Annual Report 2019 Manager Partnerships and Support Coordination Sarah Kingsbeer with Bridge Housing tenants Priscilla and Jenny

Bridge Housing’s Vietnamese Tenant Advisory Group and staff Cover: Bridge Housing tenants Cholok and Zorica Contents About this report 2 Performance highlights 4

Bridge Housing profile 6

Our portfolio 8

Our journey 9

Chairman’s report 10

Chief Executive Officer’s report 12

Case Study: Joanne 16

Bridge Housing on social media 17

Spotlight 1: Social Housing Management Transfer Program Transition Project 18

Housing affordability 20

Our advocacy work 24

Spotlight 2: STEP to Home 26

Operating environment 2018–19 28

How we operate 33

Our Board of Directors 34

Our executive team 36

Spotlight 3: Strategic asset management 38

Our people 40

Our governance 46

Spotlight 4: A holistic approach to employee wellbeing 52

Operations report 54

Spotlight 5: A Bridge to Work 64

Development report 66

Spotlight 6: Affordable housing and the planning system in NSW 70

Finance and Corporate Services report 72

Financial summary 2018–19 78

Bridge Housing in the community 84

Key facts 86

Acknowledging our partners 89

Glossary and abbreviations 90

Appendix 1: Our performance 92

Index 100

Bridge Housing Limited Annual Report 2019 1 About this report

The Bridge Housing Limited Annual Report for 2019 is a summary of our operational and financial performance during the 2018–19 financial year. It explains how we work to improve lives and strengthen communities through the provision of affordable housing and quality services.

The 2019 Annual Report is a This report is primarily targeted to the following audiences: measure of our performance Our tenants, applicants and recipients of our housing management services for 2018–19 against the members of Bridge Housing Limited federal, state and local government partners targets in our Strategic Plan private sector partners who help us deliver more afordable housing 2018–2021, and helps us assess support partners that provide services to our most vulnerable tenants, and how well Bridge Housing is Bridge Housing staf members who deliver our services. performing and where we need to improve. Our Business Acknowledgement of Country Our Mission Plan 2018–19 contains further Improving lives through details about these targets. afordable homes and quality services Bridge Housing acknowledges the Our Vision Gadigal, Darug and Gai- mariagal people as the A dynamic organisation, traditional custodians recognised for excellence of the lands on which we in meeting housing operate and we pay our need, improving respects to their Elders resident wellbeing and both past and present. governing responsibly

Bridge Housing Limited Head Ofce: Level 9, 59 Goulburn Street, Sydney NSW 2000 Northern Beaches Ofce: Level 1, 660–664 Pittwater Road, Brookvale NSW 2100 Postal address: PO Box 20217, World Square NSW 2000

Follow us Telephone: (02) 8324 0800 ABN: 55 760 055 094 Website: www.bridgehousing.org.au ACN: 135 570 955 Email: [email protected] ISBN: 978-0-6481986-2-8

2 Bridge Housing Limited Annual Report 2019 Our Strategic Plan 2018–21 Our Values Every three years we develop a strategic plan to help us achieve our mission. It Socially responsible identifies the strategic objectives and critical factors for success for Bridge Housing, We are a socially responsible which are implemented through our annual business plans. organisation with a commitment The strategic objectives for our Strategic Plan 2018–21 are: to social inclusion and improving the lives of the people and Providing quality homes and housing services communities we support. Growing sustainably to meet afordable housing needs Supporting our people and improving workplace wellbeing People-focused Governing and managing efectively We are a people-focused Engaging our partners and enhancing our industry leadership. organisation. We keep our applicants and residents’ needs The 2019 Annual Report details our We also: organisational performance against at the core of all activity and lease 610 properties from our Business Plan objectives for decisions, empathise with their the private rental market needs and deliver our services 2018–19, which are aligned with and with fairness, respect and progress our Strategic Plan 2018–21. manage 233 properties on behalf of other organisations and individuals sensitivity. We value and support This is the first year in which acquire and develop new properties our employees to enable them we report on our activities and to perform at their best and outcomes delivered under the provide responsive and planned achieve their full potential. Strategic Plan 2018-2021. maintenance services on a property portfolio valued at $710 million.1 Our services Committed and passionate We provide services across the We are committed and We utilise our property portfolio to spectrum of social and afordable passionate and put our hearts provide long-term accommodation for housing. We meet the needs of the and minds into our work. We people on low-to-moderate incomes. most disadvantaged people in the value and encourage innovation Bridge Housing has a portfolio of community – those who require and continually seek to 2,334 properties and we provide safe assistance to maintain a sustainable improve our performance. and secure homes for over 4,000 tenancy – by working with more than people. We own 500 properties and 20 support partners under formal manage 868 properties owned by the agreements and many more services Build relationships NSW Land and Housing Corporation that support individual tenants. We build relationships based (LAHC), the state housing authority (see Acknowledging our partners on trust and respect to create within the NSW Department of Family on page 89 for more details.) positive outcomes for the people and Community Services (FACS). and communities we serve.

Professionalism and integrity We act with professionalism and integrity. We take responsibility for our decisions and actions and provide a consistent high- quality service. Our decisions are based on sound judgment and our culture engenders good governance, transparency, and honesty.

1 This figure is based on an average value of $519,000 (as per recent portfolio valuations) multiplied by the number of Bridge Housing properties and properties managed on behalf of the NSW LAHC - a total of 1,368 properties. Leasehold and fee-for-service properties are excluded.s

About this report 3 Performance highlights

Bridge Housing delivered another successful year in 2018–19. We continued to improve the business and our service delivery as we finalised our preparations for large-scale growth through the transfer of 1,228 properties in the Northern Beaches under the NSW Government’s Social Housing Management Transfer Program on 5 August 2019. We commenced the first year of our Strategic Plan 2018–2021, which we delivered through our 2018–19 Business Plan. In 2018–19, against our 22 goals to deliver the 2018–19 Business Plan, Bridge Housing established a total of 61 action items. Of these, 47 (77 per cent) were completed. Eleven were in progress at 30 June 2019 and four were either deferred or considered no longer relevant.

Our performance highlights are a Growing sustainably reviewed our Total Rewards summary of our key achievements to meet affordable program, including development from our Business Plan 2018–19. 2 housing need of a new Remuneration Strategy, to ensure Bridge Housing is A detailed report on our performance Our portfolio increased from 2,244 well placed to attract and retain against our Business Plan 2018-19 properties in June 2018 to 2,334 our talented employees, drive is in Appendix 1 on page 92. properties at 30 June 2019. performance, and reward outstanding Key highlights of 2018–19 include: employee contributions Providing quality delivered our fourth and final delivered and embedded Bridge homes and development of 14 seniors’ homes at Housing’s leadership program, 1 services Clemton Park under the NSW Land Strive, Accelerate and Flourish, and Housing Corporation’s (LAHC) to support our employees during Key highlights of 2018-19 include: Project Management Program change and prepare Bridge transitioned the management of (See Development report on page 66) Housing for significant growth 1,228 social housing tenancies on secured 49 new afordable and reviewed and refreshed our the Northern Beaches under the private rental properties through Diversity and Inclusion Policy to NSW Government’s Social Housing our not-for-profit real estate agency, ensure that diversity and inclusion Management Transfer Program HomeGround Real Estate Sydney is an integral part of Bridge (SHMTP) (See Spotlight 1 on page 18) Housing’s operating culture 11 x one-bedroom afordable implemented the first year of the housing units in Leichhardt vested supported our Aboriginal and three-year Supported Transitional by the NSW Government to Bridge Torres Strait Islander employees by introducing three days of paid Engagement Program, STEP to Housing (See Spotlight 6 on page 70) Home for long term rough sleepers, Cultural and Ceremonial Leave to purchased 8 x two-bedroom units in providing housing for 52 people, in enable employees to participate Punchbowl, through the Department partnership with Women’s Housing in cultural activities and meet of Family and Community Services’ Company and Metro Housing their cultural obligations Community Housing Leasing and Neami Australia, our support launched the CareerTrackers Program surplus and planning provider (See Spotlight 2 on page 26) internship program to support contributions, which are due for Aboriginal and Torres Strait implemented the first year of our settlement in August 2019. three-year community building Islander tertiary students through strategy, Building Bridges 2018–2021 their studies into employment (See Operations report on page 54) Supporting our people implemented the first phase of and improving our a new payroll system consisting conducted the Annual Tenant workplace Satisfaction Survey 2018–19, achieving 3 of a new integrated Human 87 per cent overall tenant satisfaction Key highlights of 2018–19 include: Resources Information System (HRIS). The HRIS will become conducted our bi-annual secured new ofce space for our fully operational in 2019-20. Customer Service Benchmarking Head Ofce in the City of Sydney to determine actions for service and our new ofce in Brookvale for delivery improvement operations in the Northern Beaches Governing successfully implemented our upon completion of the SHMTP and managing effectively Business Operating Model maintained an overall engagement 4 to improve service delivery rate of 81 per cent in our 2019 Bridge Housing continued to across the organisation Employee Engagement Survey, maintain a very strong governance delivered nearly 6,500 responsive, equal to our 2018 result during culture and advanced its leadership planned and cyclical jobs at a period of significant change in the community housing a total cost of $4.8 million through preparation of the SHMTP and not-for-profit sectors.

4 Bridge Housing Limited Annual Report 2019 Key highlights of 2018–19 include: delivered an operating EBITDA of $3.9 million in 2018–19, compared to $2.5 million in 2017–18, which represented a 60 per cent increase, and maintained all key financial KPIs (See Financial Summary 2018-19 on page 78) completed establishment of a new $40 million debt facility utilising the National Housing Finance and Investment Corporation (NHFIC) maintained our Tier 1 registration under the National Regulatory System, with our fifth compliance assessment in December 2018 secured our seventh consecutive Gold Award for our 2018 Annual Report at the 2019 Australasian Reporting Awards CEO John Nicolades and Executive Officer Caitlin McDowell receiving our 2019 Gold continued to develop systems and Australasian Reporting Award processes to improve our business sustainability, including an electronic digital records management system Operating income $42.7m and a digital engagement platform Financial highlights (excluding one of items) 14% for staf and tenants (See Finance and Bridge Housing recorded a strong Corporate Services report on page 72). financial result. We continued Operating expenses $38.8m (excluding depreciation to invest in capacity-building 12% Engaging our partners and property maintenance and and interest) and enhancing our strengthened our balance sheet 5 industry leadership to establish a strong financial See the Financial Summary on page 78 base for ongoing growth. for further details. Bridge Housing continued to engage with our partners across all sectors and report our eforts and outcomes across a range of platforms. Key results at a glance Key highlights of 2018–19 include: launched our new website in October Our sources of revenue 2018–19 Our expenses 2018–19 2018 to enhance our eforts in Expressed as a percentage of total income Expressed as a percentage of total expenditure providing relevant, informative and Rental Income Rents paid Maintenance engaging content for our stakeholders Govt grants -operating Insurance & other property expenses refreshed Bridge Housing’s Social Media Strategy and expanded our Other Depreciation Management expenses social media presence on LinkedIn, Bank Interest Rates and utilities Administration expenses Facebook and YouTube (See Bridge Interest Expense Other expenses Housing on social media on page 17) launched HomeGround Real Estate Sydney’s corporate social media presence on LinkedIn, Facebook and YouTube. Challenges Major challenges we faced during 2018–19 included: unsuccessful tendering outcome in the Social and Afordable Housing Fund Phase 2 cancellation of our Communities Plus sites in North Parramatta and Seven Hills as a consequence of softening housing market conditions.

Performance highlights 5 Bridge Housing profile

Bridge Housing Limited is a Tier 1 community housing provider, registered under the National Regulatory System for Community Housing. Our offices are located in the City of Sydney and Brookvale. We provide affordable housing solutions to moderate-to-low income households across the Sydney metropolitan area. At 30 June 2019, Bridge Housing owned or managed 2,334 properties and operated across 21 local government areas (LGAs). Our portfolio will increase to 3,560 properties in August 2019.

People and properties Where we started housing. Our Strategic Plan 2012–15 continued this focus, increasing the Bridge Housing Limited (Bridge Bridge Housing Limited began as the portfolio to 1,716 homes in 2015, and we Housing) is participating in the NSW South West Inner Sydney Housing expanded our area of activity across Department of Family and Community Cooperative in 1985. Following a a total of 14 post-merger LGAs. Services (FACS) Social Housing series of amalgamations (with Inner Management Transfer Program West Housing Association in 1993, We comfortably achieved our (SHMTP). This program is part of the Darlinghurst Area Community Strategic Plan 2015–18 growth target NSW Government’s Future Directions Housing Scheme in 2001, Burwood to increase the portfolio to at least for Social Housing in NSW policy and Area Community Housing in 2008, 2,000 properties by June 2018. With represents the most significant growth and Eastern Suburbs Rental Housing a combination of development and opportunity in the sector in this state. Association in 2009) Bridge Housing organic growth, our portfolio reached Limited was incorporated as a company 2,244 properties by 30 June 2018, Between October 2018 and September limited by guarantee in March 2009. which were located across 20 LGAs. 2019, FACS will transfer social housing management rights for 14,000 How we got here Bridge Housing delivered its Nation properties to community housing Building Economic Stimulus Plan providers who will deliver new or We drive growth with three-year (NBESP) leveraging target more replacement social housing dwellings. strategic plans and annual business than four years earlier than required. plans. In the three years to 2009 we Our first development cycle of In October 2017, Bridge Housing, in grew our housing portfolio from 650 112 dwellings was completed in partnership with Women’s Housing to 1,100 homes. Our Strategic Plan November 2016, creating 65 new Company, successfully tendered 2009–12 built our organisational dwellings at Bungarribee, nine for the management of 1,2282 social capacity to include procurement, studio apartments in Ashfield and housing properties in the Northern property development and greater 38 apartments in Parramatta. Beaches. As a result, Bridge Housing’s community engagement. We portfolio size will increase by more In 2017–18 we added 158 seniors’ increased our property portfolio than 45 per cent and over 5,000 units at Elger Street Glebe. We to 1,552 properties, assisting 2,790 people will live in our properties. partnered with Achieve Australia, people by providing secure afordable through the Specialist Disability Program, to add 28 group homes. This report details our performance People and Properties against the targets we set in our Number of properties and people assisted, 2015–19 Strategic Plan 2018–21 and Business Properties People assisted Plan 2018–19. During 2018–19, we grew the portfolio by an additional 4500 4200 90 homes, assisting more than 3900 4,000 tenants and their families. 3600 Our focus in 2018–19 was to ensure 3300 3000 we are prepared for significant 2700 growth and change as a result of 2400 the SHMTP, whilst sustaining high 2100 levels of service delivery to existing 1800 tenants and strong staf engagement. 1500 1200 900 600 300 0 2015 2016 2017 2018 2019

2 Includes 151 properties to be managed by Women’s Housing Company

6 Bridge Housing Limited Annual Report 2019 Growth to 2021 Portfolio Growth by program, 2006-19 Bridge Housing will increase its portfolio to 3,560 properties in Capital Properties Leasehold Properties Owned Affordable Housing August 2019 through the SHMTP. Vested Properties Fee for Service Other 2500 Bridge Housing is continuing to review and participate in the NSW Government’s Communities Plus 2000 program. Communities Plus projects are mixed tenure redevelopment 1500 sites owned by the Land and Housing Corporation (LAHC) and slated for the development of a mix of 1000 social, afordable and private market housing. They are projected to add 500 an additional 6,000 new properties to NSW’s housing stock over 10 years. 0 In 2016 and 2017, Bridge Housing successfully tendered for two 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Communities Plus projects in North Parramatta and Seven Hills, in partnership with private developers. Both sites were expected to deliver up public housing, such as the South This year, our subsidy payment was to 105 new social or afordable housing Coogee and Balmain estates, and $13.8 million. Through efciencies properties. Unfortunately, the NSW newly constructed properties, such delivered under this program, Bridge Government elected to cancel both as those in Canterbury-Bankstown. Housing purchased new social sites after developers withdrew as a housing properties in Punchbowl. result of softening market conditions. Under the funding contract, community housing providers are responsible Bridge Housing’s capacity to Despite these unanticipated setbacks, for allocations, tenancy management, source private rental properties Bridge Housing will continue to deliver property management, and responsive from developers and landlords was social and afordable housing using and planned maintenance. The enhanced by our new HomeGround a diverse range of strategies for community housing provider retains not-for-profit real estate agency, portfolio growth. all rental income. FACS sets rents which we launched in April 2018. About our programs through the Community Housing During 2018–19, HomeGround Rent Policy. Rents are fixed at 25 secured 91 private rental properties. Vested properties per cent of the tenant’s assessable income, plus 100 per cent of their Owned afordable housing In 2010 Bridge Housing successfully Commonwealth Rent Assistance. These are properties financed, tendered for a package of 242 NBESP Community housing providers developed and procured by properties in the Parramatta and allocate properties to eligible tenants Bridge Housing and rented at 74.9 Holroyd LGAs. They were vested by from the NSW Housing Register. per cent of market rent. Projects the NSW Government in two tranches. include Wiley Park, Bungarribee, The first tranche was 163 properties in Leasehold properties Parramatta and Leichhardt. 2010–2011 and in August 2013 Bridge Bridge Housing operates the largest Housing was transferred the title to leasehold program in Australia, Fee-for-service properties another 79 properties. An additional managing 610 properties. Community Bridge Housing manages fee-for- 158 properties were vested with housing providers source leasehold service properties on behalf of completion of Elger St, Glebe in June properties from the private rental external organisations through a 2018. Bridge Housing successfully market and sign a Residential Tenancy management agreement or contract. tendered for 11 properties in Leichhardt Agreement as head tenant under the The management fee is based on which were vested in April 2019, Residential Tenancies Act 2010 and the level of housing and the property bringing the total of vested properties Residential Tenancies Regulation management services negotiated. In managed by Bridge Housing to 411. 2010. The provider then sublets 2018–19 we managed 233 (afordable Capital properties the property to eligible applicants and social) properties on a fee-for- from the NSW Housing Register. service basis for the Sydney Olympic Bridge Housing leases and manages Park Authority, Waverley Council and capital properties from the LAHC FACS pays a subsidy to providers the City of Canada Bay Council. through the Community Housing under the NSW Government’s Agreement. Properties include existing Community Housing Leasing Program.

Bridge Housing profile 7 Our portfolio

Map of Greater Sydney by LGA

Northern Beaches No. of properties 1,228*

Hills Shire No. of properties 4

Blacktown No. of properties 63

Parramatta No. of properties Ryde 185 No. of properties 14 Mosman Penrith No. of properties No. of properties 28* 4

Cumberland Canada Bay No. of properties No. of properties 167 53

City of Sydney No. of properties Strathfield 462 Woollahra Inner West No. of properties Fairfield No. of properties 67 No. of properties 14 No. of properties 421 1 Waverley Burwood No. of properties 212 Canterbury No. of properties No. of properties 35 212 Bayside No. of properties Randwick 63 No. of properties Georges River 336 No. of properties 19

Campbelltown No. of properties 2

* From August 2019

8 Bridge Housing Limited Annual Report 2019 Our journey

South West Inner Amalgamate Portfolio grows from Merge with Sydney Housing with Inner 155 to 419 homes Darlinghurst Cooperative opens West Housing through capital and Area Community 1985/86 1993/94 1997/00

with 35 homes Association leasehold properties 2001/02 Housing Scheme

Portfolio grows to 1,180 properties Portfolio grows to 1,282 properties Reincorporate as company Amalgamate with limited by guarantee and become Eastern Suburbs Rental 2009/10 2008/09 Bridge Housing Limited Housing Association Transfer 117 (Burwood Area Registered as a Class 1 Community Housing) properties Community Housing Provider Win Afordable Housing Initiatives Manage transfer of 96 public Program tender to purchase 8 units housing tenancies in South Amalgamate with Eastern Suburbs Coogee and Balmain Rental Housing Association Establish Tenant Advisory Group

Portfolio Launch Platform 70 Win 240 Nation Win Urban Growth grows to 1,473 program to house Building properties with NSW tender properties rough sleepers in title and commitment to develop 62 2011/12 2010/11 2013/14 private rental market 2012/13 to develop 75 new afordable homes Win Housing NSW tender properties over 10 years in Bungarribee, to redevelop Elger Street Win tender to manage western Sydney, to Glebe public housing Waverley Council’s meet Nation Building into 153 seniors homes social and afordable leveraging target Win Housing NSW tender housing portfolio Win tender to to manage 128 properties of 79 properties manage up to 50 to be built in Canterbury- Platform 70 meets afordable homes in Bankstown LGA target and is extended Sydney Olympic Park

Launch Building Bridges Win tender to manage 27 City Launch $25 million tenant engagement plan of Canada Bay afordable homes development of 65 afordable Win tender to manage 18 Launch innovative Hand Up homes in Bungarribee 2016/17 2014/15 new units in Telopea 2015/16 arrears management program Complete 38 social and Launch social media, Bridge Renovate and tenant nine afordable housing units in Business e-news and Rent units for older, single Collett Parade Parramatta Online rent statements women in Ashfield Launch Reconciliation Secure $18 million debt facility Streamline contract Action Plan 2017–19 with National Australia Bank maintenance system and launch Develop Places People Want to Tier 1 registration under new customer service standards Live place making approach National Regulatory System

Win tender to manage 1,228 Northern Delivered Northern Beaches Transition Beaches public housing tenancies Plan to prepare for management of 1,228 Develop and tenant 158 seniors’ units new tenancies 2017/18 in Elger St Glebe 2018/19 Secured $40 million debt facility with the National Housing Finance and Launch HomeGround not-for-profit Investment Corporation real estate business Launched Bridge to Work employment Win specialist disability housing program in partnership with CoAct tender for 28 group homes Launched STEP to Home program Launch Pathways to Home initiative to house rough sleepers in private for women escaping family violence rental market.

Bridge Housing profile 9 Chairman’s Report

My Chairman’s report for 2018–19 is written as Bridge Housing stands on the cusp of its most significant transformation. On 5 August 2019 Bridge Housing, through the Social Housing Management Transfer Program, will commence operations in the Northern Beaches. As a result, our portfolio will increase from 2,334 to 3,560 properties and the number of people Bridge Housing assists with secure affordable housing will rise from 4,000 to over 5,000.

