Social homes missing in Victorian budget
Community Housing Industry Association Victoria (CHIA Vic) has warned of an ongoing housing crisis after the budget, released on Tuesday, contained no new spending commitments from the state on social housing.
The budget contained $249 million in new spending on housing – fully funded by the Commonwealth Government.
“Victoria is facing a desperate crisis, with 146,000 families and individuals needing social housing – a figure that will only grow without urgent investment,” CHIA Vic chief executive Sarah Toohey said.
“We’re pleased to see $60 million to continue essential homelessness programs, but you can’t solve homelessness without homes.
“Building our way out of the crisis is the only real solution.
“We have to return to a shared funding arrangement between the Commonwealth and State Governments to make sure that all levels of government are pulling in the same direction – to solve this housing crisis,” Sarah Toohey said.
The Big Housing Build continues to add new homes to our social housing stock, with budget papers showing more than 2,000 new homes will be added next financial year. This will still leave Victoria with the lowest proportion of social housing in the country.
In its budget submission, CHIA Vic urged the government to spend $6 billion to increase the Social Housing Growth Fund to build nearly 20,000 homes over the next decade.
“Not investing in social housing is a false economy. Safe and secure housing reduces costs in so many other portfolios including health, justice and support services.
“With the Big Housing Build drying up in 2028, we need the Victorian Government to invest in an ongoing pipeline of social housing.
“Building on the legacy and ambition of the Big Housing Build would ease the crisis while creating the essential infrastructure Victoria needs for the future,” Sarah Toohey said.
Contact: Kathleen Ferguson 0421 522 080
Quick facts on community housing:
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Run by not-for-profits: community housing organisations reinvest revenue to provide more homes and services to renters
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Stretch the taxpayer dollar further: community housing organisations can build homes cheaper due to their charitable status, asset bases and co-contributions
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Form of rent capped housing: community housing rent is set at below-market rates, capped at no more than 30% of household income, or 75% of the market rent, whichever is lowest
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Transparent and accountable sector: community housing organisations are monitored against strict performance standards to protect renters, overseen by an independent and dedicated regulator in the Housing Registrar
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Happier tenants: 75 percent of community housing renters are satisfied with their housing services compared to 67 percent of public housing renters