhood
regeneration projects and are
bringing this expertise in place
making and community
development to their own
developments.
Working with our tenants
In 2012 Compass Housingset aside $200,000 funding fortheir People, Place, Performance approach. This aims tointegrate tenant and property management to enhance therelationship they have with their tenants.
Funding encourages tenants to develop concepts that give apositive impact for the participants and for the widercommunity. This program is part of Compass wider strategy
which includes the GROW sustainability initiative.
Compass received 19 applications, and the Dangar ParkRose Garden was successful. This involved bringingtogether Compass tenants, Compass staff, students andstaff from the local school, local community groups andmembers of the wider community. It consisted of a newcovered picnic table, featuring an Aberdeen themed mosaic,designed and created by local St Josephs Schoolas well asthe addition of a rainwater tank installed at the park.
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PowerHousing members are trusted within their communities. They are high capacity
organisations that have a long term connection to local communities that serves to anchor
them into partnerships and alliances with public, private and not for profit organisations within
a neighbourhood to help address entrenched social issues. They have the capacity and
commitment to build diverse, inclusive and sustainable communities by providing a range of
housing types and tenures which reflect the makeup of the broader community.
We understand the need for good planning for developments which takes into account
activating the public realm as well as the need for well-designed safe homes and facilities
that create and maintain liveable communities.
4.3 Empowering our tenants
Tenant participation and
engagement has become a
cornerstone of the practice of
PowerHousing members who have
embedded processes to empower
tenants throughout their
operations.
Feedback from tenants and the
opportunity to put forward their
ideas are critical in the
management of contemporary
community housing organisations.Our members have built robust
strategies to capture this feedback
and use it to inform decision
making. Strategies range from
formal reference groups and
surveys, focus groups, use of
social media and involvement in
social events.
PowerHousing members alsorecognise the importance of
providing opportunities for social
inclusion and participation for
tenants. This helps them build their
life skills and develop community
networks. Innovative programs
help tenants successfully sustain
their tenancies, and build capacity
to obtain employment and achieve
financial stability.
Winning over the community
A windswept car park in earshot of a busy highway inVictoria might not seem a likely site to raise the protectiveinstincts of the local community, but that is exactly whathappened when PowerHousing member Womens Housingproposed using the site for a 49-apartment to house womenfleeing domestic violence or at risk of becoming homeless.
The proposal ran into stiff opposition from local residentswho raised a whole series of concerns. Almost 200 peopleattended a volatile public meeting in 2009 to discuss theproposed development, and fears were aired about thetypes of tenants who were to be housed.
The once barren car park has now been transformed into astriking 6-star rated building that is now home to a mix ofyoung single mothers, older couples and elderly singlewomen, all of whom are provided with long-term tenure at adiscounted market rent. Tenant turnover has been minimal,with residents enjoying their new homes and theconvenience of being close to transport, schools, medicalfacilities, shops and cafes. Some have even foundemployment locally.
It is a remarkable transformation of a once barren site. Evenmore remarkable, given the developments rocky start, is theacceptance it has rapidly gained from the community thatfought so hard to stop it going ahead.
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4.4 Socially sustainable mixed communities
Increasingly our members are
developing mixed communities that
are socially sustainable. Delivery
models include a range of housing
including social and affordable
rental, affordable home sales and
market rate sales and rental. These
models may also include more
specialist housing such as housing
for people with disabilities or
seniors housing. These
developments reflect the makeup of
the broader community and are a
powerful way to break down social
barriers, eliminate the concentration
of disadvantage and create long
term sustainability.
Planning and place making is
critical in mixed developments to
ensure that pockets of
concentration of social and
affordable housing are avoided and
that all members of the communityhave access to shared and
community spaces and facilities.
4.5 Our recommendations to Government
The creation of community vibrancy, capacity and resilience is critical to the long term
sustainability of social and affordable housing. This needs to be recognised and resourced in
regeneration and renewal projects, management outsourcing and asset transfer programs.
Partnerships for success
We recommend Governments make more use of cross-sectoral partnerships for delivering
major new greenfield housing developments, and brownfield regeneration schemes. Bringing
together private sector skills in developing project homes, with community housings passion
for sustainable communities, is a powerful combination. PowerHousing members operate at
a scale, and have the skills to be full consortium members on such projects.
Housing people with a disability
PowerHousing member Evolve Housing, in partnership withsupport partners Northcott and RASAID, secured $6 milliondollars grant funding through the CommonwealthGovernments Supported Accommodation Initiative Fund(SAIF) to deliver homes for 20 persons living with disability,who are receiving life time funding through NDIS.
