It is worth recognising the January 2019 announcement of the first funds released through the Affordable Housing Bond Aggregator (AHBA) managed by the National Housing Finance Investment Corporation (NHFIC) for low cost affordable housing.
With this first loan of $35 million in low-cost financing going out to Hume Community Housing, the concept of a new low-cost, long-term, government backed finance mechanism has been realised which as an achievement should not be understated.
Not only does this provide a certainty around low-cost finance for providing affordable housing solutions to many families that rent, it opens a wave of similar financing agreements at each NHFIC Board meeting that will multiply the number of affordable homes provided across the country.
As more NHFIC finance deals are closed, we will see the amount of affordable housing grow to provide homes for more Australians.
This announcement also heralds a new era for global investors that are watching for the formation of affordable housing as an asset class in Australia which, when it comes, will see affordable, build-to-rent developments become a proven, long-term, safe investment place as it is in countries such as the US.
Low-cost affordable housing finance will be a vital component to ensure that Australia continues to supply and manage enough homes for population demand to put a lid on price rises, and will underpin residential industry jobs, State and Federal Budgets as new housing supply contracts in 2019.
The work of then-Treasurer Morrison and particularly Senator Doug Cameron and the Federal Senate to pass legislation for the NHFIC AHBA just over six months ago was instrumental to seeing the low-cost funds flowing so soon to tackle a problem that many families are today desperately struggling with.
Federal decision makers are showing their capability to work proactively affordable housing CHPs to ensure new opportunities to deliver social change to the benefit of all Australians are rolling out to bring affordable housing back to the growing numbers of Australians that were losing hope.
The CHP Sector and broader residential industry have been strongly in support of such an affordable housing mechanism and this result here shows State and National decision-makers a path to encourage greater private and institutional investment and provide cheaper and long-term finance to registered providers of affordable housing.