VISION FOR COMMUNITY HOUSING PROJECT Cooperatives

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VISION FOR COMMUNITY HOUSING PROJECTCo-operativ
es

Housing SA Office for Community Housing
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• Todays purpose
• Present key aspects of the Vision Plan
• Your chance to ask questions discuss issues
• 3. Take back questions to your Co-op to explore
  further
• Sector input
• Previous input - Vision Day, small CHO groups,
  CHCSA has seen this presentation given feedback
• Future input small CHO groups, CHCSA, special
  project groups, customer advocacy group

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Questions for your Co-op to explore

• What does your Co-op want to be into the future?
• Size target group type of CHO other?
• If complex admin tasks could be done by others,
  what is the purpose that your Co-op would really
  want to concentrate on?
• How would your Co-op show it is meeting its
  purpose?
• What admin tasks could be done by others, and how
  existing service provider / NGO centre / other
  option?
• How do we ensure only those people who want to
  actively participate in Co-ops are there?
• Eg how to move on those people in Co-ops who
  dont want to/cant participate?
• How to retain those people who want to
  participate?
• What are the challenges and opportunities of the
  Housing SA 1-stop shop model?
• Is your Co-op interested in taking on debt to
  grow (debt equity)
• Why?
• What risks would there be for your CHO?
• What skills, expertise and organisational
  capacity would you need?
• Could a Co-op grow, borrow against assets and
  still operate as a Co-op?
• How would your Co-op grow in size and capacity
  would it need to changing to another or new type
  of CHO model are there other options?

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• Vision Plan
• How have we got here?

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How has CH evolved?

• 80s
• Formation of the sector Cooperative focus
• Strong social / community development objectives
• Strong niche housing focus
• Funding via private finance
• Small role in overall housing provision
• 90s/00s
• Associations brought in to program
• Less niche focus more wider focus
• Increasing admin accountability e.g. GST
  Housing Reforms
• Increasing role in overall housing provision
• Societal changes

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What are the current pressures?

• Decline in traditional funding (CSHA)
• Decline in previous levels of growth
• Increasing demand for affordable / high needs
  housing
• Requirements of new DFC structure agenda
• 1 stop shop info application for all Govt
  housing
• Better coordination across housing support
  services
• Make more use of CH advantages
• CSHA, State Strategic Plan DFC Aims
• Sectors own feedback

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Decline in funding new properties
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Real government expenditure - CSHA vs CRA
(2004-05 dollars)
Decline in traditional funding
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Other financial pressures

• State Treasury
• CSHA funds SA based on of national population
  (equivalent to 20,000 social housing properties)
  but SA has 53,000 properties
• SA has highest level of housing debt per property
  in Australia (from previous growth strategies)
• Wider Government/DFC
• CSHA requirements attract alternative funding
  (affordable housing) or lose more
• State Strategic Housing Plan targets
• Homelessness, Affordable Housing, Community based
  housing
• Limited Government housing resources under more
  pressure than ever
• Deinstitutionalisation portfolio viability
  demand stock suitable for sale or transfer
  CSHA DFC funding
• Cannot justify unlimited support for poorly
  performing CHOs
• Redirect resources to strongly performing CHOs

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DFC Changes
Minister Chief Executive (Sue Vardon) Deputy
Chief Executive (Peter Smith)
Housing Policy Strategy
Strategic Asset Mgt Finance
Asset Services
Affordable Housing
HomeStart Finance
Housing SA
Office Aboriginal Housing
Office Community Housing
CHOs
1 Stop Shop regional network
Applicants
Tenants
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What are Community Housing advantages?

• More responsive due to local/community based
  focus
• Stronger links to support services
• Stronger sense of community inclusion
• Able to better partner with Govt, non Govt and
  private sectors
• Financial advantages (GST credits, rates taxes
  concessions etc)

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What are Federal, State DFC priorities?

• Priorities around
• Increase volunteers (SSP)
• Strengthen regional infrastructure (SSP)
• Increase local responses (DFC)
• Support sustainable communities (CSHA, SSP, DFC)
• Increase community accom for high needs (SSP)
• Increase affordable housing (CSHA, SSP, DFC)
• Reduce housing stress (SSP)
• Minimise workforce disincentives (CSHA)
• Improve governance (DFC)
• Improve service / finance / reporting performance
  (DFC)
• Improve accountability (DFC)
• Our challenge is to show what we do
• beyond managing tenancies

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• Sector feedback - Vision Day Feb 2006
• Increase sector growth
• Better risk management - ongoing poor performance
  by some CHOs drains resources from others
• Many small players hard to provide services
  with economies of scale
• One size fits all performance monitoring /
  funding isnt appropriate for many CHOs
• CHOs which want to grow feel constrained
• CHOs which dont want to grow feel threatened
• Significant admin burden for many Co-ops
• Some Co-op tenants dont want to be in them

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What are the Vision challenges?

