First Build-to-Rent social and affordable housing project to be delivered in partnership with the SA Government under the Federal Government’s widening of the NHIF
The National Housing Finance and Investment Corporation (NHFIC) today announced its support for a $70 million Build-to-Rent social and affordable housing project in Adelaide to be undertaken by the South Australian Housing Authority (SAHA) and the community housing sector.
This is the first project to be announced following the Federal Government’s widening of the National Housing Infrastructure Facility (NHIF) to include funding the provision of new social and affordable housing.
NHFIC has provided in-principle support for around $50 million in funding subject to SAHA successfully attracting a Tier 1 Community Housing Provider (CHP) for the project. SAHA will invite select CHPs to participate in a procurement process and is also subject to NHFIC receiving a formal application for finance from the successful CHP. The successful CHP is expected to be announced in the first half of 2023.
SAHA will provide the land to the CHP under a 99-year lease arrangement valued at $9.5 million and will contribute up to $5.8 million of capital grants towards construction costs.
It is anticipated the project will unlock the development of 130 plus residential dwellings on the site of a decommissioned social housing block in Park Court, Eastwood, Adelaide. The new homes are expected to include 30 to 50 social dwellings, with the balance across affordable, targeted towards key workers and private Build-to-Rent dwellings.
Demolition works are currently underway with other site preparation works taking place in early-2023.
Minister for Housing Julie Collins said: “Our quick action helped unlock up to $575 million and made it immediately available to invest in more social and affordable homes right across the country."
“This is just one example of what we’re hoping to do through our ambitious housing agenda.”
South Australian Minister for Human Services Nat Cook said: “This collaboration to build the state’s first affordable Build-to-Rent development puts South Australia at the forefront of housing innovation in Australia at a time we all know so many people are struggling to find a place to call home.”
“This project will cater to people with various housing needs, from people living with disability, to people who need social housing, including women leaving domestic violence situations, and people who need affordable rental properties.”
NHFIC CEO Nathan Dal Bon said: “The Government’s changes to the NHIF has supported the viability of this project first proposed in 2020. NHFIC is proud to work collaboratively with the South Australian Housing Authority to deliver a mixed tenure project generating an integrated development with positive outcomes for the community.”
Under the Federal Budget, NHFIC, which will be renamed Housing Australia, will have the primary responsibility for delivering 40,000 homes through the Government’s new Housing Australia Future Fund and National Housing Accord, leveraging institutional capital to further develop a new asset class centred on investment in social and affordable housing.