SPECIALIST DISABILITY ACCOMMODATION: MOBILISING THE MARKET

Luke BosherCEO, Summer Foundation

National Housing Conference DarwinAugust 2019

About Summer Foundation

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The problem of young people in aged care

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50 young people enter aged care every week across Australia

• 480 Queenslandersunder 65 enteredaged care in the2017-18 year

Specialist disability housing before and after NDIS

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BEFORE AFTER

Highly rationed disability service system

Individual funding – choice about where and how to live

Government-directed supply and allocation

NDIS-funded supports enable independence, more housing options

Service delivery efficiencies meant congregate care models

Well-located housing enables independence and participation

Isolation of people with disability Open market

Poor accommodation settings Phasing our of larger accommodation

Specialist Disability Accommodation – the basics

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A support payment to an individual

For people with an extreme functional impairment and/or very high support needs

Enables access to specialist housing

Funded for 6% of NDIS participants= 28,000 people

About 17,000 entered the NDIS in existing supported housing

NDIS regulates SDA providers and properties

SDA – supply challenge

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TOTAL - represents notional distribution

of SDA funded places (by population)

NEW - represents potential demand for places, taking

into account existing supply

Actual demand will be determined by

funding decisions for individuals by the NDIA

SDA market analysis – undersupply in NSW

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3290SDA shortfall (new supply needed):

9020SDA needed (per capita share):

Statewide

Outer South West Sydney

314SDA needed:

163SDA supply shortfall:

An initiative to educate industry players and

connect suppliers and consumers

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http://getbuildingsda.org.au/home/knowledge-hub/

SDA – market development challenges

Funding tied to individual, not property

Understanding demand for SDA

Slow and uncertain funding processes

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Limited useful data published

High financial risks

Glitches in policy detail

SDA insight #1 – people with disability

• Need to empower people with

disability about their housing

options and possibilities for

greater independence

• Housing needs and preferences

are very diverse

• Difficult to navigate the market

of suitable housing options

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The Housing Hub www.thehousinghub.org.au

SDA insight #2 - providers

• Range of new players inSDA development

• More than 1500 new placesunder way in late 2018

• More diverse housing optionsand focus on greaterindependence

• New providers with focus onquality design and location

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New SDA examples

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Guardian Living, Ringwood, VIC Summer Housing, Fairfield, VIC

SDA Liveable Homes, Narangba Rapid Interim Housing Prototype

SDA insight #3 - investors

• SDA pricing based on all delivery costs including cost offinance (assumes 60% debt, 11.6% pre-tax equity return)

• Major private funders emerging

• Long-term investors attracted by longevity of subsidy(20 years+)

• Debt and equity funding in place/equity funderslooking for scale

• Emerging challenges – thin markets, existing assets,errant market behaviour

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SDA insight #4 - government

• Highly innovative policy: individualised,

client choice, responsive to variations,

quality and safeguards

• Enables people with a significant disability

to pursue a goal for better housing and

greater independence

• Administrative and approval processes

are improving

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SDA - What have we learnt so far?

• Housing needs and preferencesare very diverse

• SDA pricing is driving this new housingsector – but it’s complicated!

• Range of investment/developmentmotivations

• Relationship with other NDISsupports/services

• Emerging market behaviours

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