$2-billion property portfolio to community housing

Mr Borger said the Community Housing Bill enables us to transfer title of nearly $2-billion worth of stimulus funded social housing to not for profit housing providers.

“This is a massive undertaking as it not only involves 90% of the 6,000 Stimulus funded homes, but includes 500 homes already being managed by community housing providers.

“Traditionally, Housing NSW has transferred properties to the community housing sector on a lease arrangement but this new legislation allows us to completely transfer ownership.

“By doing this we are laying the foundation for a viable not for profit housing sector in NSW that I’m confident will deliver a whole lot more housing for low income people in need. 

“Ownership will give community housing providers a balance sheet providing an asset base that can be used to secure finance from banks for investment in new housing.

Mr Borger said that in the next two years the majority of new homes delivered through funding from the Commonwealth Nation Building Economic Stimulus Package will be transferred to the ownership and management of community housing providers. 

“Community housing provides homes for people in need as well as households on moderate incomes whose housing needs cannot be met in the private rental market.

“A lack of affordable housing puts people at risk in many ways. It puts more households at risk of homelessness, overcrowding or poor housing quality.

“Delivering housing that is affordable allows people adequate income for essential expenses such as food, clothing, health and education, Mr Borger said.

Mr Borger said a strong affordable housing market is also essential to a strong economy. 

“In the UK, where this policy already exists, there has been a massive growth of social housing over the past 20 years with more than 43 billion pounds invested in social housing by community
housing providers.

“The transfer of ownership begins in June this year and by the time it’s completed in June 2012, we expect this will help community housing organisations raise millions of dollars to build and buy even more homes.

Mr Borger said that based on independent analysis, and subject to market conditions, community housing providers could borrow up to 50 percent of the market value of each property.

Source: http://southern-courier.whereilive.com.au/news/story/2-billion-property-portfolio-to-community-housing/