Date: 2008-06-01
The financial association Community Housing Limited (CHL) has developed with mecu Limited over the last two years demonstrates just how effective financial services organisations with a social agenda can be.
CHL, the first national community housing organisation in Australia, and mecu, the largest credit union in Victoria, have created a successful partnership based on mecu’s commitment to investing its member’s funds in projects that deliver strong social as well as environmental outcomes.
The partnership has allowed Community Housing Limited (CHL) to bring $10 million to a 50 unit affordable housing project with the Tasmanian Government. CHL will build no more than two units per site on 30 sites across the region.
With mecu as the principal financier for CHL in this project, these quality-built homes will be dotted across the northern Tasmanian region which will include towns such as Launceston, Burnie, La Trobe, and Ulverson. The housing is designed to blend in discretely throughout the region’s suburban streets.
The project is a perfect example of CHL’s vertically-integrated operation in which funding, planning, development, construction, and long term management of the homes is delivered by the organisation.
The tenants for the new homes will be low income households sourced from Tasmania’s public housing waiting list, and will pay approximately 75% of the market rate. CHL:’s Managing Director, Mr. Steve Bevington believes tenants who are expecting public housing, and end up in a community home, will be delighted with their housing outcome.
“When secure tenancy and affordable rent is combined with a new home that is managed by a professional housing organisation, the sense of ownership and pride cannot be underestimated,” says Mr. Bevington. “This can be a watershed moment for households who need a dependable living arrangement in order for the parents to move forward with work and for their children to make the most of their education.”
Mr. Bevington also acknowledged the support of mecuin helping make the project a reality.
“mecu has given CHL a tremendous leg up in being able to progress affordable housing developments by borrowing money on very favourable terms,” he says. “They’re an appropriate and complimentary partner for CHL because there’s a strong cultural fit between our organisations.”
The philosophy that drives mecu’s socially responsible approach to banking is founded on its cooperative values and partnership with families and not-for-profit community organisations who choose to save and invest with mecu. In turn, mecu invests these funds into projects which strengthen communities.
“Our members expect a good return on their money invested with mecu. They also want to know that their money is being used in a socially responsible way. Supporting CHL to develop more affordable housing solutions meets these needs. We can also offer this finance to organisations like CHL at very competitive rates.” says mecu General Manager Rowan Dowland.