Homes for Homes is opening its first-ever funding round for projects that will increase the supply of social and affordable housing, with $300,000 available in Victoria and $200,000 available in the ACT.

Homes for Homes is an initiative of The Big Issue, established to tackle the chronic shortage of housing – one of Australia’s most pressing social issues – by creating a new, sustainable funding stream.

From Monday 15 January, experienced social and affordable housing providers, property developers and other not-for-profit and private sector organisations in Victoria and the ACT are invited to apply for funding.

Under the Homes for Homes model, money raised in each state or territory will be used to support housing projects in that state or territory.

Homes for Homes CEO Steven Persson said this announcement marks a significant milestone for Homes for Homes.

“With initial support for Homes for Homes far exceeding our expectations, we are delighted to release the first funds ahead of schedule,” Mr Persson said.

“Everyone has the right to safe and secure accommodation, yet we know more than 105,000 people are without a home and 1.5 million households live in housing stress. No one government, organisation or individual can close this gap along alone.

“Thankfully, as the response to Homes for Homes has shown, there’s an enormous appetite in the Australian community to collectively fix this problem.”

Homes for Homes provides a way for the entire community to help tackle the housing issue, by raising funds through donations from property sales.

Homeowners and other property stakeholders voluntarily register with Homes for Homes, agreeing to donate 0.1 per cent of their property’s sale price to the initiative at the time of sale (for example, a $500,000 sale results in a $500 donation).

The Homes for Homes legal mechanism stays on registered property titles, prompting a donation each time the property is sold in the future.

Mr Persson said: “Australia has a shortage of 200,000 homes. This figure is projected to grow to more than 600,000 homes by 2030.

“Homes for Homes is a generational-change model. It has the potential to raise more than $1.8 billion over 30 years, which will make a significant difference to the supply of social and affordable housing.”

Recipients for this funding round will be assessed by an expert, industry-based advisory group in both Victoria and the ACT.

Homes for Homes is taking a flexible approach to the type of housing projects it will fund and is seeking applicants that will best address the housing issues in their area.

Applications are open from 15 January to 26 February. For more information, visit homesforhomes.com.

(Content courtesy of The Big Issue)