PowerHousing Australia Submission Senate Inquiry Into Affordable Housing

8/12/2019 PowerHousing Australia Submission Senate Inquiry Into Affordable Housing

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Inquiry into Affordable Housing

Senate Standing Committee on Economics

Submission by PowerHousing Australia

Signature:

Name: Julie Quaass

Phone Number: 03 5441 8879

Postal Address: PO Box 122, BENDIGO Vic 3552

Organisation: PowerHousing Australia Ltd

Signatory Position: Executive Officer

Level of Authorisation: Scott Langford, Chair, PowerHousing Australia


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Executive Summary

The Australian housing system is broken. Affordability is stretched and there is an increasingsupply gap. Home ownership rates are declining, private rental is increasingly unable to offer

suitable housing for key workers and public housing is financially unsustainable and shrinking

in size as demand rises. Too few houses are built, and many are unaffordable to workers in

industries driving economic growth.

PowerHousing Australia represents large, professionally managed community housing

providers. We offer solutions to Government as ready and willing partners in addressing the

challenges of the housing system. Our proposals are not based on aspirational thinking, but

a track record of delivering around a thousand new social and affordable homes each year,

optimising government investment.

This submission is based on four inter-related themes. PowerHousing members can help

address a broken social housing system by increasing efficiencies, better utilisation of funding

available in the social housing system, transfers from public housing and entrepreneurial drive.

A sustainable system will allow new homes to be built, helping address the housing shortfall.

Development and renewal of properties by PowerHousing members creates sustainable,

vibrant communities. Together we can strengthen the economy, get more people into work

and allow industry to generate wealth.


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PowerHousing Australia |Senate inquiry into affordable housing

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What can be done?

Our detailed recommendations include:

Encouraging the States to increase the scale of public housing transfers, including

targeted asset transfer, to sophisticated community housing providers with a track record

of efficiency and growth.

Creating a contestable growth fund for community housing providers as part of the

National Affordable Housing Agreement(NAHA) to drive innovation and system

efficiencies.

Promoting greater use of cross-sector partnershipsto deliver social and economically

sustainable developments, with major input from not-for-profit organisations.

Supporting the growth of new institutional investmentin affordable housing by

providing targeted support for housing bonds.

Making the National Rental Affordability Scheme(NRAS) permanent, but more

streamlined and consistent in delivery, targeted to need and with fewer loopholes. all

needed to attract investors.

Coordinating the roll-out of the National Disability Insurance Scheme, with providers

such as the members of PowerHousing playing a key role in meeting the need for

appropriate, affordable housing.

Encouraging a greater use of intermediate housing optionssuch as shared

ownership to help moderate income households move towards home ownership.

Our vis ion

Our vision is to build a sustainable system capable of meeting affordable housing need.

The 28 member organisations of PowerHousing Australia house 80,000 residents in

properties valued at over $7 billion. We have leveraged $355 million to increase housing

supply. We have a proven track record delivering new housing and quality tenancy

management. After a decade building capacity and professionalising, our model has been

confirmed as sustainable and effective in independent evaluations by KPMG, Ernst & Young

and AHURI. This success now needs to be replicated at greater scale.

PowerHousing members are trusted stewards of scarce public investment. We are

transparent in all that we do. Funding contestability means we bid competitively for new

opportunities such as capital growth funds, property transfers and NRAS incentives. This

encourages system-wide efficiencies, and widespread innovation using best practice social

enterprise approaches.

We understand the Commonwealths drive to increase housing system efficienciesat the

same time as public housing is financially unsustainable under current policy settings. This is

why we have submitted exciting positive proposals showing what PowerHousing members

can do for - and withthe Commonwealth and States.


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Table of Contents

Executive Summary .................................................................................................. i

Table of Contents .................................................................................................... iii

1 PowerHousing: Social Enterprise in Action ................................................... 1

1.1 Contemporary community housing ...................................................................... 1

1.2 Professionalising and growing the sector ............................................................. 2

1.3 PowerHousing Australia....................................................................................... 2

1.4 The International Housing Partnership ................................................................. 3

2 Building a Sustainable Social Housing System ............................................. 5

2.1 The challenge ...................................................................................................... 5

2.2 Our member organisations role ........................................................................... 5

2.3 A modern approach to public housing stock transfer ............................................ 7

2.4 Our recommendations to Government ................................................................. 7

3 Building and Managing Quality Homes ........................................................ 10

3.1 The challenge .................................................................................................... 10

3.2 Our member organisations role ......................................................................... 10

3.3 Leveraging benefits from NRAS ......................................................................... 12

3.4 Our recommendations to Government ............................................................... 12

4 Building Vibrant Communities ...................................................................... 15

4.1 The challenge .................................................................................................... 15


4.3 Empowering our tenants .................................................................................... 16

4.4 Socially sustainable mixed communities ............................................................ 17


5 Building a Strong Economy ........................................................................... 19

5.1 The challenge .................................................................................................... 19


5.3 Engaging tenants in work and training ............................................................... 20



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1 PowerHousing: Social Enterprise in Action

PowerHousingAustralia brings together Australias leading not-for-profit housing providers

who collectively manage over 38,000 social housing dwellings worth over $7 billion.

