The Salvation Army is in the running for the first round of the federal government’s $10 billion Housing Australia Future Fund (HAFF), aiming to extend its reach in providing essential accommodation and services.
Chris Karagiannis, CEO of Salvation Army Housing, expressed enthusiasm about the bid for two social housing projects – one in South Australia, the other in regional Victoria.
“We’re still committed to the pointy end of the housing continuum, where we work with people who are the most in need,” Karagiannis said.
Over five years, the HAFF aims to deliver 30,000 social and affordable homes, plus an additional 10,000 in rural and regional areas via the National Housing Accord Facility.
These initiatives seek to draw vital private investment from superannuation funds and banks, aligning with models in advanced economies like the UK, and offer collaboration opportunities for developers, builders, and the community housing sector.
Cath Carver, Chair of the NAB Affordable Housing Council, highlighted the critical state of housing and homelessness in Australia:
“And when you hear that 122,000 people are experiencing homelessness every night, well, that is something that affects your soul and says, in a country like this, that’s actually not good enough,” Carver said.
NAB is aiming to facilitate affordable, safe, and suitable homes with a $6bn lending target, supporting the Salvation Army’s efforts through the HAFF.
The Salvation Army, as the nation’s largest provider of homeless services, faces a steep challenge, with Karagiannis revealing that 175,000 people were on the charity’s waiting list for housing. The organisation provides relief every 17 seconds to Australians in need, a testament to the growing crisis.
After a long-standing relationship with another major bank, the Salvation Army switched to NAB in 2022, a move Karagiannis said was motivated by NAB’s deep understanding of the sector.
“One of the things we value as a CHP (community housing provider) is our partners understanding the nuances and tailoring products so we can work together on solutions,” he said.
While the HAFF funding represents a significant step forward, Karagiannis noted that solving homelessness and housing affordability will require a concerted effort from all sectors.
The Salvation Army envisions a model where private capital can achieve returns through innovative housing projects, including mixed developments managed by the organisation, pointing to the UK’s more mature sector as a model.
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