The foundation for Community Housing Ltd’s success is based on productive relationships with its partners.
Community Housing Ltd’s Partnership approach begins with the individual tenants and clients who may participate in design choices and ongoing management of properties.
Community Housing Ltd ensures it has strong local support for a project before it proceeds with any affordable housing development. By working with local agencies (link to example), Community Housing Ltd ensures that residential support services for tenants occurs as early in the project development phase as possible.
Community Housing Ltd has formed strong bonds with indigenous communities by improving housing standards through renovation of existing housing or via construction of new buildings. Community Housing Ltd contributes to strengthening these communities by providing employment opportunities within the community to assist in the management and maintenance of properties.
Partnerships with local councils and state governments are critical to providing land, capital funding and supportive community housing policy. Community Housing (Victoria) Limited has developed a strong working relationship with the Office of Housing, and is one of a select number of housing associations able to access State funding.
Funding via commercial partners allows Community Housing Ltd more scope to develop larger projects and to become a part of new housing developments. These relationships are often founded on the basis of a corporation’s shareholders asking for a values-driven focus to invest in projects that deliver community benefits.
Community Housing Ltd continues to grow its partnerships with a range of stakeholders who share its philosophy and passion in providing affordable and sustainable housing to anyone in housing need.
> CHL and mecu – A partnership driven by the desire for stronger communities (June 2008)
To ensure successful development outcomes, project development encompasses six pre-construction stages of a project prior to the actual building. These are:
Development of project partnerships to deliver affordable and community housing.
Consultation with stakeholders to ensure that various parties’ needs are incorporated into the project
Sourcing appropriate land and undertaking feasibility studies including site layouts and costings
Securing donor capital contributions
Preparing submissions to obtain capital funding from government bodies, and borrowings from financial institutions
Negotiation of contracts and other agreements
Community Housing Ltd have a dedicated project management team who understand the project development process and have hands-on experience and intimate knowledge of both the planning and design and construction processes.
Community Housing Ltd’s project development capability is a crucial part of the organisation’s vertically-integrated approach in which Community Housing Ltd manages an entire project from sourcing funding and land to long term management of tenants in the new property.
Community Housing Ltd has been developing strong working relationships with local government since 1995. This has included conducting community forums providing housing information sessions for numerous councils throughout Australia.
This effort has resulted in a partnership approach through which Councils have agreed to make important contributions to affordable housing outcomes. This includes joint ventures where council contributes equity in the form of land.
As affordable housing takes shape as a new asset class, affordable housing is well positioned despite the prevailing investment environment and will favour the sector once the liquidity crisis eases.
Despite the current environment, Community Housing Ltd will continue to grow.
Its construction portfolio grew very strongly in 2007-08, and solid growth is expected in 2008-09 will be maintained. Growth beyond that figure will depend on private equity.
While the demand for affordable housing currently remains constant, the two opposing forces that have a direct bearing on affordable housing demand are mortgage interest rates and employment.
Future reductions in interest rates will continue to make the traditional model of home ownership appealing. However, as unemployment starts rising with the slowing economy, pressure will be applied to those who have taken on a highly geared loan. Either way, Community Housing Ltd doesn’t expect there’ll be any slackening of demand for community housing.
Community Housing Ltd’s existing operations are in sound shape with the underlying support of state government funding.
From the very beginning, Community Housing Ltd’s model for successful community engagement has been based on a partnership focused on the needs of the tenant, and to that end Community Housing Ltd works closely with a wide range of social service organisations. Where the housing created provides long term, secure accommodation for tenants with special needs, these organisations provied the tenant selection and ongoing tenant support required to make the living arrangements a success. Community Housing Ltd’s partnership with social support organisations extends to the Design & Construction division consulting with the future tenant about aesthetic choices in their future home, including wall colour and flooring.
One of the keys to Community Housing Limited’s national success is that projects are developed with local community partners, who are motivated to meet the needs of the disadvantaged in their community and are staunch advocates when seeking support from local councils and government.
The second key aspect of creating highly functional community housing is that if future tenants require special needs services, Community Housing Ltd first negotiates the involvement of these support agencies before entering into an on-going housing management agreement.
Community Housing Limited is also innovative in its affordable housing approach. At a recent development in East Gippsland, Community Housing Ltd is working with the local aboriginal cooperative (local partner organisation) to rehabilitate a site with 25 houses, and at the same time employed some of the residents in administrative roles or created several traineeships for young adults during construction. Further, Community Housing Ltd is examining the feasibility of creating a furniture making business in this community with the education and training assistance of Gippsland TAFE.
By working with local communities to create sustainable and affordable housing, these communities retain a greater diversity of people, all of whom contribute to creating a richer community experience.
> CHL Indigenous Funding May 07