PowerHousing members have raised $355 million in debt to increase housing supply. We

deliver high quality services to tenants, help build cohesive communities and use

contemporary financial approaches to increase the stock of social and affordable housing

1.1 Contemporary community housing

Community housing is

affordable rental housingprovided by not for profit

organisations at below market

rent for low and moderate

income tenants. It forms an

integral part of Australias

housing system by providing

housing options which are

affordable, secure and

responsive to the needs of the

neighbourhood. The membersof PowerHousing understand

that successful outcomes for

tenants depend on building

strong and resilient

communities, not just houses.

They work closely with local

service agencies to build social

cohesion in what were often

areas of social and economic

disadvantage.

As exemplars in the community

housing sector, PowerHousing

Members are locally grounded

in and accountable to their

communities. They

acknowledge that secure and

affordable housing is a major

factor in stabilising the lives of

Housing for all

Unity Housings Northern Region Affordable RentalInitiative is a strategic partnership targeting new build keyworker housing. This will support expanding industries andfoster economic development for regional South Australia.The initiative incorporates housing for older South

Australians and people living with disabilities.

The project offers each of the 80 Unity homes a 1.5kWphotovoltaic solar generation system to reduce tenantelectricity bills by up to 50%. The project is an innovativepartnership driven by Unity between the Commonwealth andState Governments, three regional councils, the corporate

sector and three Regional Development Australia offices.Due for completion by mid-2014, the $20.7 million projectinvolves building a total of 102 properties, 22 of which will besold to the market, 60 will be rented to key workers and 20to older South Australians and people living with a disability.


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tenants and this leads to better health, employment opportunities and improved financial

stability. Community housing brings local, effective, flexible customised and innovative

management to communities.

1.2 Professionalising and growing the sectorCommunity housing has undergone a period of rapid change in recent years, best

demonstrated by the significant growth of PowerHousing members. The sector has grown,

diversified and professionalised and the broader industry network has expanded and

strengthened. Rapid growth has occurred with the transfer of dwellings from state and

territory governments as well as developing new housing supported by Nation Building funds

and through the National Rental Affordability Scheme (NRAS). Both the transfer of assets

from government and the upsurge in development have built the capacity of the larger

organisations, enabling them to raise private finance to further grow supply.

There has also been a marked change in the role of community housing organisations - from

a tenancy management model to a sophisticated model of tenant engagement and

management, community development, asset management and property development. They

now form alliances, joint ventures and special purpose vehicles. They work in partnership

with government, the private sector and philanthropic organisations.

PowerHousing members are modern and efficient with sustainable business models. They

operate within government imposed regulatory systems and are subject to the same

governance and regulatory rigour as major private companies. They employ professional

staff and have highly skilled boards of directors. Greater capacity and professionalism

positions these contemporary organisations to participate at much greater scale in theprovision of affordable housing.

1.3 PowerHousing Australia

PowerHousing Australia is the

national network of leading

growth community housing

providers who develop and

manage social and affordable

housing. Our members deliver arange of dwellings that meet the

needs of a diverse range of

tenants whilst focusing on

building strong and sustainable

communities, stimulating local

economies and providing jobs.

PowerHousing began in 2005

with recognition amongst a group

of Chief Executives of the scale of the emerging housing crisis and the enhanced capacity oforganisations to provide solutions if they collaborated to share knowledge and resources. It

PowerHousing at a glance

80,000 housing residents 28 member organisations

$355 million debt raised Assets managed $7.2 bn


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has developed into a unique forum for peer to peer exchange and collaboration amongst

housing professionals who are committed to improving lives through the provision of

affordable housing.

We have a diversity of members

ranging from organisations whosemain activity is housing provision to

multi service agencies which have a

housing division. The common

element is the commitment to

address housing need through

growth of supply, best practice in

housing and community

development, and excellence in

tenancy and asset management.

Throughout the year we hold

forums for groups including Chief

Executive Officers, Chief Financial

Officers, Asset and Development

Managers and Operations

Managers who come together to

network and share knowledge and

expertise.

An Exchangeis held annually andprovides opportunities for other staff

and Board Directors. In addition

PowerHousing advocates on behalf

of members and provides financial

benefits through aggregated

purchasing of advice and services,

research and benchmarking of

services.

1.4 The International Housing Partnership

PowerHousing is the Australian member of the International Housing Partnership, a

collaboration between more than 175 leading not-for-profit housing and community

development organisations in Australia, Canada, the United Kingdom and the United States.

Collectively the International Housing Partnership manages more than one million properties

which provide affordable homes for some 2,500,000 people.

A hand-up for the homeless

Western Australian based Foundation Housinghas justfinished building the first purpose built Foyer in Australia aspart of a consortium with Anglicare and the Central Institute ofTechnology. The Foyer provides secure affordableaccommodation and support for 98 young homeless people,including 20 young mothers. Housing is provided on the basisthey must be actively engaged in education, training oremployment. Foyer is a very successful model for youthhousing which has only recently been established in Australia.

