Social Housing Growth Fund

A new Social Housing Growth Fund

$1 billion

capital fund - new initiative since 2016-17 Budget Update

Our state’s social housing is not what it should be. We don’t have enough – and of the homes we do have, many need urgent improvement.

To address the shortage of supply, the Government is establishing a $1 billion Social Housing Growth Fund to fund a pipeline of projects to deliver more social housing. We will work in partnership with community housing providers to unlock private sector investment in new social housing.

The Social Housing Growth Fund’s key aim is to underpin new approaches to deliver social housing – either by funding new partnership developments on non-government land or providing rental subsidies for properties in the private market.

By unlocking private investment, with the right incentives and support for community housing agencies, we will deliver new social housing and major new construction activity and jobs for Victorians.

We are also doing this in a fiscally responsible way. We will not draw down on the $1 billion fund. Instead its capital power will be used as leverage and the investment returns will be used to underpin funding agreements for projects.

The dedicated fund will go hand in hand with the other new social housing initiatives announced in Homes for Victorians.

Over the next 5 years, the Fund will support up to 2,200 new social housing places, comprising:

  • the construction of new social housing dwellings
  • the provision of rental support – for those people who need assistance but who may not require intensive long-term support.

The final level of new social housing and the balance of support provided between new construction and rental support will be determined through the market process and according to need.

Importantly, the new social housing numbers are for five years only. The use of a $1 billion fund enables us to provide ongoing certainty of funding and will strengthen the Government’s partnerships with philanthropic groups, councils, community housing and the private sector.

Contact

For more information, email socialhousingreform@dhhs.vic.gov.au