affordable housing development models - City of Port Phillip

Commonwealth State Housing Agreement (CSHA). The NAHA is an
agreement by the Council of Australian Governments that commenced on
1 January 2009, initiating a whole-of-government approach in tackling the
problem of housing affordability. The NAHA provides $6.2 billion worth of
housing assistance to low and middle income Australians in the first five
years. This agreement has locked in place capital funding levels for social
housing and provides a mechanism for a coordinated approach to the
development and management of housing polices across the whole
housing sector.
‣ A new National Rental Affordability Scheme (NRAS) has been introduced
and has been designed to increase the supply of affordable rental housing
by 50,000 dwellings over the period 2008-2013 through the provision of
an incentive payment initially set at $8000 per dwelling per annum for ten
years (indexed) to private investors who develop and provide rental
housing to low and moderate income households at less than 80% of the
market rent. In 2010 the NRAS subsidy was approximately $9,140.
‣ In February 2009, the Commonwealth announced the provision of
additional funding for social housing under the Nation Building - Economic
Stimulus Plan. This initiative will provide funding of $5.238 billion over
three and a half years from 2008-09 to 2011-12 for the construction of an
estimated 18,000 new social housing dwellings (in two stages), and a
further $400 million over two years for repairs and maintenance to
existing public housing dwellings.
‣ The continuation of the $2 billion per annum Commonwealth Rent
Assistance Scheme which provides a rent subsidy to over 500,000
households renting in the private market.
The State government also plays a major role in the supply of affordable housing:
• Land supply for residential development is largely the responsibility of the
State government which must plan for the growth of cities and regions and
zone specific tracts of land as appropriate for development as residential
communities. When land supply does not keep up with population growth the
prices of houses can increase quickly
• Planning policies also contribute to housing cost. For example the density of
residential development has a direct impact on land cost and house prices.
The State through its strategic planning role can influence the shape of local
planning controls
• Regional development strategies developed and implemented by State
governments can increase the demand for housing in particular localities. The
recent Victorian budget commitment to move government departments to
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