Housing2020Strategy.pdf

Department of Housing and Public WorksHousing 2020Delivering a flexible, efficient and responsive housingassistance system for Queensland’s futureGreat state. Great opportunity.

Premier’s messageIn a great state like Queensland, it is important thatwe ensure our most vulnerable have access to safe andaffordable housing. Yet for too long, Queensland’s socialhousing system has been held back by an old fashioneddelivery model, underpinned by outdated assumptions.Social and economic changes have created pressures onthe system that would have been inconceivable 20 yearsago. In two decades, the households seeking housingassistance have undergone immense change.Whereas in days gone by, tenants tended to be low incomeworking families, these days applicants are far more likelyto be singles or single parents, reliant on either a governmentpension or other form of social security. More than halfof these households will have at least one member witha disability.Unfortunately, while the needs of social housing applicantshave evolved, our housing system has not. In defiance ofthe changing circumstances, previous governments havecontinued to provide large numbers of detached publichousing properties in suburban enclaves with little regard totheir suitability for new tenants, or the social consequencesfor the community at large.Those days are at an end. The Housing 2020 Strategy marksthe beginning of a new era and will deliver the major renewalnecessary to bring Queensland’s social housing system intothe 21st Century.Housing 2020 will deliver a flexible, efficient andresponsive housing system that features a stronger role fornon-government providers and a broader range of options tohelp low-income families into sustainable accommodation.Through these reforms, my Government will bringQueensland’s social housing system in line with the currentdemand and make a real difference to the lives of our mostvulnerable.Campbell NewmanPremier of QueenslandPage 1

Minister’s messageAccess to appropriate and affordable housing is not just aboutshelter. It’s also an important contributor to health, childdevelopment and workforce participation. In fact, without astable home, it’s almost impossible to make a go of things inany other part of your life.Queensland’s social housing system faces significantchallenges. Current housing stock is not well aligned to theneeds of our tenants and, due to the advanced age of manyproperties, poses an unsustainable maintenance burden onthe State.Tough economic times have increased demand for housingassistance at the same time as the available funding hasdwindled. Unless we take action, vulnerable Queenslanderscould face years of uncertainty as they wait for a place in thesystem. Clearly, we need a new approach.The Housing 2020 Strategy will create a bigger service deliveryrole for community housing organisations and expand therange of housing services available to low-income households,including opportunities to secure an affordable place in theprivate rental market.Under Housing 2020, the Government will change from beinga direct provider of long-term housing, to being a regulatorand purchaser of these services from the community housingsector.Our aim is to establish a flexible, regionally based, integratedsystem that, by 2020, will deliver an additional 12,000 homesand see up to 90% of social housing dwellings managed bycommunity housing providers. Over this period, we will alsosee the introduction of a variety of options to help people findsuitable accommodation in the private market.These reforms represent some of the biggest changes to thesocial housing system since its creation, and while the road to2020 may be difficult, we should never lose sight of why we aredoing it. Housing 2020 is about providing the most vulnerablemembers of our society with the security and dignity thatcomes from having a place to call home.Tim ManderMinister for Housing and Public WorksPage 2