Funding for the project came from a variety of sources. $20million capital build from Commonwealth funds, leased crownland from State Government, $3 million from Lotterywest forpartner office space and fit out, $10m from BHP for supportprogrammes with $10 million matching State funds. We alsowere successful in being awarded 98 NRAS incentives for thisproject. Ground floor commercial space will also help with theoverall financial viability of the project.

The first tenants moved in February 2014. We are nowworking toward the development of a Foyer in Broome withthe same consortium. We have secured land and are nowbeginning to talk to a number of potential corporate sponsors.The Broome Foyer will have an indigenous focus working withchildren from remote communities.


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The International Housing Partnership is a dynamic forum for peer to peer exchange

amongst housing leaders in the four countries. Each year it holds an international Exchange,

attended by executives from all four countries. Leading up to this event, the partnership

organises international workgroups which research practice in defined areas in each country

to inform the Exchange. The 2013 Exchange was held for the first time in Australia and

attracted over twenty Chief Executives from the US, UK and Canada, the largest group of

senior housing executives ever to visit Australia, to share knowledge and learning with

PowerHousing members. In addition to the Exchange a number of chief executives were

hosted by PowerHousing members as Thinkers in Residenceto spend time within the host

organisation and offer a critique of their practice.

The international exchange is being held in London in 2014. The overarching theme will be

the New Generation of Housingreflecting the considerable change and transition in the

housing sector in all four countries. The two bodies of work being developed by the

international workgroups are capital raising and leadership. As in 2013 we will survey

members across the four countries on succession planning and the leadership skills neededto move to a new generation of housing organisations.


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2 Building a Sustainable Social Housing

System

Long term structural problems with the public housing system have led to economic

inefficiencies in terms of value for money, and social inefficiencies in the failure to meet

demand for affordable housing. By contrast, PowerHousing members have shown their

model is financially sustainable, and can allow for growth in property numbers

2.1 The challenge

The Australian public housing system is unsustainable. For example, the NSW Auditor

Generals 2013 report Making the best use of public housing found public housing stock is

ageing and increasingly not fit for purpose, there is not enough funding available for

necessary maintenance and as a result houses are being sold to meet funding shortfalls.

Reports in 2012 by the Victorian Auditor General, and by KPMG in South Australia, found the

same.

The social housing portfolio faces simultaneous problems of under-occupancy in some

locations, and over-crowding in others. Growing numbers of tenants are single people,

people with disabilities and elderly tenants. In contrast much social housing built from the

1940s to 1980s is larger family homes, away from support services or jobs.

The model of dominant or monopoly State Housing Authorities providing social housing is not

considered by many, including the Auditors General, to be viable any longer. A shift to a

multi-provider system with strong community housing providers such as the members of

PowerHousing is a necessary paradigm shift to build a sustainable system.

2.2 Our member organisations role

Community housing organisations now manage around one fifth of social housing in

Australia - double the proportion of a decade ago. Most growth has been of PowerHousing

member organisations, often through the transfer of tenanted properties from the public tocommunity housing sector.

Part of the reason for the growth has been driven by the need for funding. Community

housing tenants, unlike their equivalents in public housing, can often claim Commonwealth

Rent Assistance (CRA). This is a key demand-side subsidy that is efficient and effective,

targeting support to where it is needed most. Coupled with efficient management,

PowerHousing members can run a social housing portfolio at sustainable levels whereas in

the public housing sector losses would be incurred.

For the last decade our members have raised private bank finance. This provides additional

funds to clear maintenance backlogs and build new social and affordable rental housing. The


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borrowing does not

appear on Governments

balance sheet, nor

impact on public sector

credit ratings, and can be

sustainably repaid from

future rental income.

PowerHousing members

have raised hundreds of

millions of dollars of

loans that bring addition

capital to the social

housing sector, at a time

when public spending is

being rationed.

PowerHousing members

run their organisations as

effective social

enterprises that are

accountable to the

community, to

governments and to their

tenants for the

effectiveness of the

service provided.

Furthermore, with the

move to the National

Regulatory System for

Community Housing in

2014, providers will be

subject to strong

oversight by regulators acting at arms length to State Governments. Government can

therefore be satisfied that public investment is protected, and the highest business and

ethical standards are followed.

As independent social enterprises, each with their own set of accounts published to ASIC

standards, it is easy to compare the cost base and efficiency of PowerHousing members.

Successive administrations in the Commonwealth Government have been frustrated with a

perceived lack of accountability for funds handed to the States for social housing. There are

few comparable metrics published on inputs and outputs, and no reliable data on outcomes

for tenants and neighbourhoods. PowerHousing members offer a more transparent and

accountable option as recipients of public investment.

Where our member organisations own their own properties, they can strategically manage

their asset portfolios. This involves becoming involved in re-development and renewal

Transfer and renewal of public housing

Hume Community Housing, a PowerHousing member with over1,700 properties in NSW, successfully bid for the first stage of amajor renwal project at Telopea in Western Sydney. Located in anarea with a high concentration of public housing, Hume receivedmanagement and title transfer of 152 newly development units,across three blocks. Hume used NRAS funding for the project,creating a mix of community and affordable housing.

