home is where the heart is. - chc australia · 2017-05-21 · home is where the heart is. annual...

HOME IS WHERE

the heart is.ANNUAL REPORT 2015

CHC AFFORDABLE HOUSINGPO BOX 6239, O’CONNOR ACT 2602UNIT 224 / 29 BRAYBROOKE ST,BRUCE ACT 2617

PH: 02 6248 7716WWW.CHCAFFORDABLEHOUSING.COM.AU

ACN 081 354 752

TOTAL RENTAL REBATE TO ELIGIBLE TENANTS

EQUITY

$108.3m

TENANT ADVISORY FORUMS

2 MEETINGS

TENANT NEWSLETTERS

3 ISSUED

TENANTABLE AREAS

432

2015

highlights.

$2.7M (INCREASE $170K)

Mission & objectives 2Chairman’s report 4Note from the CEO 8Corporate Governance and Risk Management 12Our Staff 16Our Tenants 18Our Performance 24Our Properties 26Our Developments 30Financial Statements 35

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LIST OF Contents

2 CHC Affordable Housing • Annual Report 2015

Initially a provider of community housing management services, in the past seven years CHC has demonstrated its ability to deliver innovative affordable housing solutions to Canberrans. As a Tier 1 Community Housing Provider CHC has pursued an ambitious growth strategy to increase its portfolio of affordable housing.

We have achieved this through building effective working relationships with our partners in government, the private sector, and the community, as well as having a focus on personalised customer service.

Our mission is ‘To provide affordable housing for people on low or moderate incomes’.

The values that guide CHC in its provision of secure, affordable housing that reduces social and economic disadvantage are:

Ethical practice Creativity Respect Leadership Accountability Sustainability

We work hard to ensure that these values are upheld in policy and practice throughout the organisation.

MISSION & Objectives

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MISSION & Objectives

Our objectives are to:

Improve access to affordable housing

CHC will improve access to affordable housing by:

n providing rental housing supply for low to moderate income households through the National Rental Affordability Scheme;

n developing housing under the land rent scheme;

n including affordable housing retention in development projects, as and when appropriate;

n implementing purchase schemes for tenants wishing to make a transition from rental housing to affordable home ownership; and,

n developing quality affordable housing for sale to home buyers and investors.

Create appropriate housing

CHC will seek to add to the supply of appropriate affordable housing by working collaboratively to:

n improve housing choice by the inclusion in development projects of adaptable or accessible housing for rent or sale to older Canberrans or people with disabilities;

n contribute to long term sustainability and operational affordability by the development of housing that promotes energy and water efficiency; and

n improve community capacity, by increasing housing diversity and locational distribution of affordable housing while maximising proximity to transport, employment, shopping, cultural and sporting facilities.

Improve service delivery

CHC will promote the engagement of customers and stakeholders by:

n improving the quality of housing provided to tenants through strategic asset management;

n establishing participatory processes; and

n developing community partnerships with other community organisations to assist in supporting tenants and improving social capital.

Develop the organisational capacity of CHC by efficient and appropriate corporate governance

CHC will ensure its policies and practices contribute to the long term viability of CHC as an independent not-for-profit organisation by:

n periodically reviewing its operations to ensure compliance with the requirements of a Charity and Public Benevolent Institution.

n continuing to meet its legislative obligations under the Corporations Act 2001, other relevant legislation and regulations and the governance requirements of the CHC Constitution.

n maintaining registration as a Tier One community housing provider under the National Regulatory System for Community Housing.


Focusing on the development of our business, building a great culture and continuing to deliver on our strategic direction had led to another year of solid outcomes for CHC.We are committed to ensuring that in the delivery of our mission - the provision of affordable housing to low and moderate income earners – we do not compromise on service or quality. While we have already introduced a number of innovations in design (such as our group homes) and delivery (NRAS NEJV) we continually seek to improve our offerings to the Canberra community.

Producing better outcomes

We take being one of the leading community housing providers in the country seriously and invest in our people, processes and property to ensure this remains the case.

This year, in addition to a whole-of-business workforce planning review, we also commissioned two independent surveys, one of our tenants and one of our housing portfolios, to measure our performance and inform future strategic directions.

Our tenant survey recorded excellent levels of satisfaction with nearly all areas of service, exceeding all three National Regulatory System for Community Housing (NRSCH) thresholds. The results show overall satisfaction with housing services is excellent, with a combined satisfaction rating of 95%. Our tenants’ satisfaction with property condition also has an excellent combined satisfaction rating of 95%.

