Build-to-Rent is currently being ramped up by the Minister for Planning and Public Space, Rob Stokes, as a piece of the jigsaw puzzle to solve our increasingly problematic affordability woes. The idea is that large institutional investors, or large developers, build unit blocks without strata and rent them to tenants over a long term.

The financial model is based on cashflow rather than capital gains. Some of the benefits seen include much longer lease terms for tenants, which provides stability as well as a steady supply regardless of the peaks and troughs we have seen in development over the last decades. Some of the benefits are great.

The problem here is that the Build-to-Rent model will usually have a premium on market rates of an extra 10 to 20%, meaning that once again we will see housing directed to the top 40% of income earners, leaving little extra supply for the bottom 40% of earners.

I would like to remind the Minister that Build-to-Rent has been happening for many years already; through community housing providers building affordable housing targeted at low- to middle-income earners.

It is the bottom 40% of earners who have the most difficulty in securing and maintaining affordable leases. We need policy that addresses this, especially when investment in new social housing is very low. Investing in housing that targets those who can least afford to move and for those who are already paying more than 30% of their income in rent? That’s the sort of Build-to-Rent I would love to see! For Rob Stokes’ article, see https://www.smh.com.au/national/nsw/build-to-rent-sydney-can-get-off-the-property-roller-coaster-20200821-p55o7w.html#comments

Churches Housing members have responded to the NSW State Government’s request for responses to its Housing Strategy paper. Some of the key recommendations are:

• Commit to increase the social and affordable housing stock in new developments – 15% for private land and 30% for public land.
• Mandate all Councils to develop an affordable housing contribution scheme and fast-track and extend the development incentives currently on offer to Local Councils through the SEPP 70 planning instrument.
• Establish an independent housing specialist entity to gather and analyse data on housing supply, demand and affordability in NSW. This could be modelled on the old Housing Supply Council.

[Click here to read the full submission]

The Sydney Alliance, along with many of its members across a diverse coalition embracing civil society, is cautiously excited about the NSW Government’s hopes for a NSW Housing Strategy.

Housing has often been seen as one big asset class but unfortunately this has led to an overdevelopment of housing aimed at the top 40% of income earners with extremely limited new supply to the bottom 40% of income earners.

With the cost of land in greater Sydney being the most expensive in Australia and one of the most expensive in the world, this has unfortunately crunched those who do not own a home and who can least afford to pay, while rewarding those who own multiple properties.

While many of our members, including Shelter NSW, the Tenants’ Union, Wollondilly Resilience Network (WReN) and Churches Housing put in formal submissions to the “NSW Housing Strategy Discussion Paper”, this is a summary and collation of what the Sydney Alliance Housing Team would love to see in a comprehensive NSW Housing Strategy.

1. We would love to see a mandated minimum percentage of any housing development set aside for affordable rental housing. With government investment in new social and affordable rental housing being insufficient for demand and population growth, a clear mechanism that sets aside 15% of residential developments on private land for affordable rental housing, with 30% for those on government land. A cash alternative for instances where it is not suitable to include affordable rental housing, with clear criteria, should be put into a funding pool for community housing providers to draw upon for future developments.
2. Clear metrics are required for both social and affordable housing. A housing strategy requires targets and when these targets are not met, then the strategy needs to be reviewed and re-directed. These metrics can also be used to ensure that social and affordable housing is included in all LGAs across greater Sydney, allowing for lower-paid workers to have access to jobs in all LGAs. There is agreement across the sector that social housing demand requires 5,000 units per year to be built. With government currently asking all councils to implement affordable housing policy within their new development plans, there needs to be firm and consistent implementation of these plans, along with measurement, accountability and transparency.
3. Affordable homes also need to be affordable to live in, yet most tenants have been left out of any participation in renewable and affordable energy. The lowest 40% of income earners are now subsidising those within the top 40% who have access to government subsidies to implement renewable energy alternatives. Access and participation by renters in renewable and affordable energy supply should be a key metric in delivering new housing for a new era.
4. New housing models for both rent and purchase need to be trialled. From Community Land Trusts (perpetually affordable housing) to Shared Equity (part-purchase of housing) and many others, these forms of rent or purchase are of course not new, even in Australia, but have not been allowed to grow in NSW due to lack of government support and the required changes in regulation. This should also include housing programs and social inclusion targeted to particular vulnerable groups whether disabled, aboriginal, older single women, domestic violence survivors and other groups identified as vulnerable and where the private market has failed to deliver.
5. Residential tenancy rights need to be bolstered and we really do need to get rid of “no-grounds evictions” once and for all. With the number of perpetual renters increasing north of 30% of the population, we need to ensure that they are protected from the cost and upheaval of moving their family from home to home. While Build-to-Rent is touted as a new form of renting with long tenancies, this will not be affordable, generally adding a 10-20% cost premium on market rates. In particular we need to protect vulnerable tenants who cannot afford to move and are often fearful of asking for simple repairs.

