NT Shelter Housing Forum Developing affordable housing in the NT May28, 2013 Hal Bisset (CEO) Central Australian Afford

1. NT Shelter Housing ForumDeveloping affordable housing in the NTMay28, 2013Hal Bisset (CEO)Central Australian Affordable Housing

2. Comments on language... • Public housing – policy, practice and provision by public sector agencies • Social housing – public housing policy and practice but delivered by support agencies • Community housing – public housing policy but delivered by community housing agencies employing own practices including engagement of tenants • Affordable housing – community housing policy, practice and provision within a broad public policy and funding framework

3. Reflections of a housing journeyman... • Know what you are trying to achieve... • Understand the dollars and cents... • Be sure you can deliver on your promises... • Make friends with the enemy... • Be grounded in your community... • Size does matter...

4. Know what you are trying to achieve.. • Sustainable housing • Neighbourhood amenity, quality construction, energy and water efficient, durable finish, asset management • Sustainable tenancies • Affordable rents, culturally sensitive policies, appropriate support, early intervention • Sustainable communities • Avoiding ghettoes, building community, place management, integrated service supports

5. Understand the dollars and cents... • Developing a viable project • Making sure there are sufficient capital funds to meet the cost of development & the capital inflows match the capital outflows • Managing a sustainable project • Making sure that all of the ongoing operational costs including planned maintenance and capital improvements can be met by project revenues over the life of the project • Running a “profitable” company • A successful Housing company must generate a surplus to employ the staff that generate future growth and provide the working capital for new projects

6. Land Equity Design & Planning Project Capital Income & Expenditure Government Investment Civil Works & Subdivision Philanthropic Grants Construction Bank Debt Project Management GST Rebate Legal & other consultants 110-120% $X $X $X The capital equation...

7. Property Costs Rental Income Project Operational Income & Expenditure Maintenance Costs Commonwealth Rent Assistance Administration Costs National Rental Incentives Surplus to Balance Sheet Finance Costs The operational equation...

8. Project 1 Project Development Project 2 Company Budget Project 3 Research & Development Project 4 Project 5 Advocacy & Promotion The company equation...

9. Be sure you can deliver on your promises.. • Informed, experienced and wise governance • Innovative, skilled and professional management • Solid balance sheet and reliable cash flow • Sound systems, relevant policies and flexible practices • Seek accreditation and welcome (good) regulation • Healthy culture/shared ownership • Visionary dreams but practical plans

10. Make friends with the enemy... • Government as partner not pest or predator • Affordable housing relies on subsidies to deliver on public policy objectives • Private sector as partner not pariah • Builders, developers, banks, investors take on risk that the NFP sector should avoid • Community sector as partner not competitor • A mature community sector will recognise the particular role of Affordable Housing Companies and build alliances • Tenants as partners not a burden • Engage with tenants and enlist as allies rather than viewing as welfare recipients required to be compliant

11. Be grounded in your community... • Markets matter (demand, supply, opportunity, solutions) • Politics is pivotal (recognition, policy, programs, funding) • Culture is critical (values, experience, attitudes) • People are parochial (local issues, case studies, attachment to land) • Place is all important (neighbourliness, access, safety, healthy, supportive, opportunity) • Do you homework/listen and be responsive

12. Size does matter... • Small is not always beautiful • Can rely on a single individual • May not be fair or equitable • Rarely sustainable • But the biggest often become dinosaurs • Bureaucratic and inflexible • Partitioned and dysfunctional • Political and insolvent • Need structures/systems which get the balance • Community development and professional management • Skilled management without technical “snobbery” • People centred and financially robust

13. CAAH strategy for the centre... • A better deal for the Town Camps • Work collaboratively with support agencies who utilize social housing • Build a portfolio of affordable housing options • Work for the establishment of an alternative “community” housing system for remote communities

14. A first development... • Driven by a $4M grant from the Aboriginal Benefits Account • Supported by a $200K working capital grant from the Community Housing Program • Six months of market research to develop strategy • Partner with and transfer risk to the private sector • Increase leverage through bid for NRAS funding • Maintain focus on social objectives – healthy homes, healthy communities

15. A good start and demonstration of potential... • 31 new affordable housing dwellings providing 42 tenancies – 11x1br, 15x2br, 16x3br • 18 owned by CAAH including 6 dual key providing 24 tenancies • 13 owned by private investors including 5 dual key providing 18 tenancies • Spread over 6 small multi unit developments integrated into urban landscape • Well designed, 6 star ESD rating, high % adaptable

16. Laying the foundation of future growth... • Assets of ca. $9M, debt of ca. $4.5M, revenue of $ • Generates salary of FT Affordable Housing Property Manager • Generates sufficient working capital for ongoing employment of development manager to generate next project • Establish best practice in place management • Create profile in the local market • Build image of preferred housing provider • Reduce stigma attached to community housing