The Community Housing Industry Association NSW (CHIA NSW) welcomes changes announced today that will allow community housing providers to extend leases on NSW public housing properties from three to 20 years.
CHIA NSW CEO Mark Degotardi said the longer leases will enable community housing providers (CHPs) to provide more homes for NSW renters recovering from the impacts of COVID-19.
“This initiative gives our members more certainty over time and will allow us to access finance and investment for more social and affordable housing. This will provide much needed support for low-income families across NSW at a time where many people are affected by the COVID-19 pandemic,” Mr Degotardi said.
Stage one of the lease extension initiative will call for expressions of interest from larger CHPs to take up 20-year leases with the NSW Land and Housing Corporation for the transfer of 14,000 properties to 20-year leases.
Stage two will review the suitability of smaller Tier Two and Tier Three providers to transition to 20-year leases covering approximately 1,400 properties.
Mr Degotardi said allowing community housing providers to sign longer leases would provide an important structural change and allow the sector to extend and create partnerships with investors.
“Long term leases will also create more meaningful partnerships with financiers and private investors. It will help us meet the significant demand for social and affordable rental homes, a demand which will grow as a result of COVID-19.
“Our sector has already partnered successfully with Government through a range of housing programs, including last year’s Social Housing Management Transfer program, which saw 14,000 NSW Government leases transferred to our sector.
“This is a very good and very welcome announcement from the NSW Government. It demonstrates a model of partnership which delivers excellent outcomes for Government, community housing providers and most importantly, our tenants.”
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