The Sydney Alliance Housing Team asks that the NSW Government considers the impact of failing to invest in housing that is affordable to the bottom 40% of income earners. These workers and their families contribute in a multitude of ways in building our community, yet are often brushed aside in key policy and strategy settings. New supply of housing that is only targeted to the top 40% if income earners will fail to deliver for the wide range of demographics and socio-economic profiles found within our city and will continue the perception that Sydney is unaffordable and not inclusive. We hope that we can see a Sydney that is affordable for everyone, providing safe, secure and affordable homes that will build our society as an inclusive community.

WelcomeMat, an online tenant-matching portal for affordable rental housing, will launch next month.

The platform will deliver efficiencies and cost savings for housing providers, and provide a more accessible and equitable system for those seeking tenancy.

WelcomeMat will display available rental housing properties from affordable rental housing providers and applicants will be pre-qualified based on their profile, which will streamline their application process.

Churches Housing has been a strong supporter of the initiative throughout the entire development process, and is a founding shareholder of WelcomeMat along with Mark Khoo, a property lawyer and Churches Housing board member. Additional investment from Churches of Christ in NSW (Fresh Hope) as a new shareholder has helped to complete development and enable the launch of this much-needed service.

Magnus Linder, CEO of Churches Housing, said: “It is very exciting to see the WelcomeMat service preparing to launch. We know the challenges that affordable rental housing providers and applicants face in the leasing process. The creation of an online destination as a central point for affordable rental applicants and housing providers will benefit all participants.”

Mark Khoo, CEO of WelcomeMat, commented: “We all know that there is low awareness and confusion amongst the public about what affordable rental housing is, and where to find it. This leads to many eligible Australians missing out.  Based on CHIA NSW and Churches Housing’s own research, up to 60% of affordable rental housing applicants are ineligible, yet each application can take hours to process. This is putting incredible administrative pressure on housing providers to avoid vacancies despite the high demand. I’m pleased that we’ve built a service that the sector has been wanting for some time.”

Upon launch, WelcomeMat will focus on the Sydney Metro, Central Coast and Hunter regions, with a view to expanding to the rest of NSW and then nationally.  Over time, WelcomeMat will also collect and analyse demand and supply data to help the sector’s advocacy, town planning and assist increase the supply of affordable rental housing.

Having secured the support of several industry peak bodies and many CHPs (including many Churches Housing’s members), WelcomeMat’s soft launch will take place in early September 2020.

As our call to action, please visit www.welcomemat.com.au and send an email to mark.khoo@welcomemat.com.au if you:

1. have affordable rental housing that can be listed on WelcomeMat; or
2. would like marketing materials to help promote WelcomeMat to your networks (including staff, volunteers and the wider congregation who may be looking for affordable rental housing.
   

During the first week of August, Anglicare Sydney welcomed The Hon. Gareth Ward – NSW Minister for Family, Community and Disability Services – for a tour of its affordable housing site at Corrimal.

Corrimal is one of nine affordable housing sites Anglicare is developing across Greater Sydney and the Illawarra as part of its contribution to the government’s $1.1 billion Social and Affordable Housing Fund.

Already, Anglicare has introduced these apartments to members of the local Anglicare parish. They toured the site at the end of July.

“We are not just building bricks and mortar,” Rob Burnelek, General Manager of Housing, said. “We are creating a strong community and enriching lives through linking the local church to their new neighbours.”

Anglicare’s model, while being respectful of residents’ homes, is supporting the local church to reach out to the community alongside existing services.

“We hope the church will be part of the fabric of this community,” Rob Burnelek said. “And we hope with such a significant Anglicare presence in the neighbourhood, we encourage more outreach.”

Twenty-eight apartments, a mix of bedsits and one-bedroom apartments, are being built at Corrimal by Tower Projects.

The priority for these homes and most of Anglicare’s 650 affordable homes will be single women over 55 years old.

“Anglicare is creating strong and caring communities that give dignity to each resident,” Bill Farrand, Anglicare’s Chief Operating Officer of Community Services, said.

In the middle of July, Anglicare also broke ground at its Mount Druitt site alongside the builder GrowthBuilt.

While the Corrimal sites will be completed within two months, Mount Druitt will be completed in 12 months and see 113 affordable apartments.

“We are providing the security and comfort of a new home and the support of a real community,” Bill Farrand said.

BaptistCare is about to open its sixth SAHF project at Five Dock this month for 79 seniors offering both social and affordable housing. The apartments are purpose-designed for seniors with fully accessible bathrooms and entry points. Wraparound services will also be provided   for home care, NILS and other supports to ensure all tenants can sustain their tenancies and achieve their wellbeing goals in life.

Kingsway Community Care, an arm of Kingsway Community Church, has opened the only crisis accommodation for women with children in the Georges River area, in partnership with Georges River Council and Fresh Hope Housing.

