Funding delivers new social housing in regional communities
LONDON: A new social and affordable housing development has been completed with funding from the NHFIC, providing 35 new homes for people on low to moderate incomes.
The funding for the Sydney project enabled nine units to be acquired by community housing provider Bridge Housing, who will also manage the remaining 35 units owned by the NSW Land and Housing Corporation (LAHC).
“Supporting the community housing sector through cheaper, longer-term finance was just one of the ways the Government was helping tackle the country’s housing affordable challenges,” said Julie Collins, federal housing minister.
“We have an ambitious housing agenda, and key to that is our $10 billion Housing Australia Future Fund. This Fund will provide a secure, ongoing pipeline of funding for social and affordable housing with a guaranteed minimum of $500 million each and every year.”
NHFIC’s $5.25 million loan through the Affordable Housing Bond Aggregator (AHBA) is part of a $76 million funding facility available to Bridge Housing to refinance existing projects and acquire or develop new social and affordable housing.
With the federal government announcing, earlier this month, an additional $2 billion in financing to deliver more social and affordable rental homes from 1 July, which is anticipated to support around 7,000 dwellings.
“Housing affordability has become increasingly challenging in major cities, so it’s great to see this project complete, and for NHFIC funding to support Bridge Housing to acquire some of the units,” said Nathan Dal Bon, CEO at NHFIC.
NHFIC funding to date has enabled Bridge Housing to refinance, purchase or develop 365 dwellings.
“In the middle of a housing crisis, every new home counts. These homes will help address housing insecurity and homelessness in Western Sydney,” said Rebecca Pinkstone, CEO at Bridge Housing.
“Strong partnerships must be at the heart of our solution. Bridge Housing has worked with the NSW Government to develop and fund new social and affordable homes for our local community. Supported by the National Housing Finance and Investment Commission and the Federal Government, we have been able to secure affordable finance that maximises the amount of housing on the ground.”
Pinkstone noted all the new apartments at the project meet the highest standards of modern design, environmental efficiency, and quality materials.
Bridge Housing is a registered Community Housing Provider that sources and develops social and affordable housing for people on moderate-to-low incomes across 20 local government areas in greater Sydney. It has around 3,500 properties, housing 5,300 people.
“The NSW Government is committed to addressing the need for more housing in Western Sydney. Homes that are safe, secure and accessible,” said Rose Jackson, NSW minister for housing.
“As we navigate the housing crisis, partnerships with the Federal Government and community housing providers (CHPs) are crucial to ensure we’re not only creating more homes, but better homes in well-connected communities.”
NHFIC provides low-cost finance to registered community housing providers (CHPs) for social and affordable housing projects, via the AHBA, which sources funding from wholesale debt capital markets by issuing long-term social and sustainability bonds and from a line of credit provided by the federal government.
“NHFIC funding is focused on increasing the supply of much needed social and affordable housing, but importantly we are also investing in the long-term sustainability of the community housing sector,” added Dal Bon.
“NHFIC is saving CHPs, including Bridge Housing, significant financing costs and giving them decade-long certainty over their loan facilities, which will enable them in turn to invest in more social and affordable housing.”
