Opening Doors to Affordable Housing CHCWA Council Meeting

April 2014

Affordable Housing Strategy 2010-2020

1. Stronger, more diverse social housing system

2. More affordable private rentals and home ownership opportunities

3. Better use of government land and housing assets

4. Public-private partnerships – market solutions

Affordable Land Supply

In essence... more supply and more transition points

<$30,000 $90,000<$50,000

Centrelink recipients

Nurses, police, trades

Retail, hospitality, NGO, casual workers

<$70,000

Professionals

Very low incomes Low incomes Moderate incomes

St Bart’s, Lime Street

Some highlights….1. 14,200+ affordable homes since 2010 for people on low-moderate

incomes including:• 4,000+ social housing• 1,660 discounted rentals (NRAS)• 6,460 home loans through Keystart – approx 1,000 shared equity

2. Value-adding partnerships, e.g:• MRA – agreement for 1,300 affordable homes by 2020• CHOs – 155 growth properties complete or under construction• Private sector partnerships – 250 apartments in CBD financed by

private sector with 30+% affordable; JV investment partners• Builders’ EOI – 1400+ new entry level homes• DoP/ WAPC, Office of Land and Housing Supply, LandCorp, WALGA

What the AH Strategy has meant for the CH Sector

• Investment – circa $400m in asset transfers since 2010/11; $2.4b asset value in community sector hands

• Growth – 75% of new social housing has gone to CH sector. Sector is now almost 20% of social housing system

• Consolidation – 8 providers hold 60% of assets• Diversity - greater role for growth providers (social

developers) as well as niche providers (client or location specific)

Some ongoing challenges....Relational• Intelligent cooperation vs competition• Oversight in the public interest vs over regulation/prescription

Capability• Different skill sets needed in both sectors• Scaling up (CHOs) and letting go (Govt)

Legitimacy• Evidence + returns for policy makers, treasuries and banks• Winning hearts and minds of tenants

Financial• Housing those in greatest need vs growing supply• Financial viability - how the gap is funded

The horizon....?

• Federal context – future of the NAHA and other CW outlays? NDIS impacts. Commission of Audit. Welfare, tax, federalism and program reviews

• State budget context – constricted capital expenditure, asset sales, doing more with existing ingredients

• Policy context – planned approach to sector growth (NSW, VIC, WA) vs more aggressive reform (QLD, SA, TAS). Sector efficiency + multi-provider diversity

• Social context – ‘deserving and undeserving poor’; generational and spatial divides

= Necessity for Innovation & Intelligent Cooperation

Celebrating progress…

Whole is greater than the sum of the parts… SharedStart…

Based on 30% of gross income, 10% deposit, 6.28% interest rate and 30 year loan term.Source for Perth house price: Market Update, June quarter 2013, REIWA