The National Housing Finance and Investment Corporation’s (NHFIC’s) transformative financing has enabled Compass Housing Services to increase its holdings of social and affordable housing, with a total of 330 new homes converted from leasehold to freehold. This means the social and affordable
rental homes will remain permanently in the hands of Compass, a NSW-based registered community housing provider.
Compass was awarded a contract to deliver social and affordable homes and related services through the NSW Government’s Social and Affordable Housing Fund (SAHF). This will see Compass deliver a significant number of dwellings for social and affordable housing across NSW’s Hunter and Central Coast region under a 25-year service agreement with the Department of Family and Community Services (FACS). Eighty per cent of the new dwellings will directly benefit people currently on the social housing waiting list.
In assisting Compass to meet its SAHF program obligations, NHFIC has approved $140 million of funding for the delivery of 330 dwellings from May 2019.
NHFIC’s assistance is an example of the enabling effect of its lower cost, longer-tenor financing offering by supporting Compass in its strategy to own rather than lease 330 dwellings, while reducing the overall costs of servicing the program to the NSW Government.
NHFIC support for Compass demonstrates the benefits of cheaper and longer-term finance to increase the stock of social and affordable housing in regional Australia.
It also highlights how NHFIC can work in partnership with community housing providers and the States to deliver better housing outcomes.
Retaining 330 dwellings for social and affordable housing through freehold ownership meant Compass could offer people in need of accommodation support beyond the normal 25-year leasehold agreement, as Compass will own the dwellings. Funds have been freed up through the restructured finance, allowing Compass to invest in even more dwellings and take advantage of current market conditions.
SAHF is a more than $1 billion NSW Government initiative funding the provision of social and affordable housing and related services through an availability type payment stream. SAHF has agreements in place for the delivery of over 3,400 dwellings through its two tender phases.
Congratulations Greg Budworth and the Team at Compass Housing Services as well as Nathan Dal Bon and the NHFIC on securing this milestone innovative finance that sees affordable housing move closer to being an investment asset class.