Housing assistance in QueenslandHousing assistance in Queensland is providedto people in housing need, led by the StateGovernment and supported by not-forprofitproviders. Housing assistance may beprovided through social housing dwellingsor programs which aim to help people toremain in the private housing market.As at 31 December 2012, there were 72,329social housing dwellings in Queensland,of which 54,394 (75%) were governmentownedand managed through a state-widenetwork of 23 Housing Service Centres.Community housing providers (not-forprofitcommunity organisations andlocal governments, including Indigenouscouncils), owned and/or managed 17,935(25%) of social housing dwellings.The majority of social housing stock (63.2%)is over 20 years old, leading to increasingmaintenance costs and need for renewal.Since 2006, the allocation of social housinghas been prioritised to households withthe highest housing needs, including thoseexperiencing, or at risk of, homelessness.Of the 23,550 eligible applications for longtermsocial housing listed on the State’sHousing Register (as at 31 December 2012),56.3% were in very high or high needscategories and included people who werehomeless or at risk of homelessness.In the 12 months to 31 December 2012,94% of allocations to social housingtenancies were from the very high and highneed levels of the Housing Register.The highest percentage of applicationswas from singles (49%) and single parents(31%). As a result, the majority of householdsbeing assisted requires one or two bedroomdwellings whilst the majority of existing publichousing stock has three or four bedrooms.Generally speaking, these very high and highneed households have lower incomes, requiremore intensive management and support tomaintain their tenancies, remain in socialhousing for longer periods and are less likelyto transition into the private market.Whereas in the past, tenants werepredominantly low income working families,nowadays, the average tenant is likely tobe dependent on a government pension orother form of social security. The major salarybracket for those waiting for social housingwas between $15,000 and $29,999 perannum (as at 31 December 2012).Because social housing rent revenue arecalculated at no more than 25% of householdincome, the declining income of tenants inturn means the system has less revenue tosustain itself.This combination of falling rent revenue,increasing maintenance and unsuitable stockhas caused a crisis in social housing thatmust be addressed if we are to have a chanceof housing those households currently on theHousing Register.Percentage of new households allocated to government-managed social rental housing,by segment of need for 12 months to 31 December 20125.04% 0.68%27.11%Very highHighModerateLow67.16%Page 3

The challengeQueensland’s sustained and rapid populationgrowth, coupled with reduced housingconstruction since the global financial crisis(GFC), has led to an increasing gap betweendwelling demand and supply.In 2012, the National Housing Supply Councilestimated a shortfall of 83,000 dwellings inQueensland. Construction levels over the lastdecade have failed to keep up with populationgrowth. This has led to an increase in rents,particularly in the resource regions, whichhas made private rental housing unaffordablefor many Queenslanders. ln addition, thedevelopment of affordable housing hasbeen slow and has generally required someform of government subsidy. The shortageof affordable housing in the private marketplaces greater pressure on social housing.There have also been large increases inresidential property values. Between 2005/06and 2010/11, the median house price roseby 33% ($105,ooo) and the median unit priceby 24.6% ($7o,ooo). Whilst this growth hasslowed, the flow-on effect of high house priceshas resulted in wide spread and detrimentalimpacts on housing affordability for manyQueensland households. Despite the factthat there are affordable rental properties inQueensland, due to increases in house prices,households on medium to high incomesare choosing to remain in lower cost privaterental properties for longer periods to save adeposit that is large enough to meet houseprices and/or more conservative lenders’requirements. This has the effect of forcinglow-income households to pay unaffordablerents, or is pushing them out of the privaterental market.The majority of households in Queenslandlive in the private housing market. About twothirds(63.5%) of households either own theirhome outright or are paying off a mortgage.This is equally split between outrightownership and paying a mortgage. A further33.2% of households access the private rentalmarket, with some of those households likelyto be experiencing some level of rental stress.Percentage of Queensland housing tenure types (from Census 2011)33.20% 3.30%63.50%Home ownershipPrivate rentalSocial housingPage 4

Despite social housing comprising only asmall proportion of the overall housing supplyin Queensland, it plays a vital role in thecommunity. As well as meeting the basic needfor shelter, social housing makes a positivecontribution to individuals’ health, wellbeingand employment opportunities, and confersa level of independence on disadvantagedhouseholds with complex and ongoing needs.The current approach to housing provisiontends to gravitate to two clear segments:• ‘affordable’ rental housing or homeownership usually underpinned bygovernment supported schemes suchas housing grants, National RentalAffordability Scheme and bond loanassistance. Households generally paybetween 50% and 80% of market rentswhere affordable housing is subsidised.• social housing, primarily provided bystate and local governments or thecommunity housing sector, with rentsset as a percentage of assessablehousehold income rather than beingmarket-based. Rents in this category aretypically calculated at 25% of assessablehousehold income.Social housing at a glance• There were 72,329 social housingdwellings in Queensland, of which75% were government-owned andmanaged• Social housing rents are calculatedat 25% of the household’s assessableincome• Average social housing rent was$120 per week• 94% of allocations were toapplicants in the very high or highneeds categories• 80% of applicants were singlesor single parents• The most common income bracketfor social housing applicants wasbetween $15,000 and $29,999.*(Figures as at 31 December 2012)Page 5

