TY - RPRT AU - Hall, Jon AU - Berry, Mike CY - Melbourne L1 - internal-pdf://3479971947/AHURI_Final_Report_No106_Operating_deficits_an.pdf M3 - FR N1 - These studies find that SHAs in Australia are currently unviable because they do not receive enough rental income to cover ongoing property costs. The original 2004 research examines the financial viability of the State Housing Authorities (SHA), the majority of which were all running operating deficits by 2001. The researchers have then conducted a comparative study in 2007 using data collected between 2001/02 through to 2005/06 in order to determine whether or not the situation has deteriorated. The researchers conducted an economic analysis of the financial records of the SHAs from 1990/01 through to 2000/01. They found that the increase of priority tenants within the public housing sector and the Australian Government’s push to improve the quality of service has resulted in higher operating costs for State Housing Authorities (SHA). Growing operating deficits were predominately attributed to lower rental income resulting from greater tenant targeting. For example, in the Northern Territory between 1990/01 to 2000/01 rebated tenants rose from 43% to 80% and priority allocations rose from 10% of all new allocations to 47%. According to the 2007 report these trends have continued but at a slower pace (pg. 38). Thus income from rentals has fallen by 20% in the NT since 2000/01. In addition to a reduction in rental income the operating costs had increased between 1990/01 and 2000/01. Dwelling maintenance increased by 113%, rates increased by 75% and staffing costs increased by 116% (pg. 39). Since 2001 some of this expenditure had been reigned in but the deficit per dwelling was 28.2% higher by 2006 than in the previous period (pg. 48). The researchers find that the Northern Territory’s housing authorities could return to surpluses, if the difference between rebated tenants’ rent and market rents were funded in full and all debt servicing liabilities discharged (pg. 48). This research does not offer any evidence or modelling as to how much it would cost governments to bridge the gap between tenants’ subsidised rents and market rents. It also does not suggest what ratio of subsidised renters and market-paying renters would need to be achieved in order to ensure the financial viability of SHAs. NV - RMIT PB - Australian Housing and Urban Research Institute Limited PY - 2007 RP - These studies find that SHAs in Australia are currently unviable because they do not receive enough rental income to cover ongoing property costs. The original 2004 research examines the financial viability of the State Housing Authorities (SHA), the majority of which were all running operating deficits by 2001. The researchers have then conducted a comparative study in 2007 using data collected between 2001/02 through to 2005/06 in order to determine whether or not the situation has deteriorated. The researchers conducted an economic analysis of the financial records of the SHAs from 1990/01 through to 2000/01. They found that the increase of priority tenants within the public housing sector and the Australian Government’s push to improve the quality of service has resulted in higher operating costs for State Housing Authorities (SHA). Growing operating deficits were predominately attributed to lower rental income resulting from greater tenant targeting. For example, in the Northern Territory between 1990/01 to 2000/01 rebated tenants rose from 43% to 80% and priority allocations rose from 10% of all new allocations to 47%. According to the 2007 report these trends have continued but at a slower pace (pg. 38). Thus income from rentals has fallen by 20% in the NT since 2000/01. In addition to a reduction in rental income the operating costs had increased between 1990/01 and 2000/01. Dwelling maintenance increased by 113%, rates increased by 75% and staffing costs increased by 116% (pg. 39). Since 2001 some of this expenditure had been reigned in but the deficit per dwelling was 28.2% higher by 2006 than in the previous period (pg. 48). The researchers find that the Northern Territory’s housing authorities could return to surpluses, if the difference between rebated tenants’ rent and market rents were funded in full and all debt servicing liabilities discharged (pg. 48). This research does not offer any evidence or modelling as to how much it would cost governments to bridge the gap between tenants’ subsidised rents and market rents. It also does not suggest what ratio of subsidised renters and market-paying renters would need to be achieved in order to ensure the financial viability of SHAs. ST - Operating deficits and public housing options for reversing the trend: 2005/06 update T2 - AHURI Final Report No. 106 TI - Operating deficits and public housing options for reversing the trend: 2005/06 update UR - https://www.ahuri.edu.au/research/final-reports/106 ID - 150 ER -