Hume is actively partnering with the State Housing Authority,tenants and local service providers to establish a communityconsultation program and engagement strategy. This will helpcreate long term sustainable community programs targeting youth,disadvantaged tenants and create safer communities. It will alsosupply local infrastructure such as a community centre through acapital works program.

Through a carefully considered and planned approach, Hume nowacts as a community anchor in Telopea in a way that would not

have been possible if the housing had remained in the publicsector. There are now close links with the local council and someneighbouring residents - both groups had initially opposed theredevelopent project.


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schemes, increasing residential densities and delivering new supply configured to meet the

demands of a changing population..

PowerHousing members are well placed to take a lead in cross-sectoral partnerships.

Member organisations frequently work with different levels of Government, with Government

agencies and with the private sector. This is in part due to the commercial acumen andentrepreneurial approach of community housing managers and their ability to enter into more

genuine partnerships with commercial developers than would be possible for public housing

authorities. PowerHousing members partner with the private sector to enable new

development and ensure increasing supply of good quality, affordable housing.

2.3 A modern approach to public housing stock transfer

Transfers of tenanted social housing dwellings to community housing providers are not new.

A 2013 AHURI report estimated there has been over 21,000 homes transferred to mid-2012.

Around half of these involved the transfer of both asset title and management, and half were

just management outsourcing. Although both transfer types increase the scale and efficiency

of the recipient community housing provider, without asset transfer there are limits to how

much private finance can be raised and how strategically the asset portfolio can be run.

Over the last two years several State Governments have embarked on ambitious programs

of outsourcing management of large public housing portfolios to the community housing

sector. These programs are generally on a large scale, of 500 or more properties in each

portfolio, and structured as complex transactions with a series of community stabilisation and

affordable property development obligations.

In 2012 Tasmania began the trend with a public tender to outsource management of 500

homes to a not-for-profit organisation, followed by a further three portfolios of 1,200 homes in

2013. PowerHousing members have been active in these transactions, building on their

ability to establish cross-sector consortia to professionally manage projects.

On an even larger scale, Queensland Government is currently reviewing bids to transfer 4,850

homes in the Logan region. They also announced in July 2013 that 90% of their entire public

housing would be managed by non-government housing groups by 2020. In 2013 South

Australia followed Tasmania and Queensland, tendering the outsourcing of two public housing

portfolios of around 500 dwellings. Other States are likely to follow suit in the future. These are

appropriate approaches to reforming the social housing sector. PowerHousing members fully

support the principle behind these initiatives; the creation of a larger scale multi provider

system.

2.4 Our recommendations to Government

The social housing system will become more sustainable as a greater proportion is run by

sophisticated community housing providers such as the members of PowerHousing.

However, for the full benefits to be realised there needs to be leadership from the

Commonwealth and coordination across States.


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Asset ownership

PowerHousing recommends that a greater proportion of future property transfers include the

passing of title to community housing providers. Management outsourcing provides

cashflows to housing providers, though without assets many banks have proven unwilling to

lend. Without bank finance, less money is available in the social housing system.

A 2013 independent review by Sphere Company used financial modelling to demonstrate

that asset ownership of 26% of a portfolio of 500 transferred properties would allow the

delivery of a further 130 new homes. This can only be achieved by growth community

housing providers such as PowerHousing members receiving title to some if not all

properties transferred.

Transferring title allows larger community housing providers to become more strategic asset

managers, tailoring social housing portfolios to social need. It also provides opportunities for

leverage to attract new capital into a resource constrained market. We recommend that the

Commonwealth offer incentives for states that transfer a percentage of properties with title tocommunity housing providers.

Funding contestabi l i ty

Reforms of NAHA should increase the proportion of funding for the social housing system

that is contestable by community housing providers. Contestability will encourage greater

system-wide efficiencies, and encourage innovation such as that demonstrated by

PowerHousing members. Better use needs to be made of current funding, waste eliminated,

systems streamlined and transparency increased. These are the core approaches of

PowerHousing members.

We recommend Commonwealth funding for the community housing sector is specifically

allocated to the sector and not captured by state housing authorities.


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3 Building and Managing Quality Homes

Professionally managed at-scale community housing providers are well placed to develop

new social and affordable housing to address market failure. PowerHousing members have

considerable experience harnessing a variety of different types of finance, including NRAS

incentives which have been used to sustainably deliver long term affordable rental housing

3.1 The challenge

With the exception of a burst of social housing construction as part of the Nation Building

Economic Stimulus, the public sector has retreated from large scale investment into social

and affordable housing. There is a gap in the delivery of well-planned and well locatedaffordable housing and with targeted support, PowerHousingAustralias members are well

positioned to respond.


PowerHousing members fill the affordability gap in the market, producing the types of

housing most in demand for very low to moderate income households. As professionally run

social businesses, we have the skills needed to deliver development projects. Many of our

senior managers, and board members, have private sector experience - including in the

property development industry. Unlike the majority of small scale community housingproviders, we both build and manage quality social and affordable housing.

