Innovative partnerships to drive supply of social and affordable housing

Social and affordable housing in Western Australia could be delivered and managed more efficiently by the Community Housing Sector under an innovative partnership model recommended by new research released today.

The report commissioned by Shelter WA from the Paxon Group highlights how a collaboration between Government and industry, in partnership with the community housing sector, can drive the supply of social and affordable housing.

Shelter WA CEO Michelle Mackenzie said the report was seminal research commissioned with funding from the National Housing Finance and Investment Corporation (NHFIC) via the Community Housing Industry Association of Australia.

“Community Housing Providers (CHPs) are able to manage assets at a lower cost per tenancy because their charitable status provides tax concessions, including GST concessions, that reduce the cost to deliver and maintain housing,” she said.

“Also, their ability to leverage government funding with funding from other sources including the National Housing Finance and Investment Corporation, and the ability for their tenants to receive Commonwealth Rent Assistance supports the delivery of new homes. A key benefit is that CHPs reinvest any surplus back into housing to deliver more supply, retaining housing for the long-term benefit of the WA community. Some CHPs have developed important new affordable housing options for key workers, which has been critical given current pressures in the private rental market.

“This report highlights additional opportunities.”

“The research provides direction on project structures, delivery mechanisms and financing options to maximise what partnerships work best, with Paxon undertaking modelling to understand the collaborative opportunities between Government and the community housing sector, to drive new housing supply.

“Research indicates that CHPs deliver better outcomes for tenants. Also, a number of CHPs provide bespoke services for particular groups of people including seniors, Aboriginal people and people with a disability, which enables them to focus on delivering great property and tenancy management services that meet all people’s needs.”

Western Australia’s community housing sector is made up of 266 organisations, managing 22 per cent of the state’s social housing between them, with a value of almost $2.5 billion.

“The WA government has demonstrated a renewed commitment to working with the community housing sector, which is very welcome,” said Ms Mackenzie.

“Meet a greater proportion of unmet need.”

“This report highlights additional opportunities to build on this partnership enabling government funding to meet a greater proportion of unmet need.”

There are currently 25 registered CHPs, with four Tier 1 registered CHPs with varying levels of presence in WA, six Tier 2s and with the majority of CHPs Tier 3 level.

Shelter WA is holding an online sector briefing on Wednesday, August 10, 2022.
Click here to register. Click here to read the report.

Media Contact

For interviews with CEO Michelle Mackenzie contact Sarah Quinton | 0439 439 233.