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National and International trends in affordable housing Housing is a human right.

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Presentation on theme: "National and International trends in affordable housing Housing is a human right."— Presentation transcript:

1 National and International trends in affordable housing Housing is a human right

2  International basis for financing affordable housing  History of social housing in Oz  NAHA  Housing, Tax and NAHA  Mixed tenure developments Housing is a human right

3 1. Scale and capital base ◦ U.K. 10,000 – 30,000 properties 2. Government Guarantee ◦ Implicit – UK Housing Benefit, NRAS to some extent ◦ Explicit – Netherlands central fund, capital grants 3. Sufficiently broad tenant/rent profile 4. Robust regulatory system ◦ Transparent ◦ Intervenes to prevent failure Housing is a human right

4  A place where people want to live  Not warehousing poor people  Different starting points and pathways  Place-making not house building  Schools, pubs and restaurants  Decent neighbourhoods standard  Create mixed communities  Offer flexible housing products  Long term investment in places  New funding mechanisms Housing is a human right

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6 ST THOMAS SCHOOL, LONDON

7 Non Profit Housing Market Share Share social housing all dwellings Estimated share in NFP sector Netherlands35%99% France17%92% United States5%69% Canada7%67% England18%50% Australia5%11% Ireland8%13% Source: Lawson and Milligan 2007, modified Mullins, 2008 Housing is a human right

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9  National Partnership Agreements between the Commonwealth and States for: Remote Indigenous Housing ($5.5b over 10 years) Homelessness ($1.1b over 5 years) Social Housing (400m over 4 years) Housing Affordability Fund ($512m over 5 years)  The National Rental Affordability Scheme (NRAS) 50,000 properties over 10 years rented at 80% below market

10  Stimulus spending in Australia on social housing of $5.64b over 2 years for: 20,000 additional social housing properties 19,600 will be delivered Up to 75% of which to be owned and managed by community providers Actual signed agreement says up to 35% 10,000 properties brought back to the system through upgrades and maintenance Target exceeded by more than 100% Housing is a human right

11 Projections include trend line in social housing plus impact of full delivery of Australian Government measures (NAHA, Stimulus Package (Social Housing Initiative), Homelessness Package (A Place to Call Home) and assumed 35,000 of 50,000 NRAS managed in the Social Housing Sector).

12 The proposed system will include a national register of housing providers, a national regulatory code applied uniformly across Australia, and a lead registrar to be appointed for each housing provider operating in more than one jurisdiction. The Ministers reaffirmed their commitment to creating a robust and consistent regulatory system that will provide prudential supervision and regulation of housing providers. The purpose is to assist providers to grow across jurisdictions, ensure tenants are protected and assist the sector to attract private investment. Ministers agreed to public consultation on the design elements of the new system, including the draft national legislative arrangements and the regulation impact statement. Housing is a human right

13 Principles Changes to the tax system should be based on the following principles. The tax treatment of housing should: 1. Improve access to good quality housing for low income households 2. Reduce inflationary pressure and improve housing affordability 3. Remove distortions which favour building upper-price housing rather than lower-price housing. 4. Encourage stable rather than volatile revenue streams 5. Influence markets to create more affordable housing 6. Encourage housing security 7. Remove barriers to housing mobility Housing is a human right

14  Fund the operating costs of the public housing system on a per dwelling basis  Create a growth fund of (min) $1.5b per annum in addition to the operating cost and distributed on a per capita basis to states  Broaden the eligibility criteria for all affordable housing programs  Begin a process of stock transfer up to 65% of total stock held by State Housing Authorities to the community housing sector, 50% of which with full title  Allocate dwellings on a portfolio basis with minimum requirements for tenant and rent profiles (including a range of market based and income based rents) to ensure growth of the system’s allocations to highest needs households  Allow flexible operations by both SHAs and community providers to encourage innovative thinking for housing development and delivery, including mixed tenure developments, whilst meeting minimum requirements established by the NAHA Housing is a human right

15  Provide a 40 per cent savings income discount to individuals for non-business related: (a) net interest income; (b) net residential rental income (including related interest expenses); (c) capital gains (and losses); and (d) interest expenses related to listed shares held by individuals as non- business investments  National Shelter supports this recommendation towards turning around a regressive trend in taxation treatment. This change could encourage improved investment distribution and help remove distortions which encourage speculation. Housing is a human right

16  Ideally, there would be no role for any stamp duties, including conveyancing stamp duties, in a modern Australian tax system. Recognising the revenue needs of the States, the removal of stamp duty should be achieved through a switch to more efficient taxes, such as those levied on broad consumption or land bases. Increasing land tax at the same time as reducing stamp duty has the additional benefit of some offsetting impacts on asset prices.  …the land tax base should be broadened to eventually include all land. If this occurs, low-value land, such as most agricultural land, would not face a land tax liability where its value per square metre is below the lowest rate threshold.  National Shelter response:  National Shelter supports a move by states from stamp duties to land tax as outlined in the Henry Review Housing is a human right

17 ‣ Affordable Housing Programs to be defined more broadly than traditional forms of housing assistance; ‣ Changes to the language used to describe types of housing assistance to remove stigma and promote flexibility. A range of types of assistance divided into Bands from A to D with Band A involving the deepest subsidy. ‣ Net growth targets for dwellings in “affordable housing programs”; (220,000 BY 2020) ‣ Within overall growth target, targets for assistance in each of the Bands; Housing is a human right

18 Twin funding streams There was broad support in the roundtable discussions for the concept of twin streams of funding: 1. Operational funding to manage, maintain and replace existing stock: to be calculated on a per dwelling basis; and 2. Growth funding to encourage a net gain in stock and potentially other forms of housing assistance: to be calculated on a per capita basis. Housing is a human right

19 Additional Key messages 1. The need for flexibility to create financial and socially sustainable housing assistance systems that deliver housing assistance that suits local needs. 2. A strong focus on Housing for Aboriginal and Torres Strait Islanders across Australia, including through a NPA on urban Indigenous housing 3. Addressing related agendas through parallel processes, including, land supply, planning and taxation inc. exemptions. Housing is a human right NAHA

20 Housing is a human right ARIS - Masters Street, Newstead Completed 29 th June affordable rental housing units 30 NRAS units 39 market for sale units Total Scheme cost $29.87M Economic stimulus grant $6.2M 20 COMPLETED

21 Housing is a human right Masters Street, Newstead 21 Photos taken week beginning 3 rd March 2011

22 Housing is a human right 22 Masters Street, Newstead

23 Housing is a human right SYRAH - Blackwood Street, Mitchelton Completed 6th August affordable rental units – active elderly 15 market for sale units Retail and commercial floors (866m2) Total Scheme cost $13.9M Economic stimulus grant $3.18M 23 COMPLETED

24 Housing is a human right 24 Blackwood Street, Mitchelton

25 Housing is a human right RICHMOND - Hurworth Street, Bowen Hills Target completion 5 th November 2011 Land acquired from Brisbane City Council with incentive 107 dwellings 40 affordable rental 67 to be sold of which 30 will be NRAS Total scheme cost $28.8m Economic stimulus grant $8.99m 25

26 Housing is a human right CARGO - Musgrave Road, Coopers Plains Target construction commencement date April dwellings 33 Market for sale, 33 affordable rental Total Scheme cost: $16.5M 26 CARGO, Coopers Plains

27 Housing is a human right 27 The End and thanks for your attention


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