Category Archives: Member news

CHIA WA has appointed Jennie Vartan to their State Manager role.

CHIA WA’s Regional Director Garry Ellender welcomed Jennie to the position. ‘I’m excited by the appointment of Jennie and am confident members will benefit from her energy, commitment and expertise.’

Jennie began her career in the property industry and successfully transitioned to various  leadership roles within the NFP sector. She brings with her more than 20 years experience at an Executive Management level, with 11 years in NFP businesses in Perth, including senior roles at Amana Living and Foundation Housing.

Jennie possesses a thorough understanding of  the current issues facing the Community Housing sector in WA  and is committed to working with members and the WA Regional Committee to develop and expand members services.

Some of her key focus areas will be sector development and training; communication and stakeholder engagement; policy development and advocacy; revenue diversification –  exploring initiatives to secure funding from the State Government to provide sector development and capacity building services for our members.

Jennie will officially commence her duties on Monday, June 11.

St Vincent de Paul to deliver SAHF homes

St Vincent de Paul will deliver 78 social and affordable housing units at Merrylands in Western Sydney as part of the NSW Government’s $1.1bn Social and Affordable Housing Fund.

Social Housing Minister Pru Goward was reported as saying the SAHF model, which links housing with vital supports, showed what could be achieved when government worked with the community-housing sector.

‘Our partners at St Vincent de Paul were selected because of their proven track record of housing and helping people in need. By embracing a collaborative approach, the government and its partners are helping people to break the cycle of disadvantage and move towards greater independence.’

St Vincent de Paul Housing chief executive Brian Murnane, said: ‘St Vincent’s is working with the NSW Government under the SAHF to ensure more social and affordable housing is being offered to people who need it most. We look forward to the continued progress of our housing constructions, providing 500 homes across Sydney and regional NSW.’

The service package tenants receive through the SAHF will include access to accommodation, asset and tenancy-management services and links to supports like training, education opportunities and medical services.

Story courtesy of liverpoolchampion.com.au

Rubber hits the road with accounting changes

Mark Francis, Executive Director of Regulatory Services at Queensland’s Department of Housing and Public Works, outlines the implications for community housing providers (CHPs) of the Australian Accounting Standards Board’s new Standard 1058 Income of Not-for-Profit Entities, and revisions to existing standards, when preparing their forward budgets.

The changes will impact income recognition in the CHP sector in that:
• some types of income will not be immediately recognised in the income statement, particularly where there is a performance obligation or other liability
• donations of assets to CHP entities at a discount to their fair value will need to be recognised at current fair market value.

Examples of the above include the income recognition in relation to peppercorn leases, capital grant funding and volunteer services.

Peppercorn leases
Currently leases with significantly below market terms or values are accounted for by measuring both the lease asset and liability at the present value of the minimum lease payments, which is negligible in a peppercorn lease. This understates the lease asset and fails to recognise the donation component.

The new standard will address this by amending AASB 16 Leases to require CHPs to measure assets under a peppercorn lease at fair value on the balance sheet, with the lease liability measured at the present value of the minimum lease payments. The difference between the current fair market value of the asset and the present value of the minimum lease payments will be recorded as income, as it is effectively a donation to the CHP.

This accounting treatment will impact the CHP’s results both initially, due to the non-cash income component elevating its net surplus, and on an ongoing basis due to depreciation on the asset being recognised in the income statement. Also, asset and liability data and the related ratios (such as Return on Assets, Gearing, Debt serviceability, Interest cover, etc.) will be impacted.

Income recognition of capital grant funding
Under the new standard the revenue is recognised when the performance obligation in an agreement is recognised. As such, at the time a capital agreement is entered into, the income received by the CHP will be accounted for as an asset in its balance sheet, with a corresponding liability (the obligation). As the obligation is fulfilled over time and the percentage reflected in the agreement (donation) applied, the liability will diminish. This reduction will be recognised as income (a donation) in the income statement.

Again, the net surplus of the CHP will be impacted in that the capital grant income is spread over the life of the agreement, as opposed to the total funding being recognised as income at the inception of the agreement. Furthermore, asset and liability data and ratios will be affected.

Recognition of volunteer services
Where a CHP receives volunteer services without charge, or for a consideration significantly less than the fair value of those services, it has the option to recognise the volunteer services. The standard encourages, but does not require, disclosure where a CHP is dependent on volunteers (for example, faith-based providers).

Local governments, and the public sector in general should recognise volunteer services as income where the services would have been purchased if they weren’t donated, and where the fair value of the services can be reliably measured.

