1. A way ahead for affordable housing? December 2015 Michael Lennon Managing Director

2. 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

17. 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

18. 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

19. 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

20. Target Product Homeless/risk of Social rental Disability/mental healthSocial 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

21. Market Sales Shared 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

22. 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

23. The Merchant, Docklands

24. Drill Hall, Melbourne CBD

25. The Mariner, Docklands Forty two one bedroom & Forty three two bedroom apartments Completion Date: June, 2011

26. Marshalltown Rd, Geelong Four independent living units and three shared units with 24 hour care. Completion Date: December 2013

27. Historical legacies Merging Fiscal stimulus Transferred assets Blended funding HCA to date: driven by:

28. 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

29. Canada and Australia – Federalism – Economies – Housing Challenge Affordable Housing – No silver bullet Non-Profit Housing – potential? – commitment? – capability? Conclusion

30. Contact details: Email: michael.lennon@hcau.org.aumichael.lennon@hcau.org.au Website: www.housingchoices.org.auwww.housingchoices.org.au Michael Lennon