First grants for social and affordable homes

GRANTS for the first round of social and rent-capped homes have been green-lit by the Federal government.

Housing Minister Clare O’Neil said 185 housing projects would receive grants as part of the $10 billion Housing Australia Future Fund (HAFF) which is aimed at delivering 13,700 homes.

The successful projects represent one-quarter of the 673 applications submitted to government agency Housing Australia earlier this year.

The grants last for 25 years and take the form of a regular “availability payment” in exchange for the housing remaining available for the full duration.

Of the approved homes, 4,220 will be social housing, where rent is set at a level affordable by those on low incomes.

Another 9,522 will be “affordable” homes, capped at three-quarters of market rent.

A total of 1,267 are designated for women and children escaping family violence and older women at risk of homelessness.

Ms O’Neil said 40 per cent of the successful applicants would start construction this financial year.

The Property Council of Australia has welcomed the announcement of the first funding round of the Housing Australia Future Fund (HAFF) and National Housing Accord Program.

Property Council Group Executive Policy and Advocacy Matthew Kandelaars said today’s announcement represents an important milestone in the delivery of much-needed social and affordable housing, including for those escaping domestic and family violence.

“The announcement of funding for nearly 14,000 social and affordable homes will transform the lives of many Australians who dream of a home of their own,” Mr Kandelaars said.

“A wealthy, land rich nation should not have a housing deficit and the only way to close that gap is to build more homes. Today’s announcement is great news for housing supply in general.

“Following today’s welcome announcement, even more is required to deliver our national target of 1.2 million new homes by 2029. Both the Help to Buy and Build to Rent legislation must be passed.

“The Property Council, Community Housing Industry Association and National Shelter have developed a proposal to add 105,000 new rental homes to our national supply over the next decade.

“It’s time for all parties to put aside entrenched political positions and back this proposal through good faith negotiations, starting in the Senate this week.”