Housing Associations Factsheet May 2008
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Fact sheet 1 Overview of housing associations in Victoria overview 1.
What is a housing association?
A housing association is a not-for-profit organisation that develops, owns and manages rental housing for people on low incomes. Housing associations are registered and regulated through the Victorian Government’s Housing Registrar. To be registered, an organisation managing community housing must meet seven performance standards (including governance, viability and service delivery standards). Housing associations must also be in a position to expand the supply of affordable rental housing. 2.
Why have housing associations been set up?
The Victorian Government has been working to strengthen and support the not-for-profit housing sector in order to diversify and grow the supply of affordable rental housing. The not-for-profit sector provides a wide variety of housing and services often targeted to particular needs. Strengthening the sector will enable it to deliver more, better-quality services and housing. Housing associations, as the growth vehicles of not-for-profit housing, have a number of features that enable them to create more housing than can be achieved through State Government funding alone. Housing associations can borrow against the property that they own. They are also wellplaced to attract support from other partners. Currently, for every dollar spent by the government, they attract an extra 25 to 30 per cent from private, philanthropic and local government sources. Internationally, including in the UK and the Netherlands, housing associations have become a major force in providing affordable rental housing. Victoria has drawn on this experience to develop a model suited to local conditions. 3.
Where have housing associations come from?
All eight current housing associations have a proven track record in providing long-term not-forprofit community housing across the state and have met the rigorous requirements of registration and regulation. Community housing has for many years played an important complementary role to public housing. In addition to leasing around 7000 properties from the Director of Housing, the sector as a whole owns some of its own properties and attracts support through charitable and other organisations. Housing associations share many of the strengths of the community housing sector from which they have developed. 4.
Which organisations are currently registered?
There are eight registered housing associations operating across Victoria as at May 2008: • Common Equity Housing Ltd (cehl.com.au) • Community Housing (Vic) Ltd (chl.org.au)
Department of Human Services
• • • • • •
Loddon Mallee Housing Services Ltd (lmhs.com.au) Melbourne Affordable Housing (mah.com.au) Port Phillip Housing Association Ltd (ppha.org.au) Rural Housing Network Ltd (rhn.org.au) Supported Housing Ltd (shl.org.au) Yarra Community Housing Ltd (ych.org.au)
There are currently also two registered housing providers: • Servants in Hawthorn Inc • Womens’ Housing Ltd. Links to the above organisations can be found at: housingregistrar.vic.gov.au 5.
What is the difference between a housing association and a housing provider?
Housing associations manage and expand new housing and manage rental housing portfolios. Housing providers primarily manage rental housing portfolios. 6.
Where are housing association properties based?
The 4000 or so properties currently owned or leased by housing associations are based in a range of locations throughout Victoria. Broadly, the number and locations of properties are as follows: • Common Equity Housing Ltd: 1680 properties across Victoria • Community Housing Limited: around 700 properties across Victoria, especially eastern metropolitan Melbourne, Epping and Gippsland • Loddon Mallee Housing: around 400 properties in Barwon, Grampians, Hume and Loddon Mallee regions • Melbourne Affordable Housing: around 300 properties around Melbourne • Port Phillip Housing Association: around 130 properties, mostly in the City of Port Phillip, but also Parkville • Rural Housing Network: around 275 properties in north-eastern Victoria • Supported Housing: around 575 properties, largely around Melbourne • Yarra Community Housing: around 210 properties, especially in northern and western metropolitan Melbourne and Barwon region. 7.
What type of stock do housing associations have?
The type of housing available varies widely as housing associations tailor their housing closely to tenant’s need and local conditions. Housing associations have stand-alone properties, rooming houses, accommodation with onsite support, medium density housing and flats. Some examples of recent housing projects that have been developed in partnership with housing associations include Park Place in North Fitzroy; Commonwealth Games Village in Parkville, and Woodstock in Balaclava, as well as stand-alone properties in regional Victoria. 8.