This Annual Report illustrates the Policy Environment scale of the planning, organisational change, business systems and Our operating environment on page recruitment required to ensure 28 provides a comprehensive analysis a successful transition. It’s a of the impact of Commonwealth and tremendous achievement and a NSW Government policy on social testament to the hard work and and afordable housing supply and achievements of the Bridge Housing the prospects for the growth of the management team and staf. community housing sector. The housing policy issues that existed This is the first year of our current before the NSW State Election in three-year strategic plan. Other March 2019 and Federal Election in highlights of the year saw the addition May 2019 are largely unchanged. of 90 properties to our portfolio, which includes the purchase of new In NSW, the Berejiklian Liberal- properties, to increase our portfolio National government remains growth into 2019–20. This will be committed to its key strategy, Future funded through the refinancing of Directions for Social Housing, although our corporate debt facility through housing responsibilities have been a $40 million loan with the National split within the public service. The Housing Finance and Investment NSW Land and Housing Corporation Corporation (NHFIC) which provides was transferred to a housing and long term debt at substantially better property cluster in the newly formed rates than available through the banks. Department of Planning, Industry and Environment. Social housing The ability of Bridge Housing to and homelessness remains within the manage large scale transformational Communities and Justice portfolio projects while continuing to deliver (formerly the Department of Family excellent service to existing tenants Bridge Housing Chairman Mark Turner and Community Services). These new is illustrated by the way it balanced administrative arrangements will take the Social Housing Management some time to settle. The lead ministerial Transfer Program (SHMTP) planning and departmental responsibilities for with delivering a high standard of Despite these successes, we developing housing policy and strategy service to our existing tenants. experienced some disappointment. are still clouded in uncertainty. We were unsuccessful in our tendering Over the last year levels of tenant for the Social and Afordable Housing Bridge Housing, in its own right, satisfaction with our overall service Fund 2. After substantial delay, we and in partnership with the NSW delivery score increased from 84 per also learned of the cancellation of community housing sector, seeks to cent to 87 per cent and satisfaction our Communities Plus sites in North work with the NSW Government to with maintenance services increased Parramatta and Seven Hills as a result develop a NSW Housing Strategy, from 77 per cent to 80 per cent. The of softening market conditions. Bridge and, in a post SHMTP environment, Board was also pleased that, during Housing will use the lessons learned to review current policy settings, this period of change, we maintained from these processes to inform our including Future Directions. As part of a high staf engagement level of 81 future tendering strategy, our approach this approach, the NSW Government per cent and managed a successful to strategic growth, and to build needs to make land available for the relocation from Redfern to Goulburn relationships with private developers. development of social and afordable Street in Sydney in December 2018. housing. The City Futures Research

10 Bridge Housing Limited Annual Report 2019 Centre (University of New South afordable housing bond aggregator, seventh consecutive Gold Award Wales) has estimated there is a particularly its recommendation at the 2019 Australasian Reporting current shortfall of 125,000 afordable to examine the funding gap. Awards for our Annual Report 2018. homes across Greater Sydney. We were particularly honoured to The NHFIC, established in July be the only community housing 2018, is a significant step in the right provider to achieve a Gold Award. direction but it is not enough to The ability of Bridge Housing drive new afordable housing supply. It is an honour to be Chairman of a to manage large scale Community housing providers require dynamic and growing organisation transformational projects a subsidy to meet the diference and I would like to thank my fellow whilst continuing to deliver between the cost of either the debt directors for their support and excellent service to existing or returns required by institutional acknowledge the considerable time and tenants is illustrated by the investors and the income generated efort they give on a voluntary basis. way it balanced the SHMTP from tenant rents, the majority of whom Thank you also to our many planning with delivering are on very low-to-moderate incomes. tenants who have engaged with a high standard of service Currently, neither the government Bridge Housing through our formal to existing tenants. nor opposition have committed to engagement structures, such as the introducing any subsidy. Unless this Tenant Advisory Group, Aboriginal is resolved, the supply of social and and Torres Strait Islander Advisory The Morrison-led Coalition afordable housing will continue to fall Group, Vietnamese Tenant Group Government was returned in the well short of the increased demand. May 2019 Federal election. Federal and the Tenant Reference Group. We believe there is a significant Labor had committed to a $6.6 It has been a pleasure to work closely opportunity with NHFIC, coupled with billion afordable housing plan, with Bridge Housing’s Chief Executive the readiness of the government to involving the construction of 250,000 Ofcer, John Nicolades, and I thank provide land to community housing afordable rental homes over 10 John, his leadership team and all providers, to expand the supply of years, to be managed or owned by Bridge Housing staf who continue to social and afordable housing on the community housing sector, but deliver great results to our tenants. the Coalition did not ofer any new mixed tenure sites. Any additional policy or funding for increased supply operating subsidy or capital grant of social and afordable housing. provided by government will increase the percentage of social After the election, the Morrison and afordable housing which can Government appointed two housing be delivered on these sites. ministers: Michael Sukkar as Minister for Housing and Assistant Treasurer Governance Mark Turner and Luke Howarth as Assistant Chairman Minister for Community Housing, Transparency is central to our Homelessness and Community governance culture, reputation and Services. We look forward to accountability to stakeholders. It engaging with the both ministers helps to build the credibility of Bridge to leverage of the NHFIC and Housing and that of the broader deliver the recommendations of the community housing sector. During Afordable Housing Working Group’s the year, our transparency in external Supporting the implementation of an reporting was acknowledged by our

Chairman’s Report 11 Chief Executive Officer’s report

In my 13 years as CEO, Bridge Housing has transformed to seize new opportunities and prepare for large-scale growth and change. This growth has been guided by our strategic planning process, which has enabled us to take a disciplined approach to growth, building our business and service infrastructure and to ensure we maintain high service standards for our current and future tenants. I am pleased to present Bridge Housing’s achievements for 2018–19 as we prepared to take on the management of our new Northern Beaches portfolio.

Sustainable portfolio growth programs; the NSW Department of Family and Community Services’ Bridge Housing operates in a highly Supported Transitional Engagement competitive environment where Program, STEP to Home, and the we compete with other Tier One Commonwealth Department of Social community housing providers to Services’ Bridge to Work program. secure portfolio growth, predominately through NSW Government tenders. During their first year of operation, In 2018–19, despite this testing STEP to Home provided long-term environment, Bridge Housing housing and support services for 52 continued to build its portfolio to rough sleepers, while the Bridge to meet social and afordable housing Work program, which is delivered in demand. As stated in the Chairman’s partnership with CoAct, supported report on page 10, we have a portfolio 33 tenants to secure new or improved of 2,334 properties that provides employment and education accommodation for over 4,000 people. opportunities. Both programs are respectively highlighted in Spotlight 2 Bridge Housing is poised for on page 26 and Spotlight 5 on page 64. significant organisational growth as a result of winning the Northern Following the launch of our not-for- Beaches package of 1,228 properties profit real estate agency HomeGround under the NSW Government’s Social Real Estate Sydney in April 2018, we Housing Management Transfer secured 49 new properties during Program. We will commence 2018–19. Whilst the unexpected management of the Northern Beaches softening of property market conditions tenancies in August 2019, which will resulted in moderate growth during increase the number of properties the year, we are confident that we manage from 2,334 to 3,560. the agency is strongly positioned for further growth in 2019–20. Preparing for this historic milestone CEO John Nicolades involved the establishment of Having launched and delivered the a dedicated Social Housing first year of Building Bridges (2018–21), Management Transition Team, which Bridge Housing’s other portfolio the second iteration of our award- has worked tirelessly to implement initiatives are detailed in the Highlights winning community engagement the Transition Plan, along with the section of this Annual Report on page 4. strategy, we engaged nearly 20 per rest of Bridge Housing, Women’s cent of tenants in 2018–19. The key Housing Company and our NSW High-quality services highlight for the year was the launch Government partners. The project is of the aforementioned Bridge to showcased in Spotlight 1 on page 18. During 2018–19, as Bridge Housing Work program. I am delighted that prepared for organisational growth Bridge Housing achieved the highest Our development activities continued and change, we remained focused tenant engagement rate in the through the Land and Housing on service innovation, improving NSW community housing sector. Corporation’s (LAHC) Project our customer service, and delivering Management Program. In November high quality services to our tenants We continued to focus our attention 2018, Bridge Housing delivered the and applicants for social and on customer service through the fourth and final stage of the project, afordable housing. Our service implementation of our Customer with 14 properties transferred to our delivery initiatives are detailed in Service Action Plan and conducting management. We also received vesting the Operations report on page 54. our biennial mystery shopping of 11 afordable housing properties, review through Customer Service which we secured through a LAHC In 2018–19, Bridge Housing Benchmarking Australia. The results tendering process in 2017–18. commenced the delivery of services will be used to inform our next iteration through two new government-funded of customer service training in 2019–20.

12 Bridge Housing Limited Annual Report 2019 Maintenance This preemptive action will ensure and recruited employees with the skills that our tenants continue to live in to build our capacity and deliver the Bridge Housing has a diverse portfolio safe, well-maintained homes and Northern Beaches Transition Plan. of 2,334 properties. Over 30 per cent communities over the coming years. of our capital properties are between Our Five-year report card on 50 and 100 years old. We place great Business sustainability page 78 and financial summaries importance on maintaining our provide further information. properties to provide good quality This year we produced an operating homes for present and future tenants, EBITDA3 of $3.9 million. Our five- Building our ICT capacity year Financial Summary on page reduce our future maintenance In 2018–19, to ensure our IT 78 and Annual Financial Report liability, and ensure our properties infrastructure supports future growth, 2018–19 provide further details of meet or exceed regulatory standards. we implemented Year 1 of our three- our strong financial performance. Our strategic approach to asset year IT Strategy. This involved a management is examined in further Our net assets increased by $70 detailed review of our infrastructure detail in Spotlight 3 on page 38. million, from $161 million at June environment to support new During 2018–19 Bridge Housing 2018 to $231 million in June 2019. initiatives, as well as our new long- spent $4.8 million on maintenance, The net increase was largely driven term accommodation solutions in the up from $4 million in 2017–18. This by increasing our property portfolio. City of Sydney and Brookvale. Further consisted of planned maintenance During 2018–19, we refinanced detail is provided in the Finance and of $1.4 million on 305 properties, our debt facility with the National Corporate Services report on page 72. Housing and Finance Investment 6,144 responsive maintenance work In preparation for the Social Housing Corporation to fund an increase in orders to the value of $1.1 million, Management Transfer Program, we our existing and future property and cyclical maintenance services successfully delivered a range of new development program from $35 million such as cleaning and maintaining or upgraded systems for our staf. to $40 million.4 We also continued lawns, grounds and fire services, to These included a new single-touch to meet all banking covenants.5 the value of just under $1 million. payroll system to improve the speed Our dedicated focus on maintenance Bridge Housing’s major source of of payroll processing and SPM asset has resulted in 97.5 per cent of income is rent. The Operations team management system, which facilitated properties meeting or exceeding plays a critical role in our financial improved modelling and forecasting. the state housing authority’s asset sustainability through its management Our staf reported an increased level standards, compared to the national of arrears, voids and vacancies. Our of satisfaction with technology, which benchmark of 70 per cent. arrears remained steady at 1.7 per cent, rose from 75 per cent to 85 per cent in which was lower than the regulator’s the 2019 Employee Opinion Survey. Our internal customer survey of performance benchmark of 2.5 per cent, This rating is now 32 per cent above the residents who have had maintenance which was lower than the regulator’s industry average. Further information on their dwelling shows that over performance benchmark of 2.5 per cent. is provided in Our People on page 40. 89 per cent of tenants are satisfied with the maintenance services Voids increased slightly to 27 days During the year, we launched provided by Bridge Housing. in 2018-19, but remained below the MyBridge, our tenant self-service portal, industry benchmark of 28 days. with additional functions to be rolled Bridge Housing has taken the Vacancies decreased from 15 days in out in 2019–20. This provides tenants opportunity arising from a strong 2017-18 to 14 days in 2018-19, in line with a one-stop shop to access the operating result to bring forward with the industry benchmark of 14 latest information about all aspects our maintenance program in days. Staf costs remained stable as we of their tenancies and to improve recognition of future commitments, finalised our organisational restructure our customer service to them. particularly in the Northern Beaches.

3 EBITDA means earnings before interest, taxes, depreciation and amortisation. EBITDA margins provide investors a snapshot of short-term operational efciency. 4 National Housing Finance and Investment Corporation (2019) ‘NHFIC funds $40m loan to Bridge Housing for Social and Afordable Homes’, 17 July 2019. Available at: https://nhfic. gov.au/news-media/media-releases/nhfic-funds-40m-loan-to-bridge-housing/ . Accessed on 9 September 2019 5 Banking covenants are conditions put upon a borrower by the bank

Chief Executive Ofcer’s report 13 Chief Executive Ofcer’s Report (continued)

Risk management approach is robust and aligned with We celebrate the diversity of our legislative requirements and that our employees and respect their gender, Every year, we actively review and tenancy management approach is culture, sexual preferences and manage our risks and update our providing the best possible tenancy religious identification. In 2018–19, Risk Management Plan. Our property services and safe accommodation we updated our Diversity and development activity exposes Bridge for our tenants. The internal audits Inclusion Policy which will inform Housing to a considerably higher level found room for improvement in our inaugural Diversity and Inclusion of risk than if we were simply providing areas with a low risk rating and Strategy, to be finalised in 2019–20. tenancy management services. Risks these changes will be implemented Both the policy and strategy have include our ability to repay borrowings in 2019–20. A report on our internal been developed with input from our of $40 million, the financial risk of audit program is in the Finance and Diversity and Inclusion Committee. getting the development approved and Corporate Services report on page 72. building to schedule (development We undertook our eighth successive risk), and ensuring we appoint a Developing our people Employee Opinion Survey (EOS), good builder (construction risk). achieving a 98 per cent response Our employees are our key assets. rate and an 81 per cent employee Our 20-year financial forecast model is Through them, we provide high engagement rate, which was an a key part of our risk management. It quality services to applicants and outstanding result in the context of continues to be an important planning tenants. Their commitment, energy significant organisational growth tool, enabling us to test the impact and ideas drive Bridge Housing’s and change. The Our People of proposed and actual property success. We place considerable report on page 40 provides further acquisitions and developments, emphasis on developing a positive analysis of the EOS results. and financing scenarios in their workplace culture, improving our The health and safety of our employees own right. This model becomes systems and processes, and providing and contractors is of paramount important as we test the impact of meaningful learning and development importance, both within the ofce and portfolio growth on Bridge Housing’s opportunities for our staf. overall financial sustainability and ofsite as they undertake home visits as we move into financing property We recognise that our employees’ or maintenance work inspections. We development with debt. Our Finance mental, physical and emotional work closely with our staf through our and Corporate Services report on page health is critical to achieve positive Work Health and Safety Committee. 72 provides a comprehensive review outcomes for our tenants. Our holistic This year there were no incidents and of our risk management strategy. approach to employee wellbeing no significant issues were identified consists of numerous programs and in the four workplace inspections This year our internal audits focused on initiatives targeted to employees at we conducted. The Finance and our Privacy and Tenancy Management all levels of the organisation. Further Corporate Services Report on page Framework and processes to ensure information about our initiatives is 72 provides a comprehensive report. that Bridge Housing’s privacy outlined in Spotlight 4 on page 52. Engaging our partners and enhancing our industry leadership Bridge Housing uses a number of approaches to increase its profile and inform the Board and community of our work and, indirectly, the work of the community housing sector. These include social media, delivering conference presentations on housing policy, participating in government inquiries, and by being actively involved in industry and advocacy organisations. Bridge Housing has been using social media to tell its story for over six years. Over time, we have established our presence on Twitter, LinkedIn, Facebook and YouTube and have developed a greater understanding of how best to use these platforms. Our Twitter and LinkedIn accounts provide commentary on housing policy and related social policy matters. We also use these platforms to highlight Bridge Bridge Housing Orbit! Day 2019

14 Bridge Housing Limited Annual Report 2019 Bridge Housing tenants at the End of Year Christmas Party in 2018

Housing programs, service initiatives vital in the context of shaping strategic as we finalise the Social Housing and our employees. Facebook is and operational government policy and Management Transfer Program, and orientated to our tenants and our setting forth our longer-term vision guide our ongoing planning, operations Communities team use it to promote for community housing in Australia. and change management processes. our Building Bridges initiatives and Bridge Housing staf are actively I look forward to leading the skilled programs. During 2018–19, we refreshed involved in our industry bodies. and dedicated Bridge Housing team Bridge Housing’s social media strategy, We believe these organisations are through this process and to working published regular and engaging essential to help grow and promote with a highly competent and skilled photographic and video content on the community housing sector and Board to ensure Bridge Housing various platforms and established a to undertake policy advocacy with continues to be a leading not-for-profit stand-alone social media presence for government. I was elected as Vice provider of quality afordable housing HomeGround Real Estate Sydney. Chair of the Community Housing that delivers on our mission to improve This year, Bridge Housing management Industry Association, the newly formed lives and strengthen communities delivered a number of major conference national peak body of community through housing and services for presentations. Helen Tighe, Acting housing providers. Bridge Housing’s low-to-moderate income households. General Manager Operations, spoke senior managers continue to actively at the 2018 PowerHousing Australia participate in various sub-committees Conference, whilst I was invited to of the Community Housing Industry present on the role of the planning Association, PowerHousing Australia system in boosting housing supply at and the Australasian Housing Institute. the Afordable Housing Australasia Our activities are described in more Conference. During the year, we detail in Our advocacy on page 24. John Nicolades also received three invitations to Chief Executive Ofcer present at the forthcoming National Looking ahead Housing Conference, which Our Strategic Plan 2018–2021 continues will be held in August 2019. to set the direction for Bridge Housing’s Over the last year, Bridge Housing growth over the next three years and has participated in a range of major enables us to capitalise on any new government inquiries, by preparing development opportunities which written submissions and/or engaging may emerge at Commonwealth in face-to-face consultation processes. and state levels. It will support us in Our participation in these inquiries is delivering substantial portfolio growth

Chief Executive Ofcer’s report 15 Affordable Housing Case Study: Joanne

Joanne, HomeGround Real Estate Sydney tenant

“Our previous rental experience was in the private rental market, which was very expensive and only seemed to increase every year, and very unafordable for myself and my family. My reaction when I walked into this home [managed by HomeGround Sydney] was one of amazement…[it was] very good for my family unit in the way that it was set out….[in a] brand new building…the location was fantastic for my family. HomeGround Real Estate has been fantastic, and I can only speak wonderful words of Terry. Even now, when we see each other, we shake hands…he’s a very personable person…very professional. Terry Livingstone, HomeGround Real Estate As well as Mohammed, who’s done inspections. It’s all been Sydney Manager with Joanne fantastic…[we’re] treated with the utmost respect. Living here has…taken a lot of stress of me. I’ve played catch up with my bills. I’m actually up to date with my bills, and that’s a first for me for a long time. The reduced rent has helped me achieve that. The future for us is looking really bright.”

Video case study available at: The HomeGround Real Estate Sydney team: https://www.youtube.com/watch?v=1-LotfzKvCE&feature=youtu.be Mohammed Miner, Tracy Nguyen and Terry Livingstone 16 Bridge Housing Limited Annual Report 2019 Bridge Housing on social media

Bridge Housing continued to expand its use of social media in 2018-19 through our presence on Facebook, LinkedIn and Twitter.

The Digital Picnic, a social media consulting firm, was engaged to refresh Website our Social Media Strategy and to Average monthly sessions: 5,715 (4431)6 provide us with additional analytics 6 and insights. Our Facebook page was Average monthly page views: 16,679 (12,968) redesigned to reach our tenants and Average unique monthly users: 4,211 (3,086)6 applicants, whilst our LinkedIn and Most visited pages: Apply for a Home, Afordable Housing, Contact Us Twitter pages continued to target our government, private sector and support partners. This was complemented by our quarterly e-newsletter, Bridge Business. Bridge Business LinkedIn (BridgeHousingAu) Followers across all platforms tended Average distribution: 976 61% growth in followers to 366 to respond most positively to our posts Average unique opens: 26.8% highlighting the achievements of our Click rate: 11.4% people; the launch of new programs including A Bridge to Work; and our Facebook (BridgeHousingAu) Tenant Satisfaction Survey results. These 54% growth in followers to 926 posts emphasised the value of sharing Twitter short, regular and engaging stories about our tenants, employees and organisation 12% growth in followers to 1,073 to complement and inform our broader Top Facebook post advocacy and communications strategy. 2 July 2018: 2,300 reached, 381 Our social media approach was Top Twitter impressions clicks on post, 76 reactions, supported and enhanced by the re- comments and shares design and launch of our new website in 30 April 2019: 38,897 impressions October 2018. During the year, with the #Mentalhealth in the workplace Social Housing Management Transfer is everybody’s business! Thanks Program well underway, there was a @blackdogaust for an insightful notable increase in our website trafc, workshop at @BridgeHousingAu. particularly in the weeks and months @facsnsw @CHIA_News @ leading up to key milestones for our new CHIA_NSW tenants to transition to Bridge Housing.

Top LinkedIn posts 18 December 2018 - Megan Caldwell wins 2018 BRAVO Award: 3,540 views, 78 likes, 12 comments

6 Average sessions recorded in 2017-18. Bridge Housing on social media 17 Spotlight 1:

Social Housing Management Transfer Program Transition Project

In 2017, Bridge Housing partnered with the Women’s Housing Company to tender for the Northern Beaches package of the Social Housing Management Transfer Program (SHMTP) and was successful. On 5 August 2019, Bridge Housing assumes the management of over 1,228 properties, representing a portfolio increase of 45 per cent. This is the largest increase in Bridge Housing’s history.

A major focus of our operations in 2018–19 was the successful Communication and engagement delivery of the SHMTP Transition Project (Transition Project) to ensure Bridge Housing was ready Our communication and engagement plan involved: to manage the Northern Beaches Meet-and-greet sessions held in diferent locations around the Northern portfolio from 5 August 2019. Beaches from August to November 2018. There were five of these sessions, each attended by over 200 tenants. They included a presentation from The Transition Project was senior staf from Bridge Housing and Women’s Housing Company. implemented in partnership with Staf answered tenants’ questions and a current Bridge Housing tenant Women’s Housing Company, which participated in each session as a peer information source manages 151 tenancies and properties through the partnership. Women’s Neighbourhood Q & A visits from December 2018 to April 2019, where Housing Company representatives we took our mobile transition ofce to complexes around the Northern were involved in every part of the Beaches to provide information about the transition process and respond project including membership of the to tenants’ questions. We conducted 91 of these visits, which allowed us to Project Control Group that oversaw the engage with over 800 tenants in an informal setting project, planning and delivery of the Drop in sessions held jointly with the Department of Family and Transition Project, and membership Community Services (FACS). We conducted five of these sessions, of the Transition Project team. which were focused on collecting Commonwealth Rent Assistance and Centrepay applications from tenants and household members. Both Bridge Housing and Women’s We followed up with 14 neighbourhood engagement sessions. The Housing Company placed a high neighbourhood sessions were supported by our mobile transition ofce priority on community engagement and enabled us to maximise the collection of tenancy transition forms to ensure a smooth service transition before holding joint tenancy visits with FACS experience for tenants and applicants. Together, the agencies developed One-on-one engagement with tenants to complete tenancy transition a comprehensive Transition Plan arrangements in the lead up to August 2019 that was informed by the principles Regular attendance at Northern Beaches Community Service Interagency of Building Bridges, which is Bridge meetings to establish connections with local service providers. Housing’s award-winning community building and engagement strategy. Throughout the Transition Project, our face to face engagement This Strategy encourages tenants was supplemented with: to have a say in service delivery and builds links between tenants A dedicated Northern Beaches page on the Bridge Housing and while connecting tenants with Women’s Housing Company websites, providing links to all key transition services in their community. documents and tools for tenants A dedicated phone number and email address for transitioning tenants, A key resource for the Transition Plan which was stafed full-time by our Transition Team. This ensured tenants was the creation of a mobile transition could contact us easily with any queries or concerns ofce, which enabled our team to visit locations around the Northern Beaches An online pulse check survey in March 2019 to ‘check in’ with transitioning to engage directly with tenants. tenants, which was communicated at Neighbourhood Q & A visits and via social media. Forty-four tenants completed the survey Regular updates on Bridge Housing’s Facebook page.

18 Bridge Housing Limited Annual Report 2019 Regional Manager (North) Christina Hough at our mobile office with new Northern Beaches tenants Bridge Housing Northern Beaches tenant

Challenges and successes Another challenge was getting to Housing warmly thanks the Burdekin know a completely diferent part Association and FACS Brookvale No project is without its challenges. of Sydney, including where to find Ofce for their valued assistance. Our team worked hard to ensure our services, and venues and catering Bridge Housing greatly valued communication and engagement arrangements for our meet-and-greet working in partnership with Women’s activities aligned with those of sessions. An unexpected problem was Housing Company and hearing FACS, so that tenants received finding somewhere to park and charge diferent perspectives when making consistent information. our mobile transition ofce. Bridge decisions. Our team also enjoyed working in collaboration with other Northern Sydney SHMTP providers, SGCH and Link Housing, to develop a combined social housing service system plan for Northern Sydney. This plan ensured Bridge Housing and Women’s Housing Company were prepared from our first day of operations in the Northern Beaches. Finally, our staf loved meeting and getting to know the wonderful Northern Beaches tenants and local services during the year. Our investment in tenant and community engagement strategies was highly successful, resulting in 99 per cent of tenants signing up to transfer to Bridge Housing prior to 5 August 2019.

Michele Mendoza, Ray Fatafehi and Anna Barker with our new Northern Beaches tenants

Spotlight 1: Social Housing Management Transfer Program Transition Project 19 Housing affordability

Our ninth consecutive annual report on housing affordability in Greater Sydney and across our operating region continues to show acute affordability pressures for low-to-moderate income households. Softening market conditions resulted in a 10.4 per cent decrease7 in Sydney property prices since March 2018; however, there is very little evidence to indicate this will improve affordability for very low-to-moderate income households. The recent market downturn has come off a base of unprecedented high prices and rents.

