Influencing
Housing Strategy
Improving social and affordable housing outcomes
Macro Housing Policy Reform –
Seeking Government, Industry and Community support to achieve the following 5 goals
[See NAHC full submission to Senate Inquiry]
 Goal 1
Co-ordinate a generation of supply side action to address the current and projected supply shortages that
are fuelling housing affordability problems.
 Goal 2
Align the range of financial levers, including negative gearing and tax concessions, towards clear long term
housing policy objectives including new supply, affordability, diversity and appropriateness for changing
demographic needs and meeting ‘whole of life’ utility.
 Goal 3
Reform and renew social housing to create a viable and more responsive and diverse system. This includes
making better use of land and assets to stimulate new investment to grow and diversify social housing
supply, better match housing portfolio to housing need and strengthening community housing outcomes
 Goal 4
Develop and support a new long term private rental market segment, funded and held by institutional
investors and managed by Registered Providers that meets community need for affordable, secure and
long term rental housing.
 Goal 5
Improve the pathways between social, affordable and market housing. Including through supporting
innovations like Shared Equity Home Ownership, rent to buy, greater choice and mobility, self build and
housing co-operatives
NAHC Contribution to new housing directions
Policy
Research & Development
Delivery Models
With our partners:- influence long term
housing and finance policy to achieve better
housing outcomes for Australia
With our partners:- contribute to the provision
and application of a strong evidence base for
improvements in policy, funding and delivery
With our partners:- create a suite of viable
and effective delivery models for social and
affordable housing that meet diverse needs
and use resources efficiently
Promote the 5 policy goals and seek to
influence decision makers across
Government, Industry, Finance and
Community sectors
Sustainable Built Environment national
research centre partnership:
1. Research into housing and non housing
outcomes of social housing and social
housing reform & establish a nationally
consistent Evaluation Framework
Our three NRAS delivery models are
completed and are delivered or awaiting
further tender decisions:
 NRAS- Market
 NRAS-Social &
 NRAS-Land
Focus on opportunities to influence
1. Institutional Investment into affordable
housing and the creation of a long term
secure private rental market
2. NAHA Reform
3. Social Housing reform
4. Integrated approach to housing reform and
economic & social development
Bond University Partnership
Other models developed and submitted
under Tenders are
1. NON NRAS Affordable Housing with
discounted rent guarantee
2. Shared Equity Home Ownership,
acceptable to mainstream banks
3. Social Housing Renewal based on
reconfiguring existing assets
Participate in / seek to influence policy via
multiple channels including:
1. Tax Review
2. New Federation White Paper
3. Direct engagement with Commonwealth
and State Ministers
4. Input through the Senate Inquiry
5. Input into the Oppositions review of
housing policy
Other, including:1. NAHC Institutional Investment Committee
research & development [ISPT,ISN,PCA +
other experts]
2. Melbourne University and Carlton
Connect.
3. NDIS Architectural Design Competition
4. New building methodologies and
application
5. Synergy unit trust funding methodology
1. Bond University & NRAS Providers Ltd
NRAS Stage 1& 2 Economic Reports
2. Bond University and others in the
Academy for Affordable Housing
Leadership
Further work is continuing on
1. Finalising an NRAS based institutional
model
2. NAHA Capital Grants Model
3. NDIS models
4. PPP in a Private Sector Led initiative
A key focus is the ability of renewal to act as
a catalyst within an economic development
framework providing jobs and training
Reform and renewal of social housing
Public Housing has been declining as a proportion of the nations stock for 20 years and despite the much
needed boost through the Social Housing Initiative the trend remains downward. Furthermore the portfolio is
aging and requiring greater commitment of maintenance expenditure. Depending on the portfolio, it may be
mismatched to the growing demand for 1 and 2 bed dwellings and dwellings that are fully disability accessible.
The current income stream from public housing is inadequate to meet its expenses and this lack of viability
leads to further decline in stock. The cost of providing services to those in very high needs cannot be met from
inadequate rental income.
The gap between the social housing system and the market is now so great that it is a disincentive to tenants
to consider moving. Community support is also eroding and this leads to political marginalisation.
 Grow, renew and diversify social and affordable housing
 Establish a long term financially viable model, including meeting operational deficits, making better use of
assets and attracting third party resourcing
 Better match housing to changing needs
 Provide a ‘Human Services’ model of supporting those in need, but acknowledge the strengths and
resilience of individuals and communities and build on these strengths through better participative
arrangements. A strength-based approach needs to encompass economic and social development
 Provide more pathways between social, affordable and market housing and more diversity in provision
 Genuine reform cannot simply be based on a ‘Grab ‘for Commonwealth Rent Assistance, nor can it just
involve a change of the managerial system from the State to Not For Profits.
Principles for a new Partnership between States and NFP Housing Providers

Outcome based funding and partnership arrangements
Open and innovative and avoiding prescription and micro management

Mutuality between NFP and Government with inter-dependencies recognised in contract
framework
Mutual interests of all parties aligned to achieve outcomes

A sound and proportional regulatory framework based on NRS which oversights risk and
performance

Respectful of independent charitable and corporate governance requirements
Understanding the range of Accountabilities