What is the Victorian Government’s role in supporting housing associations?
The Victorian Government has recognised that new thinking is required to the address the current housing affordability challenge. A partnership approach with the housing associations is a practical solution to this challenge and a key way to grow the supply of affordable rental housing. To this end, the Victorian Government is investing $300 million into registered housing associations to deliver 1550 units by July 2011, and help expand the supply of affordable rental housing. In addition, the Victorian Government regulates the sector, though the Housing Registrar, on an ongoing basis. 2
Department of Human Services
May 2008
9.
How are housing associations regulated?
In 2005, the Victorian Government passed an amendment to the Housing Act 1983 to regulate notfor-profit housing agencies providing long-term or transitional community housing. Regulation safeguards and investment in not-for-profit housing agencies ensures that they deliver the best possible rental housing services to the community. To achieve registration, agencies undergo a rigorous assessment process, with their management and operational performance thoroughly assessed by the Housing Registrar against seven performance standards. This ensures effective, ethical governance, depth and strength of expertise in property and tenancy management, and quality service delivery for tenants. Once registered, all agencies are monitored on an ongoing basis and must demonstrate continuous improvement and compliance with the performance standards. The Housing Registrar has robust intervention powers if needed. 10.
How do the public and not-for-profit housing sectors fit together?
Victoria has the most targeted public housing system in Australia, housing the largest proportion of people with high needs. This approach has been Government policy since 1999 and remains an important government priority. The Government is working to better integrate public housing within the community and better match it to changing needs. Not-for-profit housing associations have been developed to complement this role, while also expanding the supply of affordable rental housing. The Housing Registrar monitors housing associations to ensure that they continue to house people on low incomes and those with complex needs, while also diversifying their tenant mix as they grow. The Government’s support for the not-for-profit housing sector, including housing associations, complements its strategy to regenerate public housing. To this end, it has committed $510 million to develop both systems to July 2011. 11.
Who is eligible to become a housing association tenant?
While all housing associations provide housing for low-income Victorians, each housing association has its own allocation policy based on the focus of its activities and its contractual obligations to the Office of Housing and to other support providers. Some housing associations specialise in housing particular low-income groups, such as people with a disability, singles or frail aged people. The Housing Registrar monitors tenancy management relating to allocation of homes, accessibility and affordability to ensure that housing associations continue to house people on low incomes and those with complex needs, while diversifying their tenant mix as they grow. 12.
How do people currently access housing association properties?
At present, housing associations manage their own waiting lists, and take referrals through the Office of Housing’s central office and from other support providers. People in housing need can contact housing associations directly to check whether they meet the housing association’s eligibility criteria, in term of income and target group. 13.
Is there a central referral process to housing associations?
From 1 July 2008, the Office of Housing will introduce a central referral process to enable people on the public housing waiting list to be referred to housing association for consideration. 3
Department of Human Services
May 2008
Housing associations will be expected to take approximately half of any new tenants for new Government-funded properties from the public housing waiting list. Applicants who are housed by a housing association will then be taken off the public housing waiting list. (Further information on the central referral process will be available shortly.) 14.
What rent model do housing associations use?
The Director of Housing requires housing for low-income tenants to be affordable. Rents charged by housing associations to low income tenants are between 25 and 30 per cent of combined household income. In addition, tenants of housing associations are usually eligible for a rent subsidy (through Commonwealth Rent Assistance). In contrast, public housing tenants pay a subsidised rent based on their income and circumstances but do not receive Commonwealth Rent Assistance. Public housing tenants generally pay no more than 25 per cent of a household's combined income. Potential tenants of housing associations should confirm exactly how much rent will be charged and how this will be calculated with the housing association. 15.
How long can tenants of housing associations stay?
Tenants of housing associations can remain as long as they comply with the terms and conditions of their lease agreement and the Residential Tenancies Act 1997. 16.
What kind of arrears policies do housing associations have?
