Common Ground: common approach? Dr Tony Gilmour and Georgie Wheadon Elton Consulting

Destined New York, New York Never let it be said Australia is slow Established by Roseanne Haggerty in to follow international trends. From 1990, Common Ground now provides the mean streets of New York to an over 3,000 permanent supportive inner-city neighbourhood near you, housing units for chronically homeless people and single, low-income earners the Common Ground homelessness in New York City. The scale of projects initiative is sweeping the country. is impressive. The Times Square Hotel Looking beyond the passion of its in mid-town Manhattan houses 652 high-profile promoters, are we creating residents in a lavishly restored art a sustainable model that will work in deco building. In contrast to spartan our local context? features typical in homeless shelters, Homelessness remains a major, Common Ground buildings often have seemingly intractable problem in grand lobbies, marble staircases and Australia. In recent years there has been ballrooms. increasing innovation to try and find solutions to chronic homelessness, both Common Ground’s six from government and the traditional principles keepers of Australian homelessness • Permanence: there is no time services – the not-for-profit sector. limit on leases for formerly The Rudd government identified homeless tenants. homelessness as national priority, with • Safety: a 24-hour concierge its 2007 White Paper ‘The road home’ restricts entry to the building. providing a strategic framework. The states have shown similar enthusiasm to • Supportive: social services are address homelessness, launching many provided on site at no cost to initiatives. the tenant. • Integrated: projects normally While provision of temporary shelter house a mix of both formerly has long been a feature, more recent chronically homeless tenants approaches to homelessness have and low income earners. looked at providing far greater levels of support and over longer periods. This • Affordable: rent is charged to has come from the recognition that all tenants at less than 30% of people experiencing homelessness income. often face a series of challenges that • Quality: Buildings incorporate cannot be addressed by providing a sophisticated design and high bed for the night. Common Ground is environmental ratings. one of the new wave of initiatives joining the dots between social support and stable housing. page 16 HousingWORKS, Volume 8, Number 3, August 2010 Common Ground: common approach?

the US Common Ground’s financing is In 2005 South Australia was the first under-pinned by widespread use of the state to adopt the Common Ground Federal Low Income Housing Tax Credit model following Roseanne Haggerty’s scheme. Though fiendishly complicated, time in Adelaide as their ‘thinker in the scheme essentially offers tax breaks residence’. The first property opened in to investors to part-fund the provision of Adelaide in 2007 with 39 units offered new affordable housing for people on to an equal mix of formerly homeless low incomes. people and low income earners. State and local council grants covered the Innovations in New York City have been $1.9 million land costs while money eagerly followed elsewhere in North from Treasury, construction discounts America, from New Orleans to San from Grocon and their contractors Francisco and Connecticut to Toronto. and philanthropic donations from Several schemes have been developed Santos supplemented the majority of by Haggerty’s team, others simply other expenses. Donations in cash adopt the Common Ground brand and in-kind from local businesses while some copy the ideas and use paid for furnishing fit-out costs while their own moniker. Internationally, there government funding provides social have been Common Ground initiatives services. in Japan and the Arlington Project was With buildings opened or in recently opened by London Mayor Boris development in five states (see table), Johnson. and the formation of the Australian Common Ground Alliance, it seems Common Ground Down Under Common Ground is well and truly Of all countries, Australia has been making its mark on Australia. the one most closely implementing Approaches involve partnerships with the Common Ground approach. federal and state governments, social We spoke to Roseanne Haggerty in services groups, community housing New York City, and asked her why. organisations and developers who Her view was that Australians are construct buildings at cost price. The The Prince George, Manhattan, provides 416 enthusiastic early adopters, willing flavour of each project varies between units for formerly homeless people and those to learn from best practice overseas jurisdiction, with different tenant mixes, on low incomes. Part of the running costs is met by renting out the meticulously restored Prince and in other capital cities. The timing scales, funding sources, ownership George Ballroom. (Photo courtesy of Common and on-going service provision. Ground NY). was right, with a federal government keen to spend stimulus monies. Lastly, Trans-Pacific contrasts Befitting the country of its origin, personalities played a role. Dedicated Can something designed for the Common Ground mixes philanthropic individuals from each have sought troubled streets of New York City really zeal with hard-headed finance. Social out the model and worked to make be transported to Adelaide and other activists like the way projects help it fit to their organisation’s need and Australian cities? Has something been people in dire need; corporate types policy environment. Therese Rein, lost in translation? take comfort from studies showing still described on Common Ground’s Common Ground is cheaper in the website as ‘Australia’s First Lady’, is In Australia, Common Ground initiatives long term than temporary homeless an enthusiastic and well-connected in each state are governed by different shelters. By moving people into stable supporter. organisations, though all are part of the accommodation, major amounts of ‘Just an observation from an American Australian Common Ground Alliance. money can be saved on hospital bills who loves Australia. Ideas do tend to Each state’s approach is different and incarceration costs. Therefore travel very fast there in a way that’s not as they have had to adapt to local Common Ground is a homelessness as clearly the case here in the States … policy and funding environments. This option favoured by both the left and The state to state knowledge transfer need not be a problem, as even in North America not all developments right of politics. that’s observed in Australia just seems are through a single organisation. like an exemplary practice that we US projects harness financial support However, state-based Common should be mindful of here’. from a broad spectrum of investors, Ground providers seem pre-destined not-for-profit organisations, government Roseanne Haggerty, founder of to operate on a small scale with few grants and wealthy patrons. However, Common Ground economies of scale. When all current

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‘Just an observation Common Ground on Franklin Street, Adelaide. Built above the new bus station, the project provides 39 units. from an American who loves Australia. Ideas do tend to travel very fast there in a way that’s not as clearly the case here in the States … The state to state knowledge transfer that’s observed in Australia just seems like an exemplary practice that we should be mindful of here’.