The path forwardThe old: Features of Queensland’sold social housing systemThe new: Features of a flexible, efficientand responsive housing assistance systemA view that social housing is a home for life.Greater emphasis on social housing as atransitional period on the path to private rentalor home ownership.Existing supply of three and four bedroomproperties poorly aligned with the needsof tenants.Re-aligning the portfolio with greater emphasison the delivery of one and two bedroom unitsto reduce under-occupancy and maintenancecosts.Social housing characterised by old-fashionedand unattractive dwellings.Social and affordable housing characterisedby modern, visually appealing properties thatcontribute positively to urban design.The lack of alternative support programsresulting in excessive demand for socialhousing.Where possible, additional programs andsupport services will help social housingapplicants find and secure private rentals.The consequences for unacceptable behaviourfrom social housing tenants not appliedconsistently resulting in extensive damage toproperties and unfair disturbance to neighbours.Unacceptable behaviour to be met with clearand consistent penalties under a new ‘threestrikes’ policy.Systemic inefficiencies meant it was impossibleto maintain and expand the housing portfoliowithout vast sums of taxpayers’ money.Social housing delivery to be made moreflexible and efficient by engaging the expertiseof community housing providers, better landuse, better rent management policies and moreefficient maintenance programs.The Government is the primary provider of socialhousing services.Community housing organisations can moreeffectively deliver tenancy management servicesand are better able to engage other providers todeliver additional support to vulnerable tenants.Indigenous home ownership consideredimpossible to achieve in remote communities.The possibility of home ownership in remotelocations is significantly increased byworking with local communities and removinglongstanding barriers around land tenure.Page 6

A new strategic approachIn transforming our future approach tothe delivery of housing assistance, wewill sharpen the focus on the partnershipsbetween government, non-governmenthousing providers and the communityservices sector, to deliver integrated housingresponses that provide lower-incomehouseholds with tailored social housingassistance. The emphasis will be on creatingopportunities to secure and maintain housingin the affordable and private housing markets.Housing 2020 will aim to establish afinancially-sustainable, regionally-based,integrated system that, by 2020, will seesocial housing services mostly, if not fully,delivered by community housing providers.Government will take a broader vision forsocial housing reform in Queensland, whichwill include increasing development ofaffordable housing and support within theprivate market.Priority will continue to be given to supportingthose households with the highest housingneed but, wherever possible, capitalisingon opportunities for building the capacity ofhouseholds to progress to the private rentalmarket or home ownership.Implementation of Housing 2020 will beintegrated with the Queensland Government’sHomelessness-to-Housing Strategy, tomaximise housing opportunities fordisadvantaged Queenslanders.There will need to be strong linkages betweenthe full range of housing assistance measures,and other relevant government programs,especially homelessness, health, disability,education and training.The outcomes from Housing 2020 willalso see major contributions to economicdevelopment, particularly in the regions,new urban renewal projects and improvedhousing and infrastructure delivery to remoteIndigenous communities. Opportunities forethical investment in Queensland will beexplored to broaden the capital base availableto the sector.The Housing 2020 Implementation Plan is arolling set of targeted actions that will reshapehousing assistance in Queensland.Delivery will be guided by five principlesHousing 2020 will be guided by five principles that reflect the Government’sapproach to building a four pillar economy:1. Renewing and reconfiguring social housing.2. Growing and innovating through partnerships.3. Facilitating housing pathways to the private market.4. Better use of social housing and support resources.5. Improving the housing outcomes of Queenslanders most in need.Page 7