Developm ent ski l ls

Most PowerHousing members have undertaken property development for at least a decade,

so have the in-house skills and systems in place. We also link closely to professional firms

such as surveyors, lawyers, consultants and financiers so we are well advised. The

regulatory systems in Victoria and NSW, and now the National Regulatory System (NRS)

across much of Australia, ensure our risk and financial controls are robust.

We differ from private sector development companies because we are not-for-profitorganisations with clear social missions. No dividends are paid to shareholders, and our staff

and management are paid fairly but responsibly. Surpluses generated on development

projects are re-cycled to achieve community commitments. Therefore when public funds are

provided to a community housing organisation we provide a mechanism for enduring

stewardship of public investment.


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Finance benefi ts

Our core community

housing business - renting

housing to lower income

Australians - is steady andconsistent. This provides a

predictable cashflow to

fund new developments,

assuming the assets are

owned rather than just

tenancies outsourced on

short term contracts. By

raising private finance, we

increase funding available

to the social housingsystem.

Private finance is only

granted to strong, well run

social enterprises such as

PowerHousing members.

Through compliance

requirements, bank lending

ensures a separate

oversight of our activitiesand an independent review

of project viability. Banks

will only lend if a project is

well considered, well

located and financially

sustainable.

PowerHousing member

organisations are able to

combine different forms of

finance to make a project

happen. We can use our

own capital, bank loans, philanthropic funds and land donations, State grants and

Commonwealth funding on particular projects.

Mixed communi t ies

We can help broaden the range of housing tenures and products available beyond the limited

choice of high-needs social housing and unaffordable private homes. Members of

PowerHousing have been at the forefront of providing new forms of affordable housing for

Developing a mixed community

In 2009 Port Phillip Housing Association(PPHA) was the

successful tenderer for the Victorian Governments AshwoodChadstone Gateway project. This involved redeveloping sixvacant sites for 210 community and 72 private homes. Byleveraging the assets and including profits from the sale ofprivate housing as well as NRAS incentives, PPHA could deliveradditional community housing as part of the project.

The high quality homes have been built so there is no visibledifference between private and community housing. A mixedcommunity approach was key to integrating tenures and avoidingincome, social and educational divides between residents, and toproviding opportunities for different residents to interact. PPHAachieved a mix of household types including differing income,age and family structures to contribute to sustainable outcomes.

PPHA has implemented a local approach, managing thecommunity housing from a permanent office in the newdevelopment, with on-site tenancy managers, a facilitiesmanager and a community development manager. A communityengagement program was developed with input from the local

community, as well as a social enterprise providing education,training and jobs for young people.


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NRAS needs to be better targeted

to areas where it is needed most.

In future we recommend the value

of incentives is varied so they

deliver deepest subsidy in areas

where affordable housing is most

needed.

Despite needing minor changes,

PowerHousing considers the

principles behind NRAS to be

worthy of further support. It should

be optimised through streamlining

the scheme and making it a

regular annual or twice-yearly

bidding process. There would beless administrative burden if NRAS

was run by either the

Commonwealth, or the States - but

not both (even if the scheme

remains co-funded).

We also recommend future NRAS

rounds have a requirement that

tenancy management is

undertaken by community housingproviders with demonstrated

compliance track record such as

PowerHousing Members. This will

ensure eligibility requirements are

met, and proper controls in place.

It will also ensure steady business

opportunities for community

housing providers, even if the

development has been undertaken

by, and financed by, the private sector.

New fun ding

The Commonwealth needs to exercise greater leadership on developing further funding

sources for social and affordable housing. Although there has been research on housing

bonds by a research institute (AHURI), and a pilot project in NSW on Social Benefit Bonds,

Australia has fallen behind international best practice in financial innovation that helps

leverage private sector investment.

NRAS supporting regional communities

In 2013 Southern Cross Community Housing(SCCH)injected $7.2 million into the Eurobodalla economy on thesouth coast of NSW with the construction of 20 homes using

NRAS funding. The profile of people housed includes youngworking families, single working parents with children,working grandparents, adults and children with a disabilityand their carers, Indigenous families and the frail aged.

The ability to secure stable, affordable housing allows adiverse range of people to engage in employment,educational and other endeavours that attract and keepthem in regional areas and allow them to contribute tocommunity life and the local economy. The NRAS schemenot only provides affordable housing, but contributes to the

sustainability and future of local communities.

Each year in Eurobodalla, through its social and affordablehousing initiatives, SCCH engages around 15 localcontracting businesses contributing to the indirectemployment of 45 tradespeople, and spending $115,000directly on repairs and maintenance annually.


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To move forward introducing housing bonds, PowerHousing is working with Community

Sector Banking to develop a new product that could be used at scale by our members to

increase the supply of affordable housing. This project, and other initiatives, would benefit

from Commonwealth leadership to ensure a uniform and consistent system is created, which

is necessary as capital markets require volume. We need a consistent legal and regulatory

framework established and clear accountability to deliver effective housing bond rollouts.

These are low risk, low cost mechanisms for government to support new supply of affordable

housing.

