Regulatory frameworks and their utility for the not-for-profit housing sector

Summary

This project investigated the usefulness of regulatory frameworks for the not-for-profit housing sector in Australia. It reviewed the potential advantages and disadvantages of regulation in the light of the criticisms made of burdensome and ineffective regulation in the United Kingdom. It also examined new regulatory initiatives that have been introduced in a number of states, with the aim of reducing risk and improving quality.

Project Number: 40559
Research Theme: Public_and_Community_housing
Project Leader: Travers, Max
Funding Year: 2009
Research Centre: Southern

Research & Policy Bulletin

Issue 141: Stakeholder perspectives on the regulation of affordable housing providers

Regulation of the not-for-profit housing sector is recognised by stakeholders as a necessary condition for growth. However, significant challenges exist in balancing the differing interests of housing providers, investors, NGOs representing tenant’s interests and existing regulatory bodies.

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Description

There has been considerable policy interest in expanding the small not-for-profit affordable housing sector within a regulatory framework that makes it possible for governments to give financial support (see AHURI project 60504). Specialised regulatory systems have been established in some states, and a national regulatory framework is being negotiated between the Commonwealth Government and State and Territory Governments.

This project found that there are four purposes of regulation:

to make providers accountable when receiving public funding or public assets
to reduce the risks of business failure
to establish confidence from investors
to protect tenants.

Stakeholders such as regulators, providers, investors and NGOs representing tenants' interests understand these purposes differently.

Some providers are concerned about administrative burdens, or perceive the work involved as ritualistic, whereas regulators believe their reporting requirements are necessary to reduce risks.

It has been difficult persuading providers that regulation is independent, given the co-location of some regulators in State Housing Authorities. This might be assisted by creation of a national regulatory framework, but there have been political and practical difficulties in attempts so far to establish such a framework.

The experience in England and the Netherlands (where not for profit housing providers are well established) suggests that it will not be easy to establish and maintain a balance between the interests of different stakeholders. These tensions already exist in embryonic form in Australia.

The study concluded that there should be regular reviews of regulatory arrangements built into national and state legislation to identify and manage possible stakeholder conflicts, and address concerns about administrative burdens.

More Information

Positioning Paper: No. 127: Regulatory frameworks and their utility for the not-for-profit housing sector
267 KB PDF Document

Final Report: No. 161: Stakeholder views of the regulation of affordable housing providers in Australia
321 KB PDF Document

Research and Policy Bulletin: Issue 141: Stakeholder perspectives on the regulation of affordable housing providers
351KB PDF Document

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