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Green’s to eliminate Australia’s housing waiting list within ten years

Media Release
Scott Ludlam 29 Jun 2016

The Australian Greens would eliminate Australia’s public housing waiting list within ten years through a new infrastructure bank administering zero interest loans to not for profit organisations coupled with new direct funding to build 200,000 new homes.

The Green’s plan would construct 7,200 new homes each year through a new Affordable Housing Finance Corporation, which would harness the $2trillion sitting in super funds, and also allow mum and dad investors to invest in affordable housing supply.

An additional $4.8billion over the forward estimates would also directly fund the construction of about 13,000 new homes per year, with an aim of 200,000 new homes within ten years.

Greens co-deputy leader and housing spokesperson, Senator for WA Scott Ludlam said almost 200,000 Australian families were waiting up to ten years for a home, despite living in one of the strongest economies in the world.

“We have heard first hand stories of women escaping domestic violence and being forced to sleep in the cars because there is nowhere for them to stay, only to be told there are people in the queue who have been waiting since 2006,” he said.

“Unlike either of the major parties, the Greens have a thorough plan that would house everyone on the waiting list within ten years, ending homelessness and keeping women and their children, and vulnerable groups that are overrepresented on the waiting lists like seniors and Aboriginal people safe in a home.”

The AHFC would issue three types of housing supply bonds:

• Zero interest loan bonds worth $200m per year– called “social housing growth bonds” providing zero interest long term loans to non-profit housing organisations, Public Housing Authorities, and affordable housing developers (10% of bonds issued);

• Tax smart housing supply bonds – long term, fixed term, fixed interest bonds (6% return) with a tax incentive (no tax is paid on the return) to appeal to retail investors (20% of bonds); and

• AAA Housing Supply Bonds – a fixed interest (5% return), long term, AAA rated (government guaranteed) bonds to appeal to institutional investors such as super funds (70% of bonds issued).

The Independent Parliamentary Budget Office estimates that a relatively modest government investment of $47 million per year could raise $2.04 billion in housing bonds each year for 10 years.  The cost over forward estimates is $188m and would generate $8.05 billion in bonds.

The Green’s Public and Community Housing Supply Boost plan would:

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End homelessness and provide a home for every Australian family currently languishing on the waiting list within a decade

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Fund the construction of 200,000 new public and community housing dwellings

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Introduce an Affordable Housing Supply Bonds package to finance one third of the homes

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Include a target of up to 50 per cent high quality and locally manufactured fast build modular or innovative housing;

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Reverse cuts to the National Partnership on Remote Indigenous Housing of $95million.

 

This is in conjunction with updated figures on scrapping negative gearing and capital gains tax worth $14billion a year http://greens.org.au/ng-and-cgt

And the Renters Rights package providing a national voice for renters advocacy and law: http://greens.org.au/renters

 

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