Housing Australia Future Fund Facility and National Housing Accord Facility
Housing Australia have now opened round one funding under the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF). These Federal Government initiatives are focussed on improving housing outcomes for Australians and will collectively support the delivery of 20,000 new social and 20,000 new affordable homes across Australia over five years. The HAFF is a $10 billion investment fund, the income from which will provide disbursements used to deliver the Federal Government's housing commitment. The Application period for round one funding is from 15 January 2024 until 2:00pm (AEDT) on 22 March 2024.
In light of these announcements, the team at Solve Property Group have been actively attending workshops, collaborating with our CHP clients and working through proposals on behalf of our clients. If we can be of any assistance, please get in touch with richard.ziff@solveproperty.com.au
What projects are eligible for funding?
To be eligible for funding, housing projects must deliver social and/or affordable housing. Projects can include the construction or purchase of new homes, the renovation of existing residential dwellings that were otherwise uninhabitable, or the conversion of non-residential properties to residential dwellings.
To be eligible in the first funding round, projects must:
have commenced construction,
have completed construction, or
have demonstrated that they will be ready to commence construction within 18 months after Contract Close.
All projects must reach the operational stage by no later than five years after Contract Close.
Who is eligible to apply for funding?
The following entities are eligible to apply for funding:
Registered charities, where they are either registered community housing providers (CHPs); or have a primary purpose of providing housing to Aboriginal and Torres Strait Islander peoples or to Australian Defence Force members or former members (veterans),
State and Territory Governments and Local Governments,
Special purpose vehicles (SPVs) with one of the other eligible entities (above) as a member.
In the case of SPVs, at least one of the members must be an eligible entity referred to in (a) and (b) above. The other members of the SPV do not need to be eligible entities, and therefore can include developers, investors, financiers, and other entities from the private, not-for-profit and non-government sectors. Housing Australia will require the eligible entity member (for example, if it is a registered
charitable CHP) to demonstrate that they have a meaningful participation role in the governance and operations of the SPV.
What type of funding is available?
The funding products that can be applied for under the HAFFF and NHAF are:
Availability Payments (25-year term),
Concessional Loans (zero interest, 25-year loan term plus any Development Phase where applicable) and
Senior Debt (Processed separately
Upfront capital grants may also be made available by Housing Australia in exceptional circumstances where the proposed housing outcomes meet a high need, but the project is extremely financially challenging, for example housing in remote areas, housing for high need or particularly vulnerable cohorts, or housing for Aboriginal and Torres Strait Islander people.
Key Dates
Funding round 1 closes 22/3/2024
Applicants notified Q3 – 2024
Contracts finalised end Sep 2024
Funding submissions can be made via the Housing Australia portal following the link below. If you would like advice or assistance please get in touch with richard.ziff@solveproperty.com.au