Community Housing Review

1
Department of Housing and WorksNew Directions
in Community Housing Presentation to WACOSS
Conference 2008Presenter Garry
EllenderA/Director Community Housing, DHW
2
Housing Supply Problem

• Housing Affordability crisis
• Impacting on levels of homelessness CAP
  services
• Access to Public Housing is limited
• Wait List increasing to gt 17,000
• Vacancy rates at an historic low
• Long term limitations of Public Housing
• No net stock growth in 15 years
• CSHA funding context
• Policy context results in operational losses

3
Government Response

• Is Public Housing in WA Sustainable?
• report, 2006
• Unsustainability of public housing
• Limitations of PH model to respond to broader
  housing affordability concerns
• Potential value for money in CH model
  
• CH Review 2007
• 2007/08 ERC budget submission process
• NFP Housing Sector Development sub-group

4
Signs of Hope

• 2007/08 State Budget
• - 447m over 4 years of which 210m
• targeted for Community Housing
• - 922 dwelling completions p.a. from 07/08
• CW Govt. Initiatives driven by COAG
• - National Rental Affordability Scheme
  (NRAS)?
• - National Affordable Housing Agreement
  to
• replace CSHA increased focus on CH

5
CH Review Solutions / Strategies

• Regulating the CH sector in a growth investment
  climate.
• Growth investment strategies.
• Sector development capacity building
  initiatives, particularly in regional WA.
• The interface between public rental community
  housing.

6
CH Review Growth Opportunities - Next 4 Years

• Doubling the size of CH sector to almost 10,000
  units (inclusive of PH leases).
• More than 60 million in Growth Provider
  financial equity contributions.
• GST savings in construction in the order of 20
  million.
• Direct allocations from the public housing
  waiting lists into community housing options.

7
Key Constraints - Issues

• 4,700 dwellings, managed by 236 organisations
• Diversity of the sector 144 CHOs managing lt 10
  units each. Only 5 CHOs gt 100 units.
• Capacity constraints in regional WA - no
  substantial providers outside of Perth.
• Lack of Effective Regulation.

8
Constraints / Issues
Location of Community Housing Units (DHW Regions)
9
Constraints / Issues
Types of Organisations by Proportion of Stock
Under Management.
10
Regulation System
11
Integrated Growth Strategy

• Targeted Investment to Growth Preferred
  Providers
• Increased capital funding private equity
• Pooling of rental surpluses
• New stakeholders / strategic partnerships
• Public Housing Leasing Program (3,000 units over
  5 yrs)?
• New models of financing alternative capital and
  non-capital models including NRAS
• Mixed developments large scale
• Lifting the bar new performance benchmarks /
  increased profitability

12
Sector Development Capacity Building in
Regional WA

• Broome a Perth based Growth Provider to
  establishment a Broome office in 08/09.
• Pilbara March 08 Housing Forum commitment to
  establish a NFP Housing Company in 08/09.
• Discussions re regional provider options in the
  Southern SW Regions have commenced.
• Options for an NFP Housing Company in Geraldton
  to service the Mid-West region to be progressed
  08/09.
• Options for Goldfields and Wheatbelt Regions to
  be examined in 08/09.
• Infrastructure and capacity building investment
• (Establishment costs, IT systems, training,
  office leasing costs, relocation costs )?

13
Interface between DHW CH Sector

• Complete review of the operations, priorities and
  outcomes of the Community Disability Housing
  Program examination of alternative pathways
• Improved access for social housing applicants -
  Common Applicant Register
• - Changes to Rental Application
  Survey of Applicants
• Forms v
• - Development of Allocations Policy
  Procedures v
• - IT systems integration v

14
What Are We Trying To Achieve?

• More People in Houses
• Shift from the welfare oriented, cottage industry
  concept of community housing to a socially
  responsible business enterprise culture.
• Shift from public housing service delivery to
  community housing models as part of an integrated
  social housing system.

15
Conclusion Housing Affordability

• Serious long term problem
• Cooperative federalism serious intent
• Within Community Housing component sector
  reform is essential however is unlikely to be
  universally welcome.

16
CH Homelessness Strategies

• Encouragement of separation of landlord and
  client support functions and roles.
• Pooling of CH Capital Programs
• Private Rental Transitional Housing Program
• Alternative pathways / models
• Flexibility in use of stock new SLA
  arrangements

17
Key Questions

• Relationship of SAAP / CAP sector to CH?
• Role of transitional housing stock? (ref. A Place
  to Call Home initiative)?
• Transportability of support funding (SAAP).
• CH sector reform not matched by any review or
  reform of delivery of support services.
• Location / planning of services

18
Restructure of CH branch
DIRECTOR
STRATEGIC DEVELOPMENT UNIT
MAJOR PROJECTS AND OPERATIONS
ASSET MANAGEMENT PROGRAM PLANNING
STRATEGIC PLANNING POLICY
REGULATION COMPLIANCE
PROGRAM MANAGEMENT / IMPLEMENTATION
SECTOR DEVELOPMENT
MAJOR DEVELOPMENTS