• How do we
• Increase housing supply?
• Ensure community housing models are flexible,
  suitable sustainable?
• Ensure CHOs provide quality services while still
• Retaining their autonomy?
• Retaining their advantages?
• Ensure Govt private interests are protected?
• Show our value beyond managing tenancies?

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• Vision Plan
• What is it?

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• The Vision for Community Housing is
• A strong and expanding Community Housing sector
• People connected to their communities and
  services
• Improved access to affordable, decent and well
  managed housing
• Housing that remains appropriate for peoples
  needs

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How will we do this?

• The Vision will be achieved through 4 main goals
• Strengthen Community Housing
• Develop Alternative Finance Strategies
• Define Government Role
• Strengthen Sector Business Capacity

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How will we achieve Vision goals?

• Key points Goal 1 Strengthen Community Housing
• Align CH to Housing SA objectives
• Stronger relationships between CHOs and Regions
• Customer (applicants/members) at the centre of
  services
• 1 stop shop - access to CH information and
  applications through Housing SA offices
• More flexible housing pathways as needs change.
• Re-build Co-op Housing
• Decrease admin workload via outsourcing/other
• Increase focus on community member development
• Regulation and resourcing that better reflects
  Coop characteristics
• Bring new NGOs into CH
• New resources, skills, ideas brought into CH
• Establish Aboriginal Housing Association
• Mainly occur via ex AHA transfers

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Customer at the centre

• Customers (applicants/members) are the focus of
  decision making e.g.
• Housing SA 1 stop shop improve access and
  information for applicants
• Transfers between CH others better response
  to changing applicant members needs over time
• Growth housing and alternative JV models
  increased housing opportunities for applicants
  members
• Less CHO resources spent on admin regulation
  more resources for applicant member services

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Increasing links with Housing SA

• Applicants can access information and apply for
  CH via Housing SA (1 Stop Shop - CHAS)
• Increase ability of tenants to move through
  system with houses as needs change e.g. person
  housed in Housing SA can be transferred to CH and
  vice versa
• Increase joint access to low demand properties

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Rebuilding Co-ops

• Greater outsourcing of admin
• Traditional models e.g. Service providers
• New models e.g. regional Co-op or networked
  Co-op model
• Refocussing on original community member
  development role
• E.g. how can single parents best support each
  other?
• E.g. how can environmental Co-ops meet their
  objectives?
• Addressing participation
• Reduce complex tasks
• Provide better recognition enforcement tools
• Consolidating those who want to be in Co-ops
• Ensuring only those who want to be in Co-ops are
  there
• Allowing those who dont want to be there to move
  elsewhere
• Recognising that Co-op strength is based on
  functioning participating members, not number
  of houses

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What does this mean for Co-ops?

• Some Co-ops continue mostly as is
• Those that are currently performing well
• Some Co-ops continue with changes (e.g. outsource
  admin)
• Those with long standing problems
• Some Co-ops move into other models not yet
  developed
• Those with long standing problems and
• Current good performers who want to make things
  simpler

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How will we achieve Vision goals?

• Key Points Goal 2 Develop Alternative Finance
  Strategies
• Introduce new growth models
• Develop Growth CHOs
• Take over debt - borrow against properties
  other options
• Ensure Rent Policy
• Enables ongoing CHO viability (including growth
  CHOs)
• Is aligned to Housing SA as closely as possible
• Minimises workforce disincentives
• Review Joint Venture arrangements
• Better reflect partner contributions and equity
• Review the distribution of Government resources
• Review Housing SA transfer program
• Enable CH input into Asset Services
• Ensure appropriate resourcing to CH and CHOs

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Debt/equity growth models

• Voluntary model
• Most feasible for CHOs with large size capacity
  
• CHO buys out Govt debenture takes on debt
• CHO owns entire property retains all rent no
  more CCs
• CHO takes loan to repay debt approx 30K per
  house (18 of CV)
• CHO borrows further against asset to provide more
  houses
• Greater mix in tenant base mid low income
  high low need
• May mean voluntary amalgamations of smaller CHOs
  to increase viability improve capacity
• Increased risk of model will mean
• Different performance indicators, regulation and
  resourcing
• Stronger focus on CHO capacity to manage finance,
  governance and performance risks

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Can CH rent pay borrowing costs?
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How will we achieve Vision goals?