CHAIRMAN’S Report

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CHAIRMAN’S Report

Similarly, 96% of tenants were satisfied with CHC’s

standards regarding repairs and maintenance. It

should be noted that the NRSCH threshold for

each of these indicators is 75%.

The results from our housing portfolio survey were

equally impressive, with 95% of CHC’s housing

assets ranked as being in a good or very good

overall condition.

The workforce planning review was comprehensive

– spanning four months – and included a review of

the effectiveness of CHC’s reporting mechanisms

as well as key performance indicators. Staff were

engaged throughout the process, individually

and in groups, and contributed valuable insight

and ideas for improvements. As a result,

additional resourcing requirements to assist with

the compliance, human resource, community

engagement and maintenance areas of the

organisation were identified. These measures will

ensure we maintain our high levels of service as

we continue with our growth into the future.

A year of consolidation

Our focus this financial year was on capital

investment in the ongoing construction of our

Symphony Park development and ensuring

our business structure meets the needs of our

strategic plan into the future.

We continued to work closely with the ACT

Government for land development opportunities.

The approval of Territory Plan Variation (TPV) 322

in May this year marked a critical milestone in our

involvement in the redevelopment of the former

Downer Primary School site. We will continue to

work closely with the community as we move into

securing the site and final design planning.

We regard this site as an opportunity to showcase CHC’s unique capabilities as a developer with a difference and as a leading affordable housing rental provider. This mixed-use development will deliver up to 300 dwellings – including a 90 place child care facility and limited use commercial space. It will also be CHC’s first foray into the Retirement Living Sector with the introduction of affordable Independent Living Units (ILU) to our asset base. Targeting this sector as we seek to address the demands on our services from the fastest growing demographic group in Canberra, people aged over 65.

This year has been a challenging year for us as a participant in the Commonwealth’s National Rental Affordability Scheme (NRAS). In November 2014 a number of regulatory amendments were enacted and applied retrospectively, adversely impacting on the organisation and our NRAS investors. While a number of the matters arising out of these regulatory and administrative changes have been addressed, we are continuing to seek resolution to a Delegate interpretation of the application of the 80% of market rent at all times determination. We are not alone in our concerns, which have been echoed by a number of other NRAS providers around the country, and CHC remains committed to resolving this matter for itself and its NRAS investors.

Financial Performance

It is with pleasure that I report another successful financial year for the Organisation, posting a $2.0 million surplus. This result has been delivered despite it being a year of development construction investment – where the rewards of

those investments will not be reaped until future financial years.

We continued to provide quality, affordable housing to over 400 households and over 1,000 individuals, providing a total of $2.6m in rental rebates to eligible tenants.

Our balance sheet remains strong, with modest gearing and ample liquidity throughout the 2014/15 financial year, with equity increasing by $2m to a total of $110m.

Further details of the organisation’s financial performance are provided later in this report.

Reflection

It is with sadness that I reflect on the passing of our much respected colleague, Mr Ken Horsham, who passed suddenly on 27 December 2014. Ken was a founding member of the organisation in 1998, who guided and provided leadership to fellow directors and staff as it grew from a tenancy management service to a fully-fledged developer. Ken served many roles in CHC from Director, Chair of the Board, and Executive Director. He was a passionate supporter and active member of not only CHC but many other community organisations. He is missed.

Therefore, it was with mixed emotions that shortly thereafter we farewelled our Chief Executive Officer, Mr Craig Brennan. Over the past seven

years, Craig’s leadership of a skilled team has resulted in the many successful outcomes we have enjoyed as we have grown in the pursuit of our vision and purpose. With unwavering determination he kept his gaze firmly fixed on achieving these wonderful results for our organisation and our tenants. We wish him all the very best in his new endeavours.

Thank You

Our activity in 2015-16 will be driven by our strategic planning process to continue to achieve our four core objectives with ongoing focus on the retirement living sector and a new strategy to address housing for people with disability.

As I look forward to the upcoming year, thank you to our all partners, tenants and team for another terrific year.

I would also like to thank my fellow directors and our independent committee members for their unswerving commitment to CHC and its mission. As always, your governance, contributions and insights are integral to our success.

I remain confident that CHC is well-placed to continue to rise to the challenges encountered in pursuit of its mission, remaining a leader and innovator in the community housing sector.

