Affordable housing in Australia is funded from many different sources. Some government funds have already been dedicated to providing affordable accommodation, however the private and not-for-profit sectors are also finding that affordable accommodation can be a part of a new development, providing sufficient return on their investment to make it financially viable.
The various models used in developing and managing affordable housing projects in Australia have been successful in operating on a financially sustainable basis, effectively generating new affordable housing supply, providing benefits to local communities and achieving positive outcomes for tenants.
In recent years, projects across Australia have demonstrated that partnerships between state and local government, non-profit housing developers, community housing organisations and private financial institutions can create attractive, successful affordable housing developments that not only serve residents, but also are an asset to the broader community.
These joint ventures, which may, in conjunction with planning system incentives, use a combination of rental income, private funding, state or local government subsidies or resources, and community sector resources, are increasingly necessary to meet the demand for affordable accommodation in NSW and Australia.
Affordable rental housing is largely managed through community housing organisations, although such housing may be managed privately, through real estate agents or through specially established companies.
Projects such as City West Housing in the Sydney suburbs of Ultimo and Pyrmont, and affordable rental housing in Sydney’s Green Square (using developer contributions under the council planning system) assist a diverse group of low to moderate income earners.
The Commonwealth’s National Rental Affordability Scheme, which was launched in 2008, aims to increase private investment in affordable housing by providing an annual tax incentive or grant for new properties rented at 80% of the market rent. More information on the Scheme is available by visiting the website of the Department of Families, Housing, Community Services and Indigenous Affairs. For information on how the Scheme will be implemented in NSW, please visit the Centre’s webpage for the Scheme.