Should a CHP choose to recognise the volunteer services, and where they do not result in the acquisition of an asset, the donation of services should be recognised as income based on the fair value of a person undertaking the work/service. An equivalent expense should also be recognised. This effectively offsets the income recognised and, as such, will have no impact on the CHP’s financial position.

Note: this is general information and does not take any organisation’s specific situation into account – organisations should seek their own independent professional advice.

PPHA now Housing First

$35m affordable housing development for inner Sydney

The supply of housing for key workers will be given a much-needed boost, with work set begin on a new $35 million affordable housing development in inner Sydney.

Construction for the Forest Lodge apartment development, which will provide 75 homes for low to moderate income earners, was launched at the Ross Street site on Tuesday.

It’s the final piece of the puzzle for the $1.1 billion Harold Park urban renewal project and will ensure about 6 per cent of 1250 new residences built there are affordable for key workers priced out of the area.

“We’re proud to be providing this mix of one, two and three-bedroom apartments to people on low to moderate incomes,” said Leonie King, chief executive of affordable housing provider City West Housing.

article courtesy of City West Housing

Key dates for housing data

The sign-up period for the community housing industry’s own benchmarking platform, House Keys: Workforce Round Three, will start next month to allow the data to be available early next financial year.

Housekeys Service Delivery Coordinator Leoni Lynch says, ‘Our top priority for future rounds of House Keys is to make sure that the most up to date information as possible is available.

‘To achieve this, we’ve decided to move straight onto capturing data for this financial year (2017-18) and skip financial year 2016-17. We’ve also made a number of changes to our methodology which will significantly reduce the turnaround time. Two areas where we plan to reduce the turnaround time significantly are the sign up process and the data submission window.’

A regular annual cycle has been set up to ensure House Keys: Workforce data is released around the end of September every year, based on data from the previous financial year.  Key dates are: June 2018 – CHPs invited to sign up;  July/August 2018 – data submission; and, end September 2018 – Launch Round Three.

Ms Lynch says the feedback from Round Two of House Keys Workforce (data from FY 2015-16) has been very positive since its launch in January 2018. Further feedback and suggestions can be sent to [email protected]

Download the Housekeys pdf or watch the House Keys video to find out how to get the most out of it and read our House Keys user manual.

 

Access takes out national award

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Access Housing’s Haven @ Rockingham development claimed the prestigious Best Affordable Housing Development award at the 2018 Property Council of Australia Innovation and Excellence Awards.

The Property Council of Australia’s National Innovation and Excellence Awards is one of the most revered property awards programs in Australia, promoting excellence in design and innovation in the built environment since 1982.

Completed in November 2016, Haven is an architecturally designed three-level mixed use development comprised of 28 stylish apartments, four townhouses and three commercial spaces within a secure, boutique complex.

Haven provides much-needed affordable rental housing for a diverse range of people, which is provided through homes retained by Access Housing for Community Housing purposes and homes sold to National Rental Affordability Scheme (NRAS) investors to help increase the supply of affordable rental housing within the community. Owner-occupiers can also purchase a new, affordable home within Haven outright or in partnership with Access Housing through the company’s Home Choice shared equity home ownership program.

Haven is located close to public transport routes and interchanges and is only minutes to the Rockingham foreshore. Other amenities such as schools, parks, sporting facilities, Murdoch University campus and Rockingham City Shopping Centre are also close by.

Access Housing Chief Executive Officer Garry Ellender said Haven’s award win showcased the company’s continued ability to deliver industry recognised affordable housing developments.

“Being able to win an award as illustrious as this, and ahead of impressive competition from across Australia, is a fantastic achievement not just for Access Housing but also the Community Housing sector more broadly,” Mr Ellender said.

“One of the cornerstones of our property development activities is ensuring value for money throughout each project’s lifetime, not just during construction, to ensure ongoing affordability for tenants, owner-occupiers and investors.

“The significance of this award win cannot be overstated, as it exemplifies Access Housing’s and the Community Housing sector’s capacity to deliver new housing choices for low-moderate income earners while also showing that affordability is still achievable when delivering high quality, well-designed residential developments.”

Haven’s win at the Property Council of Australia’s national awards continues Access Housing’s recent run of success in some of the most respected and valued development industry awards programs. September 2017 saw the company join with project partner BGC Development to win the prestigious 2017 Urban Development Institute of Australia (WA) Award for Excellence in the ‘Affordable Development’ category for our Jervis Rise, Baldivis development. A few weeks after Jervis Rise’s success, Access Housing’s environmentally sustainable affordable housing development at White Gum Valley won the 2017 Australasian Housing Institute (WA) Awards for Professional Excellence in Housing ‘Leading Housing Development Project’ award.

