Social and Affordable Housing NSW Fund Bill 2016
Thursday 6 October 2016 @ 10.10 a.m. | Legal Research
The Social and Affordable Housing NSW Fund Bill 2016 was introduced into the NSW House of Assembly on 21 September 2016 by Gladys Berejiklian (the Bill is currently at this stage), with the object of the Bill to establish the Social and Affordable Housing NSW Fund and to provide funding for the delivery of social and affordable housing in NSW.
Background to the Bill
In January 2016, the NSW Government officially launched its social housing fund, which, in its first phase, aims to deliver an additional 3,000 social and affordable homes and slash waiting lists for vulnerable families.
At present, social housing developments face a funding gap between the rental stream they receive from tenants plus government subsidies, and the revenue required to sustain a commercially viable project. Delivery of social and affordable housing is commercially unviable for much of the private sector due to low rents and the current level of government subsidies.
The Social and Affordable Housing Fund (SAHF) aims to provide a long-term revenue stream to stop the gap and encourage private and non-government organisations to team up to develop housing projects.
The NSW Premier, Mike Baird, was quoted as saying at the launch:
“We made an election commitment to deliver more social housing stock and we’re making good on that promise. This new fund will allow us to unlock new homes for those who need them most.”
About the SAHF
The SAHF comprises two main elements:
- SAHF NSW (the Fund) is supported by a new ring-fenced entity, SAHF NSW that will invest seed capital for a return. The Fund will be used to support SAHF Phase 1 projects. The NSW government has contributed $1.1 billion in seed funding which will be invested by the NSW Treasury Corporation; and
- FACS Commissioning Unit - a dedicated unit established within the Department of Family and Community Services (FACS) to commission and procure social and affordable housing services.
SAHF Phase 1 is the first commissioning process for social and affordable housing services supported by the Fund and aims to deliver access to up to 3,000 additional social and affordable homes in metropolitan and regional NSW together with access to integrated support services through Tenant Support Co-ordination.
The fund has been designed in consultation with the NSW Council of Social Service (NCOSS) and private sector lobby group, Infrastructure Partnerships Australia.
Public reaction to the Fund
The NCOSS Chief Executive, Tracy Howe welcomed the announcement of the fund, saying:
"Secure, affordable housing that is connected to transport and jobs, to education and support services, is a crucial piece of the puzzle for reducing poverty and disadvantage in this state."
Ms Howe believed the fund had the potential to deliver "far more" than 3,000 additional homes.
Opposition spokesperson for Social Housing, Tania Mihailuk, was quoted at the time questioning why the government needed to subsidise developers in "a booming housing market" with rents "on the rise".
Ms Mihailuk said at the time:
"This government has demonstrated once again that they are focused on subsidising developers as opposed to people in need."
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Sources:
Social and Affordable Housing NSW Fund Bill 2016 and supporting material - TimeBase LawOne Service.
Article from Family and Community Services
Billion dollar social and affordable housing fund to deliver better outcomes - NSW Government Media Release
Mike Baird unveils details of $1.1 billion affordable housing fund - smh.com.au
