Robin Zakharov - Affordable Housing Agenda by xiuliliaofz


									The Affordable Housing Agenda: Implications for Public Housing Assets
Creating Liveable Assets, Brisbane – February 2006

Robin Zakharov
The Policy Practice

1. Provide an overview of policy directions in “affordable housing”
2. Look at some examples involving public housing assets
3. Consider the asset management, organisational and professional implications for asset managers

What is affordable housing?
 “Low” to “moderate” income
 Focus on lowest 40% paying more than 30%
 Not just about price and income – also about location and access
 Often confusion between “social housing” and “affordable housing”
 Not just about rental, also home ownership

The whys and wherefores of affordable housing
 A pressing need
 The public policy environment
 Trends and lessons from overseas
 Defining “affordable” – for whom?

Pressing needs
 Increasing pressures on public and community housing systems
 Worsening housing affordability – to rent and buy – for low to moderate/middle income earners
 Changing household structures – smaller households, sole person households
 Increasing support needs – ageing population, deinstitutionalisation, inadequate funding for services

Public policy environment
 Declining investment in public housing – “old-fashioned model”
 Public housing asset problems – age, condition, design, suitability, concentration
 International trend towards social service delivery by third sector
 Desire to attract private finance, make better use of the private market

Trends and lessons from overseas
 Extensive experience in other OECD countries in mixed funding of affordable housing
 Sophisticated affordable housing programs, policy instruments and levels of development in UK and US, for
 Capital subsidies, planning policies, tax incentives
 Mature private financing market

Affordable – for whom?
 “Traditional” target groups – very low (Centrelink-dependent) incomes (esp. singles, young people), people with
    disabilities, older people
 “Battlers” – insecure or part time employment, high participation costs (transport, child care)
 Middle income, increasingly excluded from high cost markets
 Need to pitch affordability at different incomes and circumstances

Creating Liveable Assets, Brisbane - February 2006
Robin Zakharov – The Affordable Housing Agenda                                                                      1
What does affordable housing look like?
 “Traditional” public and community housing – fully subsidised
 Traditional private rental low cost housing – boarding houses, caravan parks, low rent areas (eg. regional)
 Affordable housing companies, eg. BHC, Citywest
 Joint ventures on high value redevelopment sites, eg. Kensington, Vic and Bonnyrigg, NSW
 “Cocktail” projects, eg.

How to develop affordable housing
 The right policy environment – Commonwealth, state, local
 Subsidy support – can’t be affordable (lower than market) without subsidy
 Suitable conditions for private investors – market information, certainty, incentives (or sticks?)
 Ongoing management arrangements – asset management and service delivery vehicles

What’s public housing got to do with it?
 Asset base for future partnership projects – eg. Kensington, Bonnyrigg (lots of this happening in US)
 Stock transfers – policy direction in UK but controversial in Australia
 Changing models of management – role of community housing organisations, new entities

 850 unit older public housing estate in inner Melbourne, hi-rise & walk-up
 OoH entered arrangement with private partner (Becton) to redevelop site – retain 2 towers (220 units), 195 PH
   units, 450 private dwellings
 Key feature of project is establishment of on-site management entity to undertake facilities, tenancy and body
   corporate management for all housing
 Project has a focus on community engagement, community building, place management

City Edge, Canberra
 City Edge was an older bedsitter public housing estate, high turnover, management problems
 Sold for land value (on deferred terms) to Community Housing Ltd, a not for profit company established to hold
    assets for the community sector
 143 bedsitters replaced with 126 dwellings, 30 retained as social housing
 Featured innovative design, environmental sustainability, adaptable design

Bonnyrigg, NSW
 823 unit public housing estate in western Sydney (& 99 private dwellings) – Radburn plan design
 NSW government currently tendering for private partner to master plan, redevelopment, finance and manage for
   30 years
 Shortlisted consortia each comprise bank, major property developer, facilities manager, community housing
 Community engagement focus on master planning, relocation of tenants, community building

Bridge Housing, California
 Former run down public housing site in well located inner city area
 Bridge Housing (not for profit developer) project proponent
 229 public housing units previously, now 341 affordable housing dwellings
 Now mix of former public tenants (right of return), private tenants with rent vouchers, seniors, first home buyers,
    and other low to moderate income families (50-60% median income)
 Land retained in public ownership
 Management – contracted out to different operators

Creating Liveable Assets, Brisbane - February 2006
Robin Zakharov – The Affordable Housing Agenda                                                                          2
   Financing – mix of state land, tax credits, section 8 vouchers, national public housing renewal funds, debt, city
    capital funds

Adapted from V. Milligan, Dec 2005

Implications for public housing asset managers
 Inexorable shift in policy environment, (eg. 2003 CSHA, Framework for National Action on Affordable Housing
 Emergence of innovative and complex projects involving public land, private finance, community management
 Innovative design, construction and management opportunities
 Professional and organisational challenges – for public, community and private sectors

Professional and organisational challenges
 Where do these partnership projects fit within traditional public housing organisations?
 Skilling up of public and private sector players – understanding the policy environment and the needs of each
 Building the capacity of community agencies to participate in new management models
 Keeping the objectives clear – managing potential conflicts in objectives

For discussion…
 What issues arise for asset managers in this shift toward mixed models of affordable housing?
 What new skills might asset managers need?
 What do the private and community sectors need to take on board with new partnerships in affordable housing?

Some useful reading/resources

Framework for National Action on Affordable Housing
Hall and Berry 2004 Operating Deficits and Public Housing (summary)
Milligan 2005 Directions for Affordable Housing Policy in Australia: Outcomes of a Stakeholder Forum
Bridge Housing website:

Robin Zakharov
0412 665 994

Creating Liveable Assets, Brisbane - February 2006
Robin Zakharov – The Affordable Housing Agenda                                                                          3

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