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First low-cost funds available to ‘turn tide’ on housing affordability

05 February 2019 Tim Neary

The first funds made available through the Affordable Housing Bond Aggregator have been released, to be managed by the National Housing Finance Investment Corporation.

Nicholas Proud, CEO of PowerHousing Australia, which represents 32 of Australia’s largest tier one and scale-growth community housing providers, said the delivery of the first low-cost financing for affordable housing is a “significant” new step in turning the tide on housing affordability.

“With this first loan of $35 million in low-cost financing going out to Hume Community Housing, the concept of a new low-cost, long-term, government-backed finance mechanism has been realised,” Mr Proud said.

“Not only does this provide a certainty around low-cost finance for providing affordable housing solutions to many families that rent, it opens a wave of similar financing agreements that will multiply the number of affordable homes provided across the country.

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“This announcement also heralds a new era for global investors that are waiting for the formation of affordable housing as an asset class in Australia which, when it comes, will see affordable, build-to-rent developments become a proven, long-term, safe investment place as it is in countries such as the US.

Mr Proud said low-cost affordable housing finance will be a “vital”.

“To ensure that Australia continues to supply and manage enough homes for population demand to put a lid on price rises, and will underpin residential industry jobs, state and federal budgets as new housing supply contracts in 2019.

“CHPs are also today showing their capability to work proactively to ensure new opportunities to deliver social change to the benefit of all Australians are rolling out to bring affordable housing back to the growing numbers of Australians that were losing hope.

“The CHP Sector and broader residential industry have been strongly in support of such an affordable housing mechanism and this result today shows state and national decisionmakers a path to encourage greater private and institutional investment and provide cheaper and long-term finance to registered providers of affordable housing.”

First low-cost funds available to ‘turn tide’ on housing affordability
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