Renewal and growth in social housing Presentation to Community Housing Federation of Victoria and housing agencies 25 August 2015 Social Housing & NDIS Reform Division

Our developing agenda for reform – a work in progress

What we want to discuss with you today Government objectives and principles for growth & renewal Thinking about a growth strategy – Capital and Funding, Estate Redevelopment, Precinct renewal process Asset management transfers Opportunities for the community housing sector Capability and strengths of the sector to deliver growth Conditions required to enable growth Partnership to develop a common housing register

Government objectives and principles for growth Minister has signalled he wants to focus on the most disadvantaged Realistic and deliverable growth and renewal in social housing stock - not a decline in numbers Value extraction to be a key funding source for growth, with some capital funding possible A more efficient social housing system through partnership with the sector and better outcomes for clients Potential for management transfers where strength of community housing is demonstrable for tenants

Thinking about a growth strategy – Capital & Funding Introduce structured and formalised funding rounds for grants to the sector (VPF and DoH grants) Improve utilisation of assets to meet service needs. Make existing deployed capital work harder. Redirect operational funds where appropriate to provide asset responses to high needs cohorts Accelerate sales program of outdated properties no longer needed to increase capital reinvestment Unlock capital through a program of estate redevelopments Collaborate with other agencies to deliver housing on surplus government land

Thinking about a growth strategy - Estate redevelopment Identify estates which are suitable and most in need of redevelopment Prioritise redevelopment projects and establish a project pipeline Proactively manage tenants to enable timely and cost efficient redevelopment including re-scoping of estate Establish an efficient procurement mechanism to engage Community and Private sector partners and fast track large scale estate redevelopment

Thinking about a growth strategy - Precinct renewal The department will implement a precinct approach to provisioning for renewal and growth Develop precinct renewal plans aligned to Plan Melbourne, regional growth priorities, and geographic demand for key priority groups to increase the total housing stock Work collaboratively with Metropolitan Planning Authority and local government to deliver planned precinct renewal Expedite planning where required through Minister for Planning making decisions on selected sites

Asset Management Transfers Management transfer program under consideration Potential to structure transfers to achieve: Improved services for clients Addressing maintenance needs Neighbourhood renewal and better place management Continued focus on key priority groups such as people experiencing family violence, people with disabilities, young people and single people Draw on lessons learned from national developments – South Australia, Tasmania and Queensland

Asset Management Transfers Could build in title transfer if sector can demonstrate meeting key performance targets Management transfers could lead to title transfer after 3-5 years if KPI's are met, for example: tenant satisfaction improves from set benchmarks maintenance benchmarks maintained or exceeded agreed allocations made from common housing register commitment to leverage/ growth delivered through title transfer Interested in sector’s views on parameters for asset management transfers

Opportunities for the community housing sector The sector will have the opportunity to participate in significant estate redevelopment opportunities through a transparent competitive process Possible management transfer process DHHS will support the establishment of structured funding rounds to the sector (VPF & Doh) DHHS will work with CHFV on a more structured approach to community housing sector led proposals

Capabilities of the community housing sector to deliver growth Questions for the Sector What is the sectors value proposition & strengths that make the sector a preferred partner? Is the sector resourced appropriately to participate in a rolling program of large scale estate redevelopments? Does the sector have a preferred development partnership model with the department and private sector? Does the sector have a preferred asset management transfer model? (large scale full title transfer not being considered as a first step)

Conditions required to enable growth Ministerial authority Establish efficient procurement mechanisms Create an ongoing pipeline of renewal and growth projects Secure funding and finance sources to support growth Refine a best practice asset management transfer model for broad implementation

Outcomes for people We don’t want to lose sight of how we renew and grow social housing as part of achieving complementary outcomes for people: Better needs assessment and alignment with other support needs Simplified access Common housing register Choice based letting A renewed focus on private rental assistance

A more integrated and holistic responses to people’s needs – a conceptual model to test with sector partners Housing supports provided as part of a coordinated, holistic service response Expansion of products and support services to support flow through the system Crisis Accommodation Public Housing Community Housing Private Rental with government assistance Affordable Housing Initiatives Persons presenting with housing (and support) needs Common Housing Register Greater flexibility of funding for short term interventions that deliver long- term outcomes and rapid rehousing Common access - intake and streaming process Divert people from crisis services and public housing through rapid rehousing in private rental Better supported transition from crisis accommodation to other options Referral to comprehensive needs assessment where appropriate Assertive outreach to key cohorts to prevent and address housing crisis Choice Based Letting Entry to service response Front End Access Example – no departmental status 14

Better access: common housing register What is a common housing register? Social housing providers working together to create a single register of social housing applicants: a common application form, a single database of applicants, coordinated housing information and advice. The common housing register is a first step in terms of maximising and simplifying access to housing assistance for disadvantaged Victorians. A common housing register will: Create better access to housing through one simple and effective entry point to the widest range of housing opportunities. Create greater transparency and accountability across the social housing system. Embed homelessness and social housing into the wider community care system. 15 Confidential internal working draft Better access: common housing register

16 Confidential internal working draft Allocations framework and referral policy Allocations framework To make the common housing register work, an allocations framework will need to be developed in consultation with the sector to guide allocations from a common housing register. It is timely to review the allocations process and the referral protocol Referral policy In the interim a referral policy that mirrors the settings of the allocations framework will be put in place for housing organisations who have not yet joined the common housing register. This ensures no competitive disadvantage. Working in partnership with the sector DHHS and CHFV will meet this week to agree on a governance structure to drive this work. Confidential internal working draft 16

Testing these ideas There is an ideal opportunity to test these ideas in 1-2 selected areas across Victoria before any wider roll-out. Place based testing could occur where there are the following elements available: Supportive homelessness access point(s) that is willing to test the model. Strong engagement from DHHS area office. Registered housing agencies that are keen to engage. Reasonable access to affordable private rental properties. What other elements are crucial? 17