THE Albanese government has approved grants for more than 13,700 social and affordable homes across the country, marking the first deliveries of the $10 billion Housing Australia Future Fund (HAFF), while it faces tough opposition in Parliament over its Help to Buy scheme and build-to-rent tax concession proposals.
Across 185 projects, the first round of the HAFF and the National Housing Accord Facility (NHAF) programs will deliver 4,220 social and 9,522 affordable homes, including 1,267 homes for women and children escaping domestic violence and older women at risk of homelessness.
Construction on almost 40% of the 13,742 dwellings is expected to get underway this financial year, and 700 are due for completion. The government has the aim of 20,000 social homes and 10,000 affordable homes over five years under the HAFF, and a further 10,000 affordable homes in the same period under the NHAF.
Round one of the programs’ funding will unlock $9.2 billion of investment in social and affordable housing across Commonwealth, state and territory governments, and the private and community housing sectors.
Applications for round two open in the next six months.
“I grew up in social housing – I know how important a roof over your head is and the opportunities it creates,” Prime Minister Anthony Albanese said.
The federal government could face an uphill battle to deliver the homes. The HAFF and NHAF are running concurrently with national cabinet’s National Housing Accord, which is aiming to turbocharge supply amid a national housing crisis with the delivery of 1.2 million market. Competition for labour and materials has cast heavy doubts over the construction sector’s capacity to deliver the targets.
The HAFF and NHAF have been preceded by the $2 billion Social Housing Accelerator, which was the result of negotiations last year over the programs between Labor and the Greens.
Minister for Housing and Homelessness, Clare O’Neil said the Commonwealth government is “back in the game of delivering social and affordable houses at scale, working with all levels of government and the community housing sector to deliver the biggest investment in social housing in over a decade”.
She said the program showed the Coalition’s “utter disregard for housing” that in just the first round of this program, more social and affordable homes will be delivered than the Coalition did in their entire nine years in office.
“We want to reduce the stress of housing for Australians – the long waits on housing lists, the long queues for rentals, the out of reach deposit for first home buyers – we’ll reduce these issues if we build more houses, and that’s what these projects do.
“We’re building homes for renters, homes for first-home buyers, and homes for women and children escaping domestic violence and those at risk from homelessness, because more homes means more affordable housing for everyone.”
PowerHousing Australia said the first round of the program represents a “significant step forward in addressing the nation’s urgent housing crisis”.
“This is an important milestone in the efforts to meet the social and affordable housing needs in Australia and we congratulate the Labor government and Housing Australia on the announcement,” said Michelle Gegenhuber, CEO of PowerHousing Australia.
“Community housing providers (CHPs) play a vital role in delivering these homes and ensuring they are tailored to the needs of the community. Through partnerships with state governments and private developers, CHPs are uniquely positioned to maximise the impact of the HAFF and create sustainable housing solutions for those who need it most.”
The Property Council of Australia also welcomed the announcement.
Property Council group executive policy and advocacy Matthew Kandelaars said it represents an important milestone in the delivery of much-needed social and affordable housing, including for those escaping domestic and family violence.
“The announcement of funding for nearly 14,000 social and affordable homes will transform the lives of many Australians who dream of a home of their own,” Kandelaars said.
“A wealthy, land rich nation should not have a housing deficit and the only way to close that gap is to build more homes. Today’s announcement is great news for housing supply in general.”
Help To Buy in the Senate
The Albanese government is meanwhile grappling with the Coalition, Greens and crossbenchers to pass its Help To Buy scheme, which was introduced to the Senate yesterday.
The scheme would allow for lower deposit requirements for up to 40,000 first homebuyers with the help of a government loan guarantee.
NSW, the ACT, Victoria, Western Australia, and ACT already have similar schemes.
However, the scheme is expected to fail.
The government is also trying to pass build-to-rent legislation that would offers tax concessions to developers in the sector, but has likewise faces stiff opposition.
The Greens have outlined their key negotiating asks in return for support on the bills, including freezing and capping rents, “ending tax handouts for property investors that stop renters buying their first home”, and establishing a government-owned property developer that it says would build 610,000 homes to be sold at just above the cost of construction, with rents capped at 25% of income.
“Labor has offered absolutely nothing. No movement on rent caps. No extra money for public housing or a public developer. No proposal on negative gearing and the capital gains tax discount that deny so many renters the chance to buy a home,” said Greens spokesperson for housing and homelessness, Max Chandler-Mather.
“Labor is not negotiating, they haven’t made a single counter offer, and frankly we have lost patience with a property investor Prime Minister who would rather reject good ideas just so he can pursue his personal dislike of the Greens instead of helping renters and first home buyers.”
