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Innovative Finance Structures for Affordable Housing Solutions

Explore how SEFA's innovative finance structures are enabling the development of affordable housing solutions, including co-operative housing, social housing, and affordable retirement homes. These models leverage community empowerment, sustainability, and government support to address the housing crisis.

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Innovative Finance Structures for Affordable Housing Solutions

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  1. AELA – Building the New Economy Building inner-city communities through co-operative housing Hanna Ebeling, Relationship Manager, SEFA

  2. Social Entrepreneurship and Social Finance

  3. Home Ownership – HfH Victoria • Habitat for Humanity Victoria received an innovative finance structure from SEFA that leverages their successful business model: • Access to affordable housing • Improved long-term outcomes in the areas of education, employment, health and lifestyle for parents and children • Increased pace of construction • The outcomes are home ownership for low income families and pathway to financial sustainability for HfH Victoria.

  4. Social Housing – Sustain • Sustain Community Housing owns a plot of land in Western Sydney. SEFA & SVA are funding its development: • Sub-divide the land into three plots • Construct three duplexes • Sell two to repay investors (cross-subsidisation) • Retain the third duplex as social housing • The outcome is more social housing.

  5. Affordable Retirement Homes– Myrtle Park • Myrtle Park is a community-led organisation in regional Tasmania (Yolla), providing affordable retirement accommodation for its members: • Increase affordable housing options for retirees from 6 to 11 units • The new units were prefabricated off-site to keep costs low • Members pay rent to cover (mainly finance) expenses • Enabling residents to retire in their ‘own’ community • The outcome is community empowerment to create integrated retirement housing solutions.

  6. Finance for Housing Solutions “… finding the magic recipe …”

  7. Unlocking and Leveraging Housing Solutions • Capital stacking • Co-housing / Co-operatives (German Building Group Model) • 99 year lease (Community Land Trust) • Sweat Equity • Mixed Tenancies / Developments • Shared Equity Schemes • Design & Sustainability

  8. German “Building Groups” Model • Community empowerment • Affordability • Sustainability • Intergenerational equity • Advocacy • Government and industry support

  9. Nightingale Housing Model Financial Return Sustainability Financial Return Sustainability Liveability Liveability Traditional Developer Model Nightingale Model

  10. Nightingale Housing Model

  11. First-home buyers form community Legal Entity (e.g. Pty Ltd with shareholders or cooperative with units) • Debt syndicate lends directly to legal entity: • Future owners deposit their “equity” in form of shares/cooperative units • Construction Finance • Transition to “blanket” mortgage

  12. Nightingale Vision Developer Model Each apartment is 16% cheaper ($85k) compared to conventional development Equity Profit on cost Equity Profit on cost Equity Profit on cost $1,800,000 $810,000 $100,000 Notes: assumes 20 unit development

  13. Nightingale on Florence Street http://nightingalehousing.org/home#projects

  14. Contact Us • SEFA • Hanna Ebeling, Relationship Manager • SEFA office: 02 8199 3360 • hanna.ebeling@sefa.com.au • Website - www.sefa.com.au • SEFA Video introduction • MiHaven Video – social investment for indigenous outcomes

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