Super interest in affordable housing

Industry super funds are showing increased interest in investing in affordable housing and are expected to support calls from the Community Housing Industry Association for state and federal governments to offer subsidies to make low-cost housing feasible as a long-term investment.

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NHFIC pandemic update

News from the National Housing Finance and Investment Corporation (NHFIC)

The NHFIC team has been in regular contact with our community housing clients over the past weeks to offer support and gather feedback on strategies being adopted to address COVID-19 related circumstances. We appreciate the challenges that many of you are facing in ensuring continued provision of services and support to tenants, ongoing business functions and protecting the health and wellbeing of your staff.

It has been encouraging to hear in these discussions that the reduced financing risks and costs provided by NHFIC funding has been beneficial for weathering the impact of COVID-19. I’m pleased to advise we’re currently working towards the issuance of our third bond in the coming months, which will support more low cost, long term loans to CHOs.

Our team have also been engaging with state registrars to coordinate communications with CHOs. We will continue to communicate with registrars on a regular basis to ensure the community housing sector continues to be supported during this time.

The National Housing Infrastructure Facility (NHIF) is another way we can support CHOs as the need for more social and affordable housing increases. The NHIF is a $1 billion facility that provides finance for eligible infrastructure projects that will unlock new housing supply. It offers concessional loans, grants and equity finance to help support critical housing-enabling infrastructure, including electricity and gas; water, sewerage and stormwater; transportation (including roads) and telecommunications.

For more information, you can email our team or contact us on 1800 549 767.

– NHFIC CEO, Nathan Dal Bon

NHFIC’s new financial modelling tool

A new financial model is now available on the NHFIC website. The financial model was developed in consultation with community housing organisations to provide a uniform framework that can be used to deliver historical and forecast financial information to NHFIC during the loan origination and management processes.

The Microsoft Excel-based tool has been designed to accommodate common activities undertaken by the community housing sector and can accommodate an actual/forecast period of up to 30 years.

Any feedback on the new financial model can be sent to inquiries@nhfic.gov.au.

CHOs interested in applying for a NHFIC loan can complete the eligibility checker on its website.

NHFIC offering bushfire support

The National Housing Finance & Investment Corporation has pledged to support Community Housing Organisations efforts to help in the recovery process for bushfire affected communities, given the scale of the disaster.

Contact NHFIC for details.

NHFIC first home deposit scheme

First Home Loan Deposit Scheme

The banks have registered 3,000 potential first home buyers under the First Home Loan Deposit Scheme since it started on January 1, according to NHFIC.

The remaining 7,000 Scheme places for the current financial year will be available from 1 February 2020 when potential applicants will have a panel of 27 lenders to choose from.

NHFIC is releasing 10,000 First Home Loan Deposit Scheme guarantees this financial year. Another 10,000 places will be available from July 2020.

The staged release of Scheme places provides first home buyers with the opportunity to gather the necessary financial information to support their application and enables a broader choice between the major banks and smaller lenders. Twenty-five smaller lenders join the Scheme’s lending panel on 1 February.

Information on eligible properties and settlement dates can be found on the NHFIC website.

NHFIC update

In what has been a full year for NHFIC, the Board approved over $900 million of loans to 16 community housing organisations supporting the financing of more than 3800 social and affordable homes and over 1000 new dwellings.

The issuance of two bonds totalling $630 million during the year enabled NHFIC to provide lower cost, longer term loans to community housing organisations around the country with the second NHFIC bond issued last month supporting loans to seven CHOs in Victoria, NSW, Queensland, Western Australia, and South Australia.

NHFIC’s 2018-19 Social Bond Report details the use of proceeds from NHFIC’s inaugural  bond issuance in March 2019. The report demonstrates the positive impact that NHFIC’s transformative financing is achieving in improving housing outcomes for Australians.  You can view the report here.

New financial modelling tools

During the year, NHFIC launched two new financial modelling tools to assist CHOs. Workshops and training for the Project Finance Model will be available in early January, while workshops for the Financial Model will follow in February.

Capacity Building Program

NHFIC has also extended the $1.5 million Capacity Building Program to Tier 1 CHOs. The program provides access to professional advisory services to assist CHOs with the upfront work required to support a NHFIC loan application.

First Home Loan Deposit Scheme

Finally, NHFIC is looking forward to the launch of the First Home Loan Deposit Scheme on 1 January 2020, a new Australian Government initiative that will help first home buyers on low to moderate incomes enter the housing market sooner. Fact sheets and eligibility criteria can be accessed on the NHFIC website.

Check out NHFIC’s new website featuring a number of product fact sheets and case studies.

  • article courtesy of NHFIC