Col Alexander



Change has been ever present this year, which seems appropriate for an organisation which is dedicated to changing lives!It has been a privilege to be a part of CHC for the past seven years and so it is with great pleasure that I write this note as Chief Executive Officer.

I pay my respects to directors and executive – both past and present – for their passion and commitment to making CHC the success it is today. I also acknowledge the Ngunnawal peoples as traditional custodians of the land upon which we develop and provide homes for our tenants.

I look forward to providing leadership that leverages off or from past successes and lessons learnt to ensure CHC remains a leading light in the community housing sector, and provides further innovation in design and community outcomes in the development industry.

Reaffirming our vision and strategic direction

Our mission to promote the relief of poverty by the provision of affordable housing for people on low to moderate incomes remains as urgent now as when the organisation was first founded in 1998.

Unfortunately, the cost of living continues to outstrip wage increases and the indexing of Centrelink payments. When commentators talk about the cost of living, they often refer to utility, petrol, or food prices. The single biggest area of household expense is in fact housing. It’s also not

NOTE FROM THE CEO


9

NOTE FROM THE CEO

discretionary: a budget-conscious household can drive less, or put on a jumper instead of turning up the heater, but the cost of their rent is fixed.

CHC’s affordable rents, targeted to household income and composition, free up household budgets so that our tenants can better afford to pay for other essentials in their lives. Ultimately this enables better social and economic participation.

The demand for our affordable rental housing remains strong, and this highlights the need to continue with a consistent growth strategy for CHC’s housing portfolio.

The year ahead

Our priorities for 2015/16 and beyond remain focused on delivering a diverse range of housing projects that will include affordable rental housing for low to moderate income households and dwellings for sale to first home buyers. There will be a particular emphasis on older Canberrans looking to downsize and people with a disability.

Already we are receiving enquiries for specialist housing since the introduction to the ACT of the National Disability Insurance Scheme (NDIS) which offers consumer choice for care packages. As the Scheme will allow more people to live independently, demand for appropriate and affordable housing for NDIS participants is rising.

Diverse housing projects

Stage 2 of Symphony Park will be settling in the last quarter of 2015, with revenues returned to finance construction on the final Stage 3 of the development. Stage 3 will be completed in two parts – across the second and third quarters of

2016. Overall, both stages will deliver a total of 158 homes being a mix of 1 to 3 bedroom apartments and terrace homes. Funding secured under the Housing Affordability Fund (HAF) is applied across this site and, as at 30 June 2015, has assisted in three quarters of the pre-sales purchasers for this development going to first home buyers.

We will finalise planning for the redevelopment of the former Downer Primary School site, with construction not expected to begin until mid-2016. This development is an opportunity to build upon the lessons learnt from CHC’s involvement in the City Edge development in O’Connor; and provide an exemplar for the future redevelopment of sensitive sites around Canberra. As such, CHC is committed to ongoing community engagement in the final design planning stages to ensure the outcomes achieve a balance of both CHC’s strict requirements, and the aspirations of the local community.

In addition, CHC will become a long-term member of the community with part of the site to offer Independent Living Units and a small number of residential dwellings to be retained by CHC as affordable rentals.

We will seek to maintain a rolling development program under the ACT Land Rent Scheme, which has helped underpin our housing portfolio growth strategy.

Asset management

We will focus on attending to the 1.7% of those individual component types (from four component groups being external fabric, interior finishes, services, and exterior works) identified

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as being in poor condition from the housing asset survey. More broadly, CHC maintains an ongoing watch across its total asset base for renovation, redevelopment or replacement opportunities. This is generally triggered when ageing stock (usually transferred stock) becomes available as a tenant exits the property.

This was the case in May 2015, when CHC identified a property in McKellar appropriate for redevelopment. This three bedroom property will be demolished and replaced with a five bedroom group home. In consultation with one of CHC’s members, Capital Community Housing, who provide housing to people with disability, this group home has been purpose designed to provide an affordable rental housing option for people with disability. It is expected that this property will be ready for tenanting in the first quarter of 2016.

Home ownership

We will continue to explore the implementation of a purchase scheme for CHC tenants wishing to make a transition from renting to affordable home ownership. Land Rent will be a key component of this potential scheme to assist people onto their first rung of the property ladder.

