For developers and property owners interested in affordable housing
Affordable Housing Solutions helps housing associations procure properties through various strategies:
- Purchase completed properties
in the open market
- Purchase properties
through expression of interest
- Purchase (or otherwise acquire
land) and construct dwellings on the land
- Enter into partnerships with
private developers to pre-purchase dwellings in a larger development
Irrespective of the mode of acquisition
they fund their developments through a combination of:
- Securing government capital
subsidies from state governments (or recurrent subsidies as in the case of the
NRAS initiative)
- Securing a loan against the
project based on the capacity of the net rental income to service the loan
- Claiming a GST rebate on the
cost of the acquisition
- Attracting social investment
from organisations such as churches, charities, councils (land or cash)
- Negotiating planning
contributions or concessions from the relevant planning authority that
add value or decrease cost of the development
- Negotiating discounts to market
price of private sales based on the reduced risk and greater certainty of
pre-sales to housing associations
Housing associations must meet two criteria
for a project to be approved for capital funding from a state government:
- The cost of the properties must
not exceed market rates
- The leverage achieved through
the acquisition is such that the State Government is less than a predetermined
level
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