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NSW needs to build social housing properties

The economic downturn expected as
a result of COVID-19 will increase that need dramatically again,
well beyond the immediate crisis.

NSW needs to build at least 5000 more social housing properties a year for the next decade

New figures showing a surge in demand for homelessness services and housing highlight the urgent investment social and affordable rental housing in NSW, the state’s peak not for profit housing body said today.

CHIA NSW CEO Mark Degotardi said today’s NCOSS report shows housing costs were impacting young people, workers and families with children before COVID-19, with exponential increases in calls to tenants and homelessness information hotlines suggesting a huge increase in renters in distress as a result of the virus.

Mr Degotardi said demand would increase even further as more people are expected to experience homelessness and housing uncertainty in the next months and years while the economy recovers.

“There’s a shortfall of more than 200,000 social and affordable homes in NSW right now, and 50,000 households waiting for social housing,” said Mr Degotardi.

“Our members are already experiencing an increase in demand from renters who can no longer pay the rent because their financial situation has changed.

“The economic downturn expected as a result of COVID-19 will increase that need dramatically again, well beyond the immediate crisis.”

CHIA NSW joined NCOSS in calling on the NSW Government to establish a Social and Affordable Housing Capital Fund that could fund an extra 5,000 social housing properties a year for the next 10 years, as well as additional affordable rental housing.

CHIA NSW also urges the government to identify more government-owned land and properties that could be converted to social housing to respond to growing demand for permanent housing for thousands of people in NSW who are now in temporary shelter.

“Today’s NCOSS report is a stark illustration that NSW cannot continue a business as usual approach to housing,” Mr Degotardi said.

“Expecting the market to provide homes people could afford was not working before COVID-19 and it will be even more ineffective in the months to come.

“The NSW Government must invest in social housing, and affordable rental housing and implement planning reforms. This will create construction jobs and economic growth, provide safe, affordable homes for renters and build resilience in our communities as we recover from this crisis.”

RELEASE ENDS

MEDIA CONTACT: Jenny Stokes 0478 504 280

NSW social housing investment

Community housing providers are job creators

NSW social housing investment key to new jobs and stopping rise in homelessness

COVID-19 has placed thousands of families in NSW at risk of homelessness, with new economic modelling released today highlighting the immediate need for social housing stimulus, the Community Housing Industry Association NSW (CHIA NSW) has said.

16,000 more people in NSW are now facing homelessness due to unemployment from COVID-19 according to research produced by Equity Economics[1]. A further 85,000 residential construction sector jobs are at risk over the next 18 months, with 97,000 Small and Medium Enterprises risking closure due to slowed investment.

CHIA NSW CEO Mark Degotardi said targeted social housing stimulus funding could reduce unemployment and homelessness arising from the economic fallout of COVID-19.

“The NSW Government has launched bold policies to expedite planning processes and new arrangements to support housing. These are very welcome and important reforms.  What is needed now is further government investment and reforms to spur the next phase of growth and recovery to overcome the impact of COVID-19 on our state’s economy and communities.”

“Community housing providers are job creators,” said Mr Degotardi. “Thousands of jobs have been created over the last decade by over community housing providers building, maintaining and managing homes for more than 50,000 NSW households. In partnership with  government, we can continue to deliver both homes for people who need them and the economic stimulus that will help our state recover from this crisis,’ said Mr Degotardi.

CHIA NSW is calling for the establishment of a dedicated Social and Affordable Housing Capital Fund to support at least 5,000 homes being built per annum in NSW, to support new jobs and expand social housing supply for families.

“Funding new housing is one of the best investments our governments can make,” said Mr Degotardi. “For every dollar invested in social housing, 1.3 times that amount is returned to the economy.[2] This modelling shows that building 5,000 social housing units would support 18,000 jobs across NSW. That means new jobs for NSW, more certainty for businesses, and more families in secure homes.”

“With the housing market struggling under the economic uncertainty caused by the pandemic, this is the ideal time for governments to take the lead and invest in our housing supply. Without new projects in the pipeline, the social housing waitlist of 60,000 households will only grow, while those still waiting suffer the negative social impacts of unaffordable, insecure housing.”

Media contact: Hannah Craft, 0423 377 965

Appendix – CHIA NSW Policy Recommendations:

CHIA NSW is calling for:

1) Establish a Social and Affordable Housing Capital Fund to grow the supply of social housing by 5,000 per annum, and similar for affordable housing, starting with options to permanently house those in extended temporary arrangements through:

• The identification and purchase of vacant, or soon-to-be completed, developments for conversion to social or affordable housing

• Identification of government-owned properties for conversion to social housing

2) Prioritise and fund a Housing First approach that provides tailored support, alongside social housing.

3) Expand the Community Housing Leasing Program to increase the number of properties available through community housing providers and urgently respond to the growing demand for permanent housing options for people in temporary accommodation.

4) Build on the $60 million already allocated to the maintenance of ageing social housing stock, by allocating additional funds to support a comprehensive maintenance program across the entire NSW social housing portfolio

5) Mandated targets for social and affordable housing in new residential developments of up to 15% on private land and 30% on government land.

6) A National Housing Strategy that articulates roles and responsibilities, the contribution of the Federal Government to the Social and Affordable Housing Capital Fund and other levers available at the national level to complement and bolster state initiatives.