PowerHousing would make an ideal partner to work with Government in further developing

housing bonds. In Britain a trade association similar to ourselves delivers billions of dollars

worth of bonds through a Special Purpose Vehicle. Our members have shovel ready

development schemes where housing bonds could be carefully piloted and evaluated.


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4 Building Vibrant Communities

PowerHousing Members have developed considerable expertise in creating vibrant andsustainable communities which respond to the local context and provide opportunities for

tenants and the broader community. We act as community anchors in the neighbourhoods in

which we operate, helping build individual and social capital.

4.1 The challenge

Targeting concentrated areas of public housing to the most disadvantaged has led to

concentrations of social disadvantage, and poor outcomes for tenants and communities.

Pockets of disadvantage have led to intergenerational problems of unemployment, drug and

alcohol abuse, dependency, anti-social behaviour and mental health issues.

There is also growing recognition

of the need to develop new ways

to integrate social and affordable

housing into our newly built

communities. This prevents

exclusive neighbourhoods, where

key workers who underpin the

economy cannot afford to live

close to where they work.

4.2 Our memberorganisations role

PowerHousing members have

developed considerable expertise

in responding to these challenges

and are now involved in all aspects

of building stable and vibrant

communities. They are

increasingly involved in

partnerships with government, not-

for-profit support services and the

private sector in neighbourhood

regeneration projects and are

bringing this expertise in place

making and community

development to their own

developments.

Working with our tenants

In 2012 Compass Housingset aside $200,000 funding fortheir People, Place, Performance approach. This aims tointegrate tenant and property management to enhance therelationship they have with their tenants.

Funding encourages tenants to develop concepts that give apositive impact for the participants and for the widercommunity. This program is part of Compass wider strategy

which includes the GROW sustainability initiative.

Compass received 19 applications, and the Dangar ParkRose Garden was successful. This involved bringingtogether Compass tenants, Compass staff, students andstaff from the local school, local community groups andmembers of the wider community. It consisted of a newcovered picnic table, featuring an Aberdeen themed mosaic,designed and created by local St Josephs Schoolas well asthe addition of a rainwater tank installed at the park.


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PowerHousing members are trusted within their communities. They are high capacity

organisations that have a long term connection to local communities that serves to anchor

them into partnerships and alliances with public, private and not for profit organisations within

a neighbourhood to help address entrenched social issues. They have the capacity and

commitment to build diverse, inclusive and sustainable communities by providing a range of

housing types and tenures which reflect the makeup of the broader community.

We understand the need for good planning for developments which takes into account

activating the public realm as well as the need for well-designed safe homes and facilities

that create and maintain liveable communities.

4.3 Empowering our tenants

Tenant participation and

engagement has become a

cornerstone of the practice of

PowerHousing members who have

embedded processes to empower

tenants throughout their

operations.

Feedback from tenants and the

opportunity to put forward their

ideas are critical in the

management of contemporary

community housing organisations.Our members have built robust

strategies to capture this feedback

and use it to inform decision

making. Strategies range from

formal reference groups and

surveys, focus groups, use of

social media and involvement in

social events.

PowerHousing members alsorecognise the importance of

providing opportunities for social

inclusion and participation for

tenants. This helps them build their

life skills and develop community

networks. Innovative programs

help tenants successfully sustain

their tenancies, and build capacity

to obtain employment and achieve

financial stability.

Winning over the community

A windswept car park in earshot of a busy highway inVictoria might not seem a likely site to raise the protectiveinstincts of the local community, but that is exactly whathappened when PowerHousing member Womens Housingproposed using the site for a 49-apartment to house womenfleeing domestic violence or at risk of becoming homeless.

The proposal ran into stiff opposition from local residentswho raised a whole series of concerns. Almost 200 peopleattended a volatile public meeting in 2009 to discuss theproposed development, and fears were aired about thetypes of tenants who were to be housed.

The once barren car park has now been transformed into astriking 6-star rated building that is now home to a mix ofyoung single mothers, older couples and elderly singlewomen, all of whom are provided with long-term tenure at adiscounted market rent. Tenant turnover has been minimal,with residents enjoying their new homes and theconvenience of being close to transport, schools, medicalfacilities, shops and cafes. Some have even foundemployment locally.

It is a remarkable transformation of a once barren site. Evenmore remarkable, given the developments rocky start, is theacceptance it has rapidly gained from the community thatfought so hard to stop it going ahead.


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4.4 Socially sustainable mixed communities

Increasingly our members are

developing mixed communities that

are socially sustainable. Delivery

models include a range of housing

including social and affordable

rental, affordable home sales and

market rate sales and rental. These

models may also include more

specialist housing such as housing

for people with disabilities or

seniors housing. These

developments reflect the makeup of

the broader community and are a

powerful way to break down social

barriers, eliminate the concentration

of disadvantage and create long

term sustainability.

Planning and place making is

critical in mixed developments to

ensure that pockets of

concentration of social and

affordable housing are avoided and

that all members of the communityhave access to shared and

community spaces and facilities.