Housing stress, housing afordability trends, demand for social and afordable People earning a moderate income, housing, and homelessness are of significant concern, not just for community defined as between 80 per cent housing providers, but for organisations that provide support services for vulnerable and 120 per cent of the NSW or and disadvantaged members of the community. Safe, secure and afordable housing Sydney median income. This provides a stable foundation for individuals and families to engage in and participate includes teachers, police ofcers in the social, economic and cultural life of their communities. and nurses, particularly those in the early stages of their careers. Figure 1: Sydney house and unit performance over time Housing Affordability Trends Houses Units 180 Pressure on housing prices will continue to rise, purely through population 160 growth. Sydney’s population was 4.7 140 million in 2011 and by 2036 is expected 120 to reach 6.4 million. Accordingly, the NSW Government has estimated that 100 an additional 725,000 homes will be 80 required by 2036 to accommodate 60 Greater Sydney’s residents. 40 However, the City Futures Research Aug 97 Aug 99 Aug 01 Aug 03 Aug 05 Aug 07 Aug 09 Aug 11 Aug 13 Aug 15 Aug 17 Aug 19 Centre (University of NSW) estimates that NSW already has a deficit of 216,400 social and afordable housing properties for very low and low-income households, which has been caused by a lack of long Defining affordability As outlined in this report, a term government investment in social diverse and growing range of housing and stagnant wages.8 Nearly Bridge Housing uses the definition people are increasingly unable to 80,000 social and afordable housing of housing afordability adopted access afordable and appropriate properties are currently required in by the Centre for Afordable housing in Sydney, including: Bridge Housing’s operating region. Housing (a division of the FACS, People on very low incomes, defined the NSW Department of Family The NSW Government’s main policy as less than 50 per cent of the and Community Services): prescription for afordable housing NSW or Sydney median income, is increasing housing supply. Some depending on where they live. This afordability measures were introduced includes people working in lower- in the 2017 NSW Budget, mainly paid occupations such as retail or Housing is considered to targeted to first home buyers, but manufacturing, as well as people be ‘afordable’ when it is there were no new afordable housing earning the minimum wage or who priced so that other essential initiatives in the 2018 or 2019 budgets. costs like food, clothing, are on an aged or disability pension transport and services can or other government benefit Whilst new supply is essential, it be adequately met. This is People earning a low income, is not a panacea. Despite record generally where housing defined as more than 50 per cent numbers of completions (Figure 2), costs are less than 30 per but less than 80 per cent of the Sydney’s median housing prices are cent of gross household NSW or Sydney median income. amongst the highest in the world. We income for low-to-moderate This includes childcare workers, analyse the Commonwealth and NSW income households. secretaries and cleaners Government’s policy responses in Our operating environment on page 28.

7 Australian Bureau of Statistics, 6416.0 - Residential Property Price Indexes: Eight Capital Cities, Jun 2019, http://www.abs.gov.au/ausstats/[email protected]/mf/6416.0 8 L.Troy, R. van den Nouwelant and B. Randolph (2019) Estimating need and costs of social and afordable housing delivery, City Futures Research Centre, University of New South Wales, March 2019

20 Bridge Housing Limited Annual Report 2019 Figure 2: Does Supply Improve Affordability Median Dwelling Price, Approvals and Completions, Sydney 2000–19 Median sale price Dwelling completions Approvals

$1000 THOUSANDS 60 $900 $800 50 $700 40 $600 $500 30 $400 Home ownership in Sydney $300 20 declined from 68.6 per cent in 1991 to 65.5 per cent in 2016. In $200 10 2016, 62.3 per cent owned their $100 house outright, while 34.5 per cent $0 0 are still paying of a mortgage 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 2019 Renting has risen from 26.9 to 30.9 per cent of households nationally and in Sydney constitutes 34 per cent of households. The impacts of pressure on impact on households on very low The decline in home ownership housing prices are highlighted in and low incomes, many of whom and increase in renting applies Demographia’s 15th International are forced to compete with higher across all age groups, particularly Housing Afordability Survey, which income households in the private those aged 35-44 years and 25-34 was released in January 2019.9 This rental market. Anglicare Australia’s years. Unsurprisingly, low income survey measured afordability in 309 national Rental Afordability Snapshot households are more likely to be metropolitan housing markets in eight has highlighted the precarious locked out of home ownership.12 countries by calculating housing costs position of households dependent as a multiple of median incomes: the on income support payments and Housing stress ‘median multiple’.10 On Demographia’s the estimated 2.3 million Australians rating scale, a median multiple over 5 living on the minimum wage. Since People living on a low income can is classified as ‘severely unafordable’. 2011, the snapshot has repeatedly encounter considerable difculties Sydney was already unafordable shown that less than 1 per cent of when seeking to access afordable in 1981, with a median multiple of private rental properties in Greater housing. During 2009–10, almost half 5; by 2014 its median multiple had Sydney are afordable for people (45.7 per cent) of low-to-moderate increased to 9.8 and in 2019 the receiving income support payments. income private renters in NSW median multiple had reached 11.7. experienced housing stress, up from The snapshot also shows that location 39.9 per cent in 2007–08. This was Sydney has the distinction of being and access to services are as important even more acute in the Sydney region, the least afordable housing market to afordability as rents. Most afordable where in 2011 more than two-thirds (69 in Australia and the third least rental properties for households on per cent) of low-to-moderate income afordable market in the world after income support or the minimum wage private renters experienced rental Hong Kong and Vancouver, noting were located in the outer ring areas of stress, up from 41.4 per cent in 2007–08. that Sydney was ranked at the second Sydney, and require long commutes to least afordable market in 2018. work or services.11 Anglicare’s report The number of low-to-moderate income Melbourne runs a close second to reinforces the experience of many households experiencing rental or Sydney, with a median multiple of of the people who are now tenants purchase stress, increased from 281,000 9.7, up from 8.7 in 2014, and is the of Bridge Housing or waiting to be to 296,000 between 2011 and 2016. fourth least afordable housing market allocated social and afordable housing. internationally, up from fifth in 2018. For many households, even those Declining housing afordability, which on moderate incomes, home reduces the number of afordable rental ownership is a receding dream: properties, has a disproportionate

9 Demographia (2019) 15th Annual Demographia International Housing Afordability Survey: 91 Major Markets, 2018: 3rd Quarter. Available at: http://www.demographia.com/ .Accessed 5 September 2019 10 The Demographia International Housing Afordability Survey rates middle-income housing afordability using the ‘Median Multiple.’ The Median Multiple is widely used for evaluating urban markets, has been recommended by the World Bank and the United Nations, and is used by the Joint Center for Housing Studies, Harvard University. The Median Multiple and other similar housing afordability price-to-income-multiples are used to compare housing afordability between markets by the Organization for Economic Cooperation and Development, the International Monetary Fund and The Economist. 11 Anglicare Australia (2019) Rental Afordability Snapshot – National Report, Canberra, Anglicare Australia. Available at https://www.anglicare.asn.au. Accessed 5 September 2019. 12 Simon Thomsen, Home ownership for younger Australians is at 35-year lows, Business Insider, 17 July 2017, www.businessinsider.com.au/charts-home-ownership-for-younger- australians-is-at-35-year-lows-2017-7, viewed 20 September 2017.

Housing afordability 21 Housing afordability (continued)

Figure 3: Rental stress Change in % of Renters in Affordability Stress Figure 4: Rental stress Greater Sydney 2011 to 2016 Census Number of households in rental stress (2016 Census) 2011 2016 Very Low Low Moderate 100 16000 90 14000 80 12000 70 60 10000 50 8000 40 6000 30 4000 20 10 2000 0 0 V Low Low Mod City and Eastern Inner Inner Northern Parramatta Inner South Suburbs South West West Beaches As shown in Figure 3 above, the num- ber of households in Greater Sydney experiencing rental stress increased Figure 4 shows the incidence of rental stress across Bridge Housing’s operating from 152,000 in 2011 to 185,000 in region – the City of Sydney Council, and the City of Parramatta – and how this 2016, representing a 17.5 per cent rise. compares with the Sydney region.

Affordable properties Figure 5: Affordable rental Percentage of available properties by income and region, 2014-17 13 Between 2014 and 2017, the supply Parramatta Inner Sydney Sydney Metro of afordable rental properties for very 100 low income households remained 90 extremely low across the Sydney 80 region (Figure 5). There was a slight 70 improvement in housing afordability 60 for low income households, whilst 50 moderate income households were the 40 most likely to benefit from improved 30 rental afordability conditions, 20 particularly in the Parramatta LGA. 10 During the same period, the potential 0 for people to purchase a home V.low Low Mod V.low Low Mod V.low Low Mod V.low Low Mod diminished significantly, even as rental afordability for some households 2014 2015 2016 2017 eased somewhat. Fewer than 10 per cent of properties in inner Sydney and less than 20 per cent in Parramatta HomeGround, our not-for-profit sites in Dulwich Hill and Punchbowl were afordable for moderate income real estate agency, and through the during 2018–19, we are well-placed households, with most very low and vesting of 11 units in Leichhardt. In to undertake future developments. low-income households unable to 2017–18, we delivered 158 units for Further information is available in the purchase a home in any location. older people at Elger Street Glebe. Development report on page 66. The trends experienced in Sydney Through our development program, Through our fee-for-service program, were aligned with significant trends we have delivered an additional 112 we have competitively tendered to win in the national housing market. social and afordable homes for long- management contracts for Waverley What we are doing term rental since 2016. In July 2016, Council’s afordable housing program we completed 65 afordable three- (28 units); the Sydney Olympic Bridge Housing began its afordable bedroom dwellings on Urban Growth’s Park Authority afordable housing housing program in 2006. Our Bungarribee Estate, Blacktown. We program (24 units); and the City of afordable housing portfolio includes completed the conversion of an older Canada Bay’s afordable housing properties we manage on behalf of block of units in Ashfield into nine program (27 units). In addition, we other organisations and those we have one-bedroom self-contained units for have management agreements with developed ourselves or in partnership. older single women in July 2016. In private developers under the State This year we added an additional 90 February 2017, we completed 38 one- Environmental Planning Policy properties to our portfolio, including and two-bedroom units in Parramatta. No 70 – Afordable Housing. 49 afordable properties through Following the acquisition of new

13 This data is collected from the Local Government Housing Kit Database operated by the NSW Department of Family and Community Services. The Department has not updated rental afordability data since December 2017. NSW Department of Family and Community Services, Local Government Housing Kit Database, www.facs.nsw.gov.au/resources/nsw- local-government-housing-kit/chapters/local-government-housing-kit-database. Accessed 27 August 2019.

22 Bridge Housing Limited Annual Report 2019 Figure 6: Social housing applicants Number of applicants by NSW region, 000's 2012–18 BH Region Sydney Region NSW 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2012 2013 2014 2015 2016 2017 2018

Social housing demand a measure of expressed demand and Homelessness should not be used as the only indicator The length of social housing waiting of social housing demand. Our Since 2001, homelessness in Australia lists is an indicator of the housing needs experience is that many people in need has increased most rapidly in areas of very low to low-income households. are reluctant to apply for social housing, with a shortage of afordable private It is just the tip of the iceberg. given the very long waiting times of rental housing and higher median rents, particularly in Sydney, Melbourne In NSW, the social housing waiting list up to five to 10 years, particularly in and Hobart. Although rough is known as the Housing Register. As Bridge Housing’s operating region. sleepers constitute the public face of shown in Figure 6 above, the number of Across Bridge Housing’s operating homelessness, there are significantly social housing applicants in 2018 fell by region, a total of 14,754 households more people living in severely 3,000 households to 53,000 households. in 2018 are waiting for social overcrowded properties, insecure The decrease can be attributed to a housing, with an average wait time boarding houses, and ‘couch-surfing’ FACS administrative decision to remove of between five and 10 years. with family and friends. Such forms of suspended applications from the waiting homelessness are often invisible and list, which came into efect in 2017. What we are doing symptomatic of structural causes, such To clarify, the lower number of social We use our capital properties and those as housing afordability, poverty, and housing applicants on the NSW we lease from the private rental market lack of labour market opportunities. Housing Register is not the result of to provide additional housing. In 2018– Homelessness in Sydney is growing falling demand for social and afordable 19, we provided social and afordable faster than the population itself. housing, nor is it an indicator of housing to 350 new households, up Between 2001 and 2016, Sydney’s share increased social housing supply. It is from 272 households in 2017–18. of the national homeless population rose from 16.1 per cent to 24.9 per cent. Figure 7: Homelessness Over the last five years, the number of Type by Sydney Region, 2011–16 (2016 Census) homeless people in Sydney increased Bridge Housing Region Sydney from 19,000 in 2011 to 28,000 in 2016, 16,000 representing a 30 per cent increase. 14,000 What we are doing 12,000 Bridge Housing is dedicated to 10,000 breaking the cycle of homelessness 8,000 through our mainstream social 6,000 housing program and specialised 4,000 homelessness programs. Since the early 2000s, we have delivered 2,000 Housing First-style interventions 0 for people experiencing chronic or 2011 2016 2011 2016 2011 2016 2011 2016 2011 2016 repeat homelessness, most notably, Rough sleepers Temp h/h Support Accom Boarding Houses Severe overcrowding through our award-winning program, Platform 70, and, more recently, Figure 7 highlights two critical trends. Firstly, a significant proportion of homelessness through the Supported Transitional is concentrated in the Sydney metropolitan region and within Bridge Housing’s Engagement Program, STEP to Home. operating area. Secondly, severe overcrowding is the most significant form of Commencing in 2018–19, the STEP to homelessness. Between 2001 and 2016, severe overcrowding accounted for 75 per cent Home program’s achievements are of the increase in homelessness, which is directly related to the declining availability of afordable housing options. Currently, there are more than 8,000 severely overcrowded highlighted in Spotlight 2 on page 26. households within our operating region.

Housing afordability 23 Our advocacy work

Bridge Housing plays an active role in building the capacity of the community housing sector and creating opportunities for the organisation to be at the forefront of addressing the housing affordability crisis in NSW. We also advocate on behalf of vulnerable tenants and communities at the level of government and within the industry and private sector.

Advocating for more affordable housing Bridge Housing management, staf and tenants represented the community housing sector with enthusiasm at the Everybody’s Home rally at Sydney Town Hall in March 2019. Organised by Sydney Alliance, Vinnies NSW and the Everybody’s Home campaign, the assembly was attended by more than 2,000 people. The rally demanded clear, concrete commitments on afordable housing, household energy, and rental reform from politicians across the political spectrum. Bridge Housing pledged our support at the assembly and on our website and social media platforms. Prior to the March 2019 NSW Election and the May 2019 Federal Election, we wrote to our state and federal political representatives to advocate for a stronger housing system and afrm our support for the policy platforms released by our industry bodies, Bridge Housing staff and tenants preparing for the Everybody’s Home Rally in March 2019 the Community Housing Industry Association (CHIA National) and Women’s Day lunch, which was Sponsorship the Community Housing Industry addressed by Carolyn Scobie, a Association of NSW (CHIA NSW). Bridge Housing Board Director In 2018–19, Bridge Housing provided financial support and sponsorship for: As a result of these eforts, our CEO and QBE Insurance Group General John Nicolades, met with the Hon. Counsel and Company Secretary. International research into Shaping Jason Clare MP, Shadow Minister for Futures: Changing the Housing Housing and Homelessness, on 24 June Services to our industry Story, a joint initiative by UNSW’s City Futures Research Centre, the 2019. While the Morrison Government Bridge Housing is an active member prevailed at the election, Bridge University of Glasgow and the of our peak community housing University of Toronto ($17,982) Housing welcomed the opportunity to industry organisations including discuss housing policy with Mr Clare. CHIA National, CHIA NSW, Everybody’s Home campaign PowerHousing Australia and the for national leadership on the A workplace that supports women Australasian Housing Institute (AHI). housing crisis ($3,300) Silver level sponsorship for the AHI’s Bridge Housing joined global John Nicolades, CEO, is the deputy celebrations for International Women’s Professional Excellence in Housing chair and an independent director Awards – NSW/ACT ($5,500). Day on 8 March 2019. This year, on the CHIA National Board. the theme was ‘Balance for Better.’ Please see Bridge Housing in Our participation in this annual Rebecca Pinkstone, Chief Operating the Community on page 84 for event emphasises our commitment Ofcer, is a member of the AHI more information about our to women’s empowerment and NSW Branch Committee, which community outreach activities. participation in our organisation and meets at Bridge Housing monthly. in every sphere of life. This year, Bridge Housing hosted an International

24 Bridge Housing Limited Annual Report 2019 Bridge Housing Director Carolyn Scobie attending the International Women’s Day 2019 lunch with staff

Conferences/Seminars

Title Presenter Date Conference/seminar

PowerHousing National Member PowerHousing Australia 2018 National Exchange: Improving business efciency Helen Tighe Aug 2018 Member Exchange Conference, Canberra and maximising talent strengths

Augmenting afordable housing 2nd Annual Afordable Housing supply: inclusionary planning in John Nicolades Nov 2018 Australasia Conference, Sydney new and renewing communities

Policy Submissions

Title Author Date Submitted to

Amendment to State Environmental NSW Department of Planning Planning Policy No. 70 – Afordable Caitlin McDowell Dec 2018 and Environment Housing (SEPP 70)

Review of the National Regulatory System National Regulatory System for for Community Housing – response Caitlin McDowell Feb 2019 Community Housing Working Group to discussion paper (Dec 2018)

Our advocacy work 25 Spotlight 2:

STEP to Home

Bridge Housing is a long-term advocate of addressing rough sleeping through a Housing First approach. Housing First is an evidence-based approach based on providing homeless people with safe, secure and permanent housing without requiring them to be ‘housing ready’ or ‘treatment compliant’. Participants are then linked with wrap-around support services to assist them to sustain their tenancy and meet their goals.

In 2017–18, Bridge Housing successfully tendered for the $10 million Supported Transitional Engagement Program (STEP), which is funded by the NSW Department of Family and Community Services (FACS). From July 2019, the program, now known as STEP to Home will house 90 rough sleepers over four years in properties sourced from the private rental market. STEP to Home is a rapid rehousing response, premised on a Housing First philosophy, whereby people are housed as quickly as possible to address the issues that contributed to their homelessness. As the lead agency Bridge Housing has partnered with Women’s Housing Company and Metro Community Housing to provide housing. The three housing providers identify private Housing Support Specialist Liza Sloan (far right) with Neami National staff rental properties that meet individual needs and provide a safe and secure sustainment rate. This initial outcome In early 2019, Neami conducted a home. Neami National is responsible demonstrates that Housing First-style consumer feedback survey to explore for providing wraparound support interventions can support longterm peoples’ experience of transitioning services, including community- rough sleepers to move from the from homelessness to permanent based health and support services, street to a permanent home. housing through STEP to Home. The to assist people to sustain their survey results highlight the importance tenancy and avoid homelessness. of intensive support services and the In 2018–19, 52 people were housed significance of providing practical through STEP to Home, including “I had been sleeping rough assistance such as furniture packages. 30 through Bridge Housing. Metro for years, it was hard for me The consumer feedback survey Community Housing and Women’s to adjust to a new life. I am provided valuable lessons. Our clients Housing Company have housed thankful to my caseworker said they wanted providers to increase 12 and 10 people respectively. The for providing me support and the engagement of peer support demographics of this group are: help during this process.” workers, improve communication 70 per cent identify as male and on support provision, provide 30 per cent identify as female clarity on available property types, Their average age is 43 years and enhance the practical options for furniture packages to include Twelve per cent identify “My experience of moving additional items such as curtains. as Aboriginal and/or to a new place went pretty Torres Strait Islander. awesome as Neami set Bridge Housing and our partners will continue to respond to this Although the program is still in its up almost everything that I required.” feedback and proactively identify infancy, the housing partners have opportunities for improvement achieved a 97 per cent tenancy throughout the life of the program.

26 Bridge Housing Limited Annual Report 2019 Elger Street Glebe 27 Operating environment 2018–19

The environment within which community housing organisations operate is largely determined by Commonwealth and NSW government policy settings. Bridge Housing seeks to influence government policy frameworks and funding, resource allocation, contracting, and property supply. It does so in its own right and through membership of the industry groups Community Housing Industry Association and PowerHousing Australia.

This section of the Annual Report describes how our operating environment afected Bridge Housing and the community housing sector in 2018–19. Commonwealth Government The Commonwealth Government has the greatest influence on who gains and loses from housing policy settings. The Commonwealth Government controls monetary policy, which guides interest rates, as well as prudential regulation of lending and federal taxation settings, migration policies, infrastructure investments and the rental subsidies paid through the social welfare system. These all influence the demand for housing. Assistant Treasurer and Minister for Housing the Hon Michael Sukkar (Photo courtesy of AHURI) To put this into perspective, the Commonwealth spends (directly and indirectly) over $70 billion a year on proposed to build 250,000 afordable 2019 election.15 This was signified by housing, but the vast majority of this rental homes over ten years (similar to the Treasurer’s historic reference to expenditure benefits home-owners the earlier National Rental Afordability the community housing sector in his and investors through capital gains tax Scheme), end negative gearing tax Budget night speech in April 2019. discounts and negative gearing.14 Most concessions for new investors, and of these subsidies flow to high income appoint a Federal Minister for Housing. Commonwealth Government responses households. Conversely, only $7 billion With the Federal Coalition returned – or 10 per cent – of Commonwealth to ofce for a third term in May 2019, The establishment of the National housing outlays are directed to the Morrison Government afrmed its Housing Finance and Investment renters who are deemed eligible for commitment to the community housing Corporation (NHFIC) by the assistance through the Commonwealth- sector by retaining the Hon. Michael Morrison Government in July 2018 State Housing Agreement and Sukkar as Assistant Treasurer and was a significant milestone for the Commonwealth Rent Assistance (CRA). adding Ministerial responsibilities for community housing sector. The Housing policy remained a Housing to his portfolio. The Morrison NHFIC can source private funds, central issue for both the Coalition Government also appointed the Hon. through bond issue, to provide lower Government and the Federal Luke Howarth as Assistant Minister for interest and longer term loans to Opposition in 2018–19, which informed Community Housing, Homelessness community housing providers than two contrasting policy approaches in and Community Services, which is the those available from the commercial the lead-up to the Federal Election. The first time that community housing has banks. NHFIC’s first bond issue of Morrison Government sought to relieve received this recognition at a federal $315 million for eight community financial pressures on households level. Although no additional funding housing providers was completed in struggling to attain home ownership has been made available to increase March 2019. More recently, Bridge by introducing a First Home Buyer’s the supply of social and community Housing refinanced its existing Deposit Scheme. In contrast, Federal housing, our industry groups, have had $40 million corporate debt facility Labor released a comprehensive increased access to Ministers and the with NHFIC, which will be finalised Housing Afordability Platform, which Opposition before and after the May in August 2019. The NHFIC loan

14 The Treasury, 2017 Tax Expenditures Statement, Table 4.1, 2018; Australian Institute of Health and Welfare, Housing Assistance in Australia, 2017, 2018; The Treasury, Budget 2018–19. Budget Paper No. 3 Federal Financial Relations, 2018 15 Community housing sector industry representation has undergone a significant change over the previous three years. A new national industry peak, Community Housing Industry Association (CHIA), was established in November 2017 and state-based bodies have adopted that national branding; e.g. the NSW Federation of Housing Associations is now CHIA NSW. The other national group is PowerHousing Australia which is a peer group for larger tier one providers, including Bridge Housing.

