New housing fund spearheads "ambitious" affordable housing drive

States and territories tackling their own housing supply crises will have greater help via new federal bills introduced to Parliament on Thursday (9 February).

Under the umbrella of three new bills — the Housing Australia Fund Bill; National Housing Supply and Affordability Council Bill; and Treasury Laws Amendment (Housing Measures No. 1) Bill — the government has delivered “the single biggest investment in affordable and social housing in more than a decade,” it explained.

Addressing Parliament, Minister for Housing and Minister for Homelessness, Julie Collins, said: “Without a stable home, people — no matter their age — struggle to live in good health, stay in training or education and to find or keep a job.

“It’s not good for them, for their families, for their communities or for our country.

“I know this because I have lived it. The prime minister knows this because he has lived it.

“It’s why this government is serious about making sure more Australians have a safe, affordable place to call home.

“This is about working together. It’s about partnerships.

“Yes, it’s ambitious because it has to be. It’s the only way we’ll tackle the challenges we face as a nation.”

How the fund will work

According to the government, the Housing Australia Fund Bill 2023 will deliver on its promise to create the $10 billion fund.

“The $10 billion fund is a significant investment to deliver long‑term returns to support more social and affordable housing, and invest in acute housing needs,” Ms Collins stated.

Returns from the fund will help deliver the government’s commitment of “30,000 new social and affordable homes in the fund’s first five years” including 4,000 homes for women and children impacted by family and domestic violence or older women at risk of homelessness.

Key to the scheme is the reinvestment of funds so as to provide future benefits and aid for those Australian home buyers needing such help.

Ms Collins outlined that Housing Australia Future Fund returns will be used to deliver “innovative financing techniques” that seek to facilitate “institutional investment in social and affordable housing” alongside established state and territory programs.

The scope of returns and the acute housing areas and needs they will address include:

- $200 million for the repair, maintenance, and improvement of housing in remote Indigenous communities

- $100 million for crisis and transitional housing options for women and children impacted by family and domestic violence and older women at risk of homelessness

- $30 million to build housing and fund specialist services for veterans who are experiencing homelessness or at risk of homelessness

Independent advice and a streamlined approach

An independent statutory advisory body called the National Housing Supply and Affordability Council will be established via the Goal Saver National Housing Supply and Affordability Council Bill 2023.

Its role will be to “inform the Commonwealth’s approach to housing policy” by delivering “independent advice” on housing supply and affordability.

According to Ms Collins, this new body is about “making sure the Commonwealth receives the very best advice to deal with Australia’s serious housing challenges”.

Thirdly, Housing Australia will be the new name for the National Housing Finance and Investment Corporation via the Treasury Laws Amendment (Housing Measures No. 1) Bill 2023.

Additionally, this extends the Commonwealth guarantee of bonds issued under the Affordable Housing Bond Aggregator from 30 June 2023 to 30 June 2028 to “provide certainty to the community housing sector and investors”, the government highlighted.

Ms Collins concluded: “Together, the legislation is another step in delivering on the Albanese Government’s ambitious housing commitments, building on our existing achievements including the expanded National Housing Infrastructure Facility, the Regional First Home Buyer Guarantee and the Housing Accord.”

Describing the new legislation as ‘a turning point for housing in Australia’, Ms Collins stated: “I’m proud to continue working hard to deliver on our reform agenda.”

A two-pronged approach via the states

Aligning with such federal initiatives, also on Thursday (9 February), Queensland treasurer Cameron Dick announced expressions of interest (EOI) under a $2 billion Housing Investment Fund.

The search would aim to provide financial backing for “ready-to-go social and affordable housing” developments on privately owned sites including affordable-only proposals.

“At last year’s Queensland Housing Summit, our government committed to doubling the size of our signature Housing Investment Fund (HIF) to $2 billion, which means annual funding of $130 million is now available,” the treasurer said.

“This supports our increased target of 5,600 additional social and affordable home commencements across Queensland by 30 June 2027.

“The market invitation released today expands eligibility to allow stand-alone affordable housing projects to be supported under the Housing Investment Fund.”

The treasurer explained this will allow a greater segment of the market to participate in bringing forward new housing and support the state’s commitments under the National Housing Accord.

[Related: ‘Bite the bullet’ and invest in affordable housing: AHURI]