Homes for Victorians Social Housing and Homelessness Reforms Industry Engagement Plan – May 2017 Minister’s Message Earlier this year I had the pleasure, alongside my ministerial colleagues, to release Homes for Victorians the Victorian Government’s response to the housing affordability crisis across government and across our state. Homes for Victorians responds to the full spectrum of affordable housing issues faced by Victorians. It is a record investment by the Victorian Government in social and affordable housing, changing taxes and concessions, and providing certainty in planning and housing supply to ensure the best housing outcomes for Victorians across the State. It will allow Victorians to have more choice about where they live and enable them to make a home that reflects their priorities and enables participation in work, education and their communities. Homes for Victorians outlines the delivery of the government's biggest ever commitment of support for homelessness services and social housing. It commits $799 million in additional homeless and housing support and $2.1 billion in financial instruments to deliver thousands of homes. These social housing and homelessness reforms contain a broader range of housing and homelessness assistance– including financial products, durable subsidies, increasing social housing supply and a focus on social outcomes – than the current system. They aim to increase and renew social housing supply, improve housing services for Victorians in need and promote stability for low income renters. These aims are supported by a robust policy framework, growth opportunities, greater funding certainty and strategic investment. This approach is more than about building new housing supply. It is a “housing first” approach helping people experiencing homelessness and others vulnerable in the housing market to access stable housing and wraparound services to get their lives back on track and sustain their housing. In order to achieve these aims, a diverse range of partnerships across a range of sectors is necessary. On my behalf, the Department of Health and Human Services will work in partnership with a range of industry and other government agencies, including the Family Violence Housing Assistance Implementation Taskforce and the Rough Sleeping Taskforce to provide more homes for Victorians. I fully encourage all organisations to engage and participate in these reforms and to help more Victorians in need. Martin Foley Minister for Housing, Disability and Ageing 1 Homes for Victorians Social Housing and Homelessness Reforms Industry Partnerships To meet the diverse range of needs for stable housing, we need to work with a broad network of partner organisations. We will work collaboratively with the community housing and homelessness service sectors, private industry and local governments to plan and design the new housing products and approaches. Industry stakeholders will have the opportunity to engage with us in delivering the initiatives outlined. The Industry Engagement Calendar identifies timing of engagement activities. 2 Homes for Victorians Social Housing and Homelessness Reforms Initiatives Description 1. Social Housing Growth Fund The $1 billion Social Housing Growth Fund will increase the supply of social and affordable housing by investing in new housing developments on non-Victorian Government land and through a rental subsidy program of leasing properties from the private market. Consortia will include community housing, private development industry, not-for-profit organisations and local governments. The Fund will be made up of a permanent pool of capital ($1 billion) to be maintained in value over time, and the investment returns will be used as the funding for the programs on an annual, ongoing basis. Indicative modelling suggests that over the next five years, the Fund could support around 2,200 households. 2. Social Housing Pipeline The Social Housing Pipeline will deliver increased social housing on vacant or underused Victorian Government land and by partnering with the community sector to purchase or lease properties for people experiencing homelessness. The Director of Housing will contribute approximately $120 million and land to this program, this includes the Flemington and Stoke- Penola Preston estates. Work is already underway in the Rapid Housing – Homeless program and the upgrade of 50 units in the City Gate Apartments in St Kilda, lessons learnt from these programs will inform the design of future programs. 3. Public Housing Renewal Program The Public Housing Renewal Program will transform ageing public housing estates into vibrant, connected, mixed-tenure neighbourhoods, to be delivered in partnership with the private, non-government and community housing sectors. The Victorian Government will contribute $185 million and land to this program which currently includes nine sites including Brunswick, North Melbourne, Heidelberg West, Clifton Hill, Brighton, Prahran, Hawthorn, Northcote and Ascot Vale with public housing properties to be upgraded in regional Victoria in the second stage of the program. 4. Support for housing associations The Government will increase the financial capacity of the registered housing associations and reduce the perceived risk of investing in social housing. This includes: 5. Management transfer 3 up to $1 billion in loan guarantees over six years, to help secure more competitive commercial finance, including lower interest rates, longer loan terms and improved leverage; and a new $100 million facility, providing low cost, long-term loans. The Director of Housing owns more than 64,000 public housing properties, and 4,000 will be transferred to the registered community housing sector to manage on a long term basis. Management transfers will support growth of community housing sector, create more localised management of communities, which can in turn promote more tailored services that better respond to tenants’ needs and more housing. Affected tenants will continue to pay no more than 25 per cent of income on rent (plus Commonwealth Rent Assistance for which they will be newly eligible). Homes for Victorians Social Housing and Homelessness Reforms Initiatives Description 6. Homelessne ss Reforms Homelessness reforms encourage partnerships between government, community services, homelessness and community housing agencies to intervene earlier to prevent homelessness, improve responses to those entering crisis accommodation and improve wrap-around services and support to people in need. This includes: 7. Victorian Housing Register 4 a $109 million package of new and expanded initiatives to support people experiencing or at risk of homelessness to remain in or access stable housing; an additional $33 million to extend private rental assistance to 4,000 