Steve StaikosPolicy and Public Affairs Officer

What Is Community Housing

• Community housing is defined as rental housing provided by a not-for-profit community based organisation at below market rent for low to moderate income tenants.

• Community housing is an integral part of the housing system and aims to provide a housing option that is affordable, secure, responds to local community needs and supports tenant participation.

• The National Community Housing Standards Manual (3rd Edition) describes the aims of community housing as follows:

Affordability Choice Responsiveness Security Sustainability Fairness Respect Participation Partnerships Quality

Accountability

Housing options and the role of the Community Housing Sector

Snapshot of Victorian Housing Market

Public and Community Housing Victorian Context

• 65,000 Public Housing dwellings in Victoria

• Housing and Community Building is a division of the Department of Human Services

• There are approximately 38,000 families waiting Public Housing Waiting List

Community Housing• 16,000 dwellings are owned or managed by the

Community Housing SectorThis includes: • Co-operative Housing, • Key Worker Housing,• Transitional Housing,• Rooming Houses, and • Other models of long

term housing

A Snapshot of the Community Housing Sector

2011• 9 registered housing associations• 33 registered housing providers

Total asset value = $1.74 billion

• Associations - $1.64 billion

• Providers - $99MProperties owned and

managed = 14,636• 9 Associations 7,712 -

53%• 32 Providers • 6,624 - 47%

State Regulation

• The State Government regulates these CHOs through the Office of the Housing Registrar

• CHOs have to meet several Key Performance Measures to maintain their status registered Community Housing Providers and Associations

The Housing Registrar

Housing Provider Framework

• 3700+ homes, owned by the government are managed by the community housing sector under the Housing Provider Framework

Director of Housing properties (3722 long term properties) are leased, to registered agencies only, under the Housing Provider Framework (HPF).The HPF is a ‘rent retention’ model (including Commonwealth Rent Assistance – rent is 25% of income plus CRA) enabling greater autonomy to agencies while ensuring similar eligibility and rent setting as public housing.The Transitional Housing Management Program managers operate as ‘delegates of the Director of Housing’ (3611 properties). Rent is forwarded to the Director and agencies are paid management/support fees.

Government Investment

• In the 2007 Budget, the federal Government allocated significant funding over $700 million as part of the Nation Building Stimulus Package.

• The State Government also allocated $310 Million through the Social Housing Investment Fund

Leveraging – A Victorian Model• All approved projects must meet stringent due diligence

assessment and demonstrate financial viability. The maximum grant is 75% of total project cost.

• Agencies are contractually bound to the ‘Framework for Eligibility, Targeting and Rent Setting’ – broader than public housing (e.g. rent can be up to 30% plus CRA compared to 25% in public housing)

• s107 Housing Act ‘Director’s Interest’ is registered on all funded land.

• Funded agencies are obliged to allocate 50% of all true vacancies to referrals from the public housing waiting list (pending the Common Housing Register).

Asset Transfer – In 2008, the ownership of 570 properties were transferred

to registered housing associations.• Properties already leased to and managed by associations• “Without consideration” but negotiated a 15% growth target. Eg

CHVL – received $17.7m asset – now delivered $3.5m worth of new property.

• Transferred significant liability too• Some property not able to be transferred (eg subdivision issues)

The management (not ownership) of 1300 public housing tenancies has been transferred to Aboriginal Housing Victoria (implicit that transfer of ownership may later follow).

Diversity

• Different types of organisationsSome community housing organisations are very small - for example some self managed co-operatives have only 6 houses. Other community housing organisations are much larger with the largest housing association managing over 2,700 houses. Over the next year or two, a small number of housing associations will also grow to manage between 2,000 and 3,000 tenancies.In between are a broad range of organisations - small, medium and large - and a variety of management styles.

Different Types of Community Housing

• There are a few main types of community housing: housing associations, co-operatives, transitional housing, rooming houses, Aboriginal housing and church owned housing.

• Housing associations manage the vast majority of community housing tenancies. But the others play a crucial part in making community housing the vital and diverse sector that it is. Housing associations are specific professional not-for-profit housing providers. While they mainly manage rental housing, they may provide other services as well.

• Co-operative housing are dwellings owned by the government, but is fully managed by the tenants themselves, providing real control and ‘ownership’ of their housing.

• Transitional housing can be a stepping stone to public and community housing. Clients, in some cases, can be fast-tracked as they are still classified as homeless. There are waiting lists for this type of housing.

• Rooming Houses (sometimes referred to also as boarding houses) generally provide housing for single people who (sometimes through disadvantage) may find it difficult to access other private rental housing or who prefer to live in a rooming house environment for social contact

• Church-based agencies have responded to need in their local communities and bring church resources to the table. In partnership with government they have played an important role in providing local solutions.

• Aboriginal housing – There is also a distinct, Indigenous-controlled, housing system. While much of this housing is managed through the NSW Department of Housing, there is also significant number Aboriginal community based housing providers. This sector is administered by the Aboriginal Housing Office.

Community Housing Federation of Victoria (CHFV)

• CHFV is the Peak Body representing 73 Community Housing Organisations (CHOs)

• CHOs are all not-for-profit bodies that seek to provide quality, affordable, rental homes for fairer and better communities

• CHOs work alongside Public Housing as partners, providing a different type of housing option

Future

• CHFV is working with the government to secure future growth in the Community Housing Sector.

• Best potential for growth is the transfer of assets from the State to the Community Housing Sector.

• These assets can be utilised to borrow money for expansion.

Questions?