Affordable Housing Federal Funding Details

Further details have been released of the federal governments funding to deliver 40,000 social and affordable homes over the next 5 years.

Applications for funding will open this month for 10 weeks followed by a 12-week assessment period. Approved projects can therefore be expected to be announced by the middle of the year.

The Housing Australia Furure Fund Facility (HAFFF), together with the National Housing Accord Facility (NHAF) a partnership agreement between all levels of government, are targeting to deliver 20,000 social housing dwellings and 20,000 affordable housing dwellings.

• social housing is an umbrella term that typically refers to public or community housing.

• affordable housing does not yet have a nationally accepted definition; however, the working definition from Housing Australia is housing rented out at 25% less than market value.

The investment mandate provides details of the requirements to be considered for funding. These include:

• projects must be in an area of demonstrated need.

• be well located and supports livability (public transport, shopping, employment opportunities).

• they can include new construction, the purchase of newly built homes or conversion of a non-residential property.

• projects must comply with the National Construction Code, particularly in relation to energy efficiency and Livable Housing Design (silver).

• the scale of the project (large enough to contribute to meeting the aims of Housing Australia).

• whether finance will encourage private sector participation.

• value for money regarding the amount of housing delivered.

• the applicant's status (predominantly aimed at not-for-profit Community Housing Providers).

Final details will be released in the next 2 weeks, but all indications are applications will be favoured that not only meet the above guidelines but also have certainty around delivery, with planning permits in place, lodged or ready to lodge. An experienced development team and construction to commence within 18 months.