• Key Points Goal 3 - Define Government role in CH
  
• Regulation is more risk and performance based
• Greater risk management focus
• Regulation is
• More appropriate to CHOs characteristics
• Stronger
• Regulate the Affordable Housing program
• Define Governments role in regulating and
  developing CHOs/NGOs
• Better define what Govt does vs others
• Promote quality management
• E.g. National Standards
• Review the SACCH Act
• Ensure Act reflects new CH models and environment

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Risk based regulation

• Risk management rather than compliance approach
  e.g.
• What are key business risks?
• How are these managed (what systems processes
  are in place)?
• Risks will differ between CHOs based on their
  characteristics
• Regulation frequency varies according to
  performance
• Good performers already manage in this way

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Stronger regulation

• Earlier intervention
• Address issues before they escalate
• More flexible intervention grounds
• Look beyond traditional compliance factors
• Other indicative factors e.g. quality of
  governance
• Clearer limits to ongoing support of poor
  performers
• Limit impact on customers drain on sector
  resources
• Clearer options for poor performers
• Mandatory outsourcing of admin
• Mandatory amalgamation or entry into other models

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Regulate Affordable Housing

• Affordable Housing Program joint resourcing by
  Govt/NGOs/private sector
• Affordable Housing Innovation Unit (AHIU) will
  develop new AH projects with partners (some may
  be existing CHOs)
• OCH will regulate housing provided through AH
  projects via SACCH Act to ensure
• Quality services
• Partner interests are protected
• Current AH Facilitation Agreement will be reviewed

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How will we achieve Vision goals?

• Goal 4 - Strengthen CH business capacity
• Further develop Govt response to NGO/CHO business
  management needs
• NGOs/CHOs have better access to resources tools
• E.g. rent calculator, policies etc
• Roles, responsibilities and resourcing options
• Establish and resource support needs
• NGO/CHO support needs are well resourced
• Roles, responsibilities and resourcing options
• Develop a new IT Strategic and Business Plan
• Govt sector IT needs identified and resourced
• Improve Strategic Asset Management
• Maintenance and assets are well managed
• Comhouse review stock inspections other
  options

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• Vision Plan
• What might the future look like?

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• Our Future?

• OCH
• Regulate CH AH
• Funder (rents properties)
• Strategic Policy development
• Minor CHO/individual support development
• Joint Ventures

• Peak body
• Member representation, advocacy support

• HomeStart/Financers
• Funder (loans)
• Regulator (loan capacity management)

• Affordable Housing Unit
• Initiate develop Affordable Housing projects

• Other providers
• Group individual support
• Group development

Community Housing

• Housing SA 1 stop shop
• Info access for applicants

• Service Providers/others
• Provide admin, maintenance other services

• RTT
• Regulate tenancies

• Large CHOs
• Growth (debt equity) CHOs
• Affordable Housing partners
• Mix of income groups
• Mix of needs groups
• May run multiple programs
• Govt resourcing priority
• Some community focus
• Regulation funding tiered to CHO characteristics

• DFC Asset Services
• Strategic asset issues
• Provide properties

• Medium CHOs
• Focus on either housing
• Low income low needs
• High needs
• Medium community focus
• Regulation and funding tiered to CHO
  characteristics

• Small CHOs
• Focus on housing low income low needs
• Strong community focus
• Regulation and funding tiered to CHO
  characteristics

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• Vision Plan
• Next Steps

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Questions for your Co-op to explore

• What does your Co-op want to be into the future?
• Size target group type of CHO other?
• If complex admin tasks could be done by others,
  what is the purpose that your Co-op would really
  want to concentrate on?
• How would your Co-op show it is meeting its
  purpose?
• What admin tasks could be done by others, and how
  existing service provider / NGO centre / other
  option?
• How do we ensure only those people who want to
  actively participate in Co-ops are there?
• Eg how to move on those people in Co-ops who
  dont want to/cant participate?
• How to retain those people who want to
  participate?
• What are the challenges and opportunities of the
  Housing SA 1-stop shop model?
• Is your Co-op interested in taking on debt to
  grow (debt equity)
• Why?
• What risks would there be for your CHO?
• What skills, expertise and organisational
  capacity would you need?
• Could a Co-op grow, borrow against assets and
  still operate as a Co-op?
• How would your Co-op grow in size and capacity
  would it need to changing to another or new type
  of CHO model are there other options?