More housing blocks open for affordable housing in Hay

October 25, 2024

This article was first published by Australian Rural & Regional News on 3rd July 2024  Click here to view the full article.

More housing blocks open for Hay

Work on the Bishop’s Lodge subdivision has been completed at a cost of $405,000 and Council hopes to utilise the area to create affordable housing.

General Manager, David Webb said many local councils were committing to specific mechanisms and actions to increase housing supply and housing affordability, such as affordable housing contribution schemes.

Council developed its Hay Housing Strategy last year to look at initiatives to address the housing shortage in Hay and staff have been exploring options to utilise the Bishop’s Lodge lots to create affordable housing to ease the housing shortage for essential workers, as well as be able to provide council staff housing for future requirements.

“One option is to work with Argyle Housing, the Community Housing Provider (CHP) for the Hay area, to develop the lots for affordable housing,” Mr Webb said.

“Argyle Housing is a not-for-profit organisation, governed by the Community Housing Providers Act 2012.

“CHP has the advantage of providing affordable housing for localities like Hay by attracting development funding through programs such as the Housing Australia Future Fund (HAFF), as well as Commonwealth Rent Assistance which allows the CHP to maintain the asset.

“At present Councils are unable to apply for these funding streams.

“The CHP models achieve strong qualitative outcomes, driven by the benefits of the tax-free status of not-for-profit CHPs, economies of scale in operation, and the fact that the core business of a CHP is the provision of affordable housing with a long-term focus.

“It is a 25-year commitment for affordable housing clients in Hay. In addition, Argyle has extensive experience in the management of housing infrastructure projects which can help to overcome current material and labour supply issues.”

A proposal with Argyle Housing would mean Council vests the subdivision to Argyle Housing to develop the lots to maximise the number of dwellings within planning laws and community expectations. The final layout and design would be developed in consultation with Council.

Argyle Housing would seek the funding either through a subsequent round (early 2025) of the Housing Australia Future Fund or via another grant such as the National Housing Accord or Housing Accelerator Fund.

Mr Webb said two four-bedroom dwellings would be set aside for Council as part of the development. The rest of the housing will be provided for essential workers such as Police, health care, teachers, aged care and childcare.

Bishop’s Lodge subdivision completed

“If Argyle Housing was unable to secure funding to commence the development within four years, the land would revert back to Council,” Mr Webb noted in a report to Council last week.

“In discussions, Argyle Housing believes an application under the HAFF would have a reasonable chance of success, as the regional and remote locations are a focus for the Government, and with a solid design and the sufficient current demand making a strong application.

“In addition, under the HAFF program, applications which have an existing equity component (the land) have an increased chance of funding.

“In increasing affordable housing supply through this project, it in turn opens up the market for social housing in Hay’s current housing stock.”