Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Brotherhood of St Laurence &Good Shepherd Youth & Family Services

Housing Roundtable 13 May 2009 notes

Attendance: Brian Howe (chair), Chair of the Disability Housing Trust, DHS & Professorial Associate, Centre for Public Policy, University of Speakers & respondents: MP (speaker), Minister for Housing, Local Government & Aboriginal Affairs Julian Disney (speaker), Professor & Director, Social Justice Project, Faculty of Law, UNSW Kate Colvin (respondent), Policy and Public Affairs Manager, VCOSS Michael Lennon (respondent), CEO, Housing Choices Australia Tony Dalton (respondent), Professor of Urban & Social Policy, Global Studies, Social Science & Planning, RMIT University Participants: Peter Andrews, Housing Manager, Social Housing Toby Archer, Policy & Liaison, Tenants Union Victoria Jane Barnes, Manager, Adult Services, Salvation Army Tony Barnett, Research & Policy Manager, Brotherhood of St Laurence Fr Joe Caddy, CEO, Centacare Melbourne Julia Canty-Waldron, General Manager, Client Services, HomeGround Chris Chamberlain, Assoc. Professor & Director, Centre for Applied Social Research, RMIT Ray Cleary, CEO, Anglicare Victoria Margaret Crawford, Director of Housing and Executive Director Housing and Community Building, DHS Mark Dall, Director National Building & Jobs Planning, DHS Preeti Daga, Community Housing Ltd Erica Flentje, A/Manager, Research & Policy, Hanover Welfare Services Greg Flynn, General Manager, South East Housing Co-operative Ltd Janet Goodwin, Manager, South Port Community Housing Group Inc Ainslie Hannan, Electoral Officer, Federal Member for Melbourne David Hayward, Professor & Dean, Faculty of Business and Enterprise, Swinburne University Heather Holst, A/Manager, Homelessness Policy and Partnership Development Housing & Community Building, DHS Michael Horn, Senior Manager, Research & Policy Centre, Brotherhood of St Laurence Bishop Philip Huggins, Chair, Brotherhood of St Laurence Board Kath Hulse, Director, Swinburne-Monash Research Centre, AHURI Kate Incerti, Team Leader, Housing & Homelessness, City of Port Phillip Helen Kimberley, Research & Policy Manager, Brotherhood of St Laurence

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Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Myra Kitchenman, Yarra Community Housing Peter Lake, Homelessness services, Office of Housing, DHS Kathy Landvogt, Good Shepherd Youth & Family Services Jeanette Large, Director, Victorian Women’s Housing Association Ltd Rob Leslie, CEO, Yarra Community Housing Jeff Lyons, Housing Manger, St Kilda community housing Paul Madden, StCH Alison McClelland, Executive Director, Strategic Policy, Research & Forecasting, DPCD Jac Nancarrow, Homeless Support Services, DHS Stephen Nash, CEO, Home Ground Claire Nyblom, General Manager, Homelessness Services, Melbourne Citymission Mark O’Brien , CEO, Tenants Union of Victoria Cr Frank O’Connor, Mayor, City of Port Phillip Laurel Papamihail, Tenancy Team Leader, SASHS Western Sharon Paten, CEO, Aboriginal Housing Victoria Kristine Philipp, (Coordinator & scribe), Office Manager, Research & Policy Centre, Brotherhood of St Laurence Jenny Plant, General Manager, Crisis Services, Salvation Army Brian Pound, Executive Officer, Community Housing Federation of Victoria Rhonda Pryor, CEO, Ringwood Area Lions Aged Care (RALAC) Barry Pullen (convenor), Policy & Research consultant, Good Shepherd youth & family services Marcus Spiller, Director, SGS Economics and Planning Sarah Toohey, Energy Policy Officer, VCOSS Eloise Tregonning, Hanover Welfare Services Deb Tsorbaris, Executive Advisor, Homelessness Reform, Office of Housing, DHS Anne Turley, CEO, Melbourne Citymission Jim Williamson, Community Services, Brotherhood of St Laurence David Wright-Howie, CEO, Council of Homeless Persons Victoria

Apologies:

Tony Nicholson, Executive Director, Brotherhood of St Laurence Paul Smyth, General Manager Research & Policy Centre, Brotherhood of St Laurence Johan Schefer MP, MLC for Eastern Victoria

Introduction & acknowledgement of traditional owners: Brian Howe

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Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

(Chatham house rules)

Panel speakers

Professor Julian Disney, Director, Social Justice Project,

Faculty of Law, University of NSW

Public - private housing and jobs

(Powerpoint presentation)

Commonwealth funding for housing initiatives in Victoria, NSW & SA, and implementation of Federal & State housing funding as key focus towards four year growth plan (see powerpoint).