Housing 2020: what we will achieveA flexible, efficient and responsive housing assistance system for our mostvulnerable Queenslanders, featuring a stronger service delivery role forcommunity housing providers, and providing lower-income householdswith the help they need to secure appropriate and affordable housing inthe private rental market.Objectives for 2020:1. Build 12,000 additional social and affordable housing dwellings.2. Transfer 90% of the management of all social housing dwellings to thenon-government sector.3. Create conditions for 8 to 10 major providers in social housing management workingwith smaller specialist providers through a fair and equitable procurement model.4. Reduce statewide under-occupancy of social housing to 2%.5. Provide assistance to 250,000 low-income households to remain in or move to the privaterental market instead of social housing.6. Facilitate 5 major urban renewal projects, including revitalising areas which have a highconcentration of social housing.7. Implement an integrated triage system for those with multiple needs, including disabilities,entering the housing system. This ensures services are used more efficiently and effectively.8. Deliver 820 new Indigenous properties for rent and transition at least 200 Indigenousfamilies to home ownership in remote communities, to reduce overcrowding and take thepressure off social housing.9. Implement the National Regulatory System Framework to help develop and oversee a robustand financially viable community housing sector.How will we achieve this?The Housing 2020 Implementation Plan details the outcomes and deliverables that will guidethe Government’s actions in the coming years.Timeframes and numbers of new dwellings are estimated targets, which will depend ondemand changes, available sites, development opportunities, impacts of management transferoutcomes and funding arrangements.Page 8

Housing 2020 Implementation Plan1: Renewing and reconfiguring social housingOutcome Deliverables TimingDevelop RegionalHousing Plans toaddress local housingpriorities and serviceall regions of the StateLogan• 500 additional social and affordable dwellingsGold Coast• 500 additional social and affordable dwellings• Negotiations for tenancy and property managementfinalised by the end of 2013Progressively,with first plandelivered byJune 2014Sunshine Coast• 750 additional social and affordable dwellings• A contestable approach to be undertaken for tenancyand property management by June 2014Redcliffe• 50 additional social and affordable dwellings• A contestable approach to be undertaken for tenancyand property management by the end of 2013Townsville• 500 additional social and affordable dwellings• A schedule of potential redevelopment sitesdeveloped with the region by end of March 2014• A contestable approach to apply to non-governmentparticipation in the development and delivery ofsocial and affordable housing in the regionGladstone• 400 additional social and affordable dwellings• A contestable approach to be undertaken for tenancyand property management by the end of 2014• In the high concentration areas, developmentof a “vacancy chain” plan to enable ongoingredevelopment and reduction of under-occupancythrough the construction of 1 and 2 bedroomapartments• A schedule of potential renewal sites in the region byend of March 2014, with a focus on surplus land sitesavailable to provide affordable housing through saleand/or redevelopment (including non-housing assetsurplus land)Mt Isa• Implementation of the first stage (3 year timeline)of the Mt Isa Regional Housing PlanPage 9

Outcome Deliverables TimingRegional Housing Plans• For all other regions, including:––Brisbane, Cairns (metropolitan),Far North Queensland––Remote Indigenous communities––Rural and remote communities (focusing onwestern region local government areas)––high population growth centres (Toowoomba,Wide Bay, Mackay)• Local engagement will be undertaken prior tofinalising each planImplement majorrenewal projectsto address highconcentration ofolder public housing• Renewal projects planned for:––Logan––Gold Coast––Townsville––Mt Isa––GladstoneFirst plan to becompleted andimplementationcommenced byearly 2014Balance of plansprogressively toJune 2020A 10% improvementin efficiency in themaintenance ofhousing stock• Achieve 10% improvement in efficiency andeffectiveness in the delivery of social housingmaintenance programsJune 2014Provide at least3 supportedaccommodationfacilities• Deliver supported accommodation facilitiesin Redcliffe, Townsville and Cairns• Potentially deliver another two supportedaccommodation facilities at locations tobe determinedFirst stageof three newfacilities by2015-16Page 10

