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The $11.64 million build-to-rent-to-buy pilot, jointly funded by the ACT and federal governments is expected to finance and deliver up to 22 affordable rental dwellings for vulnerable women in Strathnairn, Canberra.
Under the proposal, the National Housing Finance and Investment Corporation (NHFIC) will provide up to $7.14 million in concessional loans from the NHIF to the project that will be combined with a $4.5 million grant from the ACT government.
The joint venture, alongside the Community Housing Canberra Ltd. (CHC), proposes to deliver long-term stable and affordable accommodation for single women, typically aged 25–45 years old, and with little or no deposit to buy a home but with secure lower-income employment.
It comes ahead of the federal budget expected to be handed down next week (9 May), which has flagged an additional $2 billion in funding to support more social and affordable rental homes, as Australia grapples with a housing supply crisis, with a shortfall of more than 100,000 homes over the next five years.
The build-to-rent proposal will support the transition from renting to home ownership, by providing the option to purchase the home after 10 years, at which point the tenant would have accumulated a 20 per cent deposit, coupled with a share of the capital growth.
Construction of the one, two, and three-bedroom homes is due to commence in December, subject to approvals.
Minister for Housing, Julie Collins, said this was a “stepping stone to the security of home ownership.”
“Too many women across Australia don’t have access to safe and secure housing,” Ms Collins said.
“This is an important step in changing that for women in Canberra.”
Under the concept, an affordable rental of 74.9 per cent of the market rate would be set and a savings plan created for the potential buyer.
CHC plans to acquire the site to develop the homes and maintain the program on a long-term basis.
It marks the first program to be announced in the ACT following the federal government’s widening of the National Housing Infrastructure Facility (NHIF) to fund social and affordable housing.
Government expands Home Guarantee
It also follows the federal government expanding the criteria of the Home Guarantee Scheme in an attempt to address the housing affordability crisis.
The changes will see eligibility criteria expanded for the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee.
From 1 July 2023, friends, siblings, and other family members will be eligible for joint applications under the First Home Guarantee and the Regional First Home Buyer Guarantee.
The changes also mean permanent residents and previous home owners will be able to access the schemes.
[Related: Home guarantee expanded to enable more people to participate]
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