28 Bridge Housing Limited Annual Report 2019 will also enable Bridge Housing to address the already stark under- Housing Working Group Report as a to undertake a development supply of social and afordable critical piece of enabling infrastructure. program for 24 new properties. housing, plus the increasing incidence Regulatory reform provides a valuable of homelessness across Australia. Although it is a substantial opportunity for the Commonwealth achievement, the NHFIC cannot grow Drawing on the lessons learned from Government to support the growth social and afordable housing supply its predecessor, the NHHA has an of an evolving community housing alone. New measures are required. In increased focus on securing better sector and ensure the system is 2017 the Afordable Housing Working data on supply and demand, more ‘future proofed’ in response to Group16 supported complementary capital funding to boost afordable challenges and risks. Any changes to measures, including a funding gap supply, separating the conflicting the regulatory system must ensure subsidy, to address the gap between roles of state and territory housing national consistency, rigorous and the cost of either the debt or returns agencies, and delivering a substantial strengthened financial governance, required by institutional investors proportion of all social and afordable consumer (tenant) protection, and and the level of income received from housing by the non-government the public release of timely public community housing tenants, most sector. Although the NAHA had its information on the community of whom are households on very shortcomings, it established a target housing sector’s performance. low to moderate incomes.17 Other of 33 per cent of social housing to be On 18 December 2018, the NRSCH measures include the regeneration transferred to community housing Review was announced and of public housing stock, better use of providers, which ultimately became stakeholders invited to comment on planning tools, and afordable housing a driver for the Social Housing potential changes to the regulatory levies, as well as government capital Management Transfer Program in system.22 There was consensus that and operational assistance for the NSW. Regrettably, there is no further regulatory reform needed to be sector and build-to-rent and mixed commitment within the NHHA. national in scope, consider the role of rental or mixed tenure models. National Regulatory System for tenants within regulation, and improve Recent research from the Australian Community Housing communication between registrars Housing and Urban Research Institute and CHPs to increase compliance. (AHURI) argues that a capital grant National regulation of community Feedback from stakeholders, including subsidy (consisting of government housing providers is another important Bridge Housing, has been used to funding secured by NHFIC and piece of the policy architecture. inform the Working Group’s Options discounted land) is up to 24 per cent The National Regulatory System Paper, which is scheduled for public cheaper over a 20-year period than for Community Housing (NRSCH) release and consultation in late 2019. an operating subsidy – hence, it is commenced in January 2014, replacing the most cost-efective method for state-based regulatory systems in National Disability Insurance addressing social and afordable all jurisdictions except Victoria and Scheme 18 Western Australia. The aim of the housing shortfall. Maximising The National Disability Insurance NRSCH was to ensure regulatory the NHFIC opportunity, pressing Scheme (NDIS) provides 460,000 consistency across Australia, reduce for the introduction of a capital or people below the age of 65 years who the compliance burden for community operating subsidy and advocating for are living with a severe permanent housing providers operating across the transfer to community housing disability with access to individual state jurisdictions, and provide providers of government land to support packages to purchase services confidence to government and regenerate ageing dwellings are the and supports. Of these people, the stakeholders, including financiers. necessary elements to increase social Commonwealth Government has and afordable housing supply. Little has changed since 2014. Diferent reiterated that approximately 28,000 approaches by state jurisdictions to NDIS recipients are eligible for the National Housing and community housing, accompanied Specialist Disability Accommodation Homelessness Agreement by diverse policy agendas and (SDA) program. A 2018 study The five-year National Housing and priorities and a less active role by commissioned by the Summer Homelessness Agreement (NHHA) the Commonwealth, have resulted in Foundation showed that the existing replaced the National Afordable a sub-optimal and under-resourced supply of SDA needs to increase by Housing Agreement (NAHA) in regulatory system in need of reform. up to 60 per cent to accommodate 2017–18.19 Funding remains the The 2017 AHURI Afordable Housing this cohort, whilst an additional 33,200 same as the previous NAHA, plus Capacity Study20 expressed the places may be needed to accommodate indexation for five years. In 2018–19, concerns shared by community people with very high support needs.23 NSW received $478.6 million to meet housing providers that the regulatory The SDA program was designed to its public housing operating deficit, system is fragmented and not adding encourage investment and growth in including planned maintenance. As sufcient value.21 It was also identified housing supply with the objective of such, it falls short of what is required in the aforementioned Afordable

16 Afordable Housing Working Group, Australian Government Council on Federal Financial Relations, Supporting the implementation of an afordable housing bond aggregator,September 2017 https://treasury.gov.au/sites/default/files/2019-03/170921-AHWG-final-for-publication.pdf 17 Over 85 per cent of Bridge Housing’s tenants depend on income support. See Key Facts on page 86 of this Annual Report. 18 J Lawson, H Pawson, L Troy, R van den Nouwelant and C Hamilton (2018) Social housing as infrastructure: an investment pathway, AHURI Final Report 306, Australian Housing and Urban Research Institute Limited, Melbourne. 19 Council on Federal Financial Relations, National Housing and Homelessness Agreement, www.federalfinancialrelations.gov.au/content/housing_homelessness_agreement.aspx, viewed 20 September 2017 20 AHURI, Developing the scale and capacity of Australia’s afordable housing industry, 20 April 2017, www.ahuri.edu.au/research/final-reports/278 21 The term regulatory system is used to refer to all the contract and regulatory regimes that providers are subject. 22 Department of Family and Community Services (2018) Review of the National Regulatory System for Community Housing. Available at: https://www.facs.nsw.gov.au/about/reforms/ NRSCH/review-of-the-national-regulatory-system-for-community-housing 23 SGS Economics and Planning (2018) Specialist Disability Accommodation: Market Insights https://www.summerfoundation.org.au/wp-content/uploads/2018/03/sda-market-insights- web-2.pdf

Operating environment 2018–19 29 Operating environment 2018–19 (continued)

increasing the diversity of housing services at Elger Street Glebe are supply for people with a disability. provided by our partner, Uniting. Within this context, it was anticipated Notwithstanding the ongoing demand that the SDA program would provide for SDA housing, there remains funding for individuals who choose to an unmet need for afordable and live alone or in household compositions appropriate disability housing for of their own choice. This represents NDIS participants who are not eligible a significant shift from the group for the SDA program. Currently, home model to disability housing the estimated shortfall is 83,000 which looks and feels like housing to 122,000 afordable properties. that every Australian would want Without these, individuals must seek to live in and enables individuals to resolve their housing needs in the to maximise their participation social housing or private sector. in social and economic life. The Specialist Disability NSW Government responses Accommodation Rules 2018–19 and There was little change in the NSW NDIS Price Guide: Specialist Disability Assistant Minister for Community Housing, Government’s response to social Accommodation24 provide guidance on Homelessness and Community Services, and afordable housing supply or the the Hon. Luke Howarth design and modification criteria and community housing sector during the rules and level of accommodation 2018–19. Neither the Berejiklian Between 2016 and 2026, Future payment for housing under the NDIS. Government nor the Opposition Directions is forecast to add 23,000 Changes to the NDIS Price Guide and proposed any new policies for social new and replacement dwellings to SDA rules are informed by an Annual and afordable housing in the context social housing supply. Of these, only Review, which is undertaken by the of the election cycle. This is despite 6,000 new dwellings, an average of National Disability Insurance Agency the fact that Sydney is positioned at 600 per annum, will be additional in response to stakeholder feedback. the epicentre of the housing crisis in supply. Four years into the strategy, In February 2019, the Commonwealth Australia, as highlighted in the Housing only one major Communities Plus Government announced immediate Afordability Report on page 20. project, Ivanhoe Estate, has been reforms to SDA to improve choice and announced. The further softening Following the election in March control for NDIS recipients and boost of the housing market over the year 2019, a significant restructuring of market confidence. Amendments to the has seen a number of Communities NSW departmental responsibilities SDA Pricing and Payments Framework Plus sites stall, including two sites took place. The Land and Housing were designed to provide long-term where Bridge Housing was involved. Corporation (LAHC), the entity which funding certainty for participants and owns social housing properties, was Social Housing Management providers, whereby it is anticipated separated from the Department of Transfer Program that participants are likely to remain Family and Community Services SDA-eligible over their lifetime. Other The Social Housing Management (FACS). LAHC was placed with a SDA Framework changes will make Transfer Program (SHMTP) number of property-owning and it easier for NDIS participants to live encompassed the transfer of 14,000 housing agencies in the newly with family members and to include properties on 20-year leases to the formed Department of Planning, SDA funding in their support plan, community housing sector and is the Industry and Environment irrespective of whether they have largest single management transfer (DPIE).25 FACS was renamed the received an SDA housing ofer. of properties from Government Department of Communities and to community housing sector in Since the inception of the SDA Justice and retains responsibility Australia. The SHMTP tender ofered program, community housing for social housing services. nine packages: six in regional NSW providers (CHPs) have increased their The next six months will provide and three in the Northern Sydney engagement and partnering with 26 further clarity on which department will region of Greater Sydney. The nine disability service providers. CHPs be responsible for strategic housing transfers commenced in October 2018 provide development, property and policy and whether the changes will and are scheduled for completion in maintenance services, while disability lead to any change in the current September 2019. Bridge Housing, in providers focus on service support. housing policy directions in NSW. partnership with Women’s Housing Bridge Housing’s 38-unit integrated Company, commences management development of social and afordable Future directions for social housing of the 1,228 properties in the Northern housing at Collett Parade, North Beaches in August 2019.27 Parramatta provides six units for Future Directions for Social Housing, Achieve Australia service users and the NSW’s Government’s 10-year Upon completion of the SHMTP in is our partner in managing group strategy for social housing, remains September 2019, the NSW community homes. As noted in our 2018 Annual its key strategy document. The housing sector will increase its share Report, Bridge Housing’s Elger Street strategy encompasses the Social of the social housing it manages from Glebe 158-unit development includes Housing Management Transfer 23 to 32 per cent. At this time, it will 23 units for people with disabilities, Program (SHMTP), Communities become the largest community housing all of which meet Livable Housing Plus, and the Social and Afordable sector in Australia, holding 60 per Australia’s silver standards. Support Housing Fund (SAHF). cent of all community housing in the 24 National Disability Insurance Agency, Specialist Disability Accommodation 2018–2019 Price Guide. Available at: https://www.ndis.gov.au/providers/price-guides-and-information/ sda-pricing-and-payments 25 These agencies sit under the Housing and Property Division which has responsibility for 9 NSW Government Housing and Property agencies including Crown Lands, Property NSW, Land and Housing Corporation and the Aboriginal Housing Ofce 26 NSW Department of Family and Community Services, Industry Soundings, www.facs.nsw.gov.au/about/reforms/future-directions/initiatives/management-transfer-program, viewed 20 September 2017. 27 NSW Department of Family and Community Services, Management Transfer Program, www.facs.nsw.gov.au/housing/living/management-transfer-program/management-transfer- program-overview 30 Bridge Housing Limited Annual Report 2019 country (see Figure 1 on page 32).28 It providers to build partnerships with over four years. The NSW Government is not expected the NSW Government the private sector to deliver new will invest the funds and it will be rolled will consider any further transfers until properties to replace ageing properties. out in a number of phases. The SAHF the program has been evaluated. will purchase service packages from The Redfern site is designated as the private and not-for-profit consortia, NSW Government’s first Build-to- Communities Plus which will buy 25 years of social and Rent site. Under this model, the NSW 29 afordable supply, after which time Communities Plus requires Government will lease the land to the the properties can be held or sold. community housing providers to proponents for 50 years. In return, the SAHF provides significant capacity partner with private developers to proponents will deliver private rental building for community housing: redevelop sites into a mix of private, housing, in addition to a negotiated financing, project management, afordable and social housing and level of social and afordable housing contract management, delivering take on the management of the over the concession period. At the end and measuring tenant and housing social and afordable dwellings. of the concession period the site is outcomes, and managing mixed It has three delivery streams: returned to the NSW Government. This social and afordable housing sites. redevelopment of major sites breaks with the standard Communities including Ivanhoe, Telopea, Redfern, Plus development model, which The second round of SAHF, delivering Riverwood, and Waterloo. These requires the developer to buy the site 1,000 dwellings in four packages, was are large-scale redevelopment sites to deliver the required level of social announced in February 2018.30 Bridge which require the involvement of housing and private market housing. Housing was selected as one of seven major private sector developers proponents to proceed to the Request The smaller Communities Plus with access to long-term finance, for Tender phase, which closed in Neighbourhood mixed tenure the capacity to redevelop sites September 2018. Unfortunately, the projects of 100 to 300 dwellings over 10 years; deliver new mixed bid was not successful. Similar to have not been delivered since the communities where social housing SAHF Round One, the four successful first of the three tender rounds was blends in with private and afordable proponents selected to deliver the announced in 2016. The time spent housing, and provide better access to properties were organisations with land on contract negotiations, coupled transport and employment, improved and/or significant cash holdings.31 community facilities and open spaces with downturn in the property market squeezing expected returns, has The SAHF bidding process is redevelopment of neighbourhood forced developers to renegotiate lower overengineered considering projects sites consisting of 100 to 300 social housing targets than those deliver an average of 300 social dwellings. To date, the NSW originally proposed in their tenders. and afordable housing dwellings. Government has released It is similar to a public-private As anticipated, the NSW Government three rounds, with the potential partnership bid process to build and has elected to hold the land until a to deliver 12 rounds operate a tunnel, tollway or light more opportune time. For Bridge project management sites outsourced rail. Consequently, the bid costs are Housing, this has resulted in the to community housing providers. high – much higher, for example, cancellation of the North Parramatta Previously LAHC controlled project than undertaking bids for NRAS and Seven Hills sites, for which we management and tendered small subsidies between 2008 and 2015, had successfully tendered with our redevelopment sites of 10 to 20 when the Commonwealth Government private developer partners in round properties to smaller project builders. operated the program. Bridge Housing one and two. If these Communities Through the revamped program, spent $1.3 million on bid costs. At Plus sites had proceeded, they would community housing providers this stage, it is unclear if the NSW have collectively delivered 374 are responsible for tendering and government will proceed with a third properties over two sites, of which managing the delivery of social round of SAHF due to the cost and 107 properties were designated as housing. Upon completion, the complexity of the bidding process. community housing providers will social and afordable housing. secure management of the properties. The NSW Government will not The NSW planning system Major sites proceed with the Project Management The NSW planning system afects program. Having successfully secured housing afordability, as it establishes With the Ivanhoe Estate redevelopment and delivered four LAHC Project the regulatory regime for the quality, in the final stages of planning approval, Management sites, Bridge Housing type and built form of housing and, the successful proponents for major added 50 properties for seniors to through planning controls, determines sites in Redfern, Telopea and Arnclife our portfolio in 2017-18 and 2018–19. the type of housing, whether low, are expected to be announced in 2019– Further information is available in the medium or high density. It is also 2020. Expressions of Interest (EOI) Development Report on page 66. ofers a mechanism to help increase rounds for Riverwood and Waterloo are the level of afordable housing expected in the next 12 to 18 months. Social and Afordable Housing Fund through inclusionary zoning or value The major sites provide opportunities The Social and Afordable Housing capture, Bridge Housing supports to enhance the community housing Fund (SAHF) is a $1.1 billion initiative voluntary planning mechanisms sector’s capacity by establishing a to deliver social and afordable housing to increase the supply of afordable pipeline of projects and enabling in Greater Sydney and regional NSW housing. See Spotlight 6 on page 70.

28 Australian Institute of Health and Welfare (2019), Housing Assistance in Australia 2019, AIHW, Canberra. Available at: https://www.aihw.gov.au/reports/housing-assistance/housing- assistance-in-australia-2019/contents/state-and-territory-data-visualisation 29 NSW Government, Communities Plus, 18 October 2017, www.communitiesplus.com.au/ 30 NSW Department of Family and Community Services, Strong Response to Second Phase of Social and Afordable Housing Fund, May 2018, www.facs.nsw.gov.au/about/media/news/ archive/strong-response-to-second-phase-of-social-and-afordable-housing-fund. The organisations proceeding into the RFP are Anglican Community Services, Bridge Housing Ltd, Housing Plus, Mission Australia Housing Partnership, the NSW Aboriginal Land Council, SGCH Portfolio Ltd and Uniting NSW/ACT. None were linked to an major Infrastructure provider 31 NSW Department of Family and Community Services, Social and Afordable Fund Overview www.facs.nsw.gov.au/about/reforms/future-directions/initiatives/SAHF. The EOI attracted 24 participants, seven of which were selected for the RFP. The other successful participants were BaptistCare NSW & ACT, Uniting, SGCH Sustainability Ltd, St Vincent de Paul Housing and Compass Housing Services Co Ltd. Operating environment 2018–19 31 Operating environment 2018–19 (continued)

Over the last year, the major Figure 1: Community sector growth by state development in the NSW planning Number of properties, 2007–19 system has involved policy changes NSW VIC QLD WA SA TAS ACT NT to the State Environmental Planning Policy No. 70 (Afordable Housing – 50000 Revised Schemes). SEPP 70 is the only 45000 planning instrument that enables an 40000 afordable housing levy or inclusionary 35000 zoning provision to be applied to development in a designated area. 30000 Following a public consultation process 25000 led by the now defunct Department 20000 of Planning and Environment, SEPP 15000 70 was expanded in February 2019 to include all councils across NSW. 10000 Local councils seeking to increase 5000 the supply of afordable housing in 0 their area are required to develop an afordable housing contribution 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 scheme which will require approval by the NSW State Government.32 Following the SEPP 70 policy changes, Greater Sydney’s afordable rental and the recent launch of NHFIC. a number of local councils in Bridge housing targets are far lower than Supporting the ongoing growth of a Housing’s operating regions in those utilised in areas of London, San strong and viable community housing Greater Sydney have released draft Francisco and other international sector also requires a clear and Local Strategic Planning Statements cities. In accordance with our earlier expansive vision by Commonwealth to inform changes to their Local submission to the Department of and State Governments. Environmental Plans and/or the Planning and Environment, it is In the short term, this requires development of their Local Housing proposed that afordable rental housing maximising the opportunity Strategies and Afordable Housing targets be increased to 25 to 30 per created through NHFIC with State Strategies. These are informed by cent on government land to close the Governments agreeing to either vest the NSW Government’s Guideline gap on afordable housing need. for Developing an Afordable or provide land on long leases of up Housing Contribution Scheme, which Future Prospects to 30 years or more. In NSW, this will proposes that community housing build on the opportunities arising providers are engaged to manage The NSW Government continues to from the SHMTP and the renewal afordable housing properties.33 be the most proactive and dynamic of ageing social housing, thereby in Australia when it comes to reducing overall maintenance liabilities Bridge Housing will continue to supporting the growth and capacity and costs. To achieve this, the State participate in these consultation of the community housing sector. Government needs to invest in more processes for the remainder for 2019–20 NSW now has the largest sector in mixed tenure developments of social, and looks forward to partnering with Australia and the majority of the afordable and market housing. local councils where the opportunity largest providers in Australia. arises, particularly in relation to the In the medium term, the management and/or development Notwithstanding these achievements, Commonwealth Government should of new afordable housing supply. the NSW Government needs to adopt introduce a capital or operating a more strategic approach to growing subsidy at scale, which will facilitate As outlined in our 2018 Annual Report, and expanding the capacity of the the increase of social housing in the Greater Sydney Commission sector. A significant opportunity is high-cost markets requiring a deeper established afordable rental housing available to deliver an integrated NSW subsidy. Together, these initiatives targets across Sydney, whereby land Housing Strategy involving central will make a significant diference is rezoned to require between 5 to 10 agencies, including the Department of in building the 216,400 social and per cent additional floor space be used Premier and Cabinet, NSW Treasury, afordable housing properties to build afordable housing. Although Department of Planning, Industry and needed in NSW to accommodate the these targets are subject to a viability Environment and the Department needs of low-income households. test and were originally designated of Communities and Justice. for social housing-eligible households only, they were subsequently At the present time, the capacity of the expanded in February 2019, in line sector to borrow finance, undertake with the SEPP 70 changes, to include development activities and own moderate-income households. properties outright is continuing to increase, as illustrated by the SAHF

32 Following the March 2019 election, the NSW Department of Planning was absorbed into the Department of Planning Industry and Environment (DPIE). 33 Department of Planning and Environment (2019) Guideline for Developing an Afordable Housing Contribution Scheme, Sydney. Available at: https://www.planning.nsw.gov.au/-/media/ Files/DPE/Guidelines/guideline-sepp70-developing-afordable-housing-contribution-scheme-2019-02-28.pdf

32 Bridge Housing Limited Annual Report 2019 How we operate

Each division of Bridge Housing has primary responsibility and ownership of particular critical success factors. However our divisions must work together to fulfil our strategic plan and business plan. Meet our directors on page 34. Meet our executive team on page 36.

Board

Chief Executive Officer

Executive Office x 2

General Manager, Finance Chief Operating Officer Director Development and Corporate Services

Pathways x 8 Finance x 8 Development x 1

Housing x 22 Human Resources x 2

Support Coordination x 2 Compliance x 1

IT & Business Assets x 10 Systems x 3

HomeGround Real Estate x 3

Service Improvement & Innovation x 1

Communities x 3

Social Housing Management Transfer - transition team x 10

How we operate 33 Chairman’sOur Board of Report Directors

Bridge Housing is governed by a board of independent, non-executive directors, who determine the strategy for the organisation and manage risks. In line with best governance practice, Bridge Housing achieved gender parity on its Board in February 2018. Directors are chosen based on their skills and expertise in one or more areas: social housing management, finance, community welfare, stakeholder engagement, property development and procurement, law, social policy development, information technology and human resources management.

There were no changes to Bridge Housing’s Board of Directors in 2018–19. Our governance report on page 46 provides an overview of the Board’s work in 2018–19.

Mark Turner BSc, MRICS, GAICD in Sydney. He has held senior executive roles as the head of funds management at DEXUS Joined Bridge Housing Board in December 2014 Property Group, in fund and asset management Elected Chair in December 2015 at Lend Lease and GPT, and as chairman of Skills: Property development, finance and an Asian property investment company. real estate Chair of Asset and Procurement Committee Mark graduated from the University of Portsmouth UK with a Bachelor of Science in Mark has more than 30 years of experience Urban Land Administration, is a member of in real estate funds management in Australia, the Royal Institution of Chartered Surveyors, the UK and Asia. Mark is currently an and is a licensed real estate agent in NSW executive director at EG Funds Management

Dick Persson AM, BA, FAIM was administrator for the newly-formed Northern Beaches Council. He has served as a director Joined Bridge Housing Board in December 2008 general of the Queensland Department of Housing, Skills: Housing policy, planning and local Local Government and Planning; the Queensland government, capital works procurement, Department of Health; and the NSW Department management, and government administration of Public Works and Services. Dick was director of Chair of Human Resources, Nominations the 1997–98 National Housing Policy Review for and Marketing Committee the Federal Government. Dick has held a number Dick has many years of experience in the New of senior board positions, including chairing South Wales and Queensland Public Service the Central Sydney Health Service, Healthquest, and Local Government. Until September 2017 he and the Sydney Harbour Foreshore Authority.

Graham Monk BComm (Hons), FCPA, MAICD commercial ofces in Australia and had assets valued at more than $6 billion. He now works as a Joined Bridge Housing Board in April 2016 consultant and non-executive director specialising Skills: Finance, real estate and funds management in the property and funds management sectors. Chair of Finance, Risk and Audit Committee Graham has extensive financial and commercial experience, having worked for CSR, Lend Lease, Lion Nathan, and as finance director of Investa Property Group, a diversified property group that was one of the largest owners of

34 Bridge Housing Limited Annual Report 2019 Carolyn Scobie BA LLB, Grad Dip with the Goodman Group, an integrated CSP, MA (Japanese), GAICD commercial and industrial property group. Prior to Goodman, Carolyn spent three years Joined Bridge Housing Board in June 2015 in the legal profession and six years as in- Skills: Legal house counsel with the Japanese construction Member of Human Resources, Nominations company Kumagai Australia Group. and Marketing Committee Carolyn is a member of the Governance Carolyn has over 25 years of legal experience Institute of Australia and a graduate of the in corporate and commercial property and Australian Institute of Company Directors. is responsible for all aspects of legal risk management for QBE. She was previously

Gary Milligan BSc, BEng (Electrical) encompasses policy development; project planning, evaluation and design; and project Joined Bridge Housing Board in February 2007 procurement and construction management. Skills: Asset management He is an experienced company director in the Member of Asset and Procurement Committee community housing sector and has undertaken Gary has had an extensive career as a training in the role of company director. professional engineer in the NSW public service with diverse roles in the delivery of the state’s buildings and infrastructure. His experience

Shirley Liew BBus (Fin), MBA, GAICD, FTIA, co-founded in 2011. She has more than 25 years FCPA, IIA, CRISC (ISACA), FINSIA(Af) of experience as a senior executive and held practice-led partner roles in banking, financial Joined Bridge Housing Board in 2009 services and retail and wholesale sector. Skills: Finance and risk management Member of Finance, Risk and Audit Committee Her current director roles include chair and director of Outset Group (Ambertiles) Australia Shirley is a professional non-executive director Pty Limited, non-executive director and chair and has a range of business interests. She of the Audit Risk Committee at Bellamy’s leads Shirley Liew Probus Advisory Services Australia Limited and non-executive director Pty Ltd, a consulting, risk and governance and chair of the Audit Risk Committee at Hunter financial management advisory firm she United Employees Credit Union Limited.

Lynne Ready AICD Grad, MMan, GDipPA, housing. Lynne is currently manager of youth BSocWk, DipPM, CertIV TAE and community programs at YMCA NSW. She was previously a director in ageing and Joined Bridge Housing Board in February 2018 disability at the NSW Department of Family Member of Asset and Procurement Committee and Community Services and a former director Skills: Public policy, management of the NSW Ofce of Community Housing. Lynne has wide-ranging executive level experience in public policy and service delivery management for disability residential services, child protection, residential and respite services for children, and social

Jill Hannaford BappSc (AppEcG) (Hons 1), responsible for GHD’s Reconciliation Action Plan. MUrb&RegPlg She co-founded IAP2 in Australia in the 1990s and has strong community engagement expertise. Joined Bridge Housing Board in February 2018 Member of Finance, Risk and Audit Committee Jill is a founding corporate partner of Skills: Community and stakeholder CareerTrackers, an Indigenous internship program. engagement, social sustainability She has worked very closely with CareerSeekers; an organisation that provides internships for Jill is a social scientist who is passionate refugee and asylum seeker professionals. She about diversity and social equity. Jill leads the is a leader of diversity and inclusion in the Technical Communities of Practice at global workplace and in community organisations. professional services firm GHD, where she has worked for the past 25 years. Jill is also

Our Board of Directors 35 Chairman’sOur executive Report team

The Executive is responsible to the Bridge Housing Board through the CEO and is tasked with delivering our strategic plan and business plan objectives. Our Executive is an experienced, passionate team of leaders with wide-ranging experience in the government, private and not-for-profit sectors. They bring expertise in property and tenancy management, community welfare, finance, property development, public policy, HR and IT to the organisation.

