PEER REVIEWED Government led innovations in affordable housing delivery Inquiry into increasing affordable housing supply: evidence- based principles and strategies for Australian policy and practice FOR THE AUTHORED BY Australian Housing Steven Rowley Ryan van den Nouwelant and Urban Research Institute Curtin University The University of New South Wales Amity James PUBLICATION DATE Curtin University Laurence Troy The University of New South October 2017 Peter Phibbs Wales The University of Sydney DOI 10.18408/ahuri-8113101 Title Government led innovations in affordable housing delivery Steven Rowley Curtin University Amity James Curtin University Peter Phibbs The University of Sydney Ryan van den Nouwelant The University of New South Wales Laurence Troy The University of New South Wales ISBN 978-1-925334-53-1 Affordability, community housing, development, institutional, leadership, public Key words private partnership, social housing, stock transfer Series AHURI Final Report Number 289 ISSN 1834-7223 Publisher Australian Housing and Urban Research Institute Limited Melbourne, Australia DOI 10.18408/ahuri-8113101 Format PDF, online only URL http://www.ahuri.edu.au/research/final-reports/289 Recommended citation Rowley, S., James, A., Phibbs, P., Nouwelant, R. and Troy, L. (2017) Government led innovations in affordable housing delivery, AHURI Final Report No. 289, Australian Housing and Urban Research Institute Limited, Melbourne, http://www.ahuri.edu.au/research/final-reports/289, doi: 10.18408/ahuri-8113101. Related reports and documents Inquiry into increasing affordable housing supply: evidence-based principles and strategies for Australian policy and practice https://www.ahuri.edu.au/research/research-in-progress/inquiry-73130. AHURI report 289 i Inquiry panel members Each AHURI Inquiry is supported by a panel of experts drawn from the research, policy and practice communities. The Inquiry Panel are to provide guidance on ways to maximize the policy relevance of the research and draw together the research findings to address the key policy implications of the research. Panel members for this Inquiry: Janet Chappell Urban Growth NSW Caryn Kakas Department of Family and Community Services, NSW Government Scott Langford SGCH Group Paul McBride Department of Social Services, Australian Government Marion Thompson Departments of Planning and Housing, WA Government David Tow Urban Growth NSW Julian Wright Housing Authority, WA Government James Yuen Office of Land and Housing Supply, WA Government AHURI report 289 ii AHURI AHURI is a national independent research network with an expert not-for-profit research management company, AHURI Limited, at its centre. AHURI’s mission is to deliver high quality research that influences policy development and practice change to improve the housing and urban environments of all Australians. Using high quality, independent evidence and through active, managed engagement, AHURI works to inform the policies and practices of governments and the housing and urban development industries, and stimulate debate in the broader Australian community. AHURI undertakes evidence-based policy development on a range of priority policy topics that are of interest to our audience groups, including housing and labour markets, urban growth and renewal, planning and infrastructure development, housing supply and affordability, homelessness, economic productivity, and social cohesion and wellbeing. Acknowledgements This material was produced with funding from the Australian Government and state and territory governments. AHURI Limited gratefully acknowledges the financial and other support it has received from these governments, without which this work would not have been possible. AHURI Limited also gratefully acknowledges the contributions, both financial and in-kind, of its university research partners who have helped make the completion of this material possible. Disclaimer The opinions in this report reflect the views of the authors and do not necessarily reflect those of AHURI Limited, its Board, its funding organisations or Inquiry panel members. No responsibility is accepted by AHURI Limited, its Board or funders for the accuracy or omission of any statement, opinion, advice or information in this publication. AHURI journal AHURI Final Report journal series is a refereed series presenting the results of original research to a diverse readership of policy-makers, researchers and practitioners. Peer review statement An objective assessment of reports published in the AHURI journal series by carefully selected experts in the field ensures