Community housing sector investment

Financial backing for the community housing sector

$1 billion loan guarantee

over six years - new initiative since 2016-17 Budget Update

$100 million loan facility

new initiative since 2016-17 Budget Update

$2 million implementation costs

in 2016-2017 - new initiative since 2016-17 Budget Update

Our state’s community housing sector assists thousands of Victorians and provides efficient local management of housing. We need to give the sector the investment tools it needs to grow while prioritising those most in need.

Victorian non-profit community housing organisations already manage around 20,000 tenancies across the state and continue to construct new affordable dwellings. The sector could do even more – but it needs support to grow. 

The Government will encourage the growth of this sector by giving housing associations participating in the Victorian Housing Register the capacity to invest in new social and affordable housing.

This will include:

  • a $100 million revolving loan facility providing low cost, long-term subordinate loans to Housing Associations
  • up to $1 billion available as a loan guarantee program, to help housing associations access finance at affordable interest rates. These guarantees will be issued over six years as economic projects and partnerships are developed
  • funding of $2 million will cover the Government’s implementation costs, including for legal advice, loan documentation, or setting up the guarantee program

The Government will also explore new funding mechanisms, in particular a financial intermediary, to aggregate loans for the community housing sector to achieve more favourable financial terms. This will help housing associations and other parts of the community housing sector to overcome barriers to institutional investment.

This work will progress in parallel with the Commonwealth Federal Financial Relations’ proposal to develop a national bond aggregator model, allowing Victoria to continue this work if a national scheme does not progress.

Contact

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