$7 billion national funding July 2008 – June 2012; consisting of NRAS funding and growth fund 2008, and stimulus package 2009. Limits regarding State housing.

Past focus on funding available and type of provider – outcomes as principal targets; point of view of residents (not type of provider).

Key definitions – current terminology misleading; ie. social housing term to be junked as it deters private sector involvement. Many new schemes don’t require public tenants. “Hand-out” for welfare reasons gives an impression of highly subsidised housing options. Generic term preferred: Affordable Housing programs. Preference for alternative terminology; eg. “disadvantaged households”. Deep affordability for a long period justifies increased subsidy.

Different types of housing; different sources of funding – interaction; growth target – 72,000.

Stimulus package Commonwealth funding “business as usual” – combination at State & Commonwealth levels. Highly targeted from public housing waiting lists and full government funding.

How to use funding well enough to reduce Treasury opposition to fund housing in future? For example government funding for National Rental Affordability Scheme (NRAS): http://www.qchc.asn.au/Portals/0/Uploads/Affordable%20Housing/nras_prospectus.pdf

Only change-managed housing by non-profit sector, rather than government managed stock.

Type of tenant now – high need; lesson of over-targetting too many deeply disadvantaged tenants – stigma. Reducing public housing waiting lists? Raising income scale? Increases in household income? Social mix households? What is driving housing reform policy? Rent levels? Who will the tenants be? Diversity and flexibility in housing mix? Sale of housing in future? Mentioned in government housing scheme but no specifics. 3

Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Linkage between stimulus package and NRAS. Apprehensive regarding roll-out; $6 bill on 20,000 houses – very low ratio. NRAS realised scope of problem needing private investment. Rent discount most valuable. Creaming effect does not help those most in need.

Drive link between stimulus funding and NRAS funding plus private investment as combined (not in same dwelling) but in housing projects such as two dwellings next door to each other.

Richard Wynne MP, Minister for Housing, Local Government & Aboriginal Affairs

Future implications and the Victorian position

For more than a decade, housing was off the Federal government policy agenda. Now back as urban planning & housing, Anthony Albernese portfolio as Minister for Infrastructure and Local Government. Extraordinary period of government (Federal and State) support; ie. Brumby government commitment in 2006 of $500 million to affordable housing; PM’s homelessness priority and stimulus housing package.

Victorian perspective – NAHA not a show stopper; extra social housing funds for homeless. Commonwealth $1.6 billion funding - $100 million towards renovation of existing stock; remaining funding to housing stimulus package; intervention to rooming houses upgrade $17 million (eg. Gertrude Street accommodation). Marginal local public housing stock funding upgrades to lengthen life of buildings. Refer to: http://www.richardwynne.net/?cat=13

Commonwealth government stimulus aimed at achieving outcomes such as economic, employment (building industry) and social. Use of $1.5 million funding – half for Housing Associations and half for (public) affordable housing.

Infrastructure and planning – decrease in government housing stock; one third regional housing; two thirds urban housing. Round 1 – stock new built (eg. house & land packages – modest funding); Round 2 – 75% of funds to be spent by December 2010 (5,000 units). Housing Associations are important vehicle. Planning framework – private/public housing opportunities; for example projects such as Docklands merchant development (mix of affordable and private housing) via Melbourne Affordable Housing - http://www.melbourneaffordablehousing.com.au/

Inclusionary zoning in practice has sparked the interest of other housing developers. NRAS to play a role with Housing Associations; eg. NRAS and stimulus funding initiatives. Victorian low allocations but funding earmarked for NRAS innovative value-added stimulus package.

Fifty per cent of funding for public/social housing. An example of a public housing project in development in Fitzroy – children’s hub as a Brotherhood partnership with employment opportunities. Housing Association development mix of opportunities and strategic use of stimulus funding. 4

Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Tensions – social justice; managing politics; managing need (ie. housing lists/residents needs). Practical department difficulties such as common waiting lists (State/Federal). Leveraging question regarding stimulus funding issues and impediments.

Victorian Housing policy in development – a new homeless strategy broader than the homeless white paper, refer: http://www.richardwynne.net/?p=526#more-526

Discussion & questions

How to address high need tenants?

All housing providers contribute to high need households; eg. more fruitful to specify an 80-90% target. NRAS should meet high need households; deeply targeted Commonwealth proposal to hand pick mostly disadvantaged tenants rather than SA tenants mix model of high & low need.

