Transcript Affordable Housing.....is there such a thing?

NT Shelter Housing Forum
Developing affordable housing in the NT
May28, 2013
Hal Bisset (CEO)
Central Australian Affordable Housing
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
Reflections of a housing journeyman...
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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...
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
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
The capital equation...
Land
Equity
Government
Investment
Design & Planning
Project
Capital
Income &
Expenditure
Philanthropic Grants
Construction
Bank Debt
Project Management
GST Rebate
110-120% $X
$X
Civil Works &
Subdivision
Legal & other
consultants
$X
The operational equation...
Property Costs
Rental Income
Commonwealth
Rent Assistance
Project
Operational
Income &
Expenditure
Maintenance
Costs
Administration
Costs
National Rental
Incentives
Surplus to
Balance Sheet
Finance Costs
The company equation...
Project 1
Project
Development
Project 2
Project 3
Research &
Development
Company
Budget
Project 4
Project 5
Advocacy &
Promotion
Be sure you can deliver on your promises..
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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
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
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
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
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
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
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
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