Acquiring New Public Housing - EST0001A

Policy   

The Department of Housing continually seeks to match the dwellings it provides with the needs of its clients. It uses a variety of strategies to achieve this including:

• Redeveloping existing housing sites
• Converting existing dwellings to better suit clients’ needs
• Building on vacant Department land
• Acquiring new dwellings, and
• Leasing from the private market (see the policy on Headleasing (EST0012A)).

The Department will collaborate with partners in both the private and not-for-profit sectors to develop a property portfolio that:

• Effectively meets clients’ needs, and
• Uses resources efficiently.

When we acquire new property we will ensure it is a sound financial investment as well as an effective solution to clients’ housing needs.

As part of the Department’s Disability Strategic Plan, at least 10% of all new public housing must be "adaptable". That is, the dwelling must be easily converted at minimal cost to be suitable for people who use wheelchairs.

For more information on this policy, look in Entitlement, Background and Business Rules.

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Entitlement 

Department of Housing tenants are entitled to housing that is:

• Affordable
• Well located
• Able to meet clients’ needs (including special needs), and
• Of a reasonable standard and condition.

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Background 

The demand for public housing will continue to outstrip supply for the foreseeable future. The proportion of smaller households and tenants with special housing needs will continue to grow.

Existing dwellings tend to reflect past and current needs rather than future client needs. Their size, location, design, amenity and facilities do not always match the anticipated needs of clients at present or in the future. The Department needs to address this mismatch.

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Business Rules

We only buy properties or redevelop existing properties when there is a significant demand from clients for a type of dwelling in a location that we currently cannot supply. The dwellings we have are determined by the needs of our clients, and the availability of funds.

In many cases, the preferable and most cost-effective strategy is to convert existing public housing. Examples include bedsitter conversions and split houses. However, there are situations where purchasing a property is appropriate. When we are evaluating a property for purchase or redevelopment we will consider:

• Its ability to meet the most pressing needs of applicants for public housing
• The suitability and amenity of the dwelling
• The financial costs and feasibility of managing the property over time, and
• The benefits and risks of property ownership for the Department.

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Buying new properties

We generally buy in areas away from those that have a high concentration of existing Department of Housing accommodation.

Dwellings are usually only bought if:

• The standard and condition is appropriate to public housing tenants
• Shops, transport and other community facilities are close by
• The market rental value will be greater than expenses incurred on the property, and
• The market rent is below the median market rent in the locality.

We also consider how easily the dwelling can be sold or traded at some time in the future.

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Redeveloping properties

Building new public housing on the site of old public housing is called redevelopment. It is often less costly than buying homes and allows us to better use our limited resources.

Dwellings chosen for redevelopment are usually:

• Close to shops, transport and other community facilities
• On larger blocks of land, and
• Older and becoming too costly to maintain.

We build dwellings that fit in with the streetscape and conform to Local Council regulations. We build a variety of dwellings, including pensioner accommodation, detached houses, villas, town houses and walk-up apartments. The type of dwelling we build depends on the demand for housing in the area and local council planning controls.

Tenants living in a home that is going to be redeveloped will be asked to move. See the policy on Relocating Tenants for Management Purposes (EST0038A).

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Appealing Decisions or Actions

Not applicable.

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