Budget needs to go beyond loans to boost housing and construction

Extension of the government guarantee for the National Housing Finance and Investment Corporation (NHFIC) by $1 billion is a welcome step from the Federal Government, but only direct investment in social housing would create the jobs and homes for families in rental stress and losing income in the recession, the Community Housing Industry Association (CHIA) NSW has said.

CHIA NSW CEO Mark Degotardi welcomed the extra support in the Federal Budget for NHFIC, but stated that more support would be needed to tackle the housing crisis and protect 85,000 construction industry jobs currently at-risk in NSW.[1]

“We welcome the Federal Government’s commitment to extend NHFIC’s lending capacity to help the community housing sector build more affordable housing.  However, the failure of the Government to make direct investment in social housing infrastructure is a missed opportunity to create significant economic and employment growth and to provide housing for NSW families in desperate need.” says Mr Degotardi.

“In NSW alone, we have over 50,000 households on the social housing waiting list.   That queue will only grow as the economic impact of this pandemic plays out. Rental affordability has halved since March for people on income support and homelessness in NSW is expected to increase by as much as 16,000 people as a result of COVID-19.

“Direct investment in social housing is strongly supported across the housing sector.  It is the right economic move if the Government really wants to generate the jobs and economic growth that we need to put our economy on the road to recovery.”

In recent weeks:

• Australia’s top economists named social housing spending the single most effective form of economic stimulus in the Conversation-Economic Society of Australia pre-budget survey;

• The National Housing Finance Investment Corporation found 9 jobs were created for every $1 million in social housing investment;

• Property peaks joined homelessness organisations, housing providers, unions and the superannuation industry to create the National Alliance for Affordable Housing to call for investment in social housing.

• More than 300 Australian organisations from across the housing and social services spectrum signed an open letter to the Prime Minister calling for social housing to be included in tonight’s Budget;

• And polling showed that 60% of Australians believe investment in affordable housing should have been a Budget priority;[2]

The Grattan Institute commended the Federal Government to support CHIA National’s Social Housing Acceleration and Renovation Program (SHARP) to build 30,000 social housing properties.[3]

Mr Degotardi said the Federal Government’s lack of direct investment in social housing puts the focus on the NSW government’s response to the housing and construction industry crisis.  Next month’s State Budget must support measures that would deliver 5,000 social housing properties a year for the next 10 years if the NSW Government is serious about economic stimulus, protecting thousands of construction jobs and keeping thousands of families out of homelessness.

“There is an incredible opportunity for the NSW Government to use social housing as the driver of our economic recovery and help fix a housing system that has been broken for decades,” says Mr Degotardi.

“The Berejiklian Government must find the courage and vision to tackle this housing crisis and save the NSW economy and construction sector.”

Media contact: Hannah Craft, 0423 377 965

[1] See Equity Economics Report on COVID-19 impacts: ‘Supporting Economic Recovery in NSW’, link: https://www.homelessnessnsw.org.au/sites/homelessnessnsw/files/2020-05/LR%20-%20FINAL%20-%20Equity%20Economics%20-%20Supporting%20Economic%20Recovery%20in%20NSW_05092020.pdf

[2] See Essential Media polling: https://essentialvision.com.au/priorities-for-upcoming-federal-budget

[3] https://www.domain.com.au/news/social-housing-construction-boom-should-be-key-budget-policy-experts-say-992937/

Community housing’s record $1.2b investment in housing shows NSW Government the way forward for stimulus

The community housing sector has invested a record $1.2 billion in new social and affordable homes in NSW, industry data released today by the Community Housing Industry Association NSW shows.

The level of investment represents the biggest ever financial investment from non-profit NSW community housing providers and demonstrates the positive social returns that can be built with COVID-19 stimulus from the Federal and NSW Government.

In NSW, the community housing sector has grown from delivering 68 new dwellings in 2012 to over 3,200 by 2020.

Community Housing Industry Association NSW CEO Mark Degotardi said the report highlighted the achievements, capacity and capability of the community housing sector in NSW.

“Our sector is a huge job creator. Over the last 10 years we’ve created ongoing roles in construction, maintenance, property development, tenancy management and administration. Community housing providers now manage over 50,000 homes in NSW,” said Mr Degotardi.

“A targeted social housing stimulus is not only viable but would create and sustain new jobs, grow the economy and provide new homes for NSW families,” stated Mr Degotardi.

CHIA NSW is called on the NSW Government to implement stimulus policies to boost social housing stock, supporting the NSW families and the economy.

‘This report underlines the value of community housing to the NSW economy. The not-for-profit community housing sector has invested over 1.2 billion dollars across 45 local government areas, developing over 3,200 homes in the process’, said Mr Degotardi.

‘Community housing has proven beyond any doubt that we can deliver new jobs, new homes, and new investment. With targeted stimulus from government, we can support new construction jobs and support more vulnerable NSW families,’ said Mr Degotardi.

Policies that should be considered as part of a targeted social housing stimulus include:

• A NSW Government Social and Affordable Housing Capital Fund to support the community housing sector to create more social and affordable housing and begin addressing current social and affordable housing shortfalls.

• Funding from the NSW Government to address the maintenance backlog across the Government’s social housing dwellings, reducing long term maintenance costs and providing rapid stimulus to the construction sector.

• Commitment to a mandated 30% social and affordable housing development target on government land. This commitment would unlock new opportunities for projects from the community housing sector, investors, and developers supporting new jobs and providing long term benefits to the community.

Read CHIA NSW’s Community Housing in NSW Development Snapshot

Media contact: Jenny Stokes, 0478 504 280

Community housing supports NSW Government’s homelessness package, but urges social housing stimulus

The Community Housing Industry Association NSW, the NSW peak body for the community housing sector, has stated its members stand ready to support the NSW Government’s historic $36 million package to alleviate homelessness.

The NSW Government’s Together Home program will aim to fund the leasing of units from the private market and convert them to social housing units, with community housing providers to be involved in the process of managing associated properties.

Community Housing Industry Association NSW CEO Mark Degotardi welcomed the Together Home package and said members would be ready to assist the NSW Government.

“This package is a strong step forward in nullifying the negative social impacts of COVID-19, we welcome the NSW Government’s investment in tackling these issues.”, said Mr Degotardi.

“Community housing providers now manage over 50,000 homes in NSW. Many of our tenants have gone through tough times, so community housing providers have deep expertise in working with tenants to turn their lives around. That journey starts with secure housing for many families and we will support the NSW Government’s efforts to make that a reality,” said Mr Degotardi.

The peak body also called for further stimulus in social housing to secure housing for NSW families in unaffordable and insecure circumstances.

“To make the effort to fight homelessness truly effective, the NSW Government needs to invest in more social housing as a key stimulus measure that creates more secure homes, new jobs in construction and new economic activity,” stated Mr Degotardi.

“The community housing sector has shovel-ready projects on its portfolios that with NSW Government support could drive new investment for our State and create the secure housing we desperately need.”

RELEASE ENDS

Media contact: Jenny Stokes, 0478 504 280

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