Housing associations must have policies in place which strive to sustain tenancies. This includes having strategies to respond to tenants in financial difficulties and with rental arrears. 17.
What legal protection is there for housing association tenants?
Tenants of housing associations are protected by the Residential Tenancies Act 1997 and by the term of their tenancy agreement with the housing association. In addition, the Housing Act 1983 allows for complaints to be made to the Housing Registrar by tenants. The Housing Registrar has a formal legal requirement to investigate complaints and has legislatively based intervention powers if necessary. 18.
What if tenants have a disagreement with a housing association?
The Housing Registrar requires housing associations to have a complaints procedure in place for dealing with people who are tenants or prospective tenants and who are affected by decisions of the housing association relating to rental housing. Tenants or prospective tenants who are unable to resolve a complaint or dispute using the above procedure, or who need independent advice and support, can contact the Social Housing Advocacy and Support Program (SHASP). If the dispute is a general dispute with the landlord it may be dealt with under the Residential Tenancies Act. Tenants of housing associations have access to a dispute resolution process included within this Act. Alternately, complaints can be referred to Consumer Affairs Victoria or to the Tenants’ Union of Victoria. In addition, the Housing Act 1983 allows for complaints to be made to the Housing Registrar by tenants. 19.
How do housing associations maintain properties? 4
Department of Human Services
May 2008
Maintenance differs according to whether housing associations own the property or lease it from the Director of Housing and others. Housing associations carry out all responsive maintenance and structural maintenance on properties which they own. However, structural repairs for Director of Housing leased properties are still usually undertaken by the Office of Housing. At a minimum, the standard of housing offered through registered housing agencies meets public housing standards. Further information For information on the Housing Registrar, plus links to registered housing associations and providers, email: [email protected] or go to: www.housingregistrar.vic.gov.au For information on housing associations and the not-for-profit housing sector, email: communityhousing.vic.gov.au or go to: www.housing.vic.gov.au This factsheet is the first in a series. A second factsheet, profiling key housing association projects, is under development.
5
Department of Human Services
May 2008
What is a housing association?
A housing association is a not-for-profit organisation that develops, owns and manages rental housing for people on low incomes. Housing associations are registered and regulated through the Victorian Government’s Housing Registrar. To be registered, an organisation managing community housing must meet seven performance standards (including governance, viability and service delivery standards). Housing associations must also be in a position to expand the supply of affordable rental housing. 2.
Why have housing associations been set up?
The Victorian Government has been working to strengthen and support the not-for-profit housing sector in order to diversify and grow the supply of affordable rental housing. The not-for-profit sector provides a wide variety of housing and services often targeted to particular needs. Strengthening the sector will enable it to deliver more, better-quality services and housing. Housing associations, as the growth vehicles of not-for-profit housing, have a number of features that enable them to create more housing than can be achieved through State Government funding alone. Housing associations can borrow against the property that they own. They are also wellplaced to attract support from other partners. Currently, for every dollar spent by the government, they attract an extra 25 to 30 per cent from private, philanthropic and local government sources. Internationally, including in the UK and the Netherlands, housing associations have become a major force in providing affordable rental housing. Victoria has drawn on this experience to develop a model suited to local conditions. 3.
Where have housing associations come from?
All eight current housing associations have a proven track record in providing long-term not-forprofit community housing across the state and have met the rigorous requirements of registration and regulation. Community housing has for many years played an important complementary role to public housing. In addition to leasing around 7000 properties from the Director of Housing, the sector as a whole owns some of its own properties and attracts support through charitable and other organisations. Housing associations share many of the strengths of the community housing sector from which they have developed. 4.
Which organisations are currently registered?
