Page 5417 - Week 13 - Tuesday, 16 November 2010
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Up to 75 per cent of stage 2 stimulus housing will be transferred to the community housing sector for the purpose of growth through the request for proposal and transfer of freehold title of social housing initiative dwellings to community housing organisations. The WA Department of Housing registered growth and preferred providers were invited to bid for six packages, divided by geographical region, and clearly outline how they would achieve growth in social and affordable housing from each of these packages.
Western Australia is concerned that it does not yet have the regulatory framework to manage the risk associated with the title transfer. Western Australia is also using direct funding grants to community housing providers for stage 2 stimulus construction. In addition, it is also working with community housing providers and developers who have formed strong partnerships.
Victoria and New South Wales have legislation in place to regulate their community housing providers and are homes to the few national growth providers. Victoria has a very robust regulatory framework which has been in operation for over four years. The Victorian regulatory system has extensive intervention powers, including the power to order mergers between providers.
Approximately half of the community units in Victoria are leased from the Victorian government, while providers hold title to the remainder, mostly subject to a director’s interest held by the Victorian Director of Housing. In Victoria, community housing providers are developing approximately 2,400 units under the nation building plan which they have title to, subject to a director’s interest. This amounts to approximately 52 per cent of Victoria’s nation building units. There is also potential for some additional units to be transferred to the sector by the Director of Housing. Given the size and capacity of their sectors, this additional investment will create a strong platform for growth.
A regulatory framework commenced operations in New South Wales in 2009 and has so far registered 116 organisations, with a further 219 organisations to be assessed by May 2011. New South Wales amended its legislation this year to introduce some intervention powers, enabling it to require organisations to appoint special advisers to their boards in particular circumstances. New South Wales has 20,000 units under community housing management, 15,000 on lease from the New South Wales government and 5,000 rented on the private market with a rental and management subsidy from the New South Wales government. The total number managed by community providers will grow to approximately 26,000 by late 2011, due to further transfers from public housing. New South Wales will transfer most of its nation building properties to the community housing sector.
We all want a strong and vibrant community housing sector and we all want to provide choice for tenants. It is therefore crucial that community housing be able to meet the depth and breadth of need, including serious and complex need. This, of course, brings me to the largest service provider for complex need—our public housing system.
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