Minister Sukkar unveils key details of National Housing Finance and Investment Corporation at #NHCSydney
The Commonwealth will guarantee bonds issued by the NHFIC to community housing providers
4 Dec 2017
The Hon Michael Sukkar MP announced key features of the new National Housing Finance and Investment Corporation (NHFIC) during his address at the 2017 National Housing Conference in Sydney.
The NHFIC, announced as part of the Federal Government's housing package in the 2017 Budget, is dedicated to improving housing affordability through an affordable housing bond aggregator and the National Housing Infrastructure Facility (NHIF) – a $1 billion facility that will finance housing-related infrastructure to reduce housing supply bottlenecks.
Minister Sukkar’s address detailed that the NHFIC will have an independent Board with responsibility for making all investment decisions. The Board will be guided by an investment mandate which reflects the Government's priorities for the NHFIC. In addition, all registered community housing providers (CHPs) will be able to apply to the affordable housing bond aggregator for finance, while, to provide stability and confidence, the Commonwealth will guarantee the issued bonds.
Eligibility for NHIF finance has been expanded beyond local governments, to include State, Territory, and local-government owned corporations and utility providers, and registered CHPs. This change is to support the expansion of multi-tenure (mixed affordable and private housing) and 'key worker' accommodation developments. The NHIF will now be an ongoing fund, and be free to reinvest to address infrastructure bottlenecks.
A media release of the Minister’s speech has been released.
The NHFIC is based on AHURI research into bond aggregator models presented in a report from the Affordable Housing Working Group (AHWG) to Federal, State and Territory Treasurers as part of the Council on Federal Financial Relations in late 2016.