The Executive Team (left to right): Development Director Christopher Dib, Acting General Manager Operations Helen Tighe, Chief Executive Officer John Nicolades and General Manager Finance and Corporate Services David Miller.

36 Bridge Housing Limited Annual Report 2019 John Nicolades into a company that has a strong 1990–99 he was Community Services BA, BSW, GradDipAppFin social purpose, founded on an efcient Manager with the Uniting Church Chief Executive Ofcer and efective business, with a clear Board for Social Responsibility, and disciplined strategic focus. overseeing child care, disability services, John has led Bridge Housing Limited home and community care services, as Prior to joining Bridge Housing, John since 2006. Under his leadership, the well as housing policy development. organisation has grown from 650 held senior positions in the NSW properties to 2,334 properties and Government and the community He is an independent director on provides safe and secure afordable services sector. John led afordable the national Community Housing housing for over 4,000 tenants. He housing policy development in the Industry Association Board. He has successfully transformed Bridge NSW Department of Planning and has advised federal and state Housing from a small not-for-profit NSW Housing from 2000–05. From governments on housing policy.

Helen Tighe well as tenancy support coordination. housing sector and improve social BA Behavioural Science, GC-SSCHMP She was appointed as Acting housing service delivery. This included Acting General Manager, Operations General Manager, Operations on a managing teams of public housing in fixed-term contract while Rebecca high density estate locations including Helen Tighe has over twenty years’ Pinkstone takes parental leave. Redfern and Mount Druitt. Before experience working across the social working in the NSW Government, Before joining Bridge Housing, Helen and afordable housing sector. Helen Helen worked in supported housing worked for the NSW Government in joined Bridge Housing in August with young women and children and a number of operational and policy 2015 as the director of housing, with women escaping domestic violence. responsibility for applicant and roles managing programs of change tenancy management functions as and reform to grow the community

David Miller David is a Certified Practicing than $100 million and has extensive BBus, MBA, CPA, GAICD Accountant and has extensive financial, experience in developing and managing General Manager, Finance IT and general management experience. best practice corporate services. He has worked in the property industry and Corporate Services Since joining Bridge Housing, David for the past 25 years, for large private has overseen revenue growth from David was appointed General and public companies including Jones $27 million to $55 million, profit Manager, Finance and Corporate Lang LaSalle, Investa Property Group growth from $600,000 to $4 million Services in October 2012. He is and Clarendon Homes. These roles have and net asset growth from $53 responsible for Bridge Housing’s provided David with experience across million to $230 million. This growth financial management, reporting and the commercial real estate, property has been supported through the compliance, as well as developing and management, property development establishment and management managing IT systems, best-practice and residential construction sectors. of a $40 million corporate debt human resources management, and David has exercised financial facility and implementation of best risk and compliance frameworks. responsibility for budgets of more practice systems and processes.

Christopher Dib property valuer and Associate of house and group home delivery BComm (Land Economics), CPV the Australian Property Institute, his programs. His commercial acumen in Director Development work at Bridge Housing draws on his his work for the private sector enabled private and public sector experience. him to negotiate the acquisition of a $50 Christopher is an accomplished million development in Erskineville for Chris previously worked for Capital development director with 20 years’ AV Jennings Developments during the Insight and the NSW Government in experience in the Sydney property Global Financial Crisis, which returned the Land and Housing Corporation, market. He ensures the long-term margins in excess of 30 per cent. viability of Bridge Housing’s multi- where he was responsible for million-dollar development portfolio. acquiring and developing over 130 Since becoming Bridge Housing’s social housing properties under the Development Director, Christopher Christopher received his Bachelor of Nation Building Economic Stimulus has been directly responsible for the Commerce in Land Economics from Plan—Social Housing Initiative, with delivery of over 500 properties. This the University of Western Sydney in a construction cost of $40 million. At represents an overall increase in the 1998 and from there developed his Ageing, Disability and Home Care organisation’s portfolio of 30 per cent passion for property. As a registered he was responsible for the boarding with an end value of over $180 million.

Our executive team 37 Spotlight 1:3:

Strategic asset management

In 2018-19, Bridge Housing achieved Bridge Housing’s Asset Management Program. The SAMP is currently excellent survey and audit results from Framework and approach, which being updated to consolidate our our delivery of planned, cyclical and is shown in Figure 1 below, is recent achievements and provide responsive maintenance services to guided by four key principles: a platform for future growth. our tenants. These results reflect our organisational values, principles and A lifecycle approach Accurate data to inform strategy regarding asset management. 1 to asset planning 2 decision making Bridge Housing developed its first Bridge Housing prepares a 20-Year As custodians of public assets, the 10-year Strategic Asset Management Financial Forecast Model to ensure the community housing sector must ensure Plan (SAMP) in 2008. Over the last organisation is financially sustainable. that properties are well-maintained over decade, Bridge Housing has refined Our Asset Management costs have a the long term to provide safe, secure and updated these plans to manage our significant impact on our long-term and afordable accommodation. Bridge growing and heterogeneous portfolio.34 viability. To inform maintenance Housing recognises that property Our most recent plan was developed to obligations and costs, Bridge maintenance has a direct impact on prepare for anticipated organisational Housing undertakes an independent tenant satisfaction, health outcomes growth. Since preparation, Bridge technical scoping program. Every and the longevity of a property as Housing secured 1,228 new properties three years, all capital properties are a home to future generations. on the Northern Beaches through the assessed by independent, qualified By working closely with tenants, Bridge Social Housing Management Transfer building consultants. Bridge Housing Housing can deliver better asset management services, maximise the life of properties, and foster tenants’ Figure 1: Asset Management Framework pride in homes and common areas. Through proactive asset and tenancy management services, our staf Forecast Model address property care issues promptly (20 Years) to prevent negative impacts on the property and/or tenancy sustainment. Strategic Plan Strategic Asset Further information about the Assets (3 Years) Management Plan (10 Years) team’s work is highlighted in the Operations report on page 54. Work Plans Business Plan Annual Asset New Supply / by other units (annual) (annual) Maintenance Disposal Plan Program “Whenever I’ve mentioned a Corporate problem that needed repair, Frameworks Asset Asset & Pollicies & Design whether in my apartment Pollicies & Procedures Standards or around the building, the Procedures Repairs Team have sorted- Quality Portfolio out the problem quickly. I’m Assurance Review / Framework Planning grateful for that, and I really Risk Management appreciate all of your help.” & Compliance Asset & Project Development Management & Elger Street tenant Procurement Governance Contract Mgmt. Framework

Project Management Approach

ICT Stategy & Plan

34 Bridge Housing has one of the most diverse housing portfolios in NSW. Our portfolio ranges from detached properties built over 100 years ago to more recent large multi-unit developments such as Elger Street Glebe.

38 Bridge Housing Limited Annual Report 2019 Bridge Housing tenants and staff at Bronte Road extrapolates the works and costs out to With significant investment in property assessments through our 20 years to forecast our maintenance planned maintenance and preventative technical scoping program and liability and property condition maintenance works, Bridge Housing other cyclical preventative programs to inform our asset programs. has substantially reduced the number (termite inspections, roof and gutter of high-risk works, thereby enabling inspections, structural assessments, Our scoping program ensures that better planning of works and upgrades. sewer and stormwater inspections). Bridge Housing understands where there are potential capacity issues A proactive asset Accordingly, Bridge Housing’s so as to undertake maintenance 4 maintenance approach responsive maintenance expenditure obligations and ensures the model is was below budget in 2018–19. Bridge Housing undertakes a informed by portfolio changes. Using Investing in a planned approach proactive approach in ensuring our this innovative approach, Bridge has reduced major issues across properties meet appropriate standards. Housing can accurately undertake the portfolio, increased tenant This involves the allocation of a budget forecasts over the short, satisfaction and delivered better substantial budget towards planned medium and long term to meet our customer service outcomes. and cyclical maintenance, including asset management responsibilities. a substantial budget for regular A risk minimisation approach 3 to asset maintenance In order to manage medium-term budgets and financial outcomes, Bridge Housing prioritises maintenance work using a robust risk matrix framework. All high risk and priority items are addressed in the annual program of works. Lower risk items traditionally relate to the property’s amenity or features. Works are considered when a property becomes vacant (vacant maintenance) and may be undertaken to reduce the impact on, and cost of relocating, existing tenants. Our risk management approach to prioritising asset management ensures any deferred maintenance will have the least negative impact on tenant safety and overall property standards. The Assets team meeting with contractors from Asset Group Services

Spotlight 3: Bridge Housing’s strategic asset management approach 39 Our people

Bridge Housing’s employees deliver high-quality services to our applicants and tenants. Their passion, commitment, diverse skills, capabilities and experience are key drivers of our success. Our people enable us to strive for greater success across our business areas. Attracting, developing and retaining talented employees is critical to the delivery of our vision and mission.

Bridge Housing’s People and The People and Culture Strategy is partnered with CareerTrackers to Culture Strategy Stay, Say and Strive implemented by Human Resources support professional development focuses on building our positive team, which is situated within the and provide internship and people-focused culture during Finance and Corporate Services opportunities for Aboriginal and a period of significant growth and division. Further information Torres Strait Islander people. change. The Strategy consists about the team’s work is presented of the following focus areas: in the Finance and Corporate Organisational Structure Review – Services report on page 72. Preparing for growth and success Stay This section of the Annual Report: As a result of our success in the Engaged employees have an SHMTP, Bridge Housing was required presents the Human Resources intense desire to work at Bridge to increase our employee headcount team’s highlights for 2018–19 Housing. As a mission and by 47 per cent within 12 months and values-driven not-for-profit reports on how the Human establish a new Northern Beaches community housing provider, Resources team has delivered ofce. Bridge Housing conducted employees have the opportunity on its critical success factors an organisational structure review to be engaged in work that provides an overview of the key to examine the following issues: makes a diference to people’s activities undertaken during the year current organisation structures and lives. Bridge Housing provides outlines our objectives for 2019–20. processes and the extent to which above-award pay, conditions these are fit for purpose in light of and a range of benefits Highlights of 2018–19 anticipated significant growth the resources required to meet In 2018–19, the Human Resources team: Say future business demands implemented an organisational The structural changes required to structure review and absorbed a 47 Engaged employees consistently enable talent and organisational per cent increase in staf to deliver speak positively about the capability development. company to colleagues, potential the Social Housing Management employees and stakeholders. Transfer Program (SHMTP) and Upon completion of the review, Bridge Housing actively build capacity for further growth Bridge Housing is confident that seeks employee participation reviewed our Total Rewards Program the right structure is in place in our workforce planning and implemented a Remuneration to support our organisational activities and has a number Strategy which cements Bridge requirements. Highlights included: of channels for engagement, Housing’s market position as created 27 new roles collaboration and consultation a sector leader in staf pay introduced new management maintained staf engagement and leadership roles Strive at 81 per cent, in the context of Rebecca Pinkstone, our former significant growth and change general manager of Operations, Engaged employees volunteer built leadership capability was promoted to Chief Operations extra efort and engage in through the Accelerate, Strive, Ofcer to reflect the increased scale behaviours that contribute to and Flourish positive culture and responsibilities of her role the organisational success. and leadership program Krystal Moores, former Team Leader Our learning and development updated our Learning and - Pathways was promoted to Manager program supports employees Development Policy and Pathways to reflect the increased to strive and enables them program to support the delivery scale and responsibilities of her role to perform at their best and of Business Plan objectives achieve their full potential. appointed a Manager, Partnerships secured a new long-term ofce and Support Coordination accommodation solution for our appointed a Regional Manager, Head Ofce in the City of Sydney Central and Regional Manager, North and our new ofce in Brookvale appointed an Executive Ofcer. launched an updated Diversity and Inclusion Policy, which will By August 2019, the number of inform the development of our new permanent Bridge Housing employees Diversity and Inclusion Strategy will increase from 65 to 84.

40 Bridge Housing Limited Annual Report 2019 Employee snapshot

90% 66 10% Full-time Full-time Part-time equivalent

During 2018–19, in line with our Receptionists Aria Kohi and Eileen Harvey and Housing Manager Jennifer Beresford transition planning for the SHMTP, additional temporary project roles were recruited in preparation Bridge Housing undertakes a to work on strategies to encourage for the August 2019 transfer. comprehensive exit interview when and drive employee retention. each employee leaves, which provides Our executive team remained stable Employee turnover additional information on our throughout the year with Rebecca strengths and areas of improvement. In 2018–19, our employee turnover Pinkstone, Chief Operating Ofcer, rate was 18 percent, decreasing from Bridge Housing considers that a low returning from parental leave. 21 per cent in 2017–18. Of these, nine level of turnover is healthy as new permanent employees resigned, one employees bring fresh ideas to the Staff culture and engagement employee left due to restructure in the organisation. Our current turnover rate Bridge Housing conducts an annual Development team and four temporary is slightly higher than our target of 15 Employee Opinion Survey that employees left due to contract expiry. per cent. Bridge Housing will continue provides insights across multiple dimensions of employee satisfaction Departments and engagement. Results are used Employee (percentage), 2014–19 to actively address and develop Executive Housing and Community Development Assets Finance and Corporate Services initiatives in response to new and emerging people and culture issues. 100 90 In our ninth annual Employee Opinion 80 Survey 2019, Bridge Housing maintains 70 a level of staf engagement that is 60 50 best-in-class across our sector. Our 40 overall engagement score remained 30 at 81 per cent in 2019, an outstanding 20 achievement in the context of 10 significant growth and change. 0 2014 2015 2016 2017 2018 2019

Employee engagement Bridge Housing compared to sector average Separation reasons (percentage) 2016–19 (percentage), 2013-19 2016 2017 2018 2019 CHP Sector Average Bridge Housing 60 84 82 50 80 40 78 76 30 74 72 20 70 10 68 66 0 64 Career Opportunities Manager Personal reasons End of Contract Relocation 2013 2014 2015 2016 2017 2018 2019

Our people 41 Our people (continued)

Snapshot of the 2018–19 Employee Employee opinion survey Opinion Results Bridge Housing compared to sector average (percentage), 2019 Bridge 2018-19 CHP Sector Average Commitment 100 90 per cent of staf feel 80 91 a sense of loyalty 70 and commitment to 60 50 this organisation 40 30 Organisation 20 10 per cent of staf believe 0 99 that the future for this Mission Org Comm Org Direction Leadership Learning Remuneration Job Intention organisation is positive & Dev Satisfaction to stay

Mission & values also showed an improvement in the per cent of staf believe proportion of employees who felt in the overall purpose 97 that managers ensure that the best “The organisation is of this organisation) person for the job is hired (77 per willing and able to learn cent), up from 72 per cent in 2018. from past experiences, Facilities including mistakes and to To support career progression evaluate its performance per cent of staf believe and recruitment, Bridge Housing to drive improvement” 100 that the building and engaged employees in the revision facilities they use are and finalisation of our Recruitment “Bridge Housing is clearly in a good condition) Policy. This was further supported committed to its workforce by the launch of the Bridge and to supporting staf Executive team Housing Career Hub in 2018–19. wellbeing and development”

per cent of staf said that Process 95 they have confidence In 2019, 76 per cent of employees Investment in training and in the ability of the felt there is clarity on roles and leadership development Executive team responsibilities in the organisation, up Bridge Housing is committed to from 62 per cent in 2018. Overall, 77 per attracting and retaining our talented Improvements were recorded cent of employees consider there are employees. Our learning and across the survey, including new clear policies and procedures outlining development program is designed and emerging issues highlighted how work is done, up slightly from 2018. to develop and enhance employee in the 2018 survey and addressed In 2018–19, Bridge Housing increased capabilities in response to current in our 2018–19 Action Plan. These our net promoter score from +35 to +52, and emerging strategic operational included wellness, recruitment and which indicates that a greater proportion needs. In addition, the program career progress, and process. of employees would recommend Bridge also supports our employees to Housing as a great place to work. meet performance expectations Wellness in their current or future role. Staf commented on what Bridge Housing’s overall wellness During 2018-19, Bridge Housing score improved slightly in most they see as Bridge Housing’s organisational strengths: continued to embed our areas in 2019, with 75 per cent of leadership program – Accelerate, employees indicating they felt Strive, and Flourish. This suite emotionally well at work. This result of programs focuses on: represented an increase of 5 per “The leadership and vision of cent from 2018 and is 7 per cent our CEO, Senior Management creating a positive, sustainable higher than the industry average. Team and Board” environment that builds resilience “Our tenants and the and wellbeing in individuals, teams Bridge Housing partnered with the and the whole organisation Black Dog Institute, who delivered contributions they make training on workplace mental health in each other’s’ lives enhancing the capacity of leaders to and managing team wellbeing. We and communities” ensure a fair, dynamic and efective organisation and ensure innovative, also reviewed our employee wellbeing “Bridge Housing’s commitment high-quality service provision, and program. For further information, to social change, as evidenced please see Spotlight 4 on page 52. through initiatives such as the developing an inclusive and Reconciliation Action Plan” confident organisational culture that Recruitment and Career Progress maximises the potential of workers to In 2019, 82 per cent of staf agreed “The organisation has strong fulfil their roles and responsibilities. that managers are clear on the type and committed leaders, who demonstrate their passion Bridge Housing also seeks to of people the organisation needs to provide training and development employ, which is 17 per cent above and commitment to delivering great social housing outcomes“ opportunities for our employees so the industry average. The survey they can meet and achieve their career

42 Bridge Housing Limited Annual Report 2019 aspirations. Staf have access to a range of professional development opportunities, seminars and training courses, conferences and our internal lunch and learn program. Bridge Housing supported employees’ career development by providing study assistance for higher education. In 2018-19, our employees participated in a range of tertiary education opportunities at diploma, degree, graduate certificate and master level. Permanent employees are entitled to 10 days of study. Our commitment to learning and development is confirmed in our employee satisfaction scores in this area. The majority of employees (85 per cent) felt there is a commitment to ongoing learning and development, whilst 83 percent considered their learning and development experiences have improved their job performance.

Average 5 days of training per year per staff member Director Assets Theo Posumah 8 employees took on Training spend: $123,000 higher duties roles “Very lucky to have Bridge Housing supporting my career 13 employees were successful in Investing in our people and development by sponsoring their applications for a more senior creating opportunities me for the AHI mentoring permanent or fixed term role. program. The idea of being In 2018–19, Bridge Housing created mentored is critical for my Benefits and Rewards a record number of internal overall development…being In 2018-19, Bridge Housing opportunities. Such opportunities challenged at all levels and support our growth plans and developed and implemented a pushed to grow. The program Remuneration Strategy which succession planning, significantly ofered me a wonderful reducing our organisational risk. cements Bridge Housing’s market opportunity to be matched with pay position as a sector leader. To support staf in developing another successful professional their career, Bridge Housing: from our sector and great tools In addition to the Remuneration to structure the mentoring Strategy, Bridge Housing’s Total revised the Recruitment Policy relationship to achieve the Rewards Programs ofers an launched My Career Hub best possible outcomes. It attractive range of work benefits Sponsored staf to participate in has been fantastic so far. to our employees. The program the Australasian Housing Institute Looking forward to completing consists of paid and other personal (AHI) Mentoring program. the…program and learning benefits that make a diference to more from my mentor.” our employees’ quality of life. My Career Hub Monica Salama, In 2018, 95 per cent of employees For the first time, employees were Housing Manager indicated they were satisfied with the ofered the opportunity to participate benefits they receive, up from 5 per in a one-on-one, 45-minute career cent in 2017. This result was 24 per coaching session. Bridge Housing cent higher than the sector average. also compiled tools and resources internal career to enable employees to proactively opportunities The Total Rewards Program includes: drive their career development. 35 in 12 months 10 percent above-award pay AHI Mentoring Program an extra day of for each That is more than 3 roles a month! employee’s birthday Bridge Housing recognises the value 14 direct appointments including additional paid leave for the days of mentoring programs to support eight employees on fixed term between Christmas and New Year staf development. In 2018-19, Bridge contracts ofered permanent roles. Housing committed to sponsor all Five employees were ofered a higher flexible working arrangements employees who wanted to participate classification due to restructure and study assistance in the program as a mentor or mentee. one employee was ofered a new role salary packaging and salary to create a flexible work arrangement packaging provider discounts

Our people 43 Our people (continued)

peer Customer Service ensuring that our language Domestic violence prevention Shout-Out Awards and practices are inclusive Bridge Housing proactively responds discounted gym membership and non-discriminatory to incidents of violence against weekly fresh fruit delivery increasing the capacity of our leaders women inside or outside of the to value and deeply understand annual influenza immunisation workplace. In 2018–19, Bridge Housing the importance of diversity, engaged the Gendered Violence paid parental leave (additional inclusion, equal opportunity, Research Network at the University to the legislative requirement) equity and social justice and their of New South Wales to train all our gym discounts role in building inclusive teams managers and leaders in Responding weekly fresh fruit delivery and working environments to Domestic and Family Violence. subsidised skin checks and delivering educational programs Bridge Housing embraces a culturally a quit smoking program and initiatives for all employees diverse workforce, reflecting the which facilitate increased knowledge, monthly massages breadth of our community, applicants shared understandings and a bi-monthly reflexology and tenants. We have employees genuine sense of belonging, to ensure who speak Arabic, Cantonese, Employee Assistance Program they can achieve their full potential French, Greek, Vietnamese, providing support services and Equity, diversity and inclusion Mandarin, Portuguese, Spanish, leave provisions for employees with Swedish, Danish, Serbian, Croatian, Diversity Snapshot caring or cultural responsibilities Hindi, Italian, and Hungarian. measuring and reporting our Females 82 per cent progress towards diversity and Diversity Males 18 per cent inclusion across the organisation Workforce diversity (percentage), 2018–19 identifying and cultivating external % staff % Management partnerships that promote and foster 100 Females in senior leadership roles35 diversity, inclusion and equity within 56 per cent Bridge Housing, for tenants and 80 applicants, and in the community. 60 The policy will inform the development Females in executive roles of our inaugural three-year Diversity 40 25 per cent and Inclusion Strategy, which is due to be finalised in 2019–20. 20 Board representation 50:50 Supporting Indigenous employees 0 and creating career pathways Women CALD LGBTIQ Aboriginal and Torres Strait Islander Bridge Housing believes that a In 2018–19, Bridge Housing partnered diverse and inclusive workplace with CareerTrackers, an organisation delivers improved performance and that is closing the gap for Aboriginal wellbeing outcomes for our employees, and Torres Strait Islander students and better serves the needs of our by ofering valuable employment diverse applicants and tenants. experience. Bridge Housing has Bridge Housing’s Diversity and committed to supporting two paid Inclusion Committee is chaired by interns each year. Our first intern our CEO, John Nicolades. The role of will commence in July 2019. the committee is to inform and assist To demonstrate our ongoing Bridge Housing in promoting and recognition and commitment to encouraging diversity through various reconciliation, Bridge Housing initiatives and strategies. Over the introduced two days of paid Cultural last 12 months, the Committee has Leave for our Aboriginal and Torres reviewed, updated and implemented Strait Islander employees to enable our new Diversity and Inclusion them to fulfill their cultural obligations Policy. The policy aims to drive and through attendance at cultural achieve various outcomes, including: events, such as NAIDOC Week. ensuring that our employees, tenants, Bridge Housing continued to applicants and stakeholders are advertise all external recruitment treated equally and with dignity, under our Aboriginal Employment fairness and respect at all times Strategy, increasing the number providing a workplace which of Aboriginal and Torres Strait is free of discrimination, Islander employees to three. harassment, bullying, vilification and other unlawful behaviour

35 Senior leadership roles include the Chief Executive Ofcer, Chief Operating Ofcer, General Manager Finance and Corporate Services, Development Director, Director Assets, Director Housing, Financial Controller, Human Resources Manager and Sustainable Communities Manager

44 Bridge Housing Limited Annual Report 2019 2019–20 People and Culture Objectives: Our People and Culture objectives for include Emotional Intelligence 2019-20 are detailed in the Business module in the Accelerate, Strive and Plan 2019-20. These include: Flourish positive culture program evaluate Employee Total ensure positive and consistent Rewards Program culture and values established expand the Recruitment Strategy to across City and Brookvale engage with universities and TAFEs Ofces through meeting structures, training programs implement and evaluate the Career and team building initiatives Trackers Internship program undertake 2020 Employee Opinion implement online Learning Survey (EOS), review findings Management Platform (LMS) and implement action plan develop a proposal to embed undertake onboarding and inclusion strengths profiling in performance of Northern Beaches staf into reviews, development plans and the Total Rewards Program and other HR processes in line with develop strategies for inclusion implementation of new HRIS undertake Northern Beaches staf identify Mentoring and Pulse Survey upon opening of Coaching opportunities to Brookvale Ofce and then follow support staf development up after three and six months. finalise Diversity and Inclusion Strategy and implement Year 1 Action Plan

Bridge Housing staff at 59 Goulburn Street Sydney

45 Our governance

Our governance principles are based on the eight ASX Corporate Governance Principles and Recommendations. We measure Bridge Housing’s governance practices against the third edition, issued by the ASX Corporate Governance Council in 2014.

