Building a not-for-profit affordable housing industry in Australia

Development of the capacity of not for profit organisations to deliver growth in affordable housing has been an important strategic housing policy interest in Australia over the last decade. However, Australia has only a small number of not for profit organisations with recent direct experience of financing and procuring housing. In 2004, the seven largest providers had developed around 1,200 units of affordable housing over the preceding decade. At the end of 2007/08, the eleven leading providers owned over 5,440 dwellings. The latest research shows that: skills and capacity among this group are increasing; growth is accelerating; and around 30 additional providers are poised to become affordable housing developers, partly as a result of the impact of new national initiatives. This paper will examine recent innovations in the funding, policy and delivery frameworks for affordable housing across Australian jurisdictions. By comparing evidence across states and territories, the paper will attempt to discern what has been effective policy and practice, and to make a case for strategies that would be capable of supporting larger scale growth in the industry. The paper draws on recent empirical research undertaken for an AHURI funded project. The research methods included surveys of provider organisations; interviews with staff, stakeholders, partners and other key informants; group discussions with tenants of affordable housing projects; and analysis of a variety of official documents and websites of governments and relevant organisations. The primary research also included an assessment of comparable not for profit housing models in selected similarly developed countries, which can be drawn on to augment local experience.