The need for an affordable housing industry is
emerging because of:
- the failure of the private sector to deliver housing to the market that is affordable to low-income households;
- the failure of the public housing system to adapt to market change and evolve into a provider of appropriate housing to low-income households within a commercially sustainable framework; and
- the failure of the community housing sector to develop organisations with the capacity to undertake projects of sufficient scale to make an impact on the growing demand for affordable housing.
The new affordable housing sector will be based on a partnership between public, private and community sectors.
Current policy is focused on the affordable rental housing sector. The model promoted by all states is one in which the state provides an up-front capital subsidy to the housing association on the basis that:
- The property is targeted to qualifying low income households.
- The rent is affordable.
- Long-term financial risk is carried by the housing association (no recourse to operating subsidies or future capital injections).
With the introduction of the National Rental Affordability Scheme (NRAS) by the Commonwealth Government new opportunities are emerging.