2: Growing and innovating through partnershipsOutcome Deliverables Timing90% of socialhousing managementtransferred tonon-governmentorganisationsby 2020• Transfer of tenancy management of 4,731 propertiesin Logan• A road map for the transfer of remaining tenancymanagement services to community housingproviders, outlining:––regional strategies for reconfiguring the deliveryof social housing––estimated implementation timelinesBy early 2014By November2013Build capacity of 8 to10 major providers• 8 to 10 major National Regulatory System providers,supported by smaller providers, who have appropriategovernance, infrastructure and capability tosuccessfully manage large tranches of the socialhousing portfolio by 2016. This will occur through:––a program to seek proposals from the newlyregulated national social housing industry––assessment of proposals and partnering with theproviders who best demonstrate their capabilityProgressivecapacitybuilding to2016, alignedto delivery ofthe transferobjectives• Implementation of strategies under the NationalIndustry Development Framework and increasedcapability of the non-government organisationhousing sector by:––ensuring all Tier 1 community housing providerboards have a diversity of membership witha high degree of competence in financial andrisk management, development capability andprobity, and are fully aware of their responsibilitiesunder Federal corporations law and State basedincorporated associations legislation––facilitating sector training in governance, financeand asset management––implementing a communication strategy to ensureproviders are informed of changing policy settingsrequired for the National Regulatory System forcommunity housing providersDevelopmentof a capabilityprogram byOctober 2013Communicationby June 2013Ongoingassistanceto 2016• A capability plan developed and implemented forprocurement and contracting within the Departmentfor social housing services.Formal contractarrangementsby October2013, withcontractmanagementcapacity builtin tandem• A new reporting process developed to align reportingand ensure demonstrable and empirically basedoutcome measurement to meet funding requirements2013/14Financial YearPage 11

Outcome Deliverables Timing• Testing and evaluation for the National RegulatorySystem to support its introductionBy December2013• Develop the necessary capability to act as a regulatorunder the National Regulatory System, by:––determining capability requirements for theNational Regulatory System––developing a training program and acquire staffwhere deficiencies exist––utilising skills of national providersFrom July 2013Implement the newinformation system• A shared IT system developed for client intake andassessment that is accessible to all funded housingproviders that will:––provide access to social housing demand andsupply information by providers and servicepartners––provide information for the transition of propertyand tenancy management from government toregistered community housing providersJuly 2015to 2020Provide 3 agedaccommodationprojects• A new model for affordable seniors accommodationdeveloped in partnership with the private sectorusing contributions of government-owned land,subject to identification of funding source anddevelopment partnersBeginningwith landidentificationby September2013 andproposals tobe consideredin 2015Page 12

3: Housing pathways into the private marketOutcome Deliverables TimingConstruct 12,000 newsocial and affordablehousing dwellings• Finalise approximately 6,000 National RentalAffordability Scheme incentives under Rounds 1 to 4• 2,200 incentives negotiated from Round 5, withpriority to be given to land discounts as part of theState contributionJune 2016• Affordable housing sector revitalisation, through:––releasing land to market for affordable housingto be offered through partnership approacheswith private and not-for-profit organisations.At least 30 renewal and redevelopment sites willbe identified and result in 2,800 new social andaffordable housing dwellings––developing partnerships with EconomicDevelopment Queensland to gain access toland in priority development areasFirst sitesidentified byJuly 2013, withfuture roll-outas per regionalplansAssist 250,000 lowincome householdsto remain in ormove to the privaterental market• Review of the Housing Needs Assessment process tobetter identify the most appropriate housing solutionand ensure people have access to appropriatesupport servicesProportionalannual targetsto 2020• Expand the RentConnect program to enable greateraccess to assistanceJuly 2013• Develop new approaches to housing and employmenttype programs, including:––expand existing Housing and Employment Programto two additional locations––consider options for targeting programs to assistyoung people transitioning from care––use the Employment Related AccommodationProgram to support Indigenous Earning andLearning ProgramsJuly 2014• Develop new approaches for private marketassistance including:––a savings scheme pilot to encourage and assistsocial housing tenants to save funds to help themmove into the private market––examining the market’s appetite for sweat equityand other self-help approaches to home ownershipTo 2015Page 13