Community capacity

We will continue listening to our community and strengthening our community partnerships to better understand where and what the demand levers for housing are. Through these partnerships, we have been able to assist in providing specialist housing for diverse tenant cohorts including refugees and apprentices, and people with a disability, as well as providing assistance and offering development expertise to other

community groups seeking to increase their housing portfolios.

Improved service delivery

We will be implementing measures to address resources gaps identified in CHC’s 2014 workforce planning review. These measures recognise the high standards we uphold, with each position linked directly to the organisation’s key objectives. It enables further improvements to our internal processes and external service delivery as the organisation continues to grow its portfolio and service offer.

As such, we will be recruiting for the following areas in the 2015/16 financial year: Maintenance, Human Resources, Community Liaison and Compliance.

Develop leadership capacity

We will continue to invest in our human resource practices to ensure the appropriate skill-sets and cultural fit are engaged to meet the organisation’s strategic objectives. Ongoing retention of our valued staff is enhanced by an employee health and wellbeing program, flexible workplace options and professional training and development plans. Monitoring the effectiveness of these investments and options is achieved via our annual performance review process.

As part of our commitment to developing leadership capacity, in the 2015/16 financial year two of our four person senior leadership team will undertake the Australian Institute of Company Director’s Company Director Course. This will achieve 100% AICD qualification in this leadership group.


Improved financial performance

We value our independence and agility to respond to market and community conditions. We will ensure financial independence and sustainability by the development of projects for sale to the open market and increasing revenue streams through select retention of housing for rentals.

To ensure that we maximise revenue we are always reviewing our financial risk profile and looking for ways to minimise asset maintenance costs and increase asset quality (capital value). This year, in addition to the measures to improve service delivery of the above, we will also commence negotiations with the ACT Government with a view to developing an agreed repayment plan of the existing loan facilities and an extension of loan goal target dates.

We also vigorously support the ongoing delivery of CHC’s Non Entity Joint Venture model and the 69 homes currently leased to eligible tenants under the NRAS scheme and are working to ensure that changes to the regulation and administration of NRAS by the Department of Social Services, which administers the Scheme, do not jeopardise the tenants or investors in these homes.

As we enter 2015/16, we do so with a determination to succeed and with a resolve to continue to provide exceptional service and affordable housing products. I am confident that CHC has a bright future. The ability of its Board, senior leaders, and highly skilled staff to manage both the opportunities and the challenges ahead will help ensure this.

Kim Sinclair Chief Executive Officer

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CHC is committed to long-term financial viability and development of appropriate risk management and asset management processes to ensure long-term viability. CHC manages the risks to which it is exposed through constant monitoring and improvement to practices. The risks may be financial, human, reputational, operational or regulatory.

Board of Directors

CHC is governed by an independent skills-based Board, that provides high standards of corporate governance for CHC activities. Executive Management works with the Board to ensure CHC remains effective and sustainable.

Membership of the Board is contingent on maintaining a skill-set that helps CHC meet its goal of providing excellent service to our tenants, innovation and excellence in housing product, and growing our affordable housing rental portfolio.

Directors are appointed based on their expertise in housing development, asset management, community and social policy development, law, finance, and accounting.

The Chair, Deputy Chair and one other Director are appointed by the ACT Government.

This year we thank the following Directors and Committee members for their ongoing commitment and contributions to CHC’s success.

n Colin Alexander, Chair OAM, FCPA, BA (Acc)

n Paul Green, Deputy Chair MG, BA, LLB (Hons)

n Rebecca Vassarotti, BA/MEnvLaw

n Richard Bear, BCom

n Ken Horsham, Grad Dip (Architecture) (Vale)

n Cathi Moore, BA (Social Science)

n Kim Werner, BA/LLB, Grad Dip (Population Health)

n Chris Harding - BActg, FCPA, MAIIA, GAICD, Audit Committee Member

Additional details can be found at Page 8 of the Financial Statements

CORPORATE GOVERNANCE & Risk Management


During the year, CHC was saddened by the sudden passing on 27 December 2014 of one of its founding directors, Mr Ken Horsham. Ken was a key proponent in the establishment of CHC in 1998 and served in various roles, including Chair of the Board, remaining a valued Director until his passing. While it may be argued that a board requires ‘refreshing’ on a regular basis, Ken’s passion and strong commitment to CHC and social justice ensured his contributions were always on-point and relevant.

Ken’s wealth of experience in housing, planning and development, and the community sector in general will be sorely missed, not only by, CHC but the many other organisations to which he actively contributed including Northside Community Service and ACT Shelter.

