Housing associations have welcomed Housing Australia’s announcement that it has selected an initial pipeline of 185 projects to potentially deliver more than 13,700 social and affordable homes across the country.
It marks the first funding round of the federal government's Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF).
The preferred projects under funding round one will support investment of up to $9.2 billion in social and affordable housing, with the pipeline expected to deliver more than one-third of the program's five-year target of 40,000 social and affordable homes.
The plan has got the approval of the Property Council of Australia and the Community Housing Industry Association (CHIA).
The preferred projects include more than 4,200 social and affordable homes.
Prime Minister Anthony Albanese (pictured centre left) said the funding will deliver affordable homes for “those that need it most”.
“I grew up in social housing – I know how important a roof over your head is and the opportunities it creates,” Albanese said.
Approximately 700 of the homes are due for completion this financial year, ready for tenants to move in.
Minister for Housing Clare O’Neil (pictured far left) commented: “We want to reduce the stress of housing for Australians – the long waits on housing lists, the long queues for rentals, the out of reach deposit for first home buyers – we’ll reduce these issues if we build more houses, and that’s what these projects do.”
A key feature of the plan is that the new homes will be distributed across every State and Territory and include 1,300 homes for women and children escaping domestic violence and older women at risk of homelessness.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars (pictured far right) said the announcement represents an important milestone in the delivery of much-needed social and affordable housing, including for those escaping domestic and family violence.
"A wealthy, land-rich nation should not have a housing deficit and the only way to close that gap is to build more homes. Today's announcement is great news for housing supply in general,” said Kandelaars.
The Community Housing Industry Association (CHIA) was also supportive, with CEO Wendy Hayhurst (pictured centre right) saying the move demonstrates that the reforms the organisation has long advocated for are “beginning to deliver”.
“It's heartening to see the Commonwealth taking decisive action to address Australia's housing crisis – and not a moment too soon,” Hayhurst said.
“And, with the funding tap at last beginning to flow, it’s also reassuring that the government plans a second round of allocations to take place early in the New Year.”
Of-course, yesterday’s announcement is one component in a multi-year plan that aims to address Australia’s housing affordability crisis and build 1.2 million new homes by 2029.
Recent estimates have shown the target is already behind schedule.
In order to get Australia back on track, “both the Help to Buy and Build to Rent legislation must be passed,” Kandelaars said.
Under Help to Buy, the government will offer an equity contribution of up to 40% for new homes and 30% for existing homes to eligible buyers. The scheme represents a crucial element of the government’s comprehensive plan to enhance homeownership accessibility for Australians.
The comments come as the Help to Buy legislation is debated in parliament this week after passing the House of Representatives in March.
The Property Council, Community Housing Industry Association and National Shelter have also developed a proposal to add 105,000 new rental homes to the national supply over the next decade.
"It's time for all parties to put aside entrenched political positions and back this proposal through good faith negotiations, starting in the Senate this week," Kandelaars said.
CHIA said it looks forward to continuing its work with all levels of government, industry and unions to address Australia's housing challenges and create more opportunities for those in need of stable, affordable housing.
“Thankfully, with the HAFF beginning to bear fruit, and with both Housing Australia and the Housing Supply Council now firing on all cylinders, we now have the necessary mechanisms and institutions to properly begin the mammoth task of turning our housing system around.”
