a way ahead for affordable housing? december 2015 michael lennon managing director
TRANSCRIPT
A way ahead for affordable housing?December 2015
Michael LennonManaging Director
• Backdrop of long-run changes in the structure and dynamics of Australia’s housing system
• Outline some potential solutions/interventions
• Suggest new/emerging roles for the nfp sector
Purpose
• Housing as part of national and State/Provincial policy
• Innovation – post commodities boom
• Productivity – the opportunity cost of displaced expenditure
• Welfare reform, contestability
• Labour market efficiency
The Road Ahead: Policy
• Using our leverage capability
• Engaging with financial markets:
– Rating
– Long-term debt
• Utilising under-capitilised assets
• Re-cycling capital
• Laying off risks
The Road Ahead: Capital Raising and Risk
• no development margin• no company tax• no stamp duties • no GST• philanthropy• municipal relationships• government transfers …… whatever gets the financial model to work.
The Road Ahead: Playing to our strengths
Target Product
• Homeless/risk of Social rental • Disability/mental health Social rental
Shared equity
• Affordable Sub-market rental
• Key workers private rental/portfolio management
• Vulnerable ageing life long lease?/DMF
The Road Ahead: Keeping to our Mission
Market SalesShared Supported Accommodation
Private Rental Social Rental Shared Equity
The Road Ahead: Creating Supply/Recycling
HCA as developer
HCA as broker
HCA as manager
HCA as owner
HCA as funder
• 3500 properties • $500m + net equity• $7-8m p/a free cash• 7 offices• 100 + staff• Operating in 4 States• Poised for growth
Housing Choices Australia – 2008….today
The Merchant, Docklands
Drill Hall, Melbourne CBD
The Mariner, Docklands
Forty two one bedroom & Forty three two bedroom apartments Completion Date: June, 2011
Marshalltown Rd, Geelong
Four independent living units and three shared units with 24 hour care . Completion Date: December 2013
• Historical legacies • Merging • Fiscal stimulus • Transferred assets• Blended funding
HCA to date: driven by:
• ever-escalating ambition if we are to make a material difference • 3 mergers to date + Group Structure • organisation with critical leadership governance capabilities • flexible, nimble, open to possibilities
HCA: Key Steps in the journey
• Canada and Australia – Federalism– Economies– Housing Challenge
• Affordable Housing– No silver bullet
• Non-Profit Housing – potential?– commitment?– capability?
Conclusion