To our much loved and respected colleague and friend, we thank you … and we miss you.

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VALE Ken Horsham

BOARD COMMITTEES Audit Committee

The Board has an established Audit Committee to oversee:

n organisational risk;

n maintainance of an effective control environment that includes systems for internal monitoring and financial and fraud control;

n maintainance of reliable financial reporting;

n compliance with applicable laws, regulations and guidelines; and

n maintainance of effective and efficient audit functions.

The Audit Committee comprises three members; two Directors and one external appointee with finance/audit qualifications. The Committee meets regularly with the Executive team, providing a forum for communication between the Board and external auditors. This process enhances the credibility and objectivity of financial reports with key stakeholders and the general public.

Community Committee

CHC’s Community Committee has been established to ensure that the organisation continues to provide exceptional service to its tenants. The Committee undertakes regular review of CHC’s tenancy policies and procedures, and has established a Tenant Advisory Group to facilitate effective two-way communication between CHC and its tenants.

CHC Executive Team

The Executive Team of CHC provides strategic leadership to CHC under the governance of the Board, and reporting to the Chief Executive Officer. These members have been selected as a result of their qualifications and commercial experience.

This year, CHC farewelled its Chief Executive Officer, Craig Brennan when he moved to warmer climes to pursue independent business opportunities with his family. From his appointment in July 2008, Craig worked tirelessly to establish and implement CHC’s growth strategy. CHC’s strong balance sheet and performance are Craig’s legacy to CHC for future leaders to live up to and build upon.

Also pursuing new opportunities, CHC farewelled Chief Financial Officer Mr Rohan Haslam who accepted a position with a ‘big four’ accounting firm.

The CHC board and staff wish you both every success in your future endeavours!

Following an external recruitment search, internal candidate (former Deputy CEO) Kim Sinclair was officially appointed to the Chief Executive Officer position on 2 July 2015.

Shortly thereafter, Philip Bullas’s promotion and appointment to Chief Financial Officer from Financial Controller was approved by the Board.

As successful internal candidates, both Kim and Phil bring their considerable experience and corporate knowledge to their new roles as well as their passion for CHC and the pursuit of excellence in all its activities.


Regulatory compliance

CHC is a not-for-profit company registered under the Corporations Act 2001. Implementation of these responsibilities has been embedded in the Constitution of CHC, and in its corporate governance guidelines.

CHC is a Charity, and endorsed as a Public Benevolent Institution. This status is determined by the Australian Taxation Office and Australian Charities and Not-for-Profit Commission (ACNC).

The ACT Government provides stamp duty, payroll and land tax exemptions.

CHC is also registered as a Tier 1 provider under the National Regulatory System for Community Housing Providers (NRSCH). This registration is the highest attainment under this system and CHC is committed to maintaining this status.

CHC remains an approved participant under the National Rental Affordability Scheme (NRAS) and is committed to maintaining and maximising incentives under the Scheme for itself and its Non-Entity Joint Venture investors.

CHC complies with Accounting Standards as determined by the Australian Accounting Standards Board. The ACT Auditor General, in accordance with CHC’s constitution, conducts an annual audit of CHC. These financial statements are published in full within CHC’s Annual Report.

Quality management

CHC has certification under ISO 9001:2008 for its Management System and continues to be independently audited by BSI Management Systems to ensure ongoing compliance.

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across

high

boards

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riskmanagementdirectors increasing

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OUR StaffWhile our tenants are at the heart of what we do, CHC recognises it is our staff that provide the strength and rhythm to that heart.Therefore CHC is committed to providing a safe workplace, free from discrimination and harassment, and recognising the individual contributions of our staff members.

To remain a leading affordable housing provider requires in investment in CHC’s leaders and emerging talent. Following an in-depth workforce planning review, CHC’s organisational structure was modified. Adopting the modified structure recognises the high standards required by CHC, with each position linked directly to the organisations key objectives. It enables further improvements to CHC’s internal and external service delivery as the organisation continues to grow its portfolio and services.

CHC will continue to invest in its staff and human resource practices to ensure the appropriate skill-sets and cultural fit are engaged to meet the organisations strategic objectives.

Ongoing retention of our valued staff is enhanced by an employee health and wellbeing program, flexible workplace options and professional training and development plans. Monitoring of the effectiveness of these investments and options is achieved via the annual performance review process.