Evolve Housing with the support partners workedcollaboratively with prospective tenants to develop personcentred support housing for people with varying levels ofdisability. This has been achieved through a combination ofadaptable infrastructure, community based space andsupport programs that deliver independence, communityengagement and social inclusion.
Both the housing projects at North Parramatta and Rydewere awarded Platinum Performance Level compliance withGrandview the first to achieve this under SAIF. Grandviewhas also been recognised by the NSW Disability IndustryInnovation Awards for its innovative design and supportsystem inclusions
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Through the use of the planning system, State and Local Government can push for
development schemes to include a portion of affordable and social housing. Several states,
most notably South Australia, have used the planning system as a way of encouraging
affordable housing delivery. We recommend this approach is followed nationwide, and
encouraged through the use of planning bonuses.
Estate renewal
PowerHousing members are ideally placed to lead the redevelopment of concentrated public
housing estates. We can work closely with State Governments, Councils, tenants and local
residents - as well as partnering with private sector builders for housing delivery. As noted in
the next section, transferring assets to community housing providers is the key to unlocking
redevelopment potential. Any development profits from such schemes are re-cycled by
community housing providers, and re-invested in neighbourhood facilities.
Through moving away from highly concentrated social housing estates, to more mixed
communities, the net cost to Government will decrease significantly. There will be lower on-going expenditure on policing, health, and repairing neighbourhood damage. Given the long
term financial benefits to Government, we recommend special up-front grants are provided
to larger community housing providers to accelerate the pace of estate renewal. These could
be offered competitively to organisations such as PowerHousing members who have the
necessary and proven skills in project development and community building.
Partnering for housin g people with a disabi l ity
The National Disability Insurance Scheme (NDIS) is set to revolutionise the delivery of
support for people with a disability. However, an estimated 190,000 of the 410,000 predicted
recipients are on a low income, and of these up to 120,000 have been estimated by theNDIA to have an unmet need for affordable housing.
PowerHousing members already have considerable experience in providing accessible
housing, and many existing tenants have a disability or are ageing in place. We have the
experience and resources to help deliver new affordable housing for people with a disability
and their carers.
We recommend the Commonwealth carefully coordinates between NDIA and PowerHousing
Members over funding approaches for additional housing. Options include user cost of
capital subsidies, targeted grant funding, targeted housing bonds, or a special NRAS
incentive round. PowerHousing members can leverage other sources of funding on suchprojects, minimising the cost to Government of program delivery.
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5 Building a Strong Economy
Community housing is not just about delivering good social outcomes. PowerHousingmembers are major contributors to local and regional economies, and through social
procurement can help get people into training and work. We provide much needed
affordable housing where it is needed, housing key workers who drive the economys
engine.
5.1 The challenge
Our economic performance is closely linked to how well the housing system works. Currently
there is a lack of appropriate and affordable accommodation in many areas where the new
jobs are being created that power our economy. This is as true in remote regions, as it is in
our capital cities which increasingly rely on the knowledge economy. Under supply of
appropriate, affordable housing is a handbrake on economic growth.
Australia was one of the first countries to have high levels of home ownership, providing
security for low, moderate and high income households. Overall ownership rates are now
falling, and the decline is steepest among people in their 20s and 30s. The housing
continuum, shown below, does not work well. It is hard for people to transition not just into
home ownership, but from social housing into private rental.
More people are becoming trapped in crisis accommodation and social housing. The current
tax and social benefits system makes it unattractive for some residents to take up job offers
as their income will barely rise and they may be forced out of their homes. Private rental has
become very expensive, with prices escalating as moderate income families are forced to
rent as they cannot afford home ownership. Not enough new homes are being built, and
fewer people are transitioning into home ownership.
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5.2 Our member organisations role
PowerHousing members cover a broad range of the housing continuum. We provide shelters
for rough sleepers, community housing for people with often high and complex needs, as
well as affordable rental homes for key workers.Some PowerHousing members provide
lower-priced housing aimed at first time buyers, others are exploring innovative supported
home ownership products such as shared ownership and shared equity.
Because larger community housing providers understand from first-hand experience different
forms of housing tenure, we are more able to identify options for our residents. We may be
able to help tenants move from one of our crisis units into longer term social rental housing,
or from social to affordable rental. Transitions along the housing continuum are easier if there
are a range of products available.
Innovative approaches
PowerHousing members have innovated through offering a range of rent settings to provide
more flexibility to households. Residents with lower household incomes receive a larger
discount to market rent, thereby targeting subsidies to where they are needed most. In
Victoria, Haven, Home, Safe has a program making renting a home within the reach of
people on low to moderate incomes through offering a 10%, 20% or 30% discount to market
rents. This affordable rental housing is offered to people who live in the local community.
