Date: 2007-12-04
CHL has received funding approval for a project in Randwick through the State Government’s debt/equity program for affordable housing.
The State Government has committed $1.175m to the $3.375m project, which amounts to a 34.8% contribution. This is almost half the usual contribution of 60% from the State Government, and shows how CHL’s affordable housing development model can help make the State budget dollar go much further than has happened in the past.
The debt/equity program works with the State government funding 60% of an approved project, and the housing organisation contributing around 15% in equity and 25% in debt to fund the total project.
“This model requires the housing organisation to be approved for spot purchases or design & construct projects, and assumes no other contributions are made,” says CHL’s Managing Director Steve Bevington. “However in Victoria, CHL has a long history of collaborating with local councils who also contribute to these projects by providing land and money.”
In this project, Randwick Council has supplied land for the project and made a cash contribution to the development, which makes a considerable difference in the State government’s ability to consider additional housing projects around New South Wales.
The Randwick area has experienced booming house prices over the last decade, yet remains one of Sydney’s most important working class suburbs. While apartment and house prices have escalated beyond the means of many key service workers, this and other affordable housing developments like it will provide a way for vitally-needed low to middle income workers to remain in the Randwick area.
“Given this is our second project in New South Wales, it is extremely encouraging to see local councils in Sydney get behind this model so quickly. They are very aware of the importance of retaining key service workers in the Randwick area, and they’re clearly being proactive in tackling the issue,” says Mr. Bevington.
For more information, visit www.chl.org.au