housing affordability fund. branch name - presentation heading name what is the housing...

Housing Affordability Fund

Branch Name - Presentation Heading name

What is the Housing Affordability Fund?

• A fund of $512 million over five years to address the supply side

barriers to developing new houses:• ‘holding costs’ associated with planning and approval delays • the cost of developing new infrastructure

• There is a preference to achieving lasting reform

• eDA will be allocated as part of a separate process.

Who is eligible to apply?

• Funding will be delivered via direct grants to:

• Local Government

• Local Government Associations

• State and Territory Governments

• Applications may also be made by partnerships between eligible

applicants.

• Money will be targeted to areas with high demand for new housing

and can be used for both green-field and infill.


Houses to be built

• The Housing Affordability Fund will be for the development of new

housing in either infill or green-field developments.

• There will be a preference to applications which lead to the

construction of moderately priced homes.

• Funding may be used to support the development of affordable

rental accommodation.• This may include NRAS or other affordable housing initiatives

• Applications must ensuring savings are passed on to homebuyers.


Funding Available

• $512 million over five years announced in the 2008/09 Budget. This

includes:

•$500 million in available funds.

Year/

Funding source

2008 - 09 2009 - 10 2010 - 11 2011 – 12 2012 - 13

Funding available

($ million)

$ 50 $ 75 $ 75 $ 150 $ 150

Application Compliance

• All proposals must meet relevant Commonwealth, State, and local

government planning, environmental and heritage legislation and

other requirements.


Critical Timeline

• 11 June 2008 – A consultation paper was released.

• 17 July 2008 – Feedback is being sought on the Fund.

• August 2008 – Proposals will be sought through a competitive

process in.

• December 2008 – Successful applications to be selected.

• March/April 2009 – Second EOI process


Whole of Government Role

• The Prime Minister has created eight policy working groups under

COAG.

• Housing Working Group has been progressing Housing Election

Commitments.• Chaired by Housing Minister with state, territory and local

government representation

• HWG agreed that all levels of government would be involved in

assessment.

Initial application to include:

• Applicants details and details of any consortium partners

• Locations and particulars of the proposal.

• Financial details – total cost of the project, Housing Affordability

Fund contribution sought, savings to each home purchaser and

how they will be measured.

• Details of the reform elements of the proposal and how the

reforms will last beyond the HAF funding.

• Timeframes for delivery of the project.

Additional information from short listed applicants to include:

• More detailed explanation of the application criteria

• Evidence of financial viability

• Confirmation of savings to be passed through to home buyers

• Confirmation that reform elements will be achieved by consortium

partners and provide a plan for sustaining the reform measures

• Confirmation of State / Territory Government endorsement

Mandatory Criteria

• Each application for funding must meet the following minimum

mandatory criteria to receive funding from the Housing

Affordability Fund:

1. The proposal must comply with State, Territory and local

government strategic planning objectives and policies,

including affordability targets (if they exist), sequencing

priorities and be accessible to employment and services;

Mandatory Criteria (cont.)

2. Local and State Governments must be able to fund future

liabilities arising from the initial funding or reform

processes without cost shifting;

3. The proposal must include details of consortia or

partnerships.

Mandatory Criteria (cont.)

Development approval does not need to be obtained for a project

before an Expression of Interest is submitted. Yet while an

application may be approved for funding pending the receipt of

development approval, no payment will be made until approval is

obtained.


Weighted Criteria

1. Cost savings to be passed on to home purchasers.

2. Adoption of a leading practice model in respect of

planning and/or Development Application processes

which results in cost savings to the homebuyer.

3. The savings generated relating to new, moderately

priced homes.


Weighted Criteria (cont.)

4. Consideration given to additional support from state,

territory or local government.

5. Support for accessibility and sustainability outcomes.

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