The creation of community vibrancy, capacity and resilience is critical to the long term

sustainability of social and affordable housing. This needs to be recognised and resourced in

regeneration and renewal projects, management outsourcing and asset transfer programs.

Partnerships for success

We recommend Governments make more use of cross-sectoral partnerships for delivering

major new greenfield housing developments, and brownfield regeneration schemes. Bringing

together private sector skills in developing project homes, with community housings passion

for sustainable communities, is a powerful combination. PowerHousing members operate at

a scale, and have the skills to be full consortium members on such projects.

Housing people with a disability

PowerHousing member Evolve Housing, in partnership withsupport partners Northcott and RASAID, secured $6 milliondollars grant funding through the CommonwealthGovernments Supported Accommodation Initiative Fund(SAIF) to deliver homes for 20 persons living with disability,who are receiving life time funding through NDIS.

Evolve Housing with the support partners workedcollaboratively with prospective tenants to develop personcentred support housing for people with varying levels ofdisability. This has been achieved through a combination ofadaptable infrastructure, community based space andsupport programs that deliver independence, communityengagement and social inclusion.

Both the housing projects at North Parramatta and Rydewere awarded Platinum Performance Level compliance withGrandview the first to achieve this under SAIF. Grandviewhas also been recognised by the NSW Disability IndustryInnovation Awards for its innovative design and supportsystem inclusions


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Through the use of the planning system, State and Local Government can push for

development schemes to include a portion of affordable and social housing. Several states,

most notably South Australia, have used the planning system as a way of encouraging

affordable housing delivery. We recommend this approach is followed nationwide, and

encouraged through the use of planning bonuses.

Estate renewal

PowerHousing members are ideally placed to lead the redevelopment of concentrated public

housing estates. We can work closely with State Governments, Councils, tenants and local

residents - as well as partnering with private sector builders for housing delivery. As noted in

the next section, transferring assets to community housing providers is the key to unlocking

redevelopment potential. Any development profits from such schemes are re-cycled by

community housing providers, and re-invested in neighbourhood facilities.

Through moving away from highly concentrated social housing estates, to more mixed

communities, the net cost to Government will decrease significantly. There will be lower on-going expenditure on policing, health, and repairing neighbourhood damage. Given the long

term financial benefits to Government, we recommend special up-front grants are provided

to larger community housing providers to accelerate the pace of estate renewal. These could

be offered competitively to organisations such as PowerHousing members who have the

necessary and proven skills in project development and community building.

Partnering for housin g people with a disabi l ity

The National Disability Insurance Scheme (NDIS) is set to revolutionise the delivery of

support for people with a disability. However, an estimated 190,000 of the 410,000 predicted

recipients are on a low income, and of these up to 120,000 have been estimated by theNDIA to have an unmet need for affordable housing.

PowerHousing members already have considerable experience in providing accessible

housing, and many existing tenants have a disability or are ageing in place. We have the

experience and resources to help deliver new affordable housing for people with a disability

and their carers.

We recommend the Commonwealth carefully coordinates between NDIA and PowerHousing

Members over funding approaches for additional housing. Options include user cost of

capital subsidies, targeted grant funding, targeted housing bonds, or a special NRAS

incentive round. PowerHousing members can leverage other sources of funding on suchprojects, minimising the cost to Government of program delivery.


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5 Building a Strong Economy

Community housing is not just about delivering good social outcomes. PowerHousingmembers are major contributors to local and regional economies, and through social

procurement can help get people into training and work. We provide much needed

affordable housing where it is needed, housing key workers who drive the economys

engine.

5.1 The challenge

Our economic performance is closely linked to how well the housing system works. Currently

there is a lack of appropriate and affordable accommodation in many areas where the new

jobs are being created that power our economy. This is as true in remote regions, as it is in

our capital cities which increasingly rely on the knowledge economy. Under supply of

appropriate, affordable housing is a handbrake on economic growth.

Australia was one of the first countries to have high levels of home ownership, providing

security for low, moderate and high income households. Overall ownership rates are now

falling, and the decline is steepest among people in their 20s and 30s. The housing

continuum, shown below, does not work well. It is hard for people to transition not just into

home ownership, but from social housing into private rental.

More people are becoming trapped in crisis accommodation and social housing. The current

tax and social benefits system makes it unattractive for some residents to take up job offers

as their income will barely rise and they may be forced out of their homes. Private rental has

become very expensive, with prices escalating as moderate income families are forced to

rent as they cannot afford home ownership. Not enough new homes are being built, and

fewer people are transitioning into home ownership.


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PowerHousing members cover a broad range of the housing continuum. We provide shelters

for rough sleepers, community housing for people with often high and complex needs, as

well as affordable rental homes for key workers.Some PowerHousing members provide

lower-priced housing aimed at first time buyers, others are exploring innovative supported

home ownership products such as shared ownership and shared equity.

Because larger community housing providers understand from first-hand experience different

forms of housing tenure, we are more able to identify options for our residents. We may be

able to help tenants move from one of our crisis units into longer term social rental housing,

or from social to affordable rental. Transitions along the housing continuum are easier if there

are a range of products available.