Governance principles Our corporate governance principles ensure our directors address their corporate, legal, and financial and audit responsibilities and exercise reasonable care, skills and diligence in carrying out their duties. As a not-for-profit with charitable status, Bridge Housing has no obligation to adopt these principles, but as a leading community housing provider, we voluntarily follow the principles to reflect our commitment to good corporate governance. In February 2019, the ASX Corporate Governance Council released Corporate Governance Principles and Recommendations (the Fourth Edition). These will take efect for a listed entity’s first full financial year commencing on or after 1 January 2020. Bridge Housing will review this document in 2019–2020 to benchmark Chairman Mark Turner speaking at the 2018 Annual General Meeting (AGM) our corporate governance practices to ensure it meets the new standard. select and retain the CEO and Finance, Risk and Audit Committee Bridge Housing’s actions in set the conditions of service Asset and Procurement Committee conforming to the aims of the and monitor performance Human Resources, Nominations ASX Corporate Governance review and approve annual budgets, and Marketing Committee. Principles and Recommendations monitor management and financial in 2018–19 are detailed below. performance, and ensure that the When necessary, it may establish Lay solid foundations for organisation has the necessary time-limited committees to 1 management and oversight skills, resources and support deal with special issues. identify significant business risks Bridge Housing directors regularly Bridge Housing’s directors are and ensure efective strategies are review their own performance, aware of their responsibilities under in place to manage these risks conducting an independent review Commonwealth and state legislation every two years and an internal and ensure Bridge Housing abides ensure that there are adequate review on the alternative year. The by its Constitution and its obligations systems of internal control, together directors approved a Deed of Access as a trading entity, an employer, with appropriate monitoring of and Indemnity at the October 2013 a contractor, and a responsible compliance activities Board meeting for all directors and and ethical corporate citizen. review and approve major senior managers of Bridge Housing. strategies, financial objectives How we do this and plans, including capital To assist new and existing directors, The Board’s primary expenditures, acquisitions, we established a Board Charter in responsibilities are to: developments and divestments December 2011. The Board Charter establish long-term goals and remunerate fairly and responsibly. was reviewed by the Board in 2018–19 engage in strategic planning and is available on the Bridge Housing The Board meets every second to achieve those goals website. This augments the Bridge month and has established three Housing Governance Principles by ensure the appropriate separation standing committees to help it setting out the roles, responsibilities, of authorities and balance of consider and make decisions structure and processes of the Board. responsibilities between the about operational matters: Board and management

46 Bridge Housing Limited Annual Report 2019 Guest speaker Kate Burke, Senior Journalist, Domain, addressing attendees at the 2018 AGM

All directors are encouraged to How we do this and Recommendations to enhance undertake the Company Directors diversity. The changes included the Course run by the Australian Bridge Housing regularly assesses our recommendation that listed companies Institute of Company Directors Board members’ skills to identify gaps or adopt a diversity policy that sets (AICD) within the first year of areas that need enhancement to ensure measurable objectives for achieving their directorship, if they have not the Board can support our strategic and gender diversity. Companies must previously completed the course. business objectives. We also advertise report annually on their achievement to secure the best-qualified director against those objectives and on the Structure the Board for the position. Information about to add value proportion of women employed 2 the skills, experience and expertise of by the organisation, in senior The Bridge Housing Board is skills- directors and executives is available management roles, and as directors. based. The Board chooses directors on our website and page 34 and 36. The Bridge Housing Board who have expertise in one or more Bridge Housing’s Board Charter and determined that diversity on the of the following areas: social housing Director’s Induction Program provides Board and within the organisation management, finance, community information to directors on the terms encourages alternative views and is welfare, property development and and conditions of their appointment, critical to efective governance and procurement, law, social policy procedures for taking independent good organisational practice. development, accounting, asset advice, and how to access to training management, information and programs to maintain director Bridge Housing’s Diversity Policy, technology, and HR management. efectiveness. The Induction Program approved in December 2012, requires at least 40 per cent of directors to be To provide efective governance introduces them to Bridge Housing’s of either gender. At June 2018, we and direction to Bridge Housing, operations through structured achieved 50 per cent representation the Board seeks and appoints meetings with the Executive Team of both genders on the Board. directors who meet the skill and site visits, enabling directors to Our 50 per cent representation categories, and who, between gain a comprehensive understanding compares with 40 per cent in the them, can reliably carry out all the of Bridge Housing’s business. charities sector, 30 per cent for ASX necessary functions of the Board. In July 2010, the ASX amended its 100 companies and 40 per cent Corporate Governance Principles for Federal Government boards.

Our governance 47 Our governance (continued)

What we did in 2018–19 following policies and documents: made through the Whistleblower Policy Code of Conduct for Directors in 2018–19. Further information about Bridge Housing reviewed its Diversity the policy is available on our website. Policy in late 2018 and developed Code of Ethics for Directors and Staf a Diversity and Inclusion Policy, Fraud and Corruption Policy Safeguard integrity in which was approved by the Board financial reporting Gift Policy 4 in February 2019. It reinvigorated its Managing Conflict of Interest Policy The Board ensures that Bridge Diversity and Inclusion Committee, Housing’s financial statements present Register of Interests chaired by the CEO. The Committee an accurate and fair position of the is developing a three-year Diversity Statement of Business Ethics organisation’s financial condition and Inclusion Strategy, which is Tenants’ Rights Statement and operational results in all material scheduled for implementation in Whistleblower Policy. respects and in accordance with 2019–20. Further information is international accounting standards. provided in Our people on page 40. In 2011–12 Bridge Housing adopted How we do this Bridge Housing engaged Company a set of values that provided the Matters to facilitate the process of framework for the culture and Bridge Housing’s Finance, separating the Company Secretary behaviours required of our directors Risk and Audit Committee function from the CEO’s role. This and staf. Our values are listed on has a formal charter to: page 3 of this Annual report. The separation will be completed in maintain an efective risk Statement of Business Ethics sets out 2018–19. The Board is of the view that management framework, including the standards of behaviour required this course of action will reduce any compliance and internal controls potential conflict of interest that may by those who do business with Bridge ensure the integrity of financial arise if the function is left with the Housing, and the guidelines for statements and external CEO or delegated to any executive appropriate relationships between financial communication members who report to the CEO. directors and employees and those we do business with. Our suite of ethics ensure external and internal Promote ethical and policies ensures that directors, the audit functions are efective responsible decision-making 3 executive team and other staf members ensure adequate insurance The Board ensures that Bridge act to the highest ethical standards. coverage for Bridge Housing. Housing conducts its business to the Bridge Housing’s Whistleblower Policy Management and the Board receive highest standards of honesty, integrity, and procedure provides employees comprehensive financial reports that respect and fairness when dealing with the ability to make confidential track our financial performance against with customers and employees. reports through an online portal comparative financial and operational How we do this managed by On Call. This enables key performance indicators (KPIs). Bridge Housing’s employees, vendors, Bridge Housing adheres to the suppliers and tenants to report Our Five-Year Report Card on page highest ethical principles, as per the fraudulent activity. No reports were 78 provides both quantitative and

Tenant speaking at the 2018 AGM Executive Officer Caitlin McDowell at the 2018 AGM

48 Bridge Housing Limited Annual Report 2019 qualitative performance KPIs. Since 2013, the report card has been updated with additional commentary on our key financial viability measures to explain the importance of these indicators to our stakeholders. Bridge Housing is constantly seeking to ensure its business systems and processes are evaluated to ensure good practice and that the Board is able to keep the executive accountable. We have undertaken Internal Audits since 2012. We protect the independence of our internal audit process by creating a direct reporting line to the chair of the Finance, Risk and Audit Committee, and to the Board.

The Board believes that external Members vote at the 2018 AGM auditor rotation is important to maintain objectivity and independence, and to adhere to the principles in both frameworks were sound and How we do this the Corporate Law Economic Reform appropriate in the context of our Program (Audit Reform and Corporate organisation’s size and activities. Bridge Housing is not subject to the Disclosure) Act 2004 (also known Further information is provided ASX Continuous Disclosure rules but as CLERP 9). BDO was appointed in our Finance and Corporate adopts them as guiding principles. in November 2013 as our external Services Report on page 72. As a leader in the not-for-profit and financial auditor and was reappointed community housing sectors, we are for the 2018–19 financial year. Make timely and committed to a culture of strong 5 balanced disclosure governance and transparency. What we did in 2018–19 The Board will ensure that information Our reporting transparency and Our annual Internal Audits were is made available in a timely manner governance has been externally undertaken by PKF Chartered to Bridge Housing’s stakeholders, reviewed and validated through the Accountants, involving a review of clients, support agencies, regulatory PwC Transparency Awards from 2011 our Privacy Policy and Framework and funding bodies, members and staf, to 2013 and the Australasian Reporting and Tenant Management Framework. and that the information is factual and Awards on an annual basis since 2013. The audits demonstrated that clearly and objectively expressed. Community housing providers are required to notify the community housing regulator, the National Regulatory System for Community Housing (NRSCH), about any incident which damages or has the potential to damage the reputation of the community housing sector. Bridge Housing’s Notifiable Incidents Policy also guides our practice in this area. There were no notifiable incidents during 2018–19. Our Media Policy delegates media comments to the CEO or Chairperson. What we did in 2018–19 Bridge Housing received our seventh consecutive Gold Award for our Annual Report 2018 in the 2019 Australasian Reporting Awards held in June 2019. We are one of the few not-for-profit organisations and the only community housing provider in Australia to have achieved consecutive Gold Awards.

Tenants read the 2018 Annual Report

Our governance 49 Our governance (continued)

Respect the rights of Recognise and (RAS) in 2017-18, which sets out 6 Bridge Housing members 7 manage risk our willingness to take on or retain risk. The Finance and Corporate The Board will ensure that Bridge The Board will ensure that Bridge Services Report on page 72 provides Housing has policies, systems and Housing has comprehensive and a comprehensive overview of our procedures that promote the interests sound risk management policies, Risk Management Plan 2018-19. and rights of members and allow them systems and procedures that to efectively exercise those rights. ensure good internal controls. Bridge Housing’s Treasury Policy, initially developed in 2011–12, provides How we do this How we do this a comprehensive framework to manage Bridge Housing has members but, as Our comprehensive Risk Management our financial risks and determines a not-for-profit organisation, has no Plan identifies internal and the Board’s risk appetite. The Policy shareholders. Our Annual General external risks that might hinder is reviewed annually to ensure meeting is held in November every us in fulfilling our Strategic Plan its relevance to Bridge Housing’s year and our Annual Report is and Business Plan objectives. financial management needs. available to our members and other Since 2013, Bridge Housing has During the year, the Board approved an stakeholders through our website. developed an enterprise risk internal audit program for 2018-2021. The Chairman and the CEO report to management framework compliant members at the AGM and directors What we did in 2018–19 with AS/ NZS ISO 31000:2009. The are available to answer any questions. board formally approves the Risk The Treasury Policy was reviewed in Our external auditor attends our Management Plan annually, with light of refinancing our existing $40 AGM and is available to answer the status and mitigation actions of million debt through the National members’ questions about the high-rated risks reported quarterly Housing Finance Investment finances of the organisation. to the Board by the Executive team. Corporation (NHFIC) to manage available access to liquidity and To complement our overall Risk management of counterparty risk Management Framework, the Board through our term deposits. adopted a Risk Appetite Statement

Bridge Housing tenant Alan speaking at the 2018 AGM

50 Bridge Housing Limited Annual Report 2019 Remunerate fairly 8 and responsibly The Board will ensure that Bridge Housing’s remuneration and employment policies and practices help retain and attract qualified and motivated staf, including the CEO. How we do this Bridge Housing directors serve on a voluntary basis and do not receive payment for their services. Directors are reimbursed for expenses related to board activities including travel, meals and accommodation. As noted in principle 1, the Bridge Bridge Housing tenant speaking at the 2018 AGM Housing Board Charter also allocates an annual training budget for They take into account salaries for What we did in 2018–19 each director and pays for Board comparable positions in the community The Board adopted a salary benchmark members to undertake the AICD’s service and government sectors. level of 10 percent above award to help Company Directors Course. In 2012–13, the Bridge Housing Board us achieve our strategic objectives Executive salaries for the CEO, Chief approved an improved remuneration and to attract and retain talented Operating Ofcer, General Manager and benefits package for award- based employees in a growth environment Finance and Corporate Services staf, which pays above the Social, and ensure that our remuneration is and Development Director are set Community, Home Care and Disability fair and equitable for employees across via triennial remuneration reviews Services Industry Award. Salaries are the organisation and to maintain our undertaken by an independent and also adjusted annually in line with strategic position. The policy came expert remuneration firm, e.g. Mercer’s. Fair Work Minimum Wage Increase into efect from January 2019.

Board attendance In 2018-19, six board meetings were held in addition to committee meetings.

Human Resources Assets and Board Finance, Risk and Nominations Procurement meetings and Audit Committee Committee

A B A B A B A B

Mark Turner 6 5 X X 6 6 X X

Shirley Liew 6 3 X X X X 5 3

Gary Milligan 6 6 X X 6 6 X X

Dick Persson, AM 6 5 6 6 X X X X

Carolyn Scobie 6 6 6 5 X X X X

Graham Monk 6 5 X X X X 5 5

Jill Hannaford 6 5 X X X X 5 5

Lynne Ready 6 6 X X 6 3 X X

A: Number of Meetings Eligible to Attend B: Number of Meetings Attended X: Not a Member of the Committee Chair of meeting Eligible to attend

Our governance 51 Spotlight 4:

A holistic approach to employee wellbeing

Bridge Housing’s staff members are our most important assets. To achieve positive outcomes for our applicants and tenants, our employees’ mental, physical and emotional health and wellbeing is critical. Our holistic approach to employee wellbeing ensures that staff members are supported to succeed in the workplace.

In the 2018 Employee Opinion Survey, engaging with external agencies partnered with the Langley Group Bridge Housing’s overall wellness score to promote mental health and to deliver positive psychology decreased amongst the staf cohort, wellbeing and develop strategic programs focusing on growing from 70 per cent in 2017 to 65 per cent. partnerships to streamline efective leadership, resilience, wellbeing In response, Bridge Housing enhanced supports to employees, and and emotional intelligence at an its focus on employee wellbeing providing an environment that individual, team and organisational and mental health with the objective encourages employees to seek level. Through this program, Bridge of improving our ability to support support early if they have declining Housing aims to maximise the staf through change and growth. mental health, and as appropriate. potential of our people to fulfil their roles and responsibilities, increase Raising awareness on During 2018 Mental Health Month, staf contribution and engagement mental health the CEO hosted a staf breakfast and levels, and enhance the efectiveness gave a heartfelt speech on managing and innovation of our leaders. Bridge Housing aims to promote mental health. In October 2018, Bridge positive mental health and wellbeing as Housing partnered with the Black New Employee Assistance part of our organisational commitment Dog Institute to deliver programs Program (EAP) to create a healthy and safe workplace to staf and managers, focusing on and environment for all employees. reducing the incidence and impact of In February 2019, Bridge Housing Current initiatives involve: mental health issues and support our appointed Acacia Connection leaders to manage team wellbeing. as our new Employee Assistance promoting positive mental health and Provider (EAP). Acacia Connection wellbeing through policies, support ofers a confidential EAP service services, information networks and Focus on culture, leadership and strengths and operates 24 hours a day to regular health promotion campaigns assist employees to deal with encouraging employees to adopt Developing our people and personal or work-related issues. healthy lifestyle choices through maintaining our positive culture active participation in various is crucial to employee wellbeing. Staf can access six hours of health and wellbeing initiatives Since 2017, Bridge Housing has counselling sessions per year. In addition to counselling services, Acacia ofers financial coaching, legal assistance and a dietician service. Since February 2019, nine employees have used Acacia Connection’s services, up from two active users with our previous provider. Reflective groups To support frontline staf, Bridge Housing ofers bi-monthly reflective group sessions for staf debriefings. Facilitated by an external psychologist, the groups are set in a confidential and non- judgmental environment where employees can share challenges and ofer potential solutions to facilitate a culture of sharing and continuous improvement.

Manager Human Resources Jenny Woolley and Human Resources Consultant Natalie Lenton

52 Bridge Housing Limited Annual Report 2019 Flexibility and extra leave Our staf are contracted to work a 35-hour week and access a best practice Flexible Work Policy. All Award-level staf can access flex leave which helps staf manage their family responsibilities and other personal obligations such as study. All staf get an extra day of on their birthday and are granted additional leave between Christmas and New Year. Monthly Massages and Bridge Housing staff at the Black Dog Institute training day Reflexology Bridge Housing has a long- standing partnership with Holistic Services Group (HCG), “The wellbeing program ofered “I have joined the gym thanks to a corporate wellness provider. by Bridge Housing is great. The the discount that staf receive Through HCG, Bridge Housing opportunity to attend nutrition as part of the Health and ofers a tailored health and and healthy eating seminars is Wellbeing Program. The monthly wellbeing program which is geared fantastic and contributes to the massages are really popular to staf preferences. Currently, overall positive vibe at Bridge!” and I look forward to them.” Bridge Housing ofers monthly Sarah Barclay Efe Warren massages, reflexology, healthy Sustainable Communities Manager Senior Housing Manager eating and meditation workshops.

Bridge Housing staff on the first day at the Goulburn Street office

Spotlight 4: A holistic approach to employee wellbeing 53 Operations report

The Operations team is at the heart of Bridge Housing’s customer service delivery, including tenancy management services; housing allocation; asset management; and it leads Bridge Housing’s community building and tenant engagement.

Operations managers, (left to right): Acting General Manager Operations Helen Tighe; Sustainable Communities Manager Sarah Barclay; Director Assets Theo Posumah; Manager Service Innovation Ellis Blaikie and Chief Operating Officer Rebecca Pinkstone.36

This section of the Annual Report: the largest single portfolio increase developing new business presents the Operations team (45 per cent) in our history. processes for our staf to deliver highlights for 2018–19 Key activities included: new Housing Pathways rental assistance products and services reports on how the Operations secondment of staf to temporary team has delivered on its transition team roles to deliver recruitment of 35 new positions to critical success factors a comprehensive tenant support the growth in operations and engagement strategy new ofce in the Northern Beaches provides an overview of the key activities undertaken during the year developing new business processes consolidated the operations of that manage the sign up and HomeGround Real Estate Sydney outlines our objectives for 2019–20. transition of 1,228 tenants to by transitioning the management Highlights of 2018–19 Commonwealth Rent Assistance of 42 afordable housing fee for developing a new Wellbeing Policy, service properties from Bridge In 2018–19, the Operations team led procedures and business processes Housing to deliver a more efcient the development and implementation to actively support tenants with high and expert service delivery model of Bridge Housing’s Social Housing and complex needs to access external Management Transfer Transition services and sustain their tenancies Program (see Spotlight 1 on page 18),

36 Helen Tighe served as A/General Manager Operations from June 2018 to June 2019. Rebecca Pinkstone commenced in her role as Chief Operating Ofcer from June 2019.

54 Bridge Housing Limited Annual Report 2019 commenced implementation of the Supported Transitional Engagement Program STEP to Home, in partnership with Neami National, Metro Community Housing and Women’s Housing Company to house 90 rough sleepers (see Spotlight 2 on page 26) implemented the Disability Housing Program in partnership with Achieve Australia and secured registration under the National Disability Insurance Agency (NDIA) Quality and Safeguarding Commission as a Specialist Bridge Housing tenants Rodney and Julia at the launch of Building Bridges Disability Housing provider allocated 110 new properties in Elger Street Glebe Growing sustainably to meet Governing and managing afordable housing need efectively implemented the first year of the new Building Bridges The Operations team’s job is to Operations worked closely with the 2018–21 Community Building and support strategic portfolio growth Finance and Corporate Services team Engagement strategy and achieved that delivers quality homes and to help achieve this critical success 19 per cent total engagement services. It contributes to this by factor. This was strengthened this with our tenant community managing new properties acquired and year through the implementation achieved strong results in our transferred to Bridge Housing through of the Bridge Housing Operating Annual Tenant Satisfaction Survey: fee-for-service arrangements for Model, which resulted in improved afordable housing, and by developing business sustainability outcomes, partnerships to grow our portfolio including lower rental arrears. per cent overall satisfaction of properties under management. 87 (up from 84 per cent) for Operations played a critical role in our housing services The team is also responsible for ensuring the financial sustainability allocating properties in a timely manner of Bridge Housing by ensuring the and overseeing the large numbers organisation’s arrears, vacancies and per cent satisfaction with of management transfers across our voids were kept to a minimum to 88 property condition (up leasehold portfolio of 610 properties, reduce revenue loss, and reviewed from 86 per cent) and which is the largest community rents every six months to ensure housing leasehold portfolio in Australia. tenants were paying the correct rent. per cent satisfaction These transfers are primarily driven 80 with repairs and by the constrained rental market maintenance services and increases in rental prices. (up from 77 per cent).

Critical success factors The Operations team played a key role in delivering the following critical success factors to meet the goals of our Strategic Plan 2018–21 and Business Plan 2018–19. Providing quality homes and services Through our proactive tenancy and asset management, we ensure our properties are safe and secure and provide a platform for tenants to engage in their wider community.

Bridge Housing tenants and staff at the 2019 Reconciliation Action Plan workshop

Operations report 55 Operations report (continued)

Business Plan 2018–19 The Operations team played a key role in helping Bridge Housing meet the critical success factors set out in our Business Plan 2018–19, as shown below.

Key: completed in progress not completed Measure How did we do?

Providing quality homes and services

Implement first year of the Building 19 per cent engagement across five key Bridges 2018–21 strategy Building Bridges focus areas

Implement the Good Neighbours initiative A workshop was held at Elger Street, Glebe with 23 tenants to encourage positive neighbourhood 11 block meetings held at Housing Manager’s request to address relations through an improved sense of block issues safety and belonging in the community

Implement the Our Place Green Space initiative Two new community gardens launched in Balmain and Waverley to give tenants a say in their built environment

Implement the Bridge Housing in Communities Bridge Housing participated in the following community initiative to celebrate and strengthen our events – Redfern Playgroups in the Park, Redfern Neighbour connections with tenants and communities Day, Yabun, Waterloo Summer on the Green and the Waterloo, Don’t Lose Your Marbles Challenge. Bridge Housing ran a stall at the NAIDOC @ NCIE event and sponsored the and sponsored the annual NAIDOC Flag Raising event in Redfern Held Time to Talk workshops for Arabic and Russian speakers.

Implement 2018–19 tenant satisfaction survey and Completed in March 2019. Response rate of develop action plan for implementation in 2019–20 38 per cent and action plan developed.

