THE National Housing Finance and Investment Corporation (NHFIC), ACT government and Community Housing Canberra (CHC) are planning the first women’s housing build-to-rent-to-buy pilot program in the ACT.
The pilot, which will deliver 22 affordable rental dwellings in Strathnairn, is aimed at delivering long-term stable and affordable accommodation for single women, typically aged 25 to 45 years old, and with little or no deposit to buy a home but with secure lower-income employment.
The homes will include a mix of one-, two- and three-bedroom dwellings for long-term rental with the option to buy the home at the end of a 10-year lease. Under the concept, an affordable rental of 74.9% of the market rate would be set and a savings plan created for the potential buyer, funded by the lower cost of NHFIC’s finance and CHC’s operational efficiencies. This savings plan, coupled with a share of the capital growth would provide an opportunity for the potential buyer to accumulate a 20% deposit by year 10, at which point the tenant would have the option to buy the home.
It is the first program to be announced in the ACT since the federal government’s widening of the National Housing Infrastructure Facility (NHIF) to fund social and affordable housing. Housing Minister Julie Collins last week announced the liability cap would be raised by $2 billion to $7.5 billion in next Tuesday’s budget.
NHFIC, which provides low-cost loans to community housing providers, will provide up to $7.14 million in concessional loans from the NHIF to the project and will be combined with a $4.5 million grant from the ACT Government. CHC plans to acquire the site to develop the homes and maintain the program on a long-term basis.
Construction is due to commence in December, subject to obtaining all required approvals.
“Too many women across Australia don’t have access to safe and secure housing,” Collins said yesterday.
“This is an important step in changing that for women in Canberra. This will not only provide an affordable place to rent – it is a stepping stone to the security of home ownership.”
The Productivity Commission’s Report on Government Services released early this year showed the ACT remains the jurisdiction with the highest rate of lower-income private renters experiencing rental stress, at more than 60% compared with the national rate of 52%.
More than 3,100 people are waiting for a public housing home in the ACT, with an average wait time of almost five years for standard housing. Priority public housing applicants are waiting an average of 337 days for a home.
ACT Minister for Housing and Suburban Development and Minister for Women, Yvette Berry MLA said the Ginninderry Women’s Housing Project is designed to “provide a pathway to homeownership for financially vulnerable women who otherwise would struggle to enter the housing market.”.
“This is not just about providing a roof over women’s heads; it’s about giving a real solution to the housing crisis many women face in our community.”
NHFIC CEO Nathan Dal Bon said, “This innovative program is testament to the great work that can be achieved when federal and state government, developers and the community housing sector come together to deliver better housing outcomes for all Australians.”
The partners signed a Memorandum of Understanding last year.
Community Housing Canberra CEO Andrew Hannan said: “CHC is proud to be partnering with both levels of government to get this much-needed pilot off the ground. With success, we hope that the model can be further fine-tuned and leveraged by CHC and other community housing providers, on future projects to support home ownership aspirations of this cohort of vulnerable women within the Canberra region and beyond.”
