Mission:- Influencing Housing Outcomes

1. Mission:- Influencing Housing Outcomes Improving social and affordable housing outcomes

2. Macro Housing Policy Reform – Seeking Government, Industry and Community support to achieve the following 5 goals [See NAHC full submission to Senate Inquiry] Goal 1 Co-ordinate a generation of supply side action to address the current and projected supply shortages that are fuelling housing affordability problems. Goal 2 Align the range of financial levers, including negative gearing and tax concessions, towards clear long term housing policy objectives including new supply, affordability, diversity and appropriateness for changing demographic needs and meeting ‘whole of life’ utility. Goal 3 Reform and renew social housing to create a viable and more responsive and diverse system. This includes making better use of land and assets to stimulate new investment to grow and diversify social housing supply, better match housing portfolio to housing need and strengthening community housing outcomes Goal 4 Develop and support a new long term private rental market segment, funded and held by institutional investors and managed by Registered Providers that meets community need for affordable, secure and long term rental housing. Goal 5 Improve the pathways between social, affordable and market housing. Including through supporting innovations like Shared Equity Home Ownership, rent to buy, greater choice and mobility, self build and housing co-operatives

3. NAHC Contribution to new housing directions

4. Reform and renewal of social housing Public Housing has been declining as a proportion of the nations stock for 20 years and despite the much needed boost through the Social Housing Initiative the trend remains downward. Furthermore the portfolio is aging and requiring greater commitment of maintenance expenditure. Depending on the portfolio, it may be mismatched to the growing demand for 1 and 2 bed dwellings and dwellings that are fully disability accessible. The current income stream from public housing is inadequate to meet its expenses and this lack of viability leads to further decline in stock. The cost of providing services to those in very high needs cannot be met from inadequate rental income. The gap between the social housing system and the market is now so great that it is a disincentive to tenants to consider moving. Community support is also eroding and this leads to political marginalisation. Grow, renew and diversify social and affordable housing Establish a long term financially viable model, including meeting operational deficits, making better use of assets and attracting third party resourcing Better match housing to changing needs Provide a ‘Human Services’ model of supporting those in need, but acknowledge the strengths and resilience of individuals and communities and build on these strengths through better participative arrangements. A strength-based approach needs to encompass economic and social development Provide more pathways between social, affordable and market housing and more diversity in provision Genuine reform cannot simply be based on a ‘Grab ‘for Commonwealth Rent Assistance, nor can it just involve a change of the managerial system from the State to Not For Profits.

5. NDIS & NDIA How the NDIA can increase housing supply options 1.A flexible approach to ‘reasonable and necessary’ support arrangements 2.Using the ‘cost of capital’ built into Scheme costs as a catalyst for major growth in affordable and accessible housing 3.Building on recent housing sector reforms, e.g. NRAS, social finance development 4.Influencing the National Disability Strategy and the housing sector, as part of being a catalyst for wider social change and inclusion This provides the NDIA with funding estimated at around $550m per annum in scheme costs for the ‘user cost of capital’ at full scheme (in today’s dollars) Funding is included during launch, gradually increasing to $700m per annum (2018/19 dollars) when there is full national rollout in 2019 This is a large amount but to achieve maximum impact it must act as a catalyst and be leveraged two to three times, as well as being available to be recycled, as new participants join.

6. Reconnecting the social housing system and the marketProviding a diverse range of affordable housing options to provide pathways and choices • Diverse forms of social and affordable housing to increase supply and make better use of subsidy The gap between the social housing safety net and the general market is too great for many tenants to bridge without some intervening steps that provide more alternatives. Mobility and through-put is undermined by a lack of pathways towards the market. This closes off opportunities for those needing social housing as stock turn-over declines. The subsidy model is too rigid and unsophisticated creating further barriers to progressing beyond social housing Alternatives, like shared equity home ownership and ‘rent to buy’ can help reinstate an effective pathway and support for self-build, shared housing and equity co-operatives can help ease the pressure on the social housing system. Building new social housing, for those in greatest need, also grows the housing cake, and allows new stock to be provided in areas where the demand is greatest and provision is currently lacking Its always been blue, that’s the only colour I have Can’t we provide more choice? We can provide other colours too

7. Three Social Housing Objectives1.Better Services: 2. Renewed & Better Matched Housing: 3. Viability and Growth Renewal is governed by two key factors: The sale of assets to finance reconfiguration and upgrade, and improved land use to provide the right size/type of new homes New ‘additional properties are financed by NAHC and its partners. Affordable housing is owned privately and additional social housing is owned by NAHC and its partners A Human Services approach is adopted and ‘Personal Housing Plans’ introduced. CRA revenue re-invested in service improvements and asset renewal

8. Working Together The Proposal is that NAHC works together with Development Companies for mutual benefit to deliver on their missions in a financially sustainable way. Some developers have Triple-Bottom Line policies which include community and housing e.g.: “Beyond Me is Grocon's pledge to social justice and promoting greater hope and opportunity for all. Grocon has built three Common Ground projects for formerly homeless people at cost, with no profit or margin”.

9. Affordable Housing Delivery Models The basic development model This basic model is adapted for specific circumstances

10. Affordable Housing Delivery Models NAHC Value Proposition Affordable and Social housing (ASH) achieved at low cost to the Developer/NAHC The social and affordable component are in effect pre-sold Assist marketing by supporting certifications e.g. ‘Envirodevelopment®’ Supports corporate triple bottom line objectives at low cost Generate development opportunities on sites where: • Opportunities are limited to Not for Profit partners (Eg: GLASS), or • The social benefits improve the project with regulators (e.g planning benefits) • ASH provides a competitive advantage (e.g. GLAM) NAHC will professionally manage ASH tenants (behaviour)

11. Example Opportunities An Example of the GLASS Program: Proposal for the Cannon Hill Rail Station Closed January 2014

12. Example Opportunities Cleveland Rail Station; closes 19th May 2014