Nation building – percentage of public housing for low income & high need tenants?

Length of the number on waiting lists for public housing – who and what needs? Combination of housing funds to generate far more number of dwellings; eg. housing mix of 10,000 medium need and 20,000 high need.

2009-2010 Federal budget comment? First home owners grant extended for 6 months, and support for Pensioners timely but not much else regarding housing.

Leverage and high need single people? $800 million towards Housing Associations to boost their assets – concern regarding good social and prudent economic outcomes. So much funding an so little time. Metropolitan organisations to contribute but not ready?

Opportunity to increase the number of Housing Associations across Victoria and future funding. NSW only using State owned land. Victoria’s Melbourne 2030 plan presents housing projects as statewide challenge. http://www.dse.vic.gov.au/melbourne2030online/

Broader question regarding the four year plan; sub-optimal in the first year or so; auto-stabiliser once shortage of housing types recede; set targets for growth stock; four year approach for better housing outcomes. What contribution to be made to different types of housing complex; eg. South Australian model benchmark across governments, refer: http://www.dfc.sa.gov.au/pub/default.aspx?tabid=438

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Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Respondents

Kate Colvin, Policy and Public Affairs Manager , VCOSS

Unprecedented commitment to housing development, new partnerships and initiatives. Focus on scale of the problem in private housing market.

Affordable decent private housing opportunities disappearing. Cheapest options to rent a room in rooming houses; studio apartments; one bedroom flats. 53% of New Start allowance towards private rent.

Availability problem – single mother and child spending 36% of income on rent and competing for one bedroom apartment with waged singles.

Proliferation of private market rooming houses – standard of accommodation decreasing. Rooming Houses, Victoria accommodate single, disadvantaged males traditionally, now mainstream choice for families and wage earners.

Non-rooming house failure to regulate standards, flats and houses sub-standard at top rents.

Associated problems of poor housing include health issues, security, and safety. Dignity compromised with unsuitable housing such as mental health issues and isolation.

Regulated minimum housing standards compromise supply and fails to account for too many tenants, too few housing opportunities. Housing choices – mix of households; high rents due to demand per tenant profile.

Options: one or two bedroom properties – government to develop a massive housing program ($200 billion); welcome government funding but needs to be realistic in private sector housing.

Or do nothing.

Michael Lennon, CEO, Housing Choices Australia

(Powerpoint presentation)

Thanks to State and Federal government for focusing on housing policy over next 2 years.

Defining the housing problem – what problems to fix? Housing supply gap – measuring housing price bubble towards with government agreeing forces a housing policy response. 35,000 a year under supply of housing.

Who is adversely affected? Quantify number of households regarding availability and shortfall – lowest 200,000+ dwellings short up to 400,000+.

Who is most needy? Government housing waiting list as measure is not realistic. Large numbers not on lists. Many paying private rent as 50% + of income. Failure regarding numbers needing assistance. 6

Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Gap in supply – 1996 – 2008 housing shortfall rising.

Australia is in the lowest portion of affordable housing, second lowest in OECD. Best scenario involves new products, different ways, and government funding commitment. Worst scenario is competing for funds in future.

Engage private market – importance of housing and health. Requires planning for people and community; eg. Melbourne 2030.

Housing Associations increasing stock holdings; maturation; public/private fund matching into the future against existing asset streams; demonstrate as building block to revitalize housing.

Tony Dalton, Professor of Urban & Social Policy, RMIT

(Powerpoint presentation)

What is the context for new housing initiatives? Australian housing system – owner/occupier mainly plus small affordable housing sector.

Market dimensions and housing needs longer term – historical reflection and political push. Long term change in tenure – increasing supply and distribution across tenure. Now 8 million + owner/occupier dwellings. Medium term change in tenure; significant changes in number of owners; number of owners/occupiers post-war; slight increase in private rental; slight decrease in social housing.

Housing market context – real house prices (per Reserve Bank figures March 2008). Differences include real average household income up; increasing household debt; rise in stress owner-occupier market.

Private Rental supply 1996 – 2006 report notes affordable housing supply increased but availability for low income earners decreased (lowest 40%).

Supply of Public housing 1946 – 2002 1978 completion of 20,000 new public dwellings; by 2002 under 5,000, with aged public housing loss of between 6-8,000 dwellings.

Politics behind trends 1940s – 1970s – multiple objectives; large immigration post-war boom; workers housing; slum reclamations; construction innovation; 1950s – home owenership; 1970s – main objective to house low income/disadvantaged people in need; thin base to argue for a turn around.

