Comments on language...

1. NT Shelter Housing ForumDeveloping affordable housing in the NTMay28, 2013Hal Bisset (CEO)Central Australian Affordable Housing

2. Comments on language... • Public housing – policy, practice and provision by public sector agencies • Social housing – public housing policy and practice but delivered by support agencies • Community housing – public housing policy but delivered by community housing agencies employing own practices including engagement of tenants • Affordable housing – community housing policy, practice and provision within a broad public policy and funding framework

3. Reflections of a housing journeyman... • Know what you are trying to achieve... • Understand the dollars and cents... • Be sure you can deliver on your promises... • Make friends with the enemy... • Be grounded in your community... • Size does matter...

4. Know what you are trying to achieve.. • Sustainable housing • Neighbourhood amenity, quality construction, energy and water efficient, durable finish, asset management • Sustainable tenancies • Affordable rents, culturally sensitive policies, appropriate support, early intervention • Sustainable communities • Avoiding ghettoes, building community, place management, integrated service supports

5. Understand the dollars and cents... • Developing a viable project • Making sure there are sufficient capital funds to meet the cost of development & the capital inflows match the capital outflows • Managing a sustainable project • Making sure that all of the ongoing operational costs including planned maintenance and capital improvements can be met by project revenues over the life of the project • Running a “profitable” company • A successful Housing company must generate a surplus to employ the staff that generate future growth and provide the working capital for new projects

6. Land Equity Design & Planning Project Capital Income & Expenditure Government Investment Civil Works & Subdivision Philanthropic Grants Construction Bank Debt Project Management GST Rebate Legal & other consultants 110-120% $X $X $X The capital equation...

7. Property Costs Rental Income Project Operational Income & Expenditure Maintenance Costs Commonwealth Rent Assistance Administration Costs National Rental Incentives Surplus to Balance Sheet Finance Costs The operational equation...

8. Project 1 Project Development Project 2 Company Budget Project 3 Research & Development Project 4 Project 5 Advocacy & Promotion The company equation...

9. Be sure you can deliver on your promises.. • Informed, experienced and wise governance • Innovative, skilled and professional management • Solid balance sheet and reliable cash flow • Sound systems, relevant policies and flexible practices • Seek accreditation and welcome (good) regulation • Healthy culture/shared ownership • Visionary dreams but practical plans

10. Make friends with the enemy... • Government as partner not pest or predator • Affordable housing relies on subsidies to deliver on public policy objectives • Private sector as partner not pariah • Builders, developers, banks, investors take on risk that the NFP sector should avoid • Community sector as partner not competitor • A mature community sector will recognise the particular role of Affordable Housing Companies and build alliances • Tenants as partners not a burden • Engage with tenants and enlist as allies rather than viewing as welfare recipients required to be compliant

11. Be grounded in your community... • Markets matter (demand, supply, opportunity, solutions) • Politics is pivotal (recognition, policy, programs, funding) • Culture is critical (values, experience, attitudes) • People are parochial (local issues, case studies, attachment to land) • Place is all important (neighbourliness, access, safety, healthy, supportive, opportunity) • Do you homework/listen and be responsive

12. Size does matter... • Small is not always beautiful • Can rely on a single individual • May not be fair or equitable • Rarely sustainable • But the biggest often become dinosaurs • Bureaucratic and inflexible • Partitioned and dysfunctional • Political and insolvent • Need structures/systems which get the balance • Community development and professional management • Skilled management without technical “snobbery” • People centred and financially robust

13. CAAH strategy for the centre... • A better deal for the Town Camps • Work collaboratively with support agencies who utilize social housing • Build a portfolio of affordable housing options • Work for the establishment of an alternative “community” housing system for remote communities

14. A first development... • Driven by a $4M grant from the Aboriginal Benefits Account • Supported by a $200K working capital grant from the Community Housing Program • Six months of market research to develop strategy • Partner with and transfer risk to the private sector • Increase leverage through bid for NRAS funding • Maintain focus on social objectives – healthy homes, healthy communities

15. A good start and demonstration of potential... • 31 new affordable housing dwellings providing 42 tenancies – 11x1br, 15x2br, 16x3br • 18 owned by CAAH including 6 dual key providing 24 tenancies • 13 owned by private investors including 5 dual key providing 18 tenancies • Spread over 6 small multi unit developments integrated into urban landscape • Well designed, 6 star ESD rating, high % adaptable

16. Laying the foundation of future growth... • Assets of ca. $9M, debt of ca. $4.5M, revenue of $ • Generates salary of FT Affordable Housing Property Manager • Generates sufficient working capital for ongoing employment of development manager to generate next project • Establish best practice in place management • Create profile in the local market • Build image of preferred housing provider • Reduce stigma attached to community housing