One of Australia’s leading not-for-profit housing providers is a key member of a Victorian consortium named last month as the preferred proponent for a major redevelopment of Homes Victoria land in Brighton, Flemington and Prahran.
The project is valued at more than half a billion dollars, financed through a combination of debt and equity.
Building Communities Consortium
The not-for-profit Building Communities consortium has been selected to finance, design, construct, manage and maintain the new housing. The consortium includes Community Housing Limited, Tetris Capital, the National Housing Finance and Investment Corporation (NHIFC), Icon Kajima, and Citta Property Group.
Under a ground lease arrangement, the Victorian government will the lease land to the consortium to build, operate and maintain housing on the sites for 40 years. The land and all 1,110 dwellings will come under the management of Homes Victoria at the end of the lease.
The project is supported through a combination of affordable lending rates and an ongoing Homes Victoria service payment.
The project will build 1,110 new homes – 619 brand new social housing dwellings, 126 affordable homes and 365 market rental homes, including 52 Specialist Disability Accommodation dwellings.
The model is another example of the capacity of Australia’s community housing sector to partner with government and private industry to deliver long term solutions to the affordable housing crisis.
Lessons for WA
With more than 16,000 Western Australian households on the social housing waiting list, the model is an example of innovative solutions available through use of government land to supply much needed housing.
The Victorian ground lease project is on top of the landmark $5.3 billion Big Housing Build, which will deliver more than 12,000 new homes and create around 10,000 jobs over four years.
The Victorian government is strongly supporting its community housing sector as a key delivery partner in the Big Housing Build, recognising the unique value proposition of the sector in reducing delivery cost while driving high quality tenant outcomes. Through the Big Housing Build, the community housing sector has access to $1.3 billion for sector led projects using non-government land and $2.14 billion for projects in partnership with government and the private sector that do involve government land.