  • article courtesy of Access Housing

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A remote West Australian Aboriginal community has launched a GoFundMe campaign to raise funds needed to turn new and refurbished social housing into homes by providing the funds to purchase essential household items, from beds to kettles.

Tjuntjuntjara is located in the Great Victoria Desert, about 690km north-east of Kalgoorlie. Access to the community is difficult due to the surrounding terrain, with food supplies flown in on a fortnightly basis.

The 2011 census reported the community’s population as 162, but Tjuntjuntjara has grown over the last few years and now acts as a service centre for surrounding outstations.

In December 2017, the West Australian Government announced a major capital works and essential services package to upgrade existing social housing and to improve essential services in the community. Work on the properties is nearly complete and, in June, the residents will receive access to 10 new multigenerational houses and 12 upgraded existing houses.

Not-for-profit community housing organisation Community Housing Ltd manages the properties on behalf of the Department of Housing.

Whilst the construction works have been funded by the National Partnership in Remote Housing, the community and residents themselves are completely responsible for furnishing their homes. This presents a big challenge for most community members who are on low incomes. The high cost of freight to the community makes purchasing essential household items unaffordable for low income residents.

The Paupiyala Tjarutja Aboriginal Corporation (PTAC), which manages the Tjuntjuntjara community on behalf of the Spinifex traditional owners, has launched a ‘GoFundMe’ appeal on behalf of the community to solicit donations in cash and kind. CHL is supporting the appeal as part of its broader community engagement program.

‘CHL is committed to community development with dedicated staff who focus on facilitating community development projects which have been generated and are led by community,’ says CHL’s Community Development Project Manager, Rachel Lattimore.

‘CHL’s approach is based on identifying the strengths, knowledge, and capability within communities and developing innovative ideas to create sustainable, resilient, communities. CHL has adopted an Aboriginal Community Strategy, and a Community Development Framework to ensure best practice.’

PTAC can accept gifts or donations on behalf of donors that are tax deductible and directly benefit the community. They are looking for the public’s assistance to raise money or donate physical items such as: storage and transport of items to Tjuntjuntjara, fridges, bedframes, dining furniture, kettles and washing machines.

For details, and to support the campaign, see GoFundMe, or PTAC’s website.

CHL and Horizon join forces for housing affordability

Australian not-for-profit housing provider Community Housing Limited (CHL) has announced its integration of Queensland’s largest housing provider, Horizon Housing,  into the CHL Group of  Companies.

The move will provide CHL with a strong advantage in Queensland to deliver more affordable housing  in the State.

Over the next year this integration will drive growth for the two organisations so that more Australians who are facing housing crisis are able to secure long‐term affordable housing.

The integration will boost CHL’s current portfolio to over 11,000 properties by November 2018, making it  the largest community housing provider in the country. The combined group will manage  community and affordable housing properties across the six states with nearly 300 staff delivering  services to support those most disadvantaged.

The new arrangement will consolidate expertise and strengthen the reach and services offered by  both community housing providers. It will allow both the organisations to utilise their  complementary strengths and drive efficiencies, reducing costs and releasing revenue to access  more finance to build more homes and improve the quality of services to customers.

Horizon, Queensland’s largest housing provider with operations in 15 in local government areas  across Queensland and parts of New South Wales, provides both community housing programs and  affordable housing projects and has over 2,400 properties in its portfolio, all of which will now  benefit from the expansion of services and increased resources available via CHL.

‘This new arrangement further strengthens the position of both organisations, providing each with  mutually beneficial outcomes aligned to our shared vision of providing the communities we serve  with affordable housing solutions that are available and accessible by those in need,’ says CHL Group’s  Managing Director, Steve Bevington.

‘Our collaboration is an exciting development for the sector and redefines the landscape, we look  forward to drawing on this strengthened position to deliver future affordable housing solutions as  the housing crisis across the country escalates.’

CHL has long been considered a sector leader, supporting and growing the industry  both locally and internationally, providing end-to-end affordable housing developments and long -term housing and tenancy management operations in Australia.

‘Horizon’s integration within the CHL Group is another step in that direction’, adds Steve.

CEO of Horizon Housing, Jason Cubit, said the organisation was excited to be part of the CHL group of  companies.