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OUR TenantsCHC is at the forefront of addressing the high cost of housing to the lower income sectors of Canberra’s population and the demand for our services.In August 2014, an ABC headline declared that “Canberrans earn highest wages in Australia: ABS’’. According to the article, based on figures from the Australian Bureau of Statistics, the average weekly wage in the ACT was $1,663, $20 more than Western Australia (even though the mining industry remains the best paid in the Australian economy). The national average is $1,454.

Read closely though and the ABS pointed out ACT wages are inflated by the high proportion of public sector workers, who traditionally earn more than those in the private sector.

.

CHC’s 402 tenancies house 1,041 individuals, from which the following demographic data was extracted

Ind

igen

ous

31

Pers

on

with

a d

isab

ility

53

Mal

e o

ver

55

22

Fem

ale

ove

r 55

25

ww

19


In March 2015 Canberra’s population was 389,7001. Anglicare’s Rental Affordability Snapshot highlights the lack of affordable housing for different groups, including young people or single parents in receipt of Centrelink payments.

You don’t have to dig too deeply to realise that Canberra’s wealth hides a housing crisis. Research conducted by the ACT Council of Social Service and ACT Shelter provides a clear evidence of this. This research showed Canberra households spend an average $328 a week on housing, $63 a week higher than the national average.

According to the report “Even people in work are under housing stress – a family with one full-timer and one-part-timer on the minimum wage with three teenage chIldren could spend 34 per cent of their income on an apartment”.

Rent rises have risen 89% in 15 years, while the consumer price index rose 54% in the same period further exacerbating the gap between the income of people on low to moderate incomes to the cost of housing.

1 ABS Australian Demographic Statistics March 2015

2 Data EXCLUDES households managed by third parties

Household composition

Sing

les

10

2

Co

uple

s

32

Sing

le p

aren

t fa

mili

es

113

Fam

ilies

155

Tota

l

402

Social indicators - as at 30 June 2015 CHC’s 402 tenancies2 are comprised of the following households

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Prior to securing CHC housing, individuals have identified their housing circumstances as

Ho

mel

ess

12%

(123

)

Hea

lth c

ond

itio

n ag

gra

vate

d b

y th

eir

hous

ing

2%

(21)

Ho

usin

g is

inap

pro

pria

te fo

r ne

eds

34%

(357

)

Tota

l

100

% (1

041)

Very

hig

h re

ntal

ho

usin

g c

ost

s 25

% (2

58)

Chi

ldre

n b

orn

sin

ce r

entin

g w

ith C

HC

3%

(30)

Exi

stin

g t

enan

ts p

rior

to d

ata

colle

ctio

n 13

% (1

29)

No

n se

lect

ed (b

y te

nant

s) 9

% (9

6)

SOCIAL RENTAL - 25% OF INCOME PLUS COMMONWEALTH RENT ASSITANCE

AFFORDABLE RENTAL - 74.9% OF MARKET RENT

PRIVATE RENT - MARKET RENT

VERY LOW INCOME - UNDER $35,200 LOW INCOME - UP TO $47,900 INCOME - OVER $47,900

OUR ELIGIBLE TENANTS Figures shown based on a single person household.

Life

or

safe

ty a

t ris

k in

the

ir ac

com

mo

dat

ion

3%

(27)

TENANT StoryAs I sit down to write this article on a humid summer evening with storm clouds building overhead and claps of thunder on the horizon, I am feeling very lucky. In September this year all the people living at my previous complex – and there were many - were given final notice to vacate by the end of November so that redevelopment could begin. I had been living there for almost exactly a decade and had become used to being granted a stay of execution at the last minute each year due to delays in the redevelopment process, but not this time. I had rather naively assumed that due to my poor health and low income that I would automatically be transferred to alternate accommodation if and when the redevelopment ever took place. However, on finding out that this was not the case due to the dire shortage of all forms of housing for people on low incomes in Canberra, I was faced with the possibility of needing to look for crisis accommodation – or even of short term homelessness - for the first time in my life. All of a sudden, the faces of the homeless men and woman who were familiar fixtures to anyone who worked or lived in the area came to the front of my mind. I had often ridden past these unfortunate people on my bike late at night or early in the morning during a freezing Canberra winter while they lay asleep in a doorway of one of the prosperous businesses or powerful government departments that dominated the shopping center across from my unit. The reality of my situation was a little frightening and I began the process of trying to prepare myself mentally for a worst case scenario.