Implement the Big Ideas Grants program to Two grants awarded for a community BBQ area and provide resourcing for tenants who want to work to establish an art club at Elger Street, Glebe to improve outcomes for the tenant community

Implement first place-based initiative under Places Place-based strategy implemented in Elger Street, Glebe People Want to Live Strategy in Elger Street, Glebe with art time tenancy management on-site and service outreach with Uniting to assist access to aged care services

Continuously improve housing policies and Developed and/or reviewed new policies including procedures to support clear, transparent Registrable Persons Policy and Wellbeing Policy decision making and quality service delivery

Implement the Young People’s Engagement Young people’s engagement implemented through Strategy to ensure young people have a say digital engagement and 11 tenants aged between in our work and access local opportunities 18 and 35 engaged in Bridge to Work

Implement the Bridge to Work Program On track to exceed target with 33 tenants placed in partnership with CoAct to place 40 in employment by the end of June 2019 and 15 tenants in employment and/or training successfully completing the 13-week benchmark opportunities by end of September 2019

Implement year 1 of STEP to Home to Exceeded target and housed 50 people in 10 months house 45 people out of target of 90

Review and implement Bridge Housing’s Scholarships allocated to 26 successful applicants with a scholarship program to deliver the focus on education and employment opportunities Advanced Scholarship Program

56 Bridge Housing Limited Annual Report 2019 Key: completed in progress not completed Measure How did we do?

Implement new asset planning software to enhance SPM asset management software implemented prior to go-live portfolio planning and drive quality service delivery and property assessment requirements for the Northern Beaches

Implement new head contract for lift maintenance New lift maintenance contract started in 2019–20

Growing sustainably to meet affordable housing need

Tenant new social housing dwellings Completed in the following redevelopments i) 110 units in Elger Street, Glebe ii) 14 units in Clemton Park

Consolidate the operations of Secured moderate growth HomeGround Real Estate Sydney

Begin implementation of transition plan Implementation team commenced operations with for Social Housing Management Transfer strong focus on tenant and community engagement Program in Northern Beaches

Governing and managing effectively

Keep arrears at or below the regulator Arrears at 1.71 per cent in June 2019 benchmark of under 2 per cent

Keep voids and vacancies at or Voids were an average of 27 days during 2018–2019 below the sector benchmark

Achieve tenant satisfaction with asset Vacancies were an average of 14 days during 2018–2019 maintenance services of at least 75 per cent

Continue a strategic whole-of-life Achieved the upgrade of over 50 properties including approach to asset management common areas valued at $230,000 in Balmain

Further align Bridge Housing’s outcomes Realigned key domains in The Difference We Make to framework The Difference We Make with the better align with NSW Government’s framework Human Services outcomes framework

Work closely with tenants to ensure they have Year 2 of the Reconciliation Action Plan completed with a real say in our operations and planning 94 per cent of activities under the plan completed. Time to Talk workshops held with Arabic and Russian speaking tenants Second Reconciliation Action Plan developed and sent to Reconciliation Australia for endorsement following strong engagement from 103 tenants and staff at a planning workshop

Involve tenants in planning through the Tenant feedback through Tenant Reference Group Tenants in Operations and Planning (TOP) (8 meetings), Your Views Panel (2 policies) and Maintenance Management Committee (2 meetings)

Operations report 57 Operations report (continued)

Delivering quality services to privately owned afordable housing, paperwork supplied by households applicants and tenants secured through the Afordable transferring under the Social Housing Housing SEPP, at Bondi Junction, Management Transfer Program. This The Operations team engages Strathfield and Canterbury. These administrative change built upon directly with our tenants through our fee-for-service arrangements with our improved automation of the rent application and allocation services, private developers provide alternative review to reduce internal and external tenancy management services, afordable housing options for very low, administrative burden. It also allowed rent review, asset management low, and moderate-income earners. us to simplify the Commonwealth services, and community building Rental Assistance (CRA) claim and engagement work. Managing tenancies process and ensured our tenants This year was particularly busy for the Bridge Housing has two tenancy experienced no financial loss as a team as we took on the management of teams, focusing on the east and result of the CRA payment schedule. western Sydney areas of our 139 new social and afordable housing These changes have significantly portfolio. Each operating region properties, including management reduced the number of appeals, is a defined geographic area with of 28 new group homes with 130 queries and complaints received a team leader and five housing tenants sharing accommodation throughout the rent review period, managers. One housing manager managed by Bridge Housing and and we have registered an overall focuses on arrears and the other on supported by Achieve Australia. improvement in tenant satisfaction the disability housing program. Applying for housing as a result of these changes. With Our housing managers play a the right allocation of resources, The Bridge Housing Pathways team critical role in providing flexible and Bridge Housing can proactively and assesses applications for social responsive tenancy management efciently approach each rent review, housing assistance and allocates services. They are often the first ofering a high level of customer Bridge Housing properties to point of contact for tenant enquiries service and a streamlined process. applicants from the NSW Housing or when issues arise in a tenancy. Register. The team also assesses In 2018–19, we increased our gross rent applications and makes allocations Housing managers work in partnership by approximately $365,000 per annum. to afordable housing properties. with support services to sustain tenancies, particularly for clients Housing the homeless During 2018–19, the Pathways team with complex needs or behaviours Bridge Housing is committed assessed 319 applications for social that may place their tenancy at to assisting the most vulnerable housing assistance – an average risk. Housing managers work people to access and sustain social of 27 applications per month. This individually and at a neighbourhood housing. In 2018–19 we continued to represents an increase of 9 per cent on level to address nuisance and provide a Housing First approach the previous year’s 287 assessments. annoyance issues, conduct property to rough sleepers through the The Pathways team completed 484 inspections and tenant welfare STEP to Home Program funded allocations, including transfers, into checks, and build connections by the NSW Department of Family Bridge Housing’s property portfolio between neighbours through our and Community Services. annual program of block meetings. during 2018–19 – an average of 40 We also continue to regularly meet with allocations per month. This represents In 2018–19 we consolidated our and review our support partnerships an increase of 8 per cent on the Disability Housing Program with through the implementation of our previous year’s 408 allocations. This is Achieve Australia, our support Support Partner Strategy. Under our attributed to an increase in the number partner. We underwent an Support Partner Strategy, we have of properties under management; external audit to ensure that the ofered an additional 20 supported specifically, a much higher number management of Specialist Disability transitional tenancies above our of social housing properties. Accommodation complies with contracted services in 2018-19. the new Quality & Safeguarding We prioritise allocations to our Bridge Housing was able to convert Commission, recently established properties using the Bridge a vacant property earmarked for under the National Disability Housing’s Allocations Policy to redevelopment in Glebe for use Insurance Scheme to oversight ensure current tenants of Bridge as transitional housing for up to the delivery of quality disability Housing and applicants from three years. We have partnered accommodation and support services. the NSW Housing Register are with Options Youth, Catholic Care provided with suitable housing Rent review and Launchpad Youth Services to based on their household needs. provide accommodation for 15 young Bridge Housing undertakes rent people onsite with wraparound Bridge Housing is an experienced reviews twice a year to ensure support services to meet their goals afordable housing manager with organisational sustainability. Rent and transition to independence. one of the largest afordable housing review is a resource-intensive process portfolios in NSW. This includes involving 2,101 tenancies (excluding Community building and afordable housing programs in the fee-for-service afordable properties). engagement: Building Bridges Waverley Council, City of Canada Bay This financial year we streamlined our Bridge Housing is committed to Council and Sydney Olympic Park business processes by applying an ensuring our tenants have a real Authority. In addition, we manage approach that reduced the amount of

58 Bridge Housing Limited Annual Report 2019 say in how we deliver our services and supporting the development of opportunities for people that reduce social isolation and increase community connections. 2018–19 saw the launch of Building Bridges, our new three-year community engagement and tenant participation strategy. The strategy sets out Bridge Housing’s priorities across five key business areas. These include: supporting successful tenancies; making sure tenants have a real say in the way we do things, building opportunities for younger tenants; increasing access to opportunities and strengthening neighbourhood and community connections. The strategy was developed through a collaborative process involving multiple workshops, literature review, digital engagement and the use of existing tenant participation mechanisms to obtain and incorporate feedback. Activities delivered in the first year of Building Bridges 2018–21 included: held 12 block meetings across the portfolio so tenants could meet with staf and their neighbours to discuss issues and identify opportunities to improve their neighbourhood conducted a Good Neighbour Workshop in Glebe, explaining our policy and ofering tips to manage disagreements or Bridge Housing tenants Jonathon and Tania at Elger Street Glebe disputes with neighbours and introducing the Community rolled out our Young People’s intensive case management model Justice Centre and mental health Engagement strategy, focusing to provide targeted and tailored first aid course for tenants on marketing and referrals to support to disadvantaged tenants ran a self-care workshop in Guildford the Bridge to Work program (see Spotlight 5 on page 64). delivered 94 per cent of actions provided funding for three under the 2017–19 Reconciliation Big Ideas Grants including a HomeGround Real Estate, Sydney Action Plan, a comprehensive multicultural community event, In 2018–19, HomeGround Real framework setting out our approach common area garden furniture Estate, Sydney our new not-for-profit for engaging and work with and a tenant-led Block Party real estate agency, consolidated Aboriginal and Torres Strait Islander delivered five Community its first year of operations with 92 peoples across all business areas Greening workshops across three properties under management. published Our Place, a sites, including the launch of a To provide a specialist focus on quarterly tenant newsletter community garden at Balmain, afordable housing and private continued Your Views ePanel consultation workshops with market rentals, Bridge Housing and tenant workshops to enable tenants for the Elger Street rooftop transitioned 13 properties to tenants to contribute and have gardens and working bees to plan HomeGround’s management and a say in our service delivery by and plant two new gardens this will continue in the next financial reviewing policy and procedures awarded 26 scholarships under year. An additional 79 afordable delivered two Time to Talk the Advance Scholarship and private market properties workshops for Arabic and Russian- program, providing funding for are being managed on behalf of speaking tenant communities tenants to access education and private owners and developers. ran a second successful kids and employment opportunities family day, Orbit, in partnership with initiated the Bridge To Work Weave and The Settlement, attended employment program delivered in by 73 children and young people partnership with CoAct and using an

Operations report 59 Operations report (continued)

Maintaining homes to a high Technical scopes Maintenance standard Properties scoped, No 2016–20 Maintenance by category ($millions), 2013-19 The Assets team is responsible for Target Scoped Responsive Planned Cyclical delivering Bridge Housing’s planned, Leasehold and FFS Disability responsive, and cyclical maintenance 1200 6.0 to our properties. This ensures that our properties are safe, clean, 1000 5.0 habitable and meet tenant needs. 800 4.0 The NSW Land and Housing 600 3.0 Corporation audits Bridge Housing properties through its Property 400 2.0 Assessment Survey (PAS) program to 200 1.0 ensure compliance with maintenance standards. The 2018–19 audit shows 0 0.0 that 97.5 per cent of our properties 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 are well maintained or maintained. This is consistent with our 2017–18 result and provides strong evidence maintenance program is critical to of our proactive asset management Property age managing that risk; understanding and Percentage of capital properties, 2018–19 approach. This year we spent $4.9 costing our long-term maintenance 2018 2019 million on planned, responsive, liability, and ensuring our properties cyclical and leasehold maintenance. meet regulatory standards. We do this 35% We purchased a new asset by completing property audit/condition 30% management software, SPM Assets, report (technical scopes) every 25% three years. This year we completed to help us undertake property 20% inspections and better plan our more than 550 technical scopes. 15% maintenance programs. This is in During 2018–19, we completed 10% preparation for our new maintenance planned maintenance to the value of obligations for 1,228 properties under nearly $1.4 million on 305 properties, 5% the Northern Beaches Social Housing including common areas. 0% Management Transfer (SHMTP), which commenced in August 2019. We continued our estate upgrade 0-5 6-15 16-30 31-50 51-100 101+ program on our Balmain estate, years years years years years years In preparation for the SHMTP, we working with tenants to prioritise also tendered our property inspection works and upgrading six building program. This was to ensure we were blocks and common areas. receiving the best outcome as the data agreed cycle, which can be annually or recorded is critical to the success of Responsive maintenance and at other intervals. Our major cyclical our overall maintenance program. cyclical maintenance maintenance works included cleaning, lawns and grounds maintenance, fire We worked closely with NSW Land In 2018–19 we completed 6,144 safety, technical scoping and termite/ and Housing Corporation (LAHC) to responsive maintenance work orders just pest control, with smaller amounts spent prepare our systems and processes for under the value of $1 million. Responsive on lift safety, roof and gutter repairs, the Northern Beaches Social Housing maintenance works resolve immediate and hydraulic services programs. Management Transfer Program. Until issues or address failures of items such mid-2021, we will be required to use as toilets and hot water systems. the existing maintenance contracts The responsive expenditure is less Responsive maintenance managed by LAHC. To ensure a Percentage of work orders by trade, 2019 than previous year and under budget, smooth transition, regular meetings reflecting the great condition of our 40 were held to discuss changes required properties and the success of our 35 to our systems and processes. planned maintenance preventative 30 Elger Street Glebe has doubled the maintenance programs. 25 number of lifts that we own and manage. In 2018–19, the most frequent work 20 We tendered out the maintenance orders comprised plumbing works (20 15 of our lifts, selecting Electra Lifts per cent), handyman/builder works 10 after a competitive tender process. (27 per cent) and electrical works (16 5 Planned maintenance per cent), with smaller expenditure on 0 items such as repairing appliances (13 Bridge Housing has a diverse property per cent) and locksmiths (5 per cent). Other Builder Cleaner

portfolio. More than 30 per cent of our Plumber Locksmith In 2018–19, we completed cyclical Electrician Pest Control

capital properties were built over 50 Hours Out of years ago. This represents a significant maintenance services to the value of just under $1.2 million. Cyclical

risk as maintenance increases Technician Appliance as properties age. Our planned maintenance is carried out on an

60 Bridge Housing Limited Annual Report 2019 Leasehold maintenance Scores for Tenant Engagement were Tenant satisfaction among the highest in the sector and Overall satisfaction as a percentage, 2014-19 In 2018–19 we managed over 1,040 confirmed that nearly 20 per cent of responsive maintenance requests to the Bridge Housing overall satisfaction our tenants have attended a Bridge value of $406,506 to 610 properties we Average (NSW Tier 1) Regulators benchmark Housing event in the past year. lease from the private rental market. 100 Feedback from Tenant and staf Our leasehold maintenance 90 workshops will inform a Customer 80 expenditure also incorporates costs Service Action Plan to be developed 70 associated with the end of tenancy in early September with progress 60 and handback of properties to private tracked through our Tenant 50 owners and real estate agents, including 40 Reference Group across the year. handback compensation, repairs, 30 maintenance works and removals. The Diference We Make 20 10 Disability housing maintenance Bridge Housing is committed to 0 understanding and communicating the In 2018–19, we carried out maintenance 2014 2015 2016 2017 2018 2019 efects of our services on our tenants. works to our disability housing The Diference We Make, Bridge portfolio to the value of $507,491. Housing’s Outcomes Framework, Bridge Housing manage 28 includes a set of outcome areas, setting disability housing group homes in out key tenant domains that align with six locations in Western Sydney, in Tenant satisfaction our organisational mission. There Comparison with average percentage, 2019 partnership with Achieve Australia. are four domains that reflect Bridge Bridge Housing NSW Tier 1 Average As 18 of the properties were Housing’s areas of service delivery: 100 recently built, most of the House and home 90 work has been either cyclical Social and community 80 (preventative) type maintenance 70 or responsive maintenance. Health and safety 60 Work, learning and financial 50 Assessing our service delivery wellbeing 40 30 Bridge Housing strives to continually Selected results from the 2019 Tenant 20 improve our performance by seeking Survey are reported against each 10 tenant feedback on our service of the four domains in our infographic 0 delivery. Our principal tools are: on page 62.

Our annual Tenant Satisfaction Repairs and maintenance Survey Repairs

Survey conducted by the Complaints In addition to our annual tenant survey, Neighbourhood NSW Community Housing Communication

for every responsive maintenance work, condition Property

Industry Association Tenant engagement Bridge Housing provides the tenant with Repairs and Maintenance Survey a repairs and maintenance satisfaction Mystery shopping undertaken by survey to track our performance. Customer Service Benchmarking Our return rate is 12 per cent. Australia biennially. In 2018–19, 89 per cent of tenants stated Our Tenant Survey they were ‘satisfied with the service’ This year we completed our tenth provided by Bridge Housing. This was annual Tenant Survey to over 2000 consistent with our results in 2016–17. households. Delivered through an The survey acts as a supplementary independent body, CHIA NSW, the audit and augments our annual survey provides us with important Tenant Survey by monitoring feedback about how tenants experience satisfaction with quality of work, our services and living in our homes. responsiveness of service request, Results from the Survey inform and contractor performance. business planning and identify Customer Service Mystery Shopping areas for improvement through an annual Action Plan delivered by the Bridge Housing undertook mystery Customer Service Leadership Group. shopping with Customer Service Benchmarking Australia in 2019. The 2019 Tenant Survey results showed that satisfaction ratings across Assessment results showed a continued our major service areas including improvement in the standard of Housing Services, Repairs and Bridge Housing’s service, scoring Property Condition improved from in the ‘satisfied customer’ range previous survey results in 2017. across all three delivery channels.

Operations report 61 Operations report (continued)

Tenants who say life has improved Tenants who say they are satisfied Tenants satisfied that Bridge Housing 80% since becoming a Bridge Housing tenant 87% with Bridge Housing services 77% listens to tenants' views and acts on them

Our performance against the top 3 88% 96% reported tenant priorities Tenant satisfaction Tenants sustaining House and Home with responsive tenancies for Tenant satisfaction with ~ 88% repairs~ 12 months+ their neighbourhood as a place to live Service experience Tenancy success Housing experience 88% Tenant satisfaction with Our applicants and 97.5% Our tenants can Our tenants have the condition of their home tenants experience Homes at or above sustain tenancies 1.7% good quality, 80% Tenant satisfaction good quality LAHC property and get support Arrears as a appropriate housing condition standard~ with repairs and maintenance customer service total of rent~

780 75% 14 Tenants who feel Attendances at connected to their Building Bridges Tenant led Social and Community initiatives* family, friends & events* community Voluntary/Leisure Empowerment Community connections Our tenants Our tenants can Our tenants feel socially can engage 19% take action to improve 180 connected with their in meaningful Housholds where their lives and participate Bridge Housing friends, family activity at least 1 person in decision making Tenant Advisory and communities volunteers* Group members* THE DIFFERENCE 136 88% 82% Tenants attended Tenants who 72% Tenants who feel good neighbour WE MAKE feel safe in Tenants satisfied safe in their events* Health and Safety their homes with their lives neighbourhood overall Health 15 Safety 86% 480 Our tenants can Tenant forums Tenants working better manage their Our tenants feel safe in their Tenants who say for specific with support living in their home health outcomes cultural groups homes and neighbourhoods agencies~ and feel culturally safe helps their health and well-being

37% Work, Learning and Financial Wellbeing Tenants who report 204 improvements in Positive exits employment since from Bridge 74% becoming a social housing~ Bridge tenant Tenants who say living in their home helps them Workforce Learning Financial wellbeing manage money 30 participation Tenants directly Our tenants can Our tenants can access Our tenants can engage employed through access education financial resources when in the labour market Bridge Housing and learning they need them initiatives*

All data from 2019 Bridge Housing Tenant Satisfaction Survey unless indicated. ~ 2018/19 corporate data @ August 2019 * Building Bridges data @ August 2019 62 Bridge Housing Limited Annual Report 2019 Tenants who say life has improved Tenants who say they are satisfied Tenants satisfied that Bridge Housing 80% since becoming a Bridge Housing tenant 87% with Bridge Housing services 77% listens to tenants' views and acts on them

Our performance against the top 3 88% 96% reported tenant priorities Tenant satisfaction Tenants sustaining House and Home with responsive tenancies for Tenant satisfaction with ~ 88% repairs~ 12 months+ their neighbourhood as a place to live Service experience Tenancy success Housing experience 88% Tenant satisfaction with Our applicants and 97.5% Our tenants can Our tenants have the condition of their home tenants experience Homes at or above sustain tenancies 1.7% good quality, 80% Tenant satisfaction good quality LAHC property and get support Arrears as a appropriate housing condition standard~ with repairs and maintenance customer service total of rent~

780 75% 14 Tenants who feel Attendances at connected to their Building Bridges Tenant led Social and Community initiatives* family, friends & events* community Voluntary/Leisure Empowerment Community connections Our tenants Our tenants can Our tenants feel socially can engage 19% take action to improve 180 connected with their in meaningful Housholds where their lives and participate Bridge Housing friends, family activity at least 1 person in decision making Tenant Advisory and communities volunteers* Group members* THE DIFFERENCE 136 88% 82% Tenants attended Tenants who 72% Tenants who feel good neighbour WE MAKE feel safe in Tenants satisfied safe in their events* Health and Safety their homes with their lives neighbourhood overall Health 15 Safety 86% 480 Our tenants can Tenant forums Tenants working better manage their Our tenants feel safe in their Tenants who say for specific with support living in their home health outcomes cultural groups homes and neighbourhoods agencies~ and feel culturally safe helps their health and well-being

37% Work, Learning and Financial Wellbeing Tenants who report 204 improvements in Positive exits employment since from Bridge 74% becoming a social housing~ Bridge tenant Tenants who say living in their home helps them Workforce Learning Financial wellbeing manage money 30 participation Tenants directly Our tenants can Our tenants can access Our tenants can engage employed through access education financial resources when in the labour market Bridge Housing and learning they need them initiatives*

All data from 2019 Bridge Housing Tenant Satisfaction Survey unless indicated. ~ 2018/19 corporate data @ August 2019 * Building Bridges data @ August 2019 Operations report 63 Spotlight 5:

A Bridge to Work

In early 2018, Bridge Housing in partnership with CoAct, successfully applied for a grant from the Commonwealth Department of Social Services to deliver the Bridge To Work program. The Bridge to Work program aims to support our tenants to secure and maintain ongoing employment.

Bridge to Work was preceded by the Bridge Housing commenced placed in employment, 15 Streets Ahead initiative, which aimed discussions with employment services reached the 13-week employment to enhance employment, education providers and was impressed with benchmark, thereby meeting and training opportunities for the outcomes achieved by CoAct, the program requirements as tenants and families. First introduced which is a not for profit employment a successful placement. through Building Bridges in 2015–18, services provider, with expertise in Our marketing strategy, informed Streets Ahead incorporated training working with vulnerable job seekers. by local knowledge of particular and employment information CoAct use an evidence-based model tenant communities, resulted in sessions, workshops to enhance work that delivers successful employment a strong engagement rate of 110 readiness, volunteering opportunities outcomes among vulnerable and tenants during the program’s first and scholarships to support disadvantaged groups. Their method year. Bridge Housing and CoAct participation in work and learning. is to use specialist case management also engaged with specialist support with a tailored, client-centred Through tenant consultations and partners to identify targeted referrals approach, working in partnership workshops, Bridge Housing identified for specific groups including young to identify and achieve goals. the need for a specialised employment people and those with a disability. model to provide additional support About the program The mid-term Bridge to Work and assistance to access work and evaluation report (April 2019) training opportunities. Our research The Bridge to Work program is based indicated the program is on indicated that while many of our on CoAct’s intensive case management track to meet its targets of 80 tenants were interested in working, model that focuses on helping engagements and 40 placements they were uncertain where to start clients build confidence, access skills by September 2019. The report while they were in the midst of training, engage in career planning highlighted the diversity of our dealing with other life challenges, and negotiate with employers. By tenants seeking assistance: such as mental health issues, trauma, managing lower case numbers than domestic and family violence, disability, traditional employment advisors, the 57 per cent of participants economic and social disadvantage program ofers a more personalised are from a non-English and for even negotiating life as a and flexible approach to job-seeking. speaking background migrant or refugee in a new country. 51 per cent have a disability Bridge To Work combines the resources and strengths of two 6 per cent identify as Aboriginal organisations to deliver a program and/or Torres Strait Islander supporting successful transitions to Qualitative interviews completed employment and training. The case for the evaluation demonstrate high management specialist is employed satisfaction levels with the program, by CoAct and co-located at Bridge highlighting the importance of a Housing’s Head Ofce, which ofers flexible and personal approach to an embedded approach to working case management and employer with tenants and channelling referrals advocacy to build further from internal housing and specialist opportunities for participants. support teams. The final evaluation report will During the first year of operation, the be delivered in September 2019, program achieved the following results: with the next steps include 110 tenants sought exploring options for developing information and advice a sustainable and ongoing 75 tenants entered into independently funded model. intensive case management 25 have gained employment, and 8 have started formal study. Bridge to Work participant Cholok Of the 25 tenants successfully

64 Bridge Housing Limited Annual Report 2019 Case study - Tom Tom was made redundant at his work due to circumstances beyond his control and applied to join the Bridge to Work program. He hoped to find permanent part-time work in the community services field, specifically working with youth. This aligned closely with his professional studies and his desire to help others. Tom applied for a variety of roles, despite not meeting an essential criteria for many: a driver’s license. Through Weave and its Driving Change Program for young people, Bridge Housing succeeded in securing free driving lessons for Tom. He then landed a part- time role as a Residential Care Worker with St Laurence House. Tom said: “My time with the Bridge to Work program made a very positive impact on my life. I was consistently reassured that I would attain the goals I had set out for myself and I was supported through every step of the way.” “I was also relieved of much of the financial stress in my life due to the program’s ‘rent freeze’ policy, which allowed me to think with a clearer head and pursue my goals free from the burden of financial hardship.”