Victorians to access or maintain private rental housing; and the $9.8 million Towards Home package to provide targeted responses to those sleeping rough in the City of Melbourne while a long term strategy for addressing rough sleeping across Victoria is developed. The new Victorian Housing Register will bring together all public and community housing waiting lists into a single place, providing a simple, fair and easy way for people to access a range of social housing options. Participating organisations will need to allocate at least 75 per cent of their social housing vacancies to priority applicants on the register which includes older Victorians, people with a disability, and women and children escaping family violence. Note this will be a condition of eligibility for participation in the new social housing funding initiatives. Homes for Victorians Social Housing and Homelessness Reforms Industry Engagement Calendar Month April–June 2017 Initiative Targeted Groups Activity Indicative Date Community housing and homelessness agencies Briefing on Victorian and Federal budget outcomes, the industry engagement plan and further detail on upcoming opportunities May Community housing agencies Market sounding on fund design April – May Market sounding on land availability May Private Sector Information paper & online questionnaire June Local Government Community housing agencies Announcement of shortlisted proponent and release of RFP for 52 land sites April Private Sector Tender process for Flemington and Stokes Penola estates April - June Private Sector Tender process and market sounding for stage 1 commences April - June Local Government Local resident consultation, Council briefings and workshops April - June 4. Support for housing associations Community housing agencies Market sounding April – May Information paper & online questionnaire June 5. Management transfer Community housing agencies Market sounding April – May Information paper & online questionnaire June 6. Homelessness reforms Community housing and homelessness agencies Release of EOI, industry briefing, tender evaluation on Accommodation for the Homeless and for Rooming Houses April - June Private Sector Test launch site models for Transitioning from prison program Minister Foley Briefing Private Sector 1. Social Housing Growth Fund 2. Social Housing Pipeline 3. Public Housing Renewal Program Community housing agencies Financiers EOI for Accommodation responses for young people experiencing homelessness particularly young people transitioning from out of home care and youth justice services Consultation on Situation Appraisal, which will inform long term Rough Sleeping Strategy Procurement process for first stage of relocatable housing initiative Service design workshops with youth 5 May May - June May May May - June Homes for Victorians Social Housing and Homelessness Reforms Month Initiative Targeted Groups Activity Indicative Date refuge service providers Consultation on draft allocations framework and commence negotiations with community housing agencies about allocations from the Register May – June 7. Victorian Housing Register Community housing & homelessness agencies Month Initiative Targeted Groups Activity Indicative Date July – Dec 2017 1. Social Housing Growth Fund Community housing agencies Pre EOI briefing July Release of EOI Sept Private Sector Launch Rental Subsidy Program Oct Community housing agencies Release of Flemington RFP, briefings and assessment of tenders July- Dec Private Sector Further tenders to be announced Private Sector Tender process for stage 1 and receipt of tenders July - Dec Planning Advisory Committee Process July- Dec Local Government 2. Social Housing Pipeline 3. Public Housing Renewal Program Community housing agencies Local Government 4. Support for housing associations Community housing agencies Pre EOI briefing July Release of EOI briefing Sept Financiers Release of RFP Dec 5. Management transfer Community housing agencies Pre EOI market briefing Jul – Aug Release of EOI Sep 6. Homelessness Reform Community housing and homelessness agencies Announcement of successful provider/s rooming house upgrades and Accommodation for the Homeless July Private Sector Procurement process for assertive outreach program June - July Procurement process for chronic homelessness flexible support packages June – July Rough Sleeping taskforce 7. Victorian Housing Register 6 Community housing & homelessness agencies Announcement of successful providers for Accommodation responses for young people experiencing homelessness particularly young people transitioning from out of home care and youth justice services July Agencies join the Victorian Housing Register with assistance from Department of Health & Human Services July - Nov Homes for Victorians Social Housing and Homelessness Reforms Month 2018 Initiative Targeted Groups Activity Indicative Date 1. Social Housing growth fund Community housing agencies Release of Growth Fund RFP tender process Feb Evaluation of tenders and conclude best and final offer negotiations with successful consortia Jan – May Evaluation of tenders and conclude best and final offer negotiations with successful consortia Jan – May Open tender process Feb - ongoing Release of RFP and assessments of tenders Jan - April Private Sector Local Government 2. Social Housing Pipeline Community housing agencies Private Sector 3. Public Housing Renewal Program Private Sector 4. Support for housing associations Community housing agencies Community housing agencies Financiers 5. Management transfer Community housing agencies 6. Homelessness reforms Community housing and homelessness agencies 7. Victorian Housing Register Community housing and homelessness agencies Funding roll out and evaluation of launch sites Victorian Housing Register is fully operational with all waiting lists merged into one waiting list Early 2018 Early 2018 Next Steps We will actively engage all industries and provide timely information on new business opportunities and reforms. The dates are subject to change and we will keep you informed. We are setting up a central industry stakeholder database and intend to send regular updates to registered stakeholders. To register your interest to be on this database send us your organisation’s contact details to [email protected] More Information To learn more about the Homes for Victorians - Social Housing and Homelessness initiatives visit the Homes for Victorian’s page on the Department of Health and Human Services website 7 Homes for Victorians Social Housing and Homelessness Reforms <https://www.dhhs.vic.gov.au/homes-for-victorians>.To learn more about Homes for Victorians and see the full strategy visit the Homes for Victorians website <http://www.vic.gov.au/affordablehousing> 8
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