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Then, CHC Affordable Housing came to the rescue. With only a couple of weeks to go before kick-out day, my application for accommodation in one of CHC’s specially designed and newly built group houses was accepted. Not only do I now not need to live out of the back of a station wagon – which I was desperately trying to find the money to buy - or in crisis accommodation that would have been better suited to people escaping from abuse or other more serious circumstances, I actually find myself in what is quite simply the best quality accommodation I’ve ever had since leaving home at the age of eighteen. Just as importantly for me, I have also found myself in a house with a group of people who have all proven lovely to deal with and who were themselves in need of accommodation that was appropriate for low income earners in a “transitional” phase of their lives.

Canberra was recently voted the best place to live in the world by the Organisation for Economic Co-Operation and Development (OECD). They ranked thirty-four countries on nine measures of well-being and Canberra came out on top. However, despite the fact we find ourselves living in the “best city” of the “best country” on the only planet in the observable universe currently known to support life – there is a large and growing underclass in this city that often goes unacknowledged and underserviced. My chosen career path is one where I will hopefully be able to help people doing it tough in a different aspect of life, ‘keep their heads above water’, but I’ll never forget just how important my affordable housing was in doing the same for me.

I sincerely want to thank all the people at CHC Affordable Housing, from Tanya who signed me up, to the Executive team, the people responsible for designing and building the house, and all others in supporting roles for playing their part in being the safety net that I needed exactly when I needed it. I hope that all those people currently in need will one day be able to share in my feeling of relief and gratitude.

I am lucky indeed.

(This is a true story, unedited).

OUR PERFORMANCE

Tenant SurveyIn September 2014, CHC engaged the NSW Federation of Housing Associations to conduct its tenant survey. The results showed CHC’s tenants had excellent levels of satisfaction with nearly all areas of service. CHC exceeded all three NRSCH thresholds. This includes overall satisfaction with housing services which had an excellent combined satisfaction rating of 95%. It also includes satisfaction with property condition; which had an excellent combined satisfaction rating of 95%; and repairs and maintenance (with 96% satisfied). It should be noted that the NRSCH threshold for these indicators is 75%.

As such, CHC will continue activities to maintain these high services levels, with a focus on improving future survey response rates, and improving tenant understanding of the complaints process. It should be noted that the low response rate of 60% may be a reflection of the high levels achieved in the other six satisfaction areas (over 90%).

.


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Housing SurveyIn November 2014, CHC engaged SPM Assets to conduct a survey of its housing portfolio. The key goals of this process were:n To ensure housing assets are maintained to the highest quality standard.

n That the Lifecycle management principles requiring both maintenance and renewals be optimised over a 20 year planning period.

n Critical assets (buildings and components) will be proactively maintained and renewed rather than run to failure. The criticality factors assigned to components and buildings are used to prioritise projects associated with capital expenditure planning.

n To develop cost-effective management strategies for the long term.

n Managing risks associated with asset failures.

n Sustainable use of physical resources.

n Continuous improvement in asset management practices.

The results showed the overall condition of the housing assets are in a good or very good condition (95%), with 1.7% in poorer condition. This correlated with the Tenant Satisfaction Survey which showed a result of 95% satisfaction with property condition.

As such, CHC asset management strategy is one of ongoing vigilance to maintain these high standards, with a focus over the next two years on those assets with components in the poorer condition range.

Through the visual-assessment of the 397 housing assets within CHC’s Housing portfolio, a total of 40,196 building components have been identified with an overall Gross Replacement Cost (GRC) of $51 million.

The assessed overall condition of the assessed housing portfolio is seen to be in a very good condition with 95% (or $48 million by value) of assessed components being in either a good/very good condition, whilst 1.7% of the assessed components (or by value - $908,632) is seen to be in a poorer condition.

$40,000,000

$35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0

V.Good (C1) Good (C2) Moderate (C3) Poor (C$) V.Poor (C5)

Gros

s Rep

lacem

ent C

ost (

GRC)

Condition Grade

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The diversity of the community we live in, calls for diversity in housing options. CHC continues to implement a strategic and innovative approach to asset management that:

n provides effective asset services including programmed and cyclical maintenance;

n reviews housing quality, condition and value; and

n identifies housing assets for long term retention, renovation, redevelopment or replacement.

We have a diverse portfolio to cater to the needs of a broad demographic. This portfolio includes group homes, studio apartments, one to three bedroom apartments, through to 4 bedroom detached homes.

