Collaborative Housing Models

1
Collaborative Housing Models

• The three funding components

2
The three funding components

• Government
• Philanthropy
• Investment

3
Current Projects

• Key Housing Solutions - a partnership between
  Parent To Parent, A Key for Me and Foresters.
• Mantle a partnership between Wesley Mission,
  InPsight and others Foresters

4
First Step

• Organise create
• Determine the needs of the particular group
• Identify the key players
• Develop the capacity and understanding of the key
  players
• Facilitate the development of a plan
• Create the right legal structures to manage the
  plan create a service company
• Recruit Directors with the right skills

5
Second step

• Recognise the needs and rights of the individual
  and their family
• Develop and test the tools to be used to carry
  out their plan

6
Third step

• Apply Key ready tool
• Assess individual/family circumstance/needs
• Financial capacity, support, subsidies
• Legal capacity to act, estate planning needs
• Personal family, friends, transport, medical,
  employment, education, safety, social, physical
  psychological needs
• A fully trained assessor guides individual
  family through a process until they are assessed
  as Key ready i.e. ready to move into the right
  accommodation for them.

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Fourth Step Determine what s are needed and
how they can be obtained
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Fifth Step

• Service Company contracts Foresters to
• Locate suitable accommodation
• Establish a unit trust to purchase the suitable
  accommodation
• Fund the purchase
• Complete a lease with the tenant
• Pay investors income after costs are met
• Keep proper accounts of the unit trust

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Sixth Step

• Service Company
• provides ongoing support to tenant and keeps
  suitability of accommodation under review
• contracts housing company to maintain the property

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Understanding the components of this model

• Government philanthropic funds are never lost
  they are recycled and grow over time
• Investors receive income from lease and all
  receive capital gain when property is sold
• Investors meet ongoing maintenance costs and
  rates

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Outcomes

• Provides the right type of affordable
  accommodation in the right place
• Provides ongoing security through formal leases
  approved by the Service Company
• Service Company provides ongoing support
• Flexibility when circumstances change
• Costs of maintenance, rates, repairs are met

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Longer term

• When this accommodation is no longer required it
  is sold
• The Capital Gain from sale is split amongst all
• Government philanthropic funds are returned to
  service company for reuse
• Government philanthropic investment is used
  again to purchase new accommodation
• Investors share capital gain may reinvest.

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What is needed

• Recognition from government that under this
  model
• funds provided by government will never be lost
  but will increase in value over time
• investment in social housing has both a financial
  a social return
• for every 1 that government invests 2 of
  private investment can be generated
• The Service Company will need support only until
  it becomes sustainable

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What else is needed

• To keep lease costs down and increase
  affordability
• Exemption from the application of transfer duty
  in respect of the properties
• Exemption from Land Tax for the trustee
• Rate relief pursuant to section 957 of the Local
  Government Act 1993 and Section 41 of the Local
  Government Regulation 2005
• Validated research to prove the cost
  effectiveness of the model and value of
  self-actualisation

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What returns can be expected?

• Individual can make a greater personal economic
  contribution to their community
• Individual has opportunity to maximise their
  skills and abilities self-actualisation
• Individual has ongoing security of tenancy
• Support costs should reduce over time
• Investors receive an investment return (4-5
  yield)
• Government investment is retained in perpetuity

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The greatest return to community

• Kurt Goldstein defined self-actualisation as a
  driving life force that will ultimately lead to
  maximizing one's abilities and determine the path
  of one's life.
• From Foresters perspective, facilitating
  self-actualisation will lead to stronger
  communities and growing social returns.