1. Financing New Housing Supply – Rabbits and hats
Peta Winzar

2. How much housing? National 1.4m low income renting households
44% in rental stress
Victoria
305,000 low income renting households
46.7% in rental stress
53% of private renters in rental stress
127,000

3. How much housing, how much money ?

4. International approaches
Private capital to support L-T supply of affordable housing
Government support
to attract cost- effective private capital,
reduce direct call on taxpayer funds
Tax incentives, grants, guarantees, regulatory framework, good delivery system
Governments support revenue streams via welfare payments to tenants/other payment programs

5. High hopes and a promise
2017 C/W Budget aimed to:
Unlock supply
Create the right incentives for private investment
Improve outcomes for those most in need
Along with state Budgets, potentially a step-change for affordable housing

6. Unlocking Supply Managed Investment Trusts (MITs):
National Housing Finance and Investment Corporation (NHFIC):
$1bn National Housing Infrastructure Facility , Bond Aggregator
Western Sydney housing package
$70bn on transport infrastructure from –
Inland rail, City Deals, Badgery’s Creek airport, etc
Managed Investment Trusts (MITs):
Increasing Capital Gains Tax discount – 60% for individual investors
Release of ‘suitable’ Commonwealth land

7. National Housing Finance and Investment Corporation
$1bn National Housing Infrastructure Facility (NHIF)
$600m in concessional loans
$225m in equity investments
$175 in grants
Bond Aggregator
Government guarantee
Terms and price not yet revealed
Capacity building component for CH industry

8. National Housing Infrastructure Fund
Housing-related infrastructure
Extra supply or bring forward
State, local governments can apply – also registered CHOS
Alone or part of Special Purpose Vehicle

9. Bond aggregator
Facilitate private and institutional investment into affordable housing sector
Domestic and international investors
Simpler for CHOs to access efficient finance – cheaper $, longer tenor
Currently sector: $30b, net assets estimated at $10b, debt around $1b
Aim: refinance existing debt, expand affordable housing

10. How much difference will BA make?

11. WHAT TYPE OF HOUSING DOES AGGREGATOR FUND?