An incentive based approach

A learning culture and adjustment process
Open culture and honest appraisal
NDIS & NDIA
How the NDIA can increase housing supply options
1.A flexible approach to ‘reasonable and necessary’ support arrangements
2.Using the ‘cost of capital’ built into Scheme costs as a catalyst for major growth in
affordable and accessible housing
3.Building on recent housing sector reforms, e.g. NRAS, social finance development
4.Influencing the National Disability Strategy and the housing sector, as part of being a
catalyst for wider social change and inclusion
This provides the NDIA with funding estimated at around $550m per annum in
scheme costs for the ‘user cost of capital’ at full scheme (in today’s dollars)
Funding is included during launch, gradually increasing to $700m per annum (2018/19
dollars) when there is full national rollout in 2019
This is a large amount but to achieve maximum impact it must act as a catalyst and be
leveraged two to three times, as well as being available to be recycled, as new
participants join.
Reconnecting the social housing system and the market
Providing a diverse range of affordable housing options to provide pathways and choices
The gap between the social housing safety net and the general market is too great for many tenants to bridge without
some intervening steps that provide more alternatives. Mobility and through-put is undermined by a lack of pathways
towards the market. This closes off opportunities for those needing social housing as stock turn-over declines.
The subsidy model is too rigid and unsophisticated creating further barriers to progressing beyond social housing
Alternatives, like shared equity home ownership and ‘rent to buy’ can help reinstate an effective pathway and support
for self-build, shared housing and equity co-operatives can help ease the pressure on the social housing system.
Building new social housing, for those in greatest need, also grows the housing cake, and allows new stock to be
provided in areas where the demand is greatest and provision is currently lacking
Can’t we
provide
more
choice? We
can provide
other
colours too
Its always
been blue,
that’s the only
colour I have
Diverse forms of social
and affordable housing
to increase supply and
make better use of
subsidy
Three Social Housing Objectives
1.Better Services: 2. Renewed & Better Matched Housing:
Renewal is governed by two
key factors: The sale of
assets to finance
reconfiguration and
upgrade, and improved land
use to provide the right
size/type of new homes
Existing Stock
Assessed &
Renewed = No
Loss of
numbers /
Better Matched
Additional
social &
affordable
properties
Improved Property
& Tenancy
Management
3. Viability and Growth
New ‘additional properties
are financed by NAHC and
its partners. Affordable
housing is owned privately
and additional social
housing is owned by NAHC
and its partners
A Human Services
approach is adopted and
‘Personal Housing Plans’
introduced. CRA revenue
re-invested in service
improvements and asset
renewal
Attracting and protecting investment in social and affordable housing
Where does the additional money come from ?
$ - Eligible tenants will receive Commonwealth Rent Assistance and pay it in their rent to NAHC. CRA
is on average around $55pw. So 1,000 social housing tenancies would generate an additional
$2.75m per year. [As part of a full rent roll of around $9m per year]
$ - Eligible charitable activities will receive GST and other Tax Concessions
$ - NAHC and its partners can contribute equity to grow the system or borrow money to invest in
new housing
$ - NRAS and other government [NAHA / NDIS] and non government funding streams are open to
NAHC and these can be packaged to meet community need. This can include private investment in
affordable housing
$ - If housing can be renewed, savings in maintenance can be re-applied to new capital investment.
Typical social housing costs on older dwellings may be $3,000 py where the cost and sinking fund for
new dwellings would be $1,200. A saving of $1.8m each year on each 1,000 dwellings
$ - If public housing is ‘mismatched’ to need, a sales program can release funds to be re-applied to
building more and better matched housing
$ - unused Government land can act as an incentive to mixed tenure investment
$ - private sales, like Shared Equity can balance economic and social returns and reduce long term
dependency on subsidy
10 Steps to inform the reform & renewal choices faced by States
1.
2.
Assess the economic and social performance of the social housing portfolio
Identify the economic and social trends facing the portfolio [ aging stock, maintenance backlog,
demand for smaller dwellings, demand for disability accessible dwellings, income profiles etc]
3. Assess the economic and social performance of the area and consider how housing reform will
link to and influence economic and social development planning and implementation
4. Assess the market opportunity presented by renewal and land release for new building
5. Assess the growth in demand from those with high needs and assess how well the housing and
support system cope with current need and plan for future needs
6. Assess the pathways into and beyond social housing and consider how a range of alternative
affordable housing and market housing solutions can be provided to improve the pathway
7. Introduce a ‘strength-based’ approach to community and tenant participation and complement
this through the development of individualised tailored-’Personal Housing Plans’ agreed with
each tenant
8. Maximise the receipt of Commonwealth Rent Assistance for re-investment in improving housing
outcomes
9. Maximise third party investment, including Charitable tax concessions, private investment and
direct NFP equity or debt financed investment
10. Ensure a proper evaluation framework sits across the initiative capturing housing and non
housing outcomes and individual and community outcomes against targets and against
benchmarks
Not ‘just’ vulnerable, also resilient! - A Strength Based Approach
A Personal Housing Plan will reframe the relationship between tenants and the social housing system
…. a future where a regional system co-ordinates housing and support resources and where each tenant has a Personal
Housing Plan that builds on their strengths and aspirations, identifies barriers and sets pathways within and beyond
social housing. It links in services through written agreements and provides a new ‘contract’ with tenants to enhance
responsibility
and provide clarity around service responses
• .
Alongside ‘personal housing plans’ for individuals, reform means a cultural and structural shift for social housing:Culture: Tenants are both Customers and Partners: Tenants, community and local business need to be involved in
service planning and setting community priorities
Structural: Social housing policy outcomes need a stronger connection to economic development to avoid a spiral of
social exclusion. Renewal can also act as a catalyst for new investment.
Improved service co-ordination:
Better Housing & Non-Housing Outcomes
…a future where tenants can enjoy improved access to the support they need and where housing and support is
better co-ordinated. A future where homeless people and those transitioning from institutional care can have a
planned approach to re-housing and where a staged and supported ‘resettlement’ is provided to maximise success
Acting as a catalyst for more efficiency in multiple agencies engaged
with the same ‘client’