‘The integration of Horizon Housing and CHL is an exciting new chapter, as it allows us to pool the  expertise and resources critical to improving the lives of the most vulnerable members of the  community,’ Mr Cubit says.

‘Our initiatives don’t only help families get by in the short‐term, but empower them to break  the  cycle of financial stress, aiding a transition into the private rental or property market.’

The integration of the two entities creates a powerful alliance to fight the problem recently  highlighted by the latest Anglicare Rental Affordability Snapshot, which categorised three out of  67,365 rental properties listed in Australia as ‘affordable’ for a single person on Newstart Allowance.

Horizon Housing and its subsidiaries will maintain business as usual for the foreseeable future,  delivering quality services to Queensland’s most vulnerable, whilst retaining all current governance  structures, branding and staffing.

Article courtesy of CHL

Encourage survey participation

The Australian Institute of Health and Welfare’s (AIHW) 2018 National Social Housing Survey (NSHS) has been distributed to a randomly selected group of community housing tenants and members are encouraged, through their communications, to impress upon them the importance of participating.

Whilst organisations won’t know if any of their tenants have been selected for the survey, the AIHW has asked that they still ensure tenants know the surveys are legitimate and important: the data collected helps inform service improvements to social housing programs and is used for national reporting purposes.

Selected tenants will have received a pre-approval letter that advises them to expect the survey. A  follow up letter includes the survey, which they can complete online.

The AIHW has also requested that community housing organisations refrain from running their own surveys between mid-April and June to avoid confusing tenants.

The 2018 NSHS will collect information from a sample of tenants in social housing, including community housing tenants, from all states and territories. Community housing tenants who are selected to participate in the 2018 NSHS will receive the survey by mail. Information collected from community housing tenants will include:

  • tenants’ satisfaction with current housing and housing – related services
  • tenants’ housing histories
  • tenants’ need for, and ability to access, other community and health services, and
  • demographic data about the tenant and their household.

The NSHS will also include tenants in Public Housing, State Owned and Managed Indigenous Housing and, for the first time in 2018, will include tenants in Indigenous Community Housing in Queensland.

Some of this year’s survey results will be included in the Productivity Commission’s annual Report on Government Services in January 2019, with the rest to be released in March/April 2019.

The last NSHS was held 2016. Click here for the 2016 results.

 

 

Scam warning

A warning to members and stakeholders that someone impersonating a CHIA employee has been emailing organisations in the housing space and asking them to get in touch to share some documents.

If you receive an email from Stephen Ronald, who is purporting to be CHIA’s Manager Policy and Standards, please do not engage and definitely do not open any attachments. This person is in no way associated with CHIA and never has been.

Genuine emails from CHIA will include the domain @communityhousing.com.au rather than being from a generic gmail or other email account.

Please share this warning with your staff and networks.

PPHA delivers 73 new homes for low income residents

Port Phillip Housing Association (PPHA) will team up with the Whitehorse City Council and property developer MAB Corporation (MAB) to deliver 73 brand new architect-designed, affordable homes for low income residents, particularly older people and those living with a disability.

The $25 million affordable housing project in Bruce Street, Box Hill will further expand PPHA’s social housing capacity in the inner-eastern suburbs of Melbourne, at a time when rental properties for low income residents, are critically low.

Whitehorse City Council is one of the first local authorities in Melbourne’s east to take the lead in increasing affordable housing.

PPHA Chairman Frank O’Connor said: ‘This project proves just what can be achieved when private enterprise, local government, great design and innovative community housing come together with a sincere, common purpose.

‘A critical solution to the housing affordability crisis being felt right across our communities, is to fundamentally increase the number of affordable, quality homes available to rent.

‘There are simply not enough affordable homes to fill the need, where that need is located,’ Mr. O’Connor said.

‘Building contemporary, beautiful, good quality homes where people can live safely, with dignity and at an affordable price brings relief not just to them, but to the whole community.’

Whitehorse Mayor, Cr Andrew Davenport said this new development will provide 73 well designed apartments for local residents who will pay rent only within their means.

‘In Whitehorse, only 1.6 per cent of all rental vacancies in 2016 were classified as affordable,’ Cr Davenport said.

‘With Port Phillip Housing Association and MAB Corporation involved in the project, Box Hill locals can be assured that the development will be attractive and will integrate beautifully into the character and amenity of the local area.’

This will be the second affordable housing collaboration between PPHA, HAYBALL architects and MAB Corporation, a leading, diversified Melbourne-based development group. The same team was behind the Moorabbin Affordable Housing development completed in 2011 with a project value of $23 million. Located in South Road Moorabbin, the project delivered seven storeys and 75 apartments at completion.