Australian projects are complete they credit backed schemes arrange both have seen some huge transformations. will provide a total of fewer units than a their capital and operational finance Feedback across the board has shown typical single building in New York City. from the start and do not require on- tenants get an immense psychological going external subsidy. boost from the sense of permanency Perhaps the most significant contrast Common Ground offers.” between approaches in the two In Australia, finding funding requires countries is with finance. While both a great deal of flexibility, effort and Conclusions involve a mix of public, private and enthusiasm from Common Ground It is gratifying for Australia to be praised philanthropic funds, the balance is staff and advocates. Alternative funding as a nation of early-adopters. With different. The US model while complex sources must be sought for the most Common Ground we are riding the crest – with up to twelve funding sources per essential and expensive aspect of of the wave, just behind North America. project – has a consistent core of tax the Common Ground model – the However, when making comparisons, credit funding that has proven relatively 24-hour concierge. In New York City the devil is in the detail. Despite stable despite a jolt during the global the rent from lower income tenants differences in how Common Ground financial crisis. is sufficient to subsidise this service type schemes work across US cities, Tax credits have been in place since and many buildings are large, which they are all supported by an established 1986 and enjoy bi-partisan support, give economies of scale. The question tax credit scheme and deeply-ingrained even through the Reagan and Bush therefore remains – is this model philanthropic tradition. eras. Political consensus has not been a sustainable in the long term in Australia? While Australians as individuals are feature of Australian housing policy over Being the new kid on the block, the generous, major corporate philanthropy the last two decades. Common Ground approach also is muted. Grocon and Santos are strong Common Ground in Australia relies remains untested in Australia. Common supporters of Common Ground, though much more on public grants than in the Ground Adelaide plans an evaluation to being the exception rather than the US. This need not in itself be a problem research the long term social impact of rule. Most finance for schemes across if there is agreement on approaches the model. Until then the approach relies Australia has been from the public and funding is plentiful. In an era of largely on gut feeling, personal drive and purse and linked to the Nation Building budgetary restraint, with no further for many a passion to help homeless Stimulus scheme. This is unlikely to be stimulus money, the funding for both people. Sue Crafter, CEO of Common sustainable across the economic and construction and on-going funding Ground South Australia explained: “It political cycle. costs looks in peril. By contrast, US tax doesn’t work for every tenant – but we

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State Details Finance Delivery

SA 39 units at Franklin Street, Adelaide; 60 South Australian Government; Common Ground Adelaide are units at Light Square, Adelaide and funding some COAG and Treasury grants. the developer, building owners, secured for 40 units at Port Augusta. The $1 million and non-payment of land tenancy manager and provide first Common Ground initiative in Australia, from Santos. social services. launched in 2004.

Vic. Elizabeth Street: 161 units under Victorian Office of Housing Social services provided by Home construction for 131 homeless tenants and and COAG funding; Grocon Ground Services; Yarra Community 30 low income tenants. Launched 2007 construction discounts used Housing are the developer, building with plans for 5 more developments over for Yarra Community Housing’s owners and tenancy managers. 10 years. contribution; philanthropic donations; Victorian Property Fund money for green building practices.

NSW The Camperdown Project: 104 units, inner- Housing NSW and COAG grants; Mission Australia manage city Sydney. Launched 2008, due to be Grocon construction discounts. tenancies; Mercy Foundation completed 2011. provide social services.

Qld Common Ground Queensland: 149 units Commonwealth Nation Building Micah Projects provide social passed conceptual design stage, proposed Stimulus scheme funding; Grocon services; tenancy managers to be for completion in 2011-2012. construction discounts, COAG confirmed. funding.

Tas. A Place to Call Home Hobart: 25 units To be confirmed. Common Ground Tasmania. announced and funding secured. A second development at Campbell St is planned.

Common Ground is a classic example off demonstration projects, we need of learning through networks rather a systemic approach to supportive than a coordinated policy program. homelessness initiatives. This Ideas pass quickly between cities and may encompass a National Rental countries, through personal contact and Affordability Scheme (NRAS) style tax web-based information. The ‘Common credit, or perhaps a modification of Ground’ designation is akin to a brand, NRAS to target homelessness. These or perhaps a franchise. When we schemes should be carefully evaluated questioned Roseanne Haggerty on this so we can learn from what works well she described it as “franchising in an and what doesn’t here in Australia. open source way, working with people If America can achieve bi-partisan who share the mission and want to learn support for housing and homelessness, from each other.” The network provides why can’t we? We have seen too rapid knowledge, moral support, but no a change of ‘first ladies’ in Australia dollars if a project runs into trouble. during 2010 to rely solely on dedicated To prevent current Australian individuals to drive homelessness projects being no more than one- innovation. Schemerhorn House, Brooklyn NY provides 217 units, half for homeless people and half for those in low paid jobs, especially in the entertainment industry. (Photo courtesy of Common Ground NY).

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