New Directions

The community housing sector has developed considerably to become an innovative, professional, and diverse sector.

But it is now in the throes of major change and is about to experience even more.

As housing affordability continues to decline across Australia, the sector is positioned to take a broader role in delivering low cost housing. In addition to very low income households and those with complex needs, the sector will increasingly expand its role in providing housing that is affordable to low to moderate income households.

There are five major changes underway that will change the face of housing associations in NSW.

• New kinds of housing associations – brought about through mergers, new partnerships and new group structures
• Major growth – through a new NSW Government target and through new private investment incentives, the National Rental Affordability Scheme.
• Taking on management of public housing
• New business – a number of associations will move beyond property and tenancy management into property development of low cost housing.  This in turn is producing new partnerships.
• New legislation to provide certainty and assurance to stakeholders, investors and partners.

New kinds of housing associations

Across the country governments are directing investment into designated ‘growth providers’.   NSW is no exception. The associations awarded ‘growth provider’ status have been finalised.  They are Affordable Community Housing, Blue CHP (a consortium of five associations: Argyle, Hume, South Coast, Wentworth and Womens), Compass, Community Housing Ltd, North Coast. St George, and South West Inner Sydney Housing (SWISH).

But even without this, we are seeing mergers and consortia emerging.  While the average association in NSW manages 550 houses, the largest is 2,700 houses and we can expect a number of large associations managing around 4,000 properties to be well established within a few years.

These are organisations that mix a social mission with a commercial capacity.  Their directors include many with strong business and development experience.

Rapid growth

Considerable growth in the whole sector has been proposed for the near future – more than doubling the current 18,000 homes being managed.  While much of this growth will be focussed on a few large associations, it will be complemented by the continuation of services that are responsive to tenant and community needs, and the diversity of providers and housing types.

For the first time in many years, the NSW Government has launched a strategy for the sector’s growth. Planning for the Future: New directions for community housing in New South Wales was launched after extensive consultation, at the 25th Anniversary of housing associations in NSW, in November 2007. The strategy demonstrates strong governmental support for the sector, and outlines proposed growth from 13,000 to 30,000 properties.

Much of this growth will involve housing associations taking on debt to leverage the public investment and expand the supply of low-cost housing.

Managing public housing

In addition to new funding for new community housing supply, growth will come from the management of tenancies and properties being transferred from public housing. 3,000 such properties are currently being transferred bringing about major new efficiencies and capacity into the whole social housing system.  Similar transfers are expected over the next decade.

New business – development and partnerships

In the past only one association in NSW undertook a regular program of affordable housing development.  This is City West Housing Company.  But now growing associations will also become developers – along with their current tenancy management role.

Because of their charitable tax status and considerable experience, community housing providers are uniquely positioned to engage in more cost effective development. 

At the same time, many will engage in innovative partnerships and business models with the government and private sector to increase housing supply.  We have already seen a housing association form part of the consortium which is undertaking the redevelopment of a public housing estate as Public Private Partnership.

New legislation

For some years, the performance of community housing has been supported by an externally accredited quality assurance system, and more recently government registration and oversight of performance. On the 24th October, the registration and regulation of community housing was embodied in Legislation. More info