The area in southern Sydney is among the top 10 in New South Wales for reported incidences of domestic and family violence, which appear to have mounted in connection with COVID-19 home isolation. Consequently, 23 local women, many with children, are currently homeless each night.

Brook Stewart, General Manager at Kingsway Community Care, said: “We were aware through our connections with Georges Rives Council that there weren’t a lot of services, and after some discussions the council agreed to give us a three-bedroom house to start a housing project. Women and their children will be able to stay for anywhere between three days and three months.

“The house was in a pretty bad condition so we had to come up with a vision and a plan to renovate it. I was told in a council meeting one day it would cost a couple of hundred thousand dollars and I said, ‘Well, it’s good for you guys that I believe in miracles then’.”

Not long afterwards, Brook attended a men’s breakfast run by the council and sensed the Holy Spirit prompting him to talk to the speaker, who worked for a developer. After several messaging attempts on LinkedIn, Brook met him and he was excited to be part of the project. The developer also introduced Brook to a building company who put a full-time project manager on site and emailed all their suppliers to ask for donations.

Between the council, building companies and suppliers, over $100,000 in goodwill has now been donated.

Kevin Greene, Mayor of Georges River Council, spoke at the opening, saying, “Our community has blown us away with support for the centre with donations of household items, which have helped to furnish the facility and assist families moving into more permanent accommodation.”

Fresh Hope Housing also partnered with Kingsway Community Care on this project by providing project management support from concept through to construction and soon occupancy.

Matt Young, manager of Fresh Hope Housing, said: “Fresh Hope Housing is passionate about providing essential housing for some of the most vulnerable members of our community,” said “We are excited to partner with Kingsway Community Care in providing a safe environment for women while they deal with the trauma of what they’ve gone through while receiving case work and support services.

Brook Steward added: “When you start a project like this you realise the only way this is going to happen is if there’s divine provision involved..”

The lack of affordable and secure rental housing is now recognised as the most significant challenge for low to middle income earners, many of which are elderly and on a low fixed income. Over 71,000 people were supported by homelessness services in New South Wales last year alone with nearly two in every five people seeking accommodation services being turned away.

Uniting (on behalf of the Uniting Church) is currently partnering with NSW government to provide affordable housing options to meet this growing demand. Having delivered 340 dwellings with another 260 in train, Uniting is one of the leaders of industry to address the fastest growing homelessness cohort in the state, woman over the age of 55. We are providing a range of housing types including dwellings in our existing retirement villages, new developments and in stand-alone affordable housing projects.

Our latest development in Port Macquarie is opening in September and will exclusively focus on the delivery of affordable accommodation through the provision of 15 new villas.

Uniting’s upcoming Westmead development, a fully integrated community campus supporting the ‘ageing in place’ philosophy, provides the opportunity for seniors to ensure they can live where they choose and get the help they need as their circumstances change.

This includes providing 14 affordable apartments for seniors on low incomes.

Uniting is measuring the outcomes for residents from providing stable and secure housing. The annual survey returned over 150 responses and confirmed that Uniting is making a difference in how people view their immediate future. Over 92% of clients were satisfied with the home provided, 92% reported that they are now feeling safe and 89% indicated that they now feel that their future is also secure.

The Uniting Church has a longstanding belief that a safe and secure place to live is a fundamental human right and the programs being provided by Uniting are well placed to continue to assist this growing need in a mindful and sustainable way.

St Vincent de Paul Housing has just opened a social and affordable housing complex in Burraneer to provide vulnerable older people with low-cost accommodation and support.

Built on land donated to the St Vincent de Paul Society by a Cronulla butcher in 1959, the development has 27 one-bedroom units and nine two-bedroom units including refurbishment and adaptive re-use of the original heritage house.

The 36-unit development in Sydney’s south is an initiative of the NSW Government’s $1.1 billion Social and Affordable Housing Fund (SAHF).

The Minister for Families, Communities and Disability Services, Gareth Ward, said:

“Increasing the supply of social and affordable homes for people in need is a key priority.

“The NSW Government is working together with private and not-for-profit organisations to create a pipeline of quality properties for years to come.

“NSW has an ageing population and we are catering to their housing needs with brand new homes suitable for older people on low incomes.”

The homes were developed and will be managed by St Vincent de Paul Housing (SVdPH) to provide a package of support services under the SAHF.

SVdPH is delivering a portfolio of 500 properties across NSW as part of the SAHF program.

Brian Murnane, CEO of SVdPH, said: “This project will enable the Society to provide high-quality housing and support services for people over 55 in the Sutherland Shire. Many of these people are in housing stress and are on the brink of homelessness”   

The SAHF is on track to deliver more than 3,400 homes, with close to 2,800 properties completed or under construction.

The SAHF is a key initiative of Future Directions of Social Housing in NSW, the NSW Government’s plan for social housing, which will deliver 23,000 social, 500 affordable and 40,000 private dwellings over 10 years.