The National Tenant Support Network (National TSN) has released a briefing paper regarding the NSW budget and its impact on  Family and Community Services.

Social Housing
The Department of Family and Community Services (the Department) is responsible for setting social housing policy direction and for providing personnel services and funding to the NSW Land and Housing Corporation (the Corporation) for delivery of housing-related services.

The Corporation is responsible for the operational delivery and management of social housing assets and private rental and mortgage assistance to eligible households. The Corporation’s asset property portfolio consists of approximately 131,400 homes with an estimated capital value of $30.9 billion and 9,285 leased properties as at 30 June 2011. The Corporation also regulates and provides support to the Community housing sector.

Strategic Directions
The Corporation is helping to build stronger communities by providing a range of housing solutions to assist the most vulnerable people in the community.  In 2011-12, the Corporation will assist more than 330,000 people to live in public, community and Aboriginal housing.

A further 37,000 households will be assisted into private rental and temporary accommodation.

The Corporation will supply more social housing in line with the Housing NSW Planning for the Future target to increase the number of community housing sector properties from 13,000 in 2007-08 to 30,000 by 2017-18. In 2010-11, the Corporation transferred 3,076 properties, valued at $946 million, to community housing providers. A further 2,944 properties with an estimated value of $1 billion are planned to be transferred in 2011-12. This will significantly expand the asset base on which the not-for-profit sector can leverage finance to further increase the supply of affordable housing.

Strengthening the focus of homelessness services to provide long term direction for more effective and integrated prevention and early intervention responses for people who are homeless or at risk of homelessness will continue to be a key priority in social housing strategies. This will involve the implementation of initiatives funded under the NSW Homelessness Action Plan and the National Partnership Agreement on Homelessness.

The Corporation will continue to support the supply of affordable rental housing through the National Rental Affordability Scheme and other State-funded affordable housing initiatives.

The Corporation will also receive $39 million over the next two years under the Australian Government’s Housing Affordability Fund  program for infrastructure and planning reform projects that will assist in making housing more affordable by reducing the price of entry level housing for low to moderate income earners.

Operating Performance
The NSW Land and Housing Corporation’s adjusted net operating result is expected to increase from a deficit of $1.1 billion in 2011-12 to a surplus of $108 million in 2014-15 after excluding capital grants.  The overall recurrent expenditure in 2011-12 is estimated to be $2.5 billion.

The deficit in 2011 12 is largely due to the transfer of housing stock of about $103.8 million to the Aboriginal Housing Office and $1 billion to community housing providers.

Social housing is provided to people whose eligibility is based on an assessment of those with highest needs.  Clients cannot afford market rents so their rent is adjusted, based on 25 per cent of total household assessable income.  The difference between market rent and rent charged across all social housing tenants in 2011-12 is estimated to be $804.3 million.

Capital Expenditure
Capital expenditure by the Corporation is expected to total $1.7 billion over the Budget and forward estimates period, including $449 million (excluding GST refund expenditure) in 2011-12.

Key aspects of the capital program in 2011-12 and the forward estimate years include:

$221.5 million for the base supply program to fund new capital works and works in progress including commencement of 529 dwellings and the completion of 1,072 social housing dwellings

$48.4 million for the completion of 917 dwellings under the Nation Building - Economic Stimulus Program, bringing the total number of properties delivered under the program to 6,329 (funded by the GST refund associated with the transfer of Program properties to community housing providers)

$194.8 million in maintenance expenditure in the social housing sector to upgrade and improve existing housing

$17.7 million to improve the quality of the built and social environment of social housing tenants in seven priority locations (Mt Druitt, Claymore, Macquarie Fields, Killarney Vale/ Bateau Bay/ Tumbi Umbi, Bathurst/Orange, Dubbo and Wagga Wagga) under the Building Stronger Communities Strategy

reducing concentrations of disadvantage in social housing through social housing estate strategies and by continued infrastructure investment in priority locations such as Bonnyrigg and Minto

improving environmental safety through the implementation of the strategies in Environmental Sustainability in Housing NSW 2008-09 – 2013-14.

Funding and Financing the Housing Sector
In 2011-12, the Corporation will receive grant funding from the Department of Family and Community Services of $465.1 million ($142.6 million State funding and $322.5 million Commonwealth funding). This comprises:

$444.9 million to deliver housing related services including the supply of new social housing, to repair, maintain and upgrade existing social housing and other housing assistance

$20.2 million for homelessness programs.

The Corporation will also contribute funding from internal sources to meet its operating and capital expenditure requirements.

NSW State Budget 2011-12 Budget Paper 2 Chapter 8

Budget 2011 -12 FaCS summary