As seen in progressive European states, this concept can be applied to urban housing and related infrastructure, this is known internationally as an ‘Urban Wealth Fund’.
Cities in Germany and Denmark are pooling publicly owned assets into an urban wealth fund that works with the private sector to improve housing supply through affordable housing development projects. Sharing risks and benefits, aligns the interests of these stakeholders and can streamline infrastructure development, planning and land-use regulations.
The State Government has an opportunity to establish a dedicated state urban wealth fund, such as a new ‘Community Infrastructure Wealth Fund’, focused on publicly owned housing, land, and infrastructure. Managing and understanding our state’s assets more effectively under one balance sheet would help boost local economies, social and economic infrastructure, including affordable housing, and develop vibrant and innovative mixed-use projects.
This vehicle can assist with management of State assets minimising the impact of election cycles and the costs of required maintenance without competing with government budgets.