Innovative approaches

PowerHousing members have innovated through offering a range of rent settings to provide

more flexibility to households. Residents with lower household incomes receive a larger

discount to market rent, thereby targeting subsidies to where they are needed most. In

Victoria, Haven, Home, Safe has a program making renting a home within the reach of

people on low to moderate incomes through offering a 10%, 20% or 30% discount to market

rents. This affordable rental housing is offered to people who live in the local community.

Our members in NSW, SA and WA are looking to expand shared ownership schemes. These

allow moderate income households to secure a stake in a property, then staircase their way

towards full homeownership. Shared ownership can also allow options for social housing

tenants to buy a share of their current rented property, or buy a share in another propertywhich will free their social housing unit for a family on the waiting list.

Powering the economy

Private sector developers tend to build new homes of a style and in locations that maximise

profit. This is often on the fringe of capital cities, distant from transport, services and

employment opportunities.

Community housing providers, by contrast, are driven by social missions. Their new housing

incorporates the latest thinking on Transit Orientated Development, and is close to jobs.

There are good examples in both WA and Queensland where community housing has beendelivered to house the resource sector workforce.

5.3 Engaging tenants in work and training

PowerHousing members have a direct economic impact through our employment of staff,

and by contracting tradespeople for new building projects and maintenance on existing

housing. This can have a big impact, especially in regional and remote areas where

community housing providers are among the biggest employers and local investors.

Through their social procurement practices, community housing providers can generatebroad benefits and impacts for the wider community. This can include creating training and


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employment opportunities through procurement processes, and inserting special workforce

clauses and specifications in contracts. Many examples exist where our tenants, people who

were formerly homeless,

or people from an

Aboriginal and Torres

Straight Island background

have gained skills and

employment.

Social procurement is a

way of addressing

complex local challenges,

such as inter-generational

unemployment, crime,

vandalism and economic

decline in localcommunities or among

disengaged groups. It

promotes fair and ethical

trade, setting an example

for others to follow in the

neighbourhood. There is

also increased social

inclusion, particularly for

vulnerable groups who

have an opportunity to

participate in the

community and the

economy.

Many PowerHousing members have schemes to support tenants to re-enter the workforce,

or gain education, training and tertiary qualifications. This may be in the form of competitively

applied for grants that support tenants or their families to broaden their horizons. Often quite

modest sums can leverage stunning outcomes. By publicising success stories through

newsletters and word of mouth, other tenants are encouraged to follow suit.


PowerHousing members can stretch public investment further and attract resources that

government cannot such as private finance and philanthropic contributions. This facilitates a

greater role in developing a range of housing options that can be targeted to deliver gaps in the

market. These include smaller properties, more affordably designed, well located to jobs and

accessible to people with differing levels of mobility.

Caretaker Diploma Program

BHCin Queensland recognised the value of on-site caretakersat a number of larger community housing complexes. As nospecific training was available to accommodate the uniqueneeds of caretakers, who combine the responsibility formanaging a significant asset along with being a point of contactand assistance to tenants, BHC embarked on working with aregistered training provider, Sarina Russo, to establish a customdesigned training program.

A Diploma of Management program was established which allBHC caretakers have successfully completed. BHC received an

Australasian Housing Institute Award for this initiative.


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Intermediate hou sing options

To make the housing continuum function better, we need a wider range of products that

enable people to step from rental housing towards owner occupation. Shared ownership/equity

and rent-to-buy schemes have become major growth areas overseas, broadening the choices

and pathways open to working families. Shared ownership is an example of how moderateincome households can purchase an initial stake in a property, then staircase towards full

ownership by buying-out the share of the property that is not yet owned.

By contrast in Australia, we

have a small number of

schemes in Western

Australia, South Australia,

Queensland and Tasmania,

which are fully controlled by

State Governments

We recommend the

Commonwealth provide

strategic leadership to

promote intermediate

housing products. This

should be through

establishing legislation and

protocols such that an at-

scale sector can emerge.

Unlike current approaches,

relying on State

Governments to provide

administrative support and

often direct lending through

a public finance agency, we

recommend the scheme be

run by the not-for-profit

sector.

PowerHousing members areideally placed to develop

affordable properties,

identify suitable applicants

from among our own tenant

base, and manage administration. Capital liberated through shared ownership could be

recycled by community housing providers to fund the development of much needed

additional social and affordable housing.

Social enterprise

A key initiative of the Bonnyrigg project, a major estate renewal inwestern Sydney in which SGCHis involved, is the Green Wings

jobs training and employment program. Green Wings is committed tobuilding a skilled local workforce and is focused on the physical,social and economic renewal of Bonnyrigg.

The team works hard to make Bonnyrigg the best it can be, whilstfurther developing the participants skills each day. Originally fundedby the Commonwealth, it now operates as a sustainable socialenterprise for the local community. Green Wings:

Increases place-based training for job seekers

Provides opportunities for casual and part-time work for peoplein the local community

Increases opportunities for school based traineeships and workplacements

Contributes to environmental sustainability

Helps build local businesses

PowerHousing Australia Submission Senate Inquiry Into Affordable Housing

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