Outcome Deliverables TimingTransition at least 200Indigenous familiesto home ownership inremote communities• Indigenous home ownership (Council of AustralianGovernments commitment) progressed by:––removing the barriers to sustainable homeownership on Indigenous land in Queensland––resolving the impact of the Aboriginal and TorresStrait Islander Land Holding Act 2013 leases onhousing in Indigenous communities––in collaboration with Trustees, developingprocesses to support home ownership onIndigenous land including the potential of housingtrusts––families to enter into home ownershipOngoingReduce overcrowdingin Indigenouscommunities by 25%• 25% reduction in overcrowding and rent arrears forIndigenous Queenslanders, through:––delivering the remaining 820 dwellings underthe National Partnership Agreement on RemoteIndigenous Housing––implementing and delivering the ‘Plug-In’ program––increasing the monitoring of overcrowding andrent arrears at the local level and partnerships withIndigenous community housing organisationsProgressiveproportionaltargets to 2020Page 14

4: Better use of social housing and support resourcesOutcome Deliverables TimingDevelop andimplement newclient intake anddemand managementstrategies• Housing Service Centre activities reviewed andrealigned to assist clients including:––initial triage––personalised needs management plan––diversion to other services where appropriate––initial tailored housing solution offer foreach applicantJune 2014• Departmental and non-government organisationstaff prepared for new client case management andtenancy planning activities, through conducting askills audit and implementing a training planBeginning inJuly 2013 andcontinuing to2017Assist social housingtenants who have thecapability to move intothe private market• Review existing policies to emphasise the transitionalnature of housing assistance including:––new ongoing eligibility benchmarks forsocial housing––continuing use of fixed-term tenancies witha review at the end of each term• Implement new procedures to identify householdsthat can be assisted into the private market andensure appropriate levels of support including:––tenancy plans to help households identifystrategies that will enable them to move intothe private marketProgressive to2020Review both Acts • Implement necessary changes to the ResidentialTenancies and Rooming Accommodation Act 2008• Review the Housing Act 2003 to support theGovernment’s housing reforms and provide a platformfor the implementation of these strategiesDecember 2013December 2014Establish a HousingSolutions Forum• A Housing Solutions Forum is established to harnessthe expertise of key stakeholders and identifyopportunities for increasing affordable housing inQueensland• Housing Solutions Forum agenda setting thatdiscusses methods for the development of innovativeand flexible models of funding, social housinginvestment and initiatives, including those by theprivate sectorEstablished2013 continuingto 2016Improve directcommunication withclients, includinghouseholds in theprivate market withdisabilities• Develop innovative direct communication tools forclients, including:––Social Housing Tenants Smartphone application tosimplify maintenance requests and reduce costs––Modified House Connect webpageJune 2014Page 15

5: Improving the housing outcomes of Queenslanders most in needOutcome Deliverables TimingEnsure regionalhousing plans are wellaligned to regionalsupport services• Align regional housing plans with HomelessessCommunity Action Plans and other regional serviceplans for community servicesJune 2014Ensure changes to thesocial housing systemare well understood bytenants• Deliver an effective communication strategy andensure non-government providers managingoutsourced stock deliver on strong engagementstrategiesFrom June 2013Increase the number ofhouseholds assisted• Annual increases in the number of householdsreceiving housing assistance through the networkAnnual measureEnhance tenancysupport programs aspart of the transferarrangements• Procurement processes for social housingmanagement transfers to include tenancy supportand participation programsJune 2014Ensure that assistanceto sustain tenanciesfor high need clients isdelivered• Link Homelessness Community Action Plans andRegional Housing Plans• The impacts of the introduction of Disability CareAustralia are well understood by tenants andproviders• An ongoing role for smaller specialist providersthat focus on particular target groupsJune 2014From 2016From November2013Page 16

Department of Housing and Public WorksGPO Box 2457Brisbane QLD 400113 QGOV (13 74 68)www.hpw.qld.gov.au/housing