There are eight registered housing associations operating across Victoria as at May 2008: • Common Equity Housing Ltd (cehl.com.au) • Community Housing (Vic) Ltd (chl.org.au)
Department of Human Services
• • • • • •
Loddon Mallee Housing Services Ltd (lmhs.com.au) Melbourne Affordable Housing (mah.com.au) Port Phillip Housing Association Ltd (ppha.org.au) Rural Housing Network Ltd (rhn.org.au) Supported Housing Ltd (shl.org.au) Yarra Community Housing Ltd (ych.org.au)
There are currently also two registered housing providers: • Servants in Hawthorn Inc • Womens’ Housing Ltd. Links to the above organisations can be found at: housingregistrar.vic.gov.au 5.
What is the difference between a housing association and a housing provider?
Housing associations manage and expand new housing and manage rental housing portfolios. Housing providers primarily manage rental housing portfolios. 6.
Where are housing association properties based?
The 4000 or so properties currently owned or leased by housing associations are based in a range of locations throughout Victoria. Broadly, the number and locations of properties are as follows: • Common Equity Housing Ltd: 1680 properties across Victoria • Community Housing Limited: around 700 properties across Victoria, especially eastern metropolitan Melbourne, Epping and Gippsland • Loddon Mallee Housing: around 400 properties in Barwon, Grampians, Hume and Loddon Mallee regions • Melbourne Affordable Housing: around 300 properties around Melbourne • Port Phillip Housing Association: around 130 properties, mostly in the City of Port Phillip, but also Parkville • Rural Housing Network: around 275 properties in north-eastern Victoria • Supported Housing: around 575 properties, largely around Melbourne • Yarra Community Housing: around 210 properties, especially in northern and western metropolitan Melbourne and Barwon region. 7.
What type of stock do housing associations have?
The type of housing available varies widely as housing associations tailor their housing closely to tenant’s need and local conditions. Housing associations have stand-alone properties, rooming houses, accommodation with onsite support, medium density housing and flats. Some examples of recent housing projects that have been developed in partnership with housing associations include Park Place in North Fitzroy; Commonwealth Games Village in Parkville, and Woodstock in Balaclava, as well as stand-alone properties in regional Victoria. 8.
What is the Victorian Government’s role in supporting housing associations?
The Victorian Government has recognised that new thinking is required to the address the current housing affordability challenge. A partnership approach with the housing associations is a practical solution to this challenge and a key way to grow the supply of affordable rental housing. To this end, the Victorian Government is investing $300 million into registered housing associations to deliver 1550 units by July 2011, and help expand the supply of affordable rental housing. In addition, the Victorian Government regulates the sector, though the Housing Registrar, on an ongoing basis. 2
Department of Human Services
May 2008
9.
How are housing associations regulated?
In 2005, the Victorian Government passed an amendment to the Housing Act 1983 to regulate notfor-profit housing agencies providing long-term or transitional community housing. Regulation safeguards and investment in not-for-profit housing agencies ensures that they deliver the best possible rental housing services to the community. To achieve registration, agencies undergo a rigorous assessment process, with their management and operational performance thoroughly assessed by the Housing Registrar against seven performance standards. This ensures effective, ethical governance, depth and strength of expertise in property and tenancy management, and quality service delivery for tenants. Once registered, all agencies are monitored on an ongoing basis and must demonstrate continuous improvement and compliance with the performance standards. The Housing Registrar has robust intervention powers if needed. 10.
How do the public and not-for-profit housing sectors fit together?
Victoria has the most targeted public housing system in Australia, housing the largest proportion of people with high needs. This approach has been Government policy since 1999 and remains an important government priority. The Government is working to better integrate public housing within the community and better match it to changing needs. Not-for-profit housing associations have been developed to complement this role, while also expanding the supply of affordable rental housing. The Housing Registrar monitors housing associations to ensure that they continue to house people on low incomes and those with complex needs, while also diversifying their tenant mix as they grow. The Government’s support for the not-for-profit housing sector, including housing associations, complements its strategy to regenerate public housing. To this end, it has committed $510 million to develop both systems to July 2011. 11.
Who is eligible to become a housing association tenant?