that material published is of the highest quality. The AHURI journal series employs a double-blind peer review of the full report, where anonymity is strictly observed between authors and referees. Copyright © Australian Housing and Urban Research Institute Limited 2017 This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, see http://creativecommons.org/licenses/by-nc/4.0/. AHURI report 289 iii Contents List of tables vii List of figures viii Acronyms and abbreviations used in this report ix Executive summary 1 Introduction 7 1.1 The purpose of the study 7 1.2 Defining affordable housing and the housing affordability problem 8 1.3 Research approach 10 1.4 Research methodology 10 Supplying affordable housing—government-led initiatives 15 2.1 Federal Government supply of affordable housing 15 2.2 State supply of affordable housing 17 2.3 Delivering innovations 21 Case study 1: Western Australia 24 3.1 Introduction 24 3.2 Context 25 3.3 Mechanisms 29 AHURI report 289 iv 3.4 Outcomes 33 3.5 Government partnerships and innovation 35 3.6 Lessons learnt and potential for replication 40 3.7 Case study 1A: East Kimberley Transitional Housing Program (WA) 41 Case study 2: Affordable Housing Action Plan (ACT) 45 4.1 Introduction 45 4.2 Context 46 4.3 Mechanisms 53 4.4 Outcomes 54 4.5 Government partnerships and innovations 57 4.6 Lessons learnt and potential for replication 58 Case Study 3: Community housing asset vesting program (NSW) 60 5.1 Introduction 60 5.2 Context 61 5.3 Mechanisms 63 AHURI report 289 v 5.4 Outcomes 66 5.5 Government partnerships and innovations 71 5.6 Lessons learnt and potential for replication 71 Policy development options 73 6.1 Government affordable housing delivery 73 6.2 Government partnerships with the private and not-for profit sectors 74 6.3 What can we learn from the case studies? 76 6.4 The ingredients for a successful government-led strategy 79 References 80 Appendix 1: Programs under the Affordable Housing Strategy and funding sources 86 Appendix 2: Outcomes of Affordable Housing Strategy 2010–20: Opening Doors 88 AHURI report 289 vi List of tables Table 1: Established state-level affordable housing delivery schemes 2 Table 2: The Context-Mechanism-Outcome theory program assessment matrix 12 Table 3: Interviews 14 Table 4: Examples of government-led affordable housing delivery 22 Table 5: Departmental structure 2007–15 30 Table 6: Key players in the formation of the Opening doors to affordable housing strategy 31 Table 7: New targets, Affordable Housing Strategy 2010–20: Aiming higher 34 Table 8: Examples of Housing Authority joint ventures 38 Table 9: East Kimberly outcomes 44 Table 10: Key elements of the Affordable Housing Action Plan (including outcomes) 48 Table 11: The role of the key departments/agencies in the AHAP 51 Table 12: Key mechanisms and outcomes—government-led innovations in affordable housing delivery 74 Table A 1: Programs under the Affordable Housing Strategy and funding sources 86 Table A 2: Outcomes of Affordable Housing Strategy 2010–20: Opening Doors 88 AHURI report 289 vii List of figures Figure 1: Evaluating affordable housing supply (adapted from Milligan et al. 2007) 11 Figure 2: Methodology for evaluating government-led innovations to increase supply of affordable housing 12 Figure 3: The 'growth' of public and social housing 17 Figure 4: Strategy at a glance 27 Figure 5: The affordable housing continuum 27 Figure 6: An Own Place Development 50 Figure 7: Land supply outcomes 56 AHURI report 289 viii Acronyms and abbreviations used in this report ACT Australian Capital Territory ACTPLA ACT Planning and Land Authority AHAP Affordable Housing Action Plan (ACT) AHURI Australian Housing and Urban Research Institute Limited AVP Asset Vesting Program (NSW) BHF Better Housing Futures program (Tas) BPSC Better Places Stronger Communities program (SA) C-M-O Context-Mechanism-Outcome CEO Chief Executive Officer CHC Community Housing Canberra CHL Community Housing Limited CHP Community Housing Providers COAG Council of Australian Governments CRA Commonwealth Rent Assistance GFC Global financial crisis GROH Government Regional Officers’ Housing (WA) LAHC (NSW) Land and Housing Corporation (NSW) LDA Land Development Agency (ACT) LRI Logan Renewal Initiative (Qld) LRS Land Rent Scheme (ACT) NAHA National Affordable Housing Agreement NFP Not-for-profit NHHA National Housing and Homeless Agreement NRAS National Rental Affordability Scheme NSW New South Wales SHI Social Housing Initiative VHC Venture Housing Company WA Western Australia AHURI report 289 ix
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