We believe that providing an affordable and safe home provides the foundation for economic and social participation.

With over one third of households in the lowest two income quintiles in Canberra (19,600 households) spending more than thirty per cent of their income on housing costs, evidence shows compromises are made on food, groceries, health, medical treatments and other essentials.

While home ownership remains a long way off for most, our affordable rentals provide much needed relief for our tenants.

And occassionally, we are heartened to hear of those tenants who have been able to move into home ownership. It was very exciting that this financial year four of our households either exchaned or settled on their first home.

OUR Properties


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QUICK Facts

NRAS Investor Dwellings 69

CHC Dwellings 403

- Studio 5 - 1 Bed 42 - 2 Bed 154 - 3 Bed 185 - 4 Bed 10 - Group 7

CHC Tenancies 432

Income based rent 104 Affordable rent 328

“ We have a diverse portfolio to cater to the needs of a broad demographic."

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A continuous pipeline of successful developments remain key to CHC’s achievement of its sustainability and growth strategy.The 2014/15 financial year saw the continued construction in a four year development at Symphony Park and completion of negotiations for CHC’s next major development in Downer.

OUR Developments


FOR SALE FOR RENT

2013

/14

2014

/15

2015

./16

May 2015

TPV 322 Downer approved

SP “Stage 2” - Dec2015

SP “Stage 3” - Jun 2015

Oct 2013 - 8 x Bruce, 3 x Jacka

Nov 2013 - 7 x Jacka

Jan 2014 - 2 x Jacka, 1 x Group Home

Feb 2014 - 2 x Jacka, 6 x Bonner

Apr 2014 - 6 x Lyons (Sorrell)

Jun 2014 - 15 x Lawson “exchanged”

Jun 2016 - 15 x Lawson

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DOWNERIn May 2015 the ACT Government approved the Territory Plan Variation (TPV) for the former Downer Primary School site, allowing final negotiations for CHC to acquire and develop the site to proceed. This was an important milestone for CHC who has been involved in this project since 2011.

The TPV was based on a masterplan created by the ACT Government, CHC and the Downer community over a series of consultations and workshops. This masterplan informed the TPV and precinct code to allow redevelopment of the former Downer Primary School to deliver approximately 300 dwellings, a child care centre and limited use commercial floor space.

This project will be CHC’s first foray into affordable housing for downsizers/retirees with the inclusion of Independent Living Units in this mixed-used development.

CHC will continue to engage with the Downer Community in the lead up to lodging a development application to deliver a unique outcome to the residents and community of Downer.

LAWSONIn June 2014, CHC exchanged on fifteen house blocks in the newly developed suburb of Lawson. These properties are expected to be ready for construction in the third quarter of 2015.

SYMPHONY PARKCHC began works at Symphony Park, at the corner of Flemington Road and Sapling Street in Harrison, with the first stage (The Terraces) delivering 27 three-bedroom terraces and 5 one-bedroom units to the market for sale in March 2013.

Stage 2

Adjacent to Stage 1 (The Terraces) CHC commenced construction on stage 2, comprising of 82 dwellings on the 30 July 2014.

At 30 June 2015, 71 pre-sales were achieved, with 57 being first home owners. In line with CHC’s approach to assisting low to moderate income earners to achieve home ownership aspirations, of these purchasers entered into deposit payment plans and are now awaiting completion of their new homes.

This stage of the development is due for completion November 2015 – just in time for new owners to move in before Christmas.

Symphony Park Stage 2 Display Suite

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Stage 3

The final stage of this project will deliver 76 residences over 4 buildings consisting of apartments and terraces.

Delivery of this stage will be in two parts – with the terrace components due for completion in April 2016 with the remainder finishing in

November 2016. At 30 June 2015, 58 pre-sales were achieved, with 42 being first home owners. In line with CHC’s approach to assisting low to moderate income earners to achieve home ownership aspirations, one of these purchasers entered into a deposit payment plan to secure their new home.

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FINANCIAL Statements

FOR THE YEAR ENDED 30 JUNE 2015

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CHC AFFORDABLE HOUSING PO BOX 6239, O’CONNOR ACT 2602UNIT 224 / 29 BRAYBROOKE ST,BRUCE ACT 2617

PH: 02 6248 7716WWW.CHCAFFORDABLEHOUSING.COM.AU

ACN 081 354 752

home is where the heart is. - chc australia · 2017-05-21 · home is where the heart is. annual...

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