While all housing associations provide housing for low-income Victorians, each housing association has its own allocation policy based on the focus of its activities and its contractual obligations to the Office of Housing and to other support providers. Some housing associations specialise in housing particular low-income groups, such as people with a disability, singles or frail aged people. The Housing Registrar monitors tenancy management relating to allocation of homes, accessibility and affordability to ensure that housing associations continue to house people on low incomes and those with complex needs, while diversifying their tenant mix as they grow. 12.
How do people currently access housing association properties?
At present, housing associations manage their own waiting lists, and take referrals through the Office of Housing’s central office and from other support providers. People in housing need can contact housing associations directly to check whether they meet the housing association’s eligibility criteria, in term of income and target group. 13.
Is there a central referral process to housing associations?
From 1 July 2008, the Office of Housing will introduce a central referral process to enable people on the public housing waiting list to be referred to housing association for consideration. 3
Department of Human Services
May 2008
Housing associations will be expected to take approximately half of any new tenants for new Government-funded properties from the public housing waiting list. Applicants who are housed by a housing association will then be taken off the public housing waiting list. (Further information on the central referral process will be available shortly.) 14.
What rent model do housing associations use?
The Director of Housing requires housing for low-income tenants to be affordable. Rents charged by housing associations to low income tenants are between 25 and 30 per cent of combined household income. In addition, tenants of housing associations are usually eligible for a rent subsidy (through Commonwealth Rent Assistance). In contrast, public housing tenants pay a subsidised rent based on their income and circumstances but do not receive Commonwealth Rent Assistance. Public housing tenants generally pay no more than 25 per cent of a household's combined income. Potential tenants of housing associations should confirm exactly how much rent will be charged and how this will be calculated with the housing association. 15.
How long can tenants of housing associations stay?
Tenants of housing associations can remain as long as they comply with the terms and conditions of their lease agreement and the Residential Tenancies Act 1997. 16.
What kind of arrears policies do housing associations have?
Housing associations must have policies in place which strive to sustain tenancies. This includes having strategies to respond to tenants in financial difficulties and with rental arrears. 17.
What legal protection is there for housing association tenants?
Tenants of housing associations are protected by the Residential Tenancies Act 1997 and by the term of their tenancy agreement with the housing association. In addition, the Housing Act 1983 allows for complaints to be made to the Housing Registrar by tenants. The Housing Registrar has a formal legal requirement to investigate complaints and has legislatively based intervention powers if necessary. 18.
What if tenants have a disagreement with a housing association?
The Housing Registrar requires housing associations to have a complaints procedure in place for dealing with people who are tenants or prospective tenants and who are affected by decisions of the housing association relating to rental housing. Tenants or prospective tenants who are unable to resolve a complaint or dispute using the above procedure, or who need independent advice and support, can contact the Social Housing Advocacy and Support Program (SHASP). If the dispute is a general dispute with the landlord it may be dealt with under the Residential Tenancies Act. Tenants of housing associations have access to a dispute resolution process included within this Act. Alternately, complaints can be referred to Consumer Affairs Victoria or to the Tenants’ Union of Victoria. In addition, the Housing Act 1983 allows for complaints to be made to the Housing Registrar by tenants. 19.
How do housing associations maintain properties? 4
Department of Human Services
May 2008
Maintenance differs according to whether housing associations own the property or lease it from the Director of Housing and others. Housing associations carry out all responsive maintenance and structural maintenance on properties which they own. However, structural repairs for Director of Housing leased properties are still usually undertaken by the Office of Housing. At a minimum, the standard of housing offered through registered housing agencies meets public housing standards. Further information For information on the Housing Registrar, plus links to registered housing associations and providers, email: [email protected] or go to: www.housingregistrar.vic.gov.au For information on housing associations and the not-for-profit housing sector, email: communityhousing.vic.gov.au or go to: www.housing.vic.gov.au This factsheet is the first in a series. A second factsheet, profiling key housing association projects, is under development.
5
Department of Human Services
May 2008
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