affordable housing development models - City of Port Phillip

Within this broadly universal approach, distinct policy choices have been applied in
each national setting.
The AHURI report concludes that Australia has reached the stage where a clear
vision of desired housing outcomes needs to be agreed upon, legislated and
implemented. This should encompass:
• An ongoing but flexible growth strategy
• An asset management strategy, initially focused on restructuring existing
social housing assets
• A coherent rent regime and an eligibility policy
• Each of which is responsive to local housing needs and market conditions
As illustrated by the case studies, getting the mix and balance of these settings
right will require a careful and constant process of monitoring, evaluation and
adaptation to tailor each component so that collectively they continue under
dynamic market and financing conditions to achieve the housing vision and goals. 13
Specifically in the Australian context, key dimensions of a national strategy should
incorporate:
• A permanent subsidy stream (or incentive) to reduce the cost of housing
procurement by designated providers. Policy choices concern the use of deep
or shallow subsidies (depending on the capacity of the target group to meet
rental costs), whether operating or financing costs are subsidised (such as
NRAS) and which providers are used (public, not-for-profit or private).
• A coherent rent regime (cost, market-related or nominated) governing the
level and indexing of rents to secure revenue and promote affordability. This
implies a movement away from income related rents paid to housing
providers.
• Explicit eligibility criteria (broad or narrow) coupled with adequate demandside
assistance. This implies a broader target group than is currently
captured by our public and community housing providers and a rent
assistance program that supports the capacity of tenants to meet regular
rental payments.
• A delivery regime that promotes cost effective housing services, tenant
accountability and efficient and effective asset management strategies, to
ensure that social tasks continue to be met and to foster revolving
investment. This implies greater transparency within the roles of funder and
provider that are often combined in the Australian state housing authorities.
13 Lawson, J., Gilmour, T., & Milligan, V.,(May 2010) International measures to channel investment towards
affordable rental housing. AHURI
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