Housing Affordability Fund Round Two Guidelines and Application Form are now available.
Round Two Focus
Round Two of the Housing Affordability Fund will give priority to greenfield and infill developments as well as planning reforms that reduce the time it takes to approve development applications.
Preference will also be given to projects that deliver:
- Transit-Oriented Developments; or
- Public housing estate redevelopment projects (ie create a mixed community through building or redeveloping affordable homes for private ownership).
Transit-Oriented Developments (TODs) are defined as developments which provide housing within reasonable walking distance of public transport (including train stations, bus interchanges and bus stops, tram stops, light rail and ferries) shops and community services. The developments will also need to be consistent with State, Territory and local government TOD strategies, where these exist.
Applications for Round Two funding can be made for infrastructure projects, reform projects and combined infrastructure and reform projects. The criteria are different for infrastructure and reform proposals. Infrastructure projects must deliver at least 50 new homes where the savings generated from the HAF investment are passed on to new home buyers. Reform projects must decrease the overall supply cost of housing through decreasing the time taken to obtain development approvals and so reducing developer ‘holding costs’.
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Who can apply?
Applications for funding can be lodged by:
- Local governments
- Local Government Associations
- State or Territory Government Departments or Agencies;
The governments applying are encouraged to submit joint venture applications with private companies and developers, provided that the application itself is submitted by the government organisation.
Private companies and developers are able to access the Fund by working in conjunction with a relevant government entity. This might be the local government or a State or Territory Government Department or Agency. Although a private company or developer cannot apply for funding directly, those with proposals that meet the Round Two criteria are encouraged to form a joint venture with the government entity.
Reform Proposals
Reform proposals must demonstrate how they will achieve specific reforms and how those reforms will make houses or units in a particular area more affordable, or increase the proportion of affordable dwellings in the location.
The types of reform envisaged are projects that address impediments faced by local governments or the private sector when undertaking large-scale redevelopments.
Other examples of projects that might qualify for HAF funding are:
- master planning and structural plans that will facilitate specific large scale infill or redevelopment projects, including master planning to improve development approval processes for dwellings within a planned community;
- Update local planning schemes to facilitate urban infill, particularly where it will deliver more affordable housing than is otherwise likely;
- Processes that support land aggregation, especially for TODs;
- Planning reform which will deliver greater efficiency in the supply of housing;
- Improve processing times for application development and building approval;
- Reduce concentrations of disadvantage through appropriate redevelopment of public housing estates.
Infrastructure Proposals
Infrastructure proposals play a significant role in facilitating Australian Government priorities and as such, funding may be used for:
- Infrastructure needed to bring forward developments, or to increase the amount of affordable housing built in new developments; or
- Provide connecting infrastructure such as water, sewerage and roads and community infrastructure (parks, cycle ways and other facilities).
- Site remediation;
- Increases to urban density in and around TODs.
Financial Security
Before any funding for infrastructure projects can be released, the funding recipient must provide the Department with a Financial Security document. This document protects the Australian Government’s investment. It enables the Department to recover any and all funding paid if the program objectives, normally a specified savings amount to be passed to the purchasers of an agreed number of dwellings, are not delivered.
The Financial Security must cover the total amount of funding provided and be provided to the Department before any funding can be released.
The Financial Security must be in a specific form or equivalent. For a copy of the Financial Security contact haf@fahcsia.gov.au
For State government departments, a letter of support from the relevant State Treasury may be used instead of the bank guarantee. Such a letter must contain the following words:
“In the event that [Your organisation] fails to achieve the prescribed outcomes for the [Name of project], the [Relevant State Treasury] will assist in repaying any amounts owed by the [Your organisation]] to the Commonwealth.
The prescribed outcomes are those described in [the section of the Funding Agreement that specifies the savings to be passed on to home buyers]:
The Financial Security will remain in force until all the outcomes - normally savings to home buyers - as identified in the Funding Agreement have been delivered.
It is important that applicants read the Guidelines before completing the Application Form. The Guidelines will help applicants to check their eligibility and provide information about the purpose and intent of the funding.
Completed applications must be emailed to Housing Affordability Fund (haf@fahcsia.gov.au) by no later than 5pm AEDT on 8 January 2010.
The Risk Plan Matrix may be used to assist with your Application. You may choose to use your own. For a copy of the Department’s Risk Plan Matrix contact haf@fahcsia.gov.au.
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Questions and Answers
All queries about the Housing Affordability Fund should be emailed to the Housing Affordability Fund mailbox at Housing Affordability Fund (haf@fahcsia.gov.au) or posted to:
The Manager
Housing Affordability Fund
Department of Families, Housing, Community Services and Indigenous Affairs
PO Box 7576
TUGGERANONG ACT 2900
Answers to questions sent to the Housing Affordability Fund mailbox may be made available on the Housing Affordability Fund Round Two Questions and Answers page. Questions and Answers will be updated weekly
Sample Funding Agreements:
The nature of your proposal will determine what type of funding agreement you will be offered. Examples of standard FaHCSIA funding agreements to be used for HAF Round Two are available by contacting haf@fahcsia.gov.au.
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Background
The Housing Affordability Fund (the Fund) will invest up to $512 million over five years to lower the cost of building new homes.
The Fund’s focus is on proposals that improve the supply of new housing and make housing more affordable for home buyers entering the market. It will address two significant barriers to the supply of housing:
- Holding costs incurred by developers as a result of long planning and approval waiting times; and
- Infrastructure costs, such as water, sewerage, transport, and open space.
The Fund will assist State, Territory and local governments, in conjunction with the private sector, to address these market barriers and ensure that savings generated from the Australian Government investment are directed to delivering more affordable housing.