The Bruce Street Box Hill project will comprise;

  • 73 architect-designed affordable housing apartments,
  • built to the Victorian Government’s Better Apartment Design standards,
  • a mix of studio, 1 and 2-bedroom and dual key dwellings,
  • will include apartments specially designed for those living with a disability, with
  • 40 apartments suitable for older residents.

The site will also include a social enterprise café as well as commercial and retail opportunities, to create a supportive vibrant neighbourhood for residents.

PPHA Chief Executive Haleh Homaei said building resilient and sustainable neighbourhoods to support good quality housing is the key to long term, stable, affordable housing tenancies and ensuring return on investment.

This expertise, plus our 30+ years’ experience in tenancy management are the unique elements that we, as a robust, regulated community housing agency, bring to this table and to all our collaborative partnerships.

‘We are thrilled to be working on our next exciting project with Whitehorse City Council, MAB and Hayball. This project will deliver $25 million high quality – affordable housing to Box Hill.’

  • article contributed by PPHA

Meet your Board Members: Leonie King

headshot Leonie King

CHIA Board member and City West Housing CEO Leonie King brings a unique perspective to her community housing role.

Leonie spent a number of years working in housing as a senior NSW Government executive. She bowed out of the bureaucracy in 2016 as an Executive Director in the Department of Family and Community Services, her most recent roles including responsibility for community housing and specialist disability accommodation.
‘I had developed a passion for the community housing sector,’ Leonie says, ‘And I thought the obvious thing to do was to go into in the sector that I had been involved in growing and supporting for a considerable period of time.

‘What has always appealed to me about housing, and about social and affordable housing in particular, is that tension between the commercial imperative and social objectives and how you use use both levers to make lives better for people. That makes it a very interesting area to work in because you are always having to make judgement calls and trade offs.’

Leonie is optimistic about community housing’s potential to develop and grow over the next few years.

‘There had been a bit of a drought nationally in recent years in terms of government focus and attention on the community housing sector, but now there are so many different parts of government that all see the community housing sector’s usefulness in terms of their ability to deliver on the government’s policy agenda.’

Not that the attention is without its difficulties, as different government agencies and tiers of Government have different contractual obligations and different risk profiles, adding to the administrative complexity and costs of managing multiple similar, but slightly different, programs and contracts.

‘It would be really nice to see a bit more consistency; if they contracted in a similar way, if the standard terms and the standard risk profile for like programs was similar that just makes the decision making process so much easier.’

City West has been a major beneficiary of the only planning scheme in Australia (in the City of Sydney) that sees developer contributions levied on developments and passed through directly to a community housing organisation.

‘We have received quite significant contributions under that model which is invested in new affordable housing.’

Leonie says it is unfortunate that many local governments who receive affordable housing in exchange for density bonuses to developers are hesitant to consider a role for community housing beyond property and tenancy management.

‘The standard model is that the councils receive those affordable housing units at the end of the project, maintain ownership and outsource the management; I think there is a potential missed opportunity in either transferring ownership to community housing providers or thinking about forming a joint venture or partnership arrangement with community housing at the front end of that process.

‘The strength of the City of Sydney model is that they saw that owning and managing community housing was not their core business or their core strength,’ Leonie says.

While City West Housing has not participated in the NSW Government’s transfer of more than 6,000 public housing properties to community housing providers in recent years Leonie, unsurprisingly, is a major fan of this initiative.

‘I passionately believe that the first major tranche of property transfers in NSW, which also saw a transfer of ownership, was the trigger that was needed at that time in NSW to build the balance sheet capacity for the sector so it could then borrow and deliver more affordable housing.’

NSW now has a number of large community housing providers, holding significant assets, undertaking development and operating at scale which is a direct result of those title transfers, she says.
‘If you want to grow through borrowing you can’t do that without a balance sheet.’

A number of those providers now stand to benefit from the NSW Government’s commitment to transfer the management of a further 14,000 public housing properties.

Looking to the future, Leonie would like to see more public housing transferred to the community housing sector.

‘I strongly believe in having a diversified delivery system to provide more choice and to create innovation. I think that is really hard to create when, as is the case in NSW, you still have a 130,000 property portfolio managed by one provider. So I would like to see change of at least management, if not ownership.

‘The more this sector grows, the more housing outcomes we can deliver for people…so I hope governments continue that trajectory.’