A practical framework for expanding affordable housing services in Australia: learning from experience

Summary

The small Australian non-government not-for-profit housing sector provides cost-effective and flexible affordable housing. This sector could be expanded with government incentives and a clearer policy framework.


Project Number: 60191
Research Theme: Housing_Affordability
Project Leader: Milligan, Vivienne
Funding Year: 2003
Research Centre: Sydney

Research and Policy Bulletin

Research & Policy Bulletin

Issue 051: Not for profit affordable housing - the Australian experience

The small Australian non-government not for profit affordable housing sector provides cost effective and flexible affordable housing. This sector could be expanded with government incentives and a clearer policy framework.

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Description

This research examined eight of the most innovative non-government, not-for-profit housing organisations operating in Australia. Through very detailed interviews and documentary analysis the study assesses what it is about these organisations that works and why.

The key findings of the research are:

  • Australia has a non-government, not-for-profit affordable housing sector that is providing cost effective, high quality and well located affordable housing - but it is very small.
  • The sector can achieve considerable financial leverage for government investment. For example, City West Housing, on an initial government investment of $50 million, will generate, over 20 years, 7020 tenancy years compared to only 3174 tenancy years in public housing.
  • The key ingredients of the 'housing association model' that enable success are:
    1. Savings on developer profit margins.
    2. GST exemptions on the supply of housing.
    3. Cross subsidies from higher income tenants. 
    4. The capacity of tenants to receive CRA.
    5. Some limited developer contributions and gains through the land use planning system.

More Information

Download now Research and Policy Bulletin: Issue 051: Not for profit affordable housing - the Australian experience
92 KB PDF Document

Download now Final Report: No. 065: A practical framework for expanding affordable housing services in Australia: Learning from experience
2 MB PDF Document

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