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Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Future public housing supply? What is the nature of support for new government housing initiatives? eg. NRAS – 50,000 over 5 years; 100,000 over 10 years (small numbers).

Conditions attached? Government expertise demised; civil society/industry groups – strength & depth?

Sustain substantial new supply beyond GFC and recession?

Argue for good housing program design and coalitions to continue initiatives.

Discussion and questions to the panel and respondents & ideas for the future

Housing prices over time – home owners private debt & unemployment increasing; coalition of social housing?

Organisation of home owners as a group – REA industry& Banking industry speak on behalf of home owners. Housing stress surveys indicate increases; no broader base political response regarding hardship provision.

Recent work around identifying risk of default/foreclosure note Australian default rates lower comparatively – USA initial government response per Bush administration prop up banks and property developers with owners coming last.

Role for Housing Association to retain stock, re-profiling debt, shared equity arrangements?

Who speaks for people with mortgages? Banks as part of the problem promoting high risk loans combined with REA’s increasing prices.

Welfare agencies increasingly seeing people to assist with debt management.

Calls for more bank and REA regulation. Tempered by good financial management advice.

Taxation regime – negative gearing?

Unemployment increasing and managing demand of affordable housing. More of a problem over the past 5-10 years. High priority to make best use of funding now for further funding in future.

Household debt increasing – more home purchases than home owners indicates a huge change.

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Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Trade Unions & NRAS housing involvement – Housing Industry Association support; Building Industry support. Competition between housing representative groups; engage with summit groups. HIA moved away from NRAS due to competition from Master Builders Association.

Federal government Minister Swann adopted NRAS with a commitment to change for housing sector.

Change regarding government initiatives?

FaCHSIA far too big as a bureaucracy, including remote Indigenous services. Recommendation to link housing to urban and regional development at a cabinet level for a high level of expert advisors to roll out housing programs; Canberra limited re. housing representatives.

Separate Housing Statutory Authority?

Housing linked with State infrastructure planning – allocation of housing subsidies across authorities (as an independent body).

Housing and urban development – AHURI, Melbourne 2030 (housing, planning & transport); Commonwealth bureaucracy weak on housing in recent past. Debate regarding the future of housing over long period time; future of housing as a more integrated approach. Office of Housing as a principal regulator is not viable long term. Refer to Appendix B of Commonwealth Housing funds – long term sustainable housing across Australia. Similar to COAG Social Housing growth fund, and to the 1995 Commonwealth/State agreement. Refer: http://www.fahcsia.gov.au/sa/housing/pubs/housing/socialhousing/social_housing_init_guideline s/Documents/par6.htm

Transparency fundamental – allocation; dispersion of power; no privilege for particular groups opposed by Office of Housing. Unsustainable housing reform – rapid growth plus short term funding over 2-3 years doing the same old thing. Public housing only ever 6% of total housing stock (4% in Victoria) – 2 -3 times size of major growth strategy.

Private/public social mix?

“Cherry picking” providers – hard stuff versus easy stuff – competition for funds. Housing based on tenant need – same position.

Narrow welfare economy view – minimum government financial outlay based on most “needy”.

Housing problems in Australia widely affecting many different groups; for example people with disabilities support by families.

Define - the range of groups; housing types; changing needs through life transitions; multiple types of housing products needed; flexible income stream; shared equity rather than government institutions holding stock/public tenants for life (current model). 9

Brotherhood of St Laurence and Good Shepherd Youth & Family Services Housing Roundtable 13 May 2009

Crisis of faith – competing needs such as homeless accommodation versus future funding?

Securing housing now plus capacity for further funding in the future.

Space for innovation – mixed models of accommodation including crisis; shared; public.

Inclusionary zoning – capitalising on planning decisions.

SA model – percentage of new built properties back into public housing sector.

Homeless funding (limits) – short-term: current most in need, versus, future needs: forward planning in the welfare sector.

Recycle funding towards NRAS & link public-private housing tenants to generate more places for high need households.

NRAS – institutional investment in Australian residential housing declining; deeply disadvantage in private housing market assisted via non-profit housing providers per SA model.

Real housing prices – land price worth appreciating in value and driving house prices up; link housing policy to broader urban policy – requires national government leadership.

Wrap-up

Barry Pullen noted that this information session exceeded expectations regarding the depth of questions from the audience and speakers, and Tony Nicholson and Michael Yore would have been most pleased with the fruitful exchange. Thanks were noted for the contribution by speakers, respondents and participants.

The scribe’s notes will be produced into a summary of proceedings for online publication on the BSL and Good Shepherd web sites.

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