[1] Report commissioned by NSW Council of Social Services, CHIA NSW, Homelessness NSW and the Tenants’ Union NSW.

[2] KMPG Social Housing Initiative Review, page 2, September 2012
http://www.nwhn.net.au/admin/file/content101/c6/social_housing_initiative_review.pdf

COVID recovery housing

Reinvigorating the economy with government
spending on essential public goods is exactly
what our state needs as it emerges from this crisis.

COVID recovery housing spend could address decades of chronic housing stress

The peak body for community housing in NSW is urging the NSW Government to accept the recommendations of a Land and Housing Corporation briefing paper that earmarks a $500 million government spend on housing as part of a state-wide stimulus package.

While the proposed stimulus is geared at spurring economic recovery post COVID-19, the spend would address the state’s chronic housing issues that existed long before the pandemic, including a shortfall of 200,000 social and affordable homes and over 60,000 households on the social housing waitlist.

“Reinvigorating the economy with government spending on essential public goods is exactly what our state needs as it emerges from this crisis,” said Mark Degotardi, CEO of CHIA NSW.

“This plan from the Land and Housing Corporation would address years of underspending on social housing in NSW.

“The economic impact of COVID-19 is disproportionately hitting low income workers, families and older people below the pension age – people who are already typical community housing tenants. These are the people who our industry has been helping into affordable homes for decades. With the NSW Government’s support, we can help many more find their feet after this pandemic.”

Earlier this week CHIA NSW joined NCOSS to request NSW establish Social an Affordable Housing Capital Fund that would finance 5,000 social housing properties a year for the next 10 years, as well as additional affordable rental housing, to meet the state’s dire housing needs.

The report confirmed again that the private housing market has been unable to meet the demand for affordable housing.

Government spending is needed to ensure everyone in NSW has access to a secure home that they can afford.

Mr Degotardi said the proposed housing-focused stimulus would be a welcome first step.

“Community housing providers are ready to step in,” he said.

“They have projects ready to go – they just need funding to ensure this pipeline doesn’t dry up and they can continue providing the affordable homes that the people of NSW desperately need.”

Media contact: Hannah Craft, 0423 377 965

CHIA NSW Welcomes

Our sector has already partnered successfully
with Government through a range of housing programs,
including last year’s Social Housing Management Transfer program.

CHIA NSW WELCOMES NSW GOVERNMENT COMMITMENT TO SOCIAL HOUSING LEASES

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.”

RELEASE ENDS

MEDIA CONTACT: Jenny Stokes 0478 504 280

Anglicare rental report

People on low incomes, particularly young people and women are already struggling

Anglicare rental report exposes need for more social and affordable homes in NSW

Today’s Anglicare Rental Affordability Snapshot again highlights the urgent need to provide more social and affordable homes as communities in NSW recover from the combined impact of COVID-19 and bushfires.

The snapshot released today found that in Greater Sydney alone, just 1% of private rentals are affordable for individuals on the lowest incomes, even with temporary increases to the Jobseeker Allowance and other government support.[1] Regional areas are also facing a rental crisis with the Central Coast, Hunter, and Mid Coast only having a combined 44 affordable properties available to households on income support[2]

CHIA NSW CEO, Mark Degotardi, said the NSW government and the Federal government must work together with local councils to increase investment in social and affordable homes because the private rental market is not providing enough homes people can afford.

“People on low incomes, particularly young people and women are already struggling’. They will disproportionately feel the impacts of job losses in the COVID induced economic downturn,” Mr Degotardi said.

“The combined impact of COVID-19, bushfires and flooding has created financial distress for an unprecedented number of people in metropolitan areas and regional NSW.

“NSW already has shortage of almost 200,000 social and affordable homes and 60,000 households waiting for social housing. The evidence of housing stress is piling up and urgent government intervention is desperately needed.” Mr Degotardi said.

CHIA NSW is calling for the NSW Government to introduce a Capital Fund and planning reforms that will provide at least 5,000 social housing properties a year over the next decade, as well as more affordable housing.

Mr Degotardi said predicted rent drops in coming months would not compensate for the increased number of people experiencing income reductions and job losses.

“The current housing market will not meet the need of thousands of people in NSW who lost their homes in the summer bushfires or their jobs as a result of COVID-19.  Inadequate investment in the supply of social and affordable housing has left these people with nowhere to go.  Today’s report once again exposes a broken housing system in NSW” Mr Degotardi said.

“The NSW Government must take this opportunity to fix the housing system and make sure it meets the meets the needs of everyone in NSW over the long term.

“Not for profit community housing providers have projects ready to go now, with government funding we can provide thousands of homes for NSW families, dramatically boost investment, create new construction jobs, and kickstart the NSW economy’s recovery from COVID-19,’” Mr Degotardi said.

Media contact: Hannah Craft, 0423 377 965

[1] Anglicare Rental Affordability Snapshot, Greater Sydney and Illawara, Table 2
 https://anglicareras.files.wordpress.com/2020/04/nsw-sydney-and-illawarra.pdf

[2] Anglicare Rental Affordability Snapshot, NSW – Hunter Region, Newcastle and Central Coast, Table 1
https://anglicareras.files.wordpress.com/2020/04/nsw-hunter-region-and-newcastle.pdf