The National Housing Finance and Investment Corporation (NHFIC) and the NSW Land and Housing Corporation (LAHC) have agreed to fund $100 million in low-cost loans and grants through the $1 billion National Housing Infrastructure Facility (NHIF) for the development of affordable housing.
The agreement forms part of the federal government’s “Reducing Pressure on Housing Affordability” program, announced in the 2017-18 budget, which aims to finance infrastructure projects to boost the supply of community housing.
Following the announcement, Federal Minister for Housing and Assistant Treasurer Michael Sukkar said the $100-million funding boost would also support the broader economic recovery effort in the wake of the COVID-19 crisis.
“By working together, not only are we delivering hundreds of new social and affordable homes throughout Sydney, we are also supporting jobs and economic activity as we get through the COVID-19 pandemic,” Minister Sukkar said.
“The Morrison government is making significant, ongoing investments into social and affordable housing. And to date, the NHFIC board has approved a number of new NHIF projects, which will support the delivery of 2,800 new dwellings.”
NSW Minister for Water, Property and Housing Melinda Pavey added that the deal would help revive the state’s residential property market.
“This agreement will expedite new social and affordable housing construction within LAHC’s current Communities Plus program and will help further stimulate Sydney’s residential construction sector during the COVID-19 pandemic,” Minister Pavey said.
“By delivering the roads, water, sewerage, electricity and telecommunications these developments need, 781 new social and affordable homes will be built at significant development sites throughout Sydney.”
This latest agreement is in addition to the $1.2 billion in bonds administered by the NHFIC through its Affordable Bond Aggregator, which, according to the federal government, has facilitated the development of more than 1,700 new and 5,400 existing homes.
The government stated that such funding arrangement has saved community housing providers over $170 million in interest payments over the term of the loans.
NHFIC is also currently administrating the second phase of the federal government’s First Home Loan Deposit Scheme, which provides government-backed guarantees for first home buyers unable to secure a 20 per cent deposit.
[Related: NHFIC finalises $562m bond issue]
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Charbel Kadib is the news editor on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.