Community Housing
Community housing is an integral part of the housing system
Data shows there are 41,683 social housing dwellings in Western Australia, of which 20% (or 8,337 properties) are managed by approximately 200 community housing providers (CHPs). The largest 40 providers manage 70% of the community housing stock.[1]
CHPs have a proven ability to deliver the affordable housing outcomes sought by government. They engage in joint ventures, innovative projects and investment models to bring quality social and affordable housing to market – demonstrating the potential to broker partnerships between government and private industry. These partnerships create vibrant, liveable communities through the integration of social private and market based housing, becoming a catalyst for new community infrastructure and facilities. Importantly, CHPs business models channel profits back into properties and programs which results in greater re-investment into housing assets and tenant outcomes.
The benefits that the community housing sector to the social housing system includes:
Better Tenant outcomes
The National Social Housing Survey found that, a higher proportion of community housing tenants in Western Australia were satisfied with the overall services provided by their housing organisation (85 %) compared to tenants in public housing (76%). In most cases, the dwelling condition was the most important factor in tenants’ dissatisfaction. Many CHPs have tenant advisory committees, ensuring that tenants have a direct say and input into policies which impact on them. Also, they take a supported landlord approach to managing their tenancies, which ensures that the outcomes for their tenants are at the centre of their business model.
Independently Regulated
Unlike the State, CHPs who are registered are regulated through a national regulatory system for community housing, mirrored by a policy and reporting regime in WA. This independent oversight ensures that CHPs are subject to externally monitored service provision standards, which leads to comparable quality and standards across the community housing sector. It ensures that there is independent probity and good governance standards which are reviewed.
Accessing new financing options
CHPs can access different financing options bringing in new investment to Western Australia. This includes
Increasing Commonwealth Rental Assistance into WA. Unlike public housing tenants, tenants in the private rental market or with community housing providers can access additional support through the Commonwealth Rental Assistance (CRA) program.
Accessing new institutional investment via the National Housing Finance and Investment Corporation (NHFIC) who have initiatives to increase investment into new housing supply through CHPs. The Affordable Housing Bond Aggregator provides low cost and longer-term loans to registered community housing providers to support the provision of more social and affordable housing.
Harnessing new private investment via private tax rulings
CHPs are an income tax exempt charity and usually have Public Benevolent Institution status with some also having Deductible Gift Recipient standing. This means that they can receive various tax benefits and concessions for costs associated, if they cap their rents at 74.99% of market rent.
Other jurisdictions are building on the strengths of the community housing sector by transferring assets to facilitate new supply. For example, the NSW government has completed its largest social housing transfer with the transfer of over 2,000 homes and 4,000 tenants to a community provider. The NSW State Government aims to eventually transfer around 14,000 properties to nine registered community housing providers, saying this will provide upwards of $1 billion over the next 20 years to improve the experiences of people living in social housing.
It is time for the WA Government to utilise the strengths of the community housing sector through asset transfers in WA.
