The $49.8 million AHIF has been established to increase the supply of affordable housing and encourage provider leverage. Of this, $39.4 million will be dedicated to affordable housing projects using the Debt Equity model, and $10.4 million has been allocated for the construction of new affordable rental dwellings at the St Marys development (see below for more information). $40.4 million has been contributed to the AHIF by the Rental Bond Board.
Under the Debt Equity model, Housing NSW and the provider selected will contribute equity funds, and the provider will also secure debt finance from a private financial institution. These funds will be used to develop or purchase several units of affordable housing in an area of housing need in NSW. Once they are completed, the units will be owned and managed by the registered community housing provider for use as affordable rental housing.
Funds for Debt Equity projects are available to all registered community housing providers. Projects must be located in areas where there is a demonstrated need for affordable housing.
To date, three tenders for debt equity projects have been announced:
- Debt Equity 2004-05: $3.4 million
- Debt Equity 2006-07: $6 million
- AHIF 2007-08: $13.5 million
- NRAS A: $17.5 million
356 new affordable housing dwellings will be delivered by the successful tenderers.
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