Our members in NSW, SA and WA are looking to expand shared ownership schemes. These
allow moderate income households to secure a stake in a property, then staircase their way
towards full homeownership. Shared ownership can also allow options for social housing
tenants to buy a share of their current rented property, or buy a share in another propertywhich will free their social housing unit for a family on the waiting list.
Powering the economy
Private sector developers tend to build new homes of a style and in locations that maximise
profit. This is often on the fringe of capital cities, distant from transport, services and
employment opportunities.
Community housing providers, by contrast, are driven by social missions. Their new housing
incorporates the latest thinking on Transit Orientated Development, and is close to jobs.
There are good examples in both WA and Queensland where community housing has beendelivered to house the resource sector workforce.
5.3 Engaging tenants in work and training
PowerHousing members have a direct economic impact through our employment of staff,
and by contracting tradespeople for new building projects and maintenance on existing
housing. This can have a big impact, especially in regional and remote areas where
community housing providers are among the biggest employers and local investors.
Through their social procurement practices, community housing providers can generatebroad benefits and impacts for the wider community. This can include creating training and
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employment opportunities through procurement processes, and inserting special workforce
clauses and specifications in contracts. Many examples exist where our tenants, people who
were formerly homeless,
or people from an
Aboriginal and Torres
Straight Island background
have gained skills and
employment.
Social procurement is a
way of addressing
complex local challenges,
such as inter-generational
unemployment, crime,
vandalism and economic
decline in localcommunities or among
disengaged groups. It
promotes fair and ethical
trade, setting an example
for others to follow in the
neighbourhood. There is
also increased social
inclusion, particularly for
vulnerable groups who
have an opportunity to
participate in the
community and the
economy.
Many PowerHousing members have schemes to support tenants to re-enter the workforce,
or gain education, training and tertiary qualifications. This may be in the form of competitively
applied for grants that support tenants or their families to broaden their horizons. Often quite
modest sums can leverage stunning outcomes. By publicising success stories through
newsletters and word of mouth, other tenants are encouraged to follow suit.
5.4 Our recommendations to Government
PowerHousing members can stretch public investment further and attract resources that
government cannot such as private finance and philanthropic contributions. This facilitates a
greater role in developing a range of housing options that can be targeted to deliver gaps in the
market. These include smaller properties, more affordably designed, well located to jobs and
accessible to people with differing levels of mobility.
Caretaker Diploma Program
BHCin Queensland recognised the value of on-site caretakersat a number of larger community housing complexes. As nospecific training was available to accommodate the uniqueneeds of caretakers, who combine the responsibility formanaging a significant asset along with being a point of contactand assistance to tenants, BHC embarked on working with aregistered training provider, Sarina Russo, to establish a customdesigned training program.
A Diploma of Management program was established which allBHC caretakers have successfully completed. BHC received an
Australasian Housing Institute Award for this initiative.
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Intermediate hou sing options
To make the housing continuum function better, we need a wider range of products that
enable people to step from rental housing towards owner occupation. Shared ownership/equity
and rent-to-buy schemes have become major growth areas overseas, broadening the choices
and pathways open to working families. Shared ownership is an example of how moderateincome households can purchase an initial stake in a property, then staircase towards full
ownership by buying-out the share of the property that is not yet owned.
By contrast in Australia, we
have a small number of
schemes in Western
Australia, South Australia,
Queensland and Tasmania,
which are fully controlled by
State Governments
We recommend the
Commonwealth provide
strategic leadership to
promote intermediate
housing products. This
should be through
establishing legislation and
protocols such that an at-
scale sector can emerge.
Unlike current approaches,
relying on State
Governments to provide
administrative support and
often direct lending through
a public finance agency, we
recommend the scheme be
run by the not-for-profit
sector.
PowerHousing members areideally placed to develop
affordable properties,
identify suitable applicants
from among our own tenant
base, and manage administration. Capital liberated through shared ownership could be
recycled by community housing providers to fund the development of much needed
additional social and affordable housing.
Social enterprise
A key initiative of the Bonnyrigg project, a major estate renewal inwestern Sydney in which SGCHis involved, is the Green Wings
jobs training and employment program. Green Wings is committed tobuilding a skilled local workforce and is focused on the physical,social and economic renewal of Bonnyrigg.
The team works hard to make Bonnyrigg the best it can be, whilstfurther developing the participants skills each day. Originally fundedby the Commonwealth, it now operates as a sustainable socialenterprise for the local community. Green Wings:
Increases place-based training for job seekers
Provides opportunities for casual and part-time work for peoplein the local community
Increases opportunities for school based traineeships and workplacements
Contributes to environmental sustainability
Helps build local businesses