Nation Building - Economic Stimulus Plan
Introduction
In February 2009, the Commonwealth announced the provision of additional funding for social housing under the Nation Building - Economic Stimulus Plan. This initiative will provide funding of $5.238 billion over three and a half years from 2008-09 to 2011-12 for the construction of new social housing and a further $400 million over two years for repairs and maintenance to existing social housing dwellings. It is being conducted in partnership with the state and territory governments. It will provide a boost to public housing and housing administered by the not-for-profit community sector and is designed to assist low income Australians who are homeless or struggling in the private rental market.
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Benefits to Australians and the Australian economy
The Social Housing Initiative will boost the supply of public and community housing for people who are homeless, at risk of homelessness or who are paying very high rental costs. New social housing will enable more Australians to rent housing that meets their needs. Secure, long-term housing significantly improves the economic and social outcomes for those who are homeless or at risk of homelessness.
The initiative will stimulate the building and construction industry, both through funding additional dwellings and increasing expenditure on repairs and maintenance. This will help stimulate businesses which supply construction materials and help to retain jobs in the industry.
More than 19,300 new social housing dwellings will be built under the Initiative with the assistance of the not-for-profit sector. Around 70,000 existing dwellings will benefit from repairs and maintenance works including up to 10,000 social housing dwellings that are currently vacant or will become uninhabitable without these works.
Funding allocation
Funding has been allocated to state and territory governments on a per capita basis which was subject to each jurisdiction submitting suitable proposals that met the requirements of the initiative.
The funding is available as follows:
Stage 1
Funding of $692 million has been approved in 2008-09 and 2009-10 for building projects that were already in the development pipeline and have now been brought forward. It is expected that more than 2,700 new social housing dwellings will be completed under this stage. All dwellings under this Stage will need to be completed before 30 June 2010.
Stage 2
Funding of $4.546 billion will be allocated in 2009-10 to 2011-12 for the construction of approximately 16,600 new social housing dwellings. States and Territories were required to conduct a competitive tender process and identify suitable proposals for funding by 30 June 2009.
Seventy five per cent of dwellings in Stages 1 and 2 are to be completed by December 2010 with the remaining projects to be completed by 30 June 2012.
Repairs and Maintenance
Funding of $400 million has been approved in 2008-09 and 2009-10 to support around 70,000 repair and maintenance projects. This includes up to 10,000 that are either already unsuitable for occupancy or would become unsuitable over the next two years without this funding. All projects are expected to be completed by June 2010.
Changes to the way public housing is managed
The states/territories have agreed to a number of reforms as a condition of receiving funds under this program. These reforms include:
- integration of public and community housing waiting lists
- better social and economic participation for social housing tenants by locating housing closer to transport , services and employment opportunities
- implementation of support arrangements to assist social housing tenants to transition from social housing arrangements to affordable private rental and home ownership as their circumstances change
- reducing concentrations of disadvantage through appropriate redevelopment to create mixed communities that improve social inclusion
- introduction of a national regulatory and registration system for not-for-profit housing providers to enhance the sector's capacity to operate across jurisdictions
- increased transparency through the establishment of consistent and comparable accounting and reporting standards across jurisdictions that allow clear and objective assessments of performance that meet public accountability requirements
- social housing providers to be subject to independent prudential supervision to protect public investment in the sector
- improved tenancy management and maintenance benchmarks for social housing
- improved efficiency of social housing including better matching of tenants with appropriate dwelling types and the introduction of rent-setting policies that reflect the type of dwellings occupied by tenants
- introducing contestability in the allocation of funds to encourage a range of new providers and create diversification in the not-for-profit sector to enhance the ability of providers to offer housing options to a broader range of client types
- leveraging of government capital investment to enhance the provision of social housing
- better use of government owned land to provide more affordable housing opportunities for low income earners
- improved procurement practices that promote competition between proponents and provide participation opportunities for small and medium enterprises
- measures to enhance the capacity of the not-for-profit sector.
Assessment of proposals will include consideration of the following key requirements:
- increase the supply of social housing dwellings within a jurisdiction
- increase the allocation of housing to people with highest needs on public housing waiting lists
- facilitate or support the transition of persons who are homeless or at risk of homelessness to secure long term accommodation
- adhere to universal design principles to facilitate better access for persons with disability and older persons
- constructed dwellings are environmentally sustainable and
- promote activity in the short term using a variety of procurement arrangements, including spot purchases of house and land packages, purchases 'off the plan'.
Implementation
The state and territory governments will be responsible for the delivery of this investment through their public housing agencies. The Commonwealth have prepared a set of guidelines for state and territory governments which set out arrangements for the administration and delivery of Stage 2 (new construction) which includes procurement requirements.
State and territory information
State and territory specific information including details of projects that have been approved for funding and contact information are available:
More information
Further information about the Nation Building - Economic Stimulus Plan