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Those wishing to access funding to bring online social and affordable housing projects can now apply via Housing Australia.
Applications are now being accepted from eligible parties looking for investment to bring online social and affordable housing through the Housing Australia Future Fund (HAFF) and the National Housing Accord.
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The initiatives are part of the federal government’s move to improve housing outcomes for Australians. They aim to collectively support the delivery of 20,000 new social and 20,000 new affordable homes across Australia over five years.
In its first five years, the HAFF aims to provide housing support to target groups, including remote Indigenous communities, women, and children leaving or experiencing domestic and family violence; older women at risk of homelessness; current and former Australian Defence Force members; as well as frontline workers such as police, nurses, and cleaners.
Eligible entities that can apply for funding include:
- Registered not-for-profit community housing providers (CHPs).
- Local, state, and territory governments or local bodies.
- Charities that provide housing for Indigenous Australians and current and former members of the Australian Defence Force.
- Special purpose vehicles that include a consortia of the above.
Applicants must be seeking finance for social or affordable housing projects, including those that will construct new homes; the purchase of newly built homes; the renovation of existing residential dwellings that were otherwise uninhabitable; or the conversion of non-residential properties to residential dwellings.
If successful, Housing Australia may offer loans, grants, or a combination of the two to applicants.
Grants can either take the form of upfront capital to support project financing at the project delivery stage or ongoing service payments for making housing available on agreed terms.
These may include:
- Availability payments – Regular, ongoing payments to eligible funding recipients for a period of up to 25 years if housing is made available on agreed terms. According to Treasury, these will provide eligible funding recipients an “ongoing, government-backed income source to help close the gap between the commercial cost of developing, supplying and maintaining social and affordable housing and the rent they receive from tenants”.
- Concessional loans – Loans offered “on a highly-concessional basis”, including interest-free loans and on terms of up to 25 years, to provide upfront financing to CHPs and housing providers.
- Upfront capital grants – Where private financing cannot be sourced, upfront capital grants may be available to support some social housing projects. Treasury said it is intended that this financing type be prioritised for “smaller, regional or remote projects”.
More than 300 organisations had registered to participate in the public consultation on the draft funding documents prior to applications opening on Monday (15 January).
Housing Australia has said it expects to select successful applicants and extend financial support offers by mid-2024, with funding becoming available from 2024–25.
The investments will also provide a new opportunity for institutional investors, including superannuation funds, to partner with government to fund social and affordable housing at scale and hope to ensure developers and builders can support a pipeline of projects to keep unlocking new housing supply.
The federal Minister for Housing Julie Collins MP commented: “After a decade of little action from the former Liberal Government, we’re not wasting time getting more homes on the ground.
“The opening of applications for the Housing Australia Future Fund and National Housing Accord marks a huge step forward.
“We’re kickstarting the single biggest investment in social and affordable rental housing in more than a decade.
“These new homes are a critical part of our ambitious housing reform agenda which is working across the board - with more help for home buyers, more help for renters and more help for Australians needing a safe place for the night.”
Applications for the first funding round close at 2pm (AEDT) on 22 March 2024.
[Related: Regional Australia calls for bigger stake in HAFF]
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