Bridge to Work program participant Tom

Case study - Cholok Cholok joined the Bridge to Work program in July 2018. She had recently migrated to Australia from Sudan and was looking to find part time employment. After consultation and review of her work history, CoAct’s employment support coordinator decided to approach an employer with whom she had previously worked on a contract basis. She successfully negotiated another three-month contract with LUSH cosmetics, working in the production warehouse with an option to extend to six months. Cholok says: “I’m so grateful for the support I have received, the team went above and beyond to help me, sometimes even meeting after hours to help me in my job search.”

Spotlight 5: A Bridge to Work 65 Development report

The Development team is responsible for managing and delivering Bridge Housing’s development projects, property acquisitions and tendering opportunities to increase Bridge Housing’s social and affordable housing portfolio.

This section of the Annual Report: Communities Plus Telopea, in Critical success factors presents the Development partnership with Citta Property The Development team played a team’s highlights for 2018–19 Group and Community key role in delivering the following Housing Limited reports on how the Development critical success factor to meet the team has delivered on its Tallawong and Castle Hill goals of our Strategic Plan 2018–21 critical success factors Showgrounds Metro Light and Business Plan 2018–19. Rail Station, in partnership provides an overview of the key with Deicorp, to deliver 50–100 activities undertaken during the year Growing sustainably to meet afordable housing properties. affordable housing need outlines our objectives for 2019–20. The Development team also In 2018–19, Bridge Housing grew its Highlights of 2018–19 reviewed Bridge Housing portfolio by 37 properties through properties and operations to In 2018–19, the Development team: the acquisition or development improve the lives of our tenants: of the following projects: purchased a building of eight two- commenced a high-level review purchase in Punchbowl of bedroom units with redevelopment of the long-term development eight two-bedroom units potential in Punchbowl potential of the Northern successfully tendered for the Beaches SHMTP portfolio purchase of two properties in Dulwich Hill vesting of 11 one-bedroom units in completed Tenants Talk Design, Leichhardt valued at $7.2 million our post-occupancy review at vesting of 11 two-bedroom units in from the NSW Government Collett Parade, Parramatta to Leichhardt and 2 one-bedroom units successfully tendered for the better understand our tenants’ on a 10-year leasehold (13 properties) transfer of two NSW Government- lived experience of their homes completion of 14 units for owned units on a 10-year lease and to help inform design LAHC’s Clemton Park to our HomeGround Real for future developments Project Management site. Estate Sydney rental agency identified two environmental agreed terms with LAHC to sustainability initiatives that enable purchase two redevelopment tenants to reduce their utility costs. properties in Dulwich Hill managed the delivery of 14 units at Clemton Park, through a project management contract with the Land and Housing Corporation (LAHC). The project concluded six weeks ahead of schedule completed the defects liability inspections for 158 units at Elger Street, Glebe completed the defects liability inspections for 158 town houses across Granville, Greenacre and Padstow LAHC project management sites. Bridge Housing also reached the shortlist in the tender rounds for the following NSW Government projects: Social and Afordable Housing Fund (SAHF 2) to deliver up to 300 new social and afordable housing properties

Development Director Christopher Dib

66 Bridge Housing Limited Annual Report 2019 LAHC Project management site - Granville

Key: completed in progress not completed

Measure How did we do?

Growing sustainably to meet affordable housing need Finalise contract negotiations on the Seven Hills LAHC confirmed that the project will not proceed development Finalise contract negotiations on the North Parramatta Mirvac has advised that the project will not proceed development Engage in selected Communities Plus opportunities as a No small site opportunities released in 2018–19 developer as they become available Review the opportunity to participate in Social and Bridge Housing was shortlisted to submit a Request for Affordable Housing Fund Proposal, which was unsuccessful Complete negotiations to redevelop the Dulwich Hill site Negotiations with LAHC completed. Contract exchange/ settlement forecast for Q1 2019–20 Deliver our leveraging target commitments Sites identified. Leveraging targets to be delivered at Dulwich Hill Secure sites made available through planning system No opportunities released in 2018–19 Engage with councils to build relationships to enhance Ongoing – Multiple opportunities identified in 2019–20 affordable housing supply through draft Local Strategic Planning Statement processes Investigate opportunities arising from the introduction No opportunities released in 2018–19 of affordable housing targets and other changes to the planning system Work with development partners to engage in selected Participated in Telopea and Redfern opportunities in Communities Plus opportunities as CHP Manager as they 2018–19 become available Complete Clemton Park Project Management site Project delivered 6 weeks ahead of schedule Explore environmental sustainability initiatives to reduce Two environmental sustainability initiatives identified tenant costs and Bridge Housing operating costs Support councils to enhance affordable housing supply Ongoing – one opportunity identified Maintain engagement with leading property developers Completed. Meetings held with 6 leading property developers

Development report 67 Development report (continued)

Portfolio growth the developer of 30–40 George Property Group and Community Street Leichhardt for an additional Housing Limited. The Connect In 2018–19, Bridge Housing purchased two leasehold properties. Further Consortium was invited to submit two new development sites in information about the project is a Request for Proposal as one Punchbowl and Dulwich Hill. highlighted in Spotlight 6 on page 70. of three shortlisted proponents, Punchbowl Acquisition which was submitted in December Community Housing Provider – 2018. The preferred proponent is In April 2019, Bridge Housing LAHC Project Management Sites expected to be announced in 2019. purchased an older style two-level Bridge Housing delivered its fourth red brick residential flat building and final Project Management site at Redfern consisting of eight two-bedroom units Clemton Park in October 2018. The Communities Plus Redfern38 involves in Punchbowl, using our equity, $1 project comprised the design and the proposed redevelopment of million grant funding from LAHC, construction of 14 seniors housing units vacant social housing land at 600 and NHFIC funding. The property is (six one-bedroom units and eight two- Elizabeth St, Redfern into a mixed zoned high density residential (R4) bedroom units). These were delivered tenure Build to Rent development and is located within 800 metres six weeks ahead of schedule, on including 150 social housing units and of Punchbowl railway station. The budget and to a high standard. Bridge 450 long-term private rental units. property has long term development Housing was awarded the management Bridge Housing participated in potential, however, in the short term, rights for all 14 units, as with the three the opportunity as a member of we will refurbish the property to bring LAHC Project Management sites at a consortium with Investec Bank it up to Bridge Housing’s standards Granville, Greenacre and Padstow. and retain it as social housing. and Link City. The Consortium The Clemton Park development is in submitted an Expression of Interest We negotiated a four-month delayed the defects liability phase, which ends but was not shortlisted to proceed settlement allowing Bridge Housing in October 2019. Preceding this, the to the Request for Proposal stage. to put the refurbishment works out defects liability phase inspections for to tender. These are forecast for the three LAHC Project Management Social and Afordable Housing completion by December 2019. sites in was completed in 2018-19, Fund (SAHF) - Phase 2 Dulwich Hill with no major issues identified. In our 2018 Annual Report, Bridge Housing reported on our selection as Bridge Housing negotiated the Telopea one of seven shortlisted proponents purchase of two LAHC properties in In our 2018 Annual Report, Bridge invited to submit a Request for Proposal Dulwich Hill, consisting of one five- Housing indicated that our for the Social and Afordable Housing bedroom house and a pair of two- Communities Plus sites in North Fund – Phase 2 (SAHF 2). Bridge bedroom semi-detached dwellings Parramatta and Seven Hills, which were Housing submitted a proposal in on one title. This was part of our to be developed in partnership with September 2018 that was unsuccessful. settlement for the Social Housing private builders, were on hold due to Further information about the SAHF Subsidy Program, which ended in a softening of market conditions that 2 submission is highlighted in the 2016. The properties are scheduled meant the private builders would be Chairman’s Report on page 10. for settlement in 2019–20. These unable to meet their required rate of properties will be leased as social return. Subsequently, Bridge Housing Sydney Metro Light Rail Station and afordable housing in the short received formal confirmation from Sites – Afordable Housing term, whilst the redevelopment LAHC that neither site will proceed. potential of the site is fully explored. Bridge Housing has partnered with In 2018–19, Bridge Housing private developer Deicorp to submit Based on current planning provisions, participated in tendering two Landcom tenders for two Sydney the Dulwich Hill properties could opportunities for Communities Metro light rail sites at Tallawong potentially be developed into a 16-unit Plus Telopea and Redfern. and Castle Hill stations. If successful, site. Given their location within the Deicorp will develop a mixed Sydenham-to-Bankstown rail corridor Communities Plus residential, retail and commercial planning scheme, the site has potential Communities Plus Telopea37 involves development which will consist of to be rezoned for higher density. Bridge the proposed redevelopment of 1,000 new properties. Of these, 50 to Housing has secured financing for Telopea town centre, a large social 100 afordable housing properties will the potential development of 16 units housing estate, over 10–15 years. The be managed by Bridge Housing. The through our $40 million corporate outcome sought was a mixed tenure preferred proponent for both sites is debt refinancing with NHFIC. development consisting of over 3,000 expected to be announced in 2019–20. Leichhardt vesting new properties, of which 1,000 are designated as social housing properties. Bridge Housing secured vesting of 11 two- bedroom units in Leichhardt Bridge Housing was a member of and executed a 10-year lease with the Connect Consortium, with Citta

37 See Communities Plus Telopea www.communitiesplus.com.au/major-sites/telopea 38 See Communities Plus Redfern www.communitiesplus.com.au/major-sites/redfern

68 Bridge Housing Limited Annual Report 2019 Tenants Talk Design Planning is underway to run Tenants deliver at least one environmental Talk Design at Elger Street Glebe. As sustainability initiative to The Tenants Talk Design project was the largest new single development reduce tenant costs and Bridge identified as a priority action in the owned and management by Bridge Housing operating costs first iteration of Building Bridges. It Housing, it provides an opportunity was developed under the Our Place prepare a Procurement and to learn about tenants’ experiences Development Strategy to deliver Green Space initiative, which aimed to at a whole-of-development or estate engage tenants in the provision and an ongoing development pipeline level. To facilitate this process, Bridge for Social and Afordable Housing maintenance of appropriate and healthy Housing has engaged an independent complete Northern Beaches housing. The project involves surveying external consultant to undertake the Portfolio redevelopment review our tenants to obtain their input on project in consultation with the Elger new Bridge Housing developments Street Committee during 2019–20. prepare a Community Housing which have been completed and Leasing Program Procurement occupied for at least 12 months. Northern Beaches Portfolio Review and Development Proposal Bridge Housing conducted a post- Ahead of the Social Housing complete negotiations to occupancy Tenants Talk Design Management Transfer in August 2019, purchase a site in Dulwich Hill. survey for Collett Parade Parramatta, the Development team commenced the complete development which consists of 38 units. Tenants Northern Beaches Portfolio planning options analysis to redevelop were invited to participate in a face- review in June 2019. The purpose of the Dulwich Hill site to-face meeting or online survey. the review is to better understand the deliver our leveraging target Based on responses received, most redevelopment potential of the 1,228 commitments of 6 to 8 properties tenants were highly satisfied with properties over the 20-year lease secure sites made available through the design and construction of the period and to inform long-term asset NSW SEPP 70 and other afordable development. Potential areas for management planning. The review is housing planning mechanisms improvement included additional scheduled for completion in 2019–20. storage space for large items and the engage with Greater Sydney local provision of additional cooling and 2019–20 Development objectives councils to build relationships to enhance afordable housing supply heating measures. This feedback will The Development team’s objectives be incorporated in Bridge Housing’s are detailed in the 2019-20 maintain engagement with Design Guidelines amendments, which Business Plan. These are: leading property developers. is scheduled for completion in 2019–20.

LAHC Project Management Site - Greenacre

Development report 69 Spotlight 6:

Affordable housing and the planning system in NSW

Over the last decade, Bridge Housing has closely monitored affordable housing trends in our annual Housing Affordability reports. Despite a chronic and long-standing shortage of affordable housing in Greater Sydney, the NSW Government is yet to deliver an integrated, whole-of-government Affordable Housing Strategy which brings together the most significant levers and approaches for increasing affordable housing supply, in line with estimated population growth.

George Street Leichhardt

Within the context of a strategic initiatives that recognise local expanding the State and Environmental afordable housing framework, the character. The Department’s work Planning Policy (SEPP 70) to include land use planning system can be is guided by the Environmental all local councils in NSW. This has leveraged to deliver new housing Planning and Assessment Act made it easier for local councils supply for people in greatest 1979, the statutory and regulatory to identify the extent of afordable need. At 30 June 2019, the NSW framework for urban planning housing need, and to amend their local planning system is overseen by The Greater Sydney Commission environmental plans to deliver more the following public agencies: is separately tasked to lead afordable housing in their area, subject The Department of Planning metropolitan planning for Greater to receiving ministerial approval. and Environment (now the Sydney, which includes the Whilst the reform of SEPP 70 was much Department of Planning, Industry promotion of afordable housing needed and long overdue, afordable and the Environment) works supply. The Commission’s work is housing can also be delivered through with local councils to review local mandated in the Greater Sydney inclusionary responses, which have environmental plans, accelerate Commission Act 2015 No. 57. been utilised with some success rezoning in growth areas to deliver In February 2019, the NSW in NSW and South Australia, and new homes and increase housing Government made a significant policy internationally in San Francisco. supply, and introduce policy change in the statutory system by

70 Bridge Housing Limited Annual Report 2019 As an example, voluntary planning agreements (VPAs)39 have been used by the state planning authority and developers in NSW to deliver new afordable housing supply since 2009. Under these agreements, developers are required to make monetary contributions, dedicate free land and/or provide material public benefits (including afordable housing), in exchange for density bonuses and planning approval. Bridge Housing has benefited from the use of VPAs to deliver afordable housing supply. In 2017–18, the organisation was successful in securing two NSW Government tenders to assume ownership of 11 one-bedroom afordable housing properties, located in a brand-new, mixed residential development in Leichhardt. The HomeGround Real Estate Sydney Manager Terry Livingstone at George Street Leichhardt properties are close to public transport, amenities and community spaces. just 0.5 per cent to 1 per cent of their local environmental plans, with The Leichhardt properties were Greater Sydney’s housing supply. the objective of delivering more delivered as a result of a VPA afordable housing in their areas. established between the NSW On a more positive note, policy Government and private developers. changes have been efected in the Over the next 12 months, Bridge Based on the terms of the agreement, NSW planning system which may Housing will participate in the the developers received a density bonus contribute to a more meaningful consultation processes for multiple as part of the land rezoning to allow for level of afordable housing supply councils’ draft Local Strategic a higher residential use. In exchange, over the longer term. In November Planning Statements and Local the units were retained and utilised as 2017, the Department of Planning and Housing Strategies. Consistent afordable housing. Upon completion Environment introduced significant with our mission and vision, Bridge of the tendering process, the units changes to the Environmental Planning Housing will continue to advocate were vested to Bridge Housing. and Assessment Act 1979, whereby for an increased supply of afordable Local Strategic Planning Statements housing in our operating region, In March 2019, Bridge Housing for local councils were introduced to including an expanded role for transferred the management of the planning system. Coupled with the community housing providers to the Leichhardt properties to our aforementioned changes to SEPP 70, manage and/or own these properties. not-for-profit real estate agency, many local councils are now revising HomeGround Real Estate Sydney. All properties were successfully leased in 2018–19, providing safe, secure and afordable housing to people on low-to-moderate incomes, all of whom would otherwise struggle to obtain private rental housing at market rates. As demonstrated through our case study, afordable housing secured through the planning system and vested to community housing providers can make a significant diference in the lives of people in housing need. Despite these benefits, it is clear that VPAs alone are insufcient to respond to Greater Sydney’s entrenched afordable housing crisis. Between 2009 and 2017, an estimated 1,300 new afordable homes were delivered through VPAs but contributed George Street Leichhardt

39 The Environmental Planning and Assessment Regulation 2000 (EP&A Regulation) provides a framework for planning agreements under Division 1A, Planning Agreements. The EP&A Regulation outlines the procedural requirements for the use of planning agreements as well as the making, amending and revocation of planning agreements and the public notice of planning agreements.

Spotlight 6: Afordable housing and the planning system in NSW 71 Finance and Corporate Services report

The Finance and Corporate Services team provides strategic and support services across finance, information technology, human resources, work health and safety, and risk management. The team played a key role in meeting the critical success factors for our Business Plan 2018–19.

This section of the Annual Report: presents highlights of 2018–19 reviews 2018–19 performance against our Business Plan objectives summarises other key support areas, including information technology, human resources, risk management, internal audit, and work health and safety presents our 2019–20 objectives. The 2018–19 Financial summary section on page 78 reports on our financial position, including our comparative five-year financial performance for 2015–19. Bridge Housing’s human resources strategy and outcomes for 2018–19 are reported in Our people on page 40. Highlights of 2018–2019 In 2018–19, the Finance and Corporate Services team: achieved financial closure on a new $40 million debt-raising through the National Housing Finance Investment Corporation (NHFIC) organised our reclocation to new, larger ofce accommodation at 59 Goulburn Street, Sydney

reviewed and restructured Business Systems Analyst Suzanne Conway our organisation completed a remuneration review and implemented a Critical success factors These critical success factors ensure revised remuneration strategy our financial sustainability, drive The Finance and Corporate Services process and efciency improvements, implemented a new management team played a key role in delivering manage our risk and compliance operating system the following critical success obligations, help us develop our implemented our Social Housing factors in our Strategic Plan 2018–21 people, create an engaging and Management Transfer Program and Business Plan 2018–19: inclusive work environment, and (SHMTP) Change Management Plan governing and managing efectively improve our communication with implemented a new payroll system supporting our people and tenants and key stakeholders. implemented a strategic asset improving workplace wellbeing management system engaging our partners and met all financial and operational enhancing our industry leadership. key performance indicators (KPIs) competed Year 1 of our three- year internal audit program.

72 Bridge Housing Limited Annual Report 2019 Key: completed in progress not completed

Measure How did we do?

Governing and managing effectively

Deliver an operating EBITDA of $3.2 million Achieved an operating EBITDA of $3.9 million

Manage and expand debt facilities to Refinanced existing debt facilities through an expanded $40 meet future funding requirements million facility through the NHFIC

Ensure compliance with all banking covenants Met all covenants at all times during the year

Enhance 20-year forecast model to improve Forecast model used to prepare credit application for $40 business forecasting and raise finance million loan from NHFIC Work is progressing to plan and on track to implement the new Implement new lease accounting standards standards in 2019–20 Implement new integrated payroll and human Payroll system implemented but HR modules will be resources management Information system progressively rolled through the first two quarters of 2019–20 Implement self-service portal for our tenants Tenant Portal implemented and rolled out to tenants through expansion of Deeplake software Implement strategic asset management reporting system to support planning SPM implemented as the new strategic asset management system and financial forecasting Project underway and will be implemented in quarter one Implement electronic signatures in MFiles 2019–20 Implement electronic invoice capture Project delayed until 2019–20 as other initiatives were prioritised and workflow management Implement business intelligence platform to Data warehouse capability implemented but still to develop improve our data reporting and analysis dashboard reporting outputs. Tender completed and contract under negotiation but decision Implement cloud-based IT made to delay implementation until after the implementation of infrastructure environment the SHMTP Completed internal audits on privacy management and tenancy Undertake Year 1 of Internal Audit Plan management framework

Develop our people

Review organisational structure to Structure reviewed and revised structure implemented support growth and change

Create an intern program Program created in partnership with CareerTrackers

Review Total Rewards Program including Remuneration strategy endorsed by the Board and implemented development of revised remuneration strategy Develop a proposal to introduce Program approved and implementation underway employee strengths profiling Review current recruitment methods, Commenced. To be finalised in conjunction models and arrangements with SHMTP recruitment strategy Completed and presented to all staff and resulted in a whole- Review the Learning and Development program of-company positive culture and leadership program Identify and secure long-term accommodation Relocated to new offices in December 2018 solution for Bridge Housing Head Office Implement SHMTP Change Management Plan and Plan executed ensure regular communication and feedback to staff Onboarding and inclusion of Northern All staff on boarded and inducted and clear strategies in Beaches staff into Total Rewards Program place to ensure inclusion in the broader organisation and develop strategies for inclusion

Finance and Corporate Services report 73 Finance and Corporate Services report (continued)

Risk management developed a Risk Appetite Statement make excellent progress towards implemented a Compliance achieving risk maturity and a Bridge Housing understands that positive risk management culture. our ability to efectively manage our Program in accordance with the appetite for risk at an operational Australian Compliance Standard Risk Management Plan 2018–19 level relies on the quality of our AS/ISO 19600:2015, through which we monitor key risk controls Bridge Housing has developed organisational infrastructure and comprehensive risk management implemented a Complaints the strength of our culture. To plans since 2005. These are reviewed Handing Program in accordance achieve this, Bridge Housing has: annually to ensure they address our with the International Standard implemented an Enterprise Risk changing risk profile. During 2018–19, ISO 10002, through which we Management Program in accordance we built upon our previous risk capture key risk indicators with the International Risk management plan, which complies Management Standard ISO 31000 implemented an online policy with AS/NZS ISO 31000:2009. We management system and staf developed a detailed risk- continued to use CompliSpace, our induction and training program categorisation process which allows online enterprise risk management us to efectively identify and assess implemented an assurance and compliance system, to monitor risks on an enterprise basis management system that allows risks throughout the year, in addition us to capture key risks, tasks and to our regular reporting to the Board. adopted a risk profiling system incidents and assign them to through which we analyse the Our Risk Management Plan enables us responsible individuals, as well likelihood of a particular risk to identify and record potential risks as monitor their progress. event occurring, and the potential that may prevent us from meeting consequences if the event was implemented an internal audit our objectives. It identifies high-level to occur, having regard to the program undertaken by an risk control strategies to avoid or overall control efectiveness of external audit firm, PKF, to mitigate risk. CompliSpace enables existing mitigation strategies evaluate key risk areas and the us to manage risk control strategies efectiveness of controls. appointed a Compliance Ofcer by linking tasks to each risk. Each with responsibility for overseeing the By developing our organisational task is assigned a due date and is management of Bridge Housing’s governance infrastructure, allocated to an executive member risk management function Bridge Housing continues to of staf to manage. Our Compliance Ofcer exercises oversight.

Bridge Housing staff at 59 Goulburn Street Sydney

74 Bridge Housing Limited Annual Report 2019 The Executive team developed the In addition to examining the to ensure a broad range of views and Risk Management Plan 2018–19, overarching tenancy management issues were covered. Staf elect the based on review of our external and framework, the internal audit involved employee representatives, who act internal operating environments. We a review of our legal and contractual as the designated health and safety re-evaluated existing risks, introduced obligations, tenant eligibility, tenure representatives, as required by the new risks to the Risk Register and and lease agreements, rent, financial Work Health and Safety Act 2011 No 10. re-rated other risks in the context of sustainability, voids and vacancies, The committee met four times in our strategic and business objectives. tenant recharges, and the tenant 2018–19 and carried out four workplace complaints and appeals process. Bridge Housing’s management inspections. No significant issues is responsible for monitoring and The audit concluded that Bridge were identified. The Committee reviewing risks. This involves: Housing has a sound tenancy prepares a WHS report every monitoring individual tasks management framework that is month for management and Board monthly by exception at the appropriate for its size, business consideration. We also continued Executive Team meeting complexity and strategies, and has to oversight the delivery of annual allocated appropriate resources in the mandatory online training to staf. reporting on high and context of our risk-based approach. extreme risks to the Board During 2018–19, the WHS Committee reviewing risks and risk ratings The audit identified four areas implemented its annual Work annually as part of our annual of improvement in the tenancy Health and Safety Action Plan. A business planning process management framework that are all major focus was identifying any low risk but will strengthen the control unanticipated WHS issues and risks undertaking more regular reviews environment and enhance efciencies relating to our new Head Ofce. for some individual risks, based on in the processes. These are being the nature of the associated risk. Bridge Housing engaged Courtenell addressed by Bridge Housing in 2019-20. Pty Ltd to undertake a review of the Internal audit program Work, health and safety ofce environment, policies, procedures and controls. The project included During 2018–19 Bridge Housing Bridge Housing is committed staf workshops, the development worked with our internal auditors, to providing a safe and positive of new ofce procedures to manage PKF, to develop a new three-year workplace for our staf, those incidents, and conducting staf Internal Audit Plan 2018–21 and contracted to perform work on our training on the new procedures. execute Year 1 of the Plan. The Internal behalf, and visitors to our premises. Audit covered two areas of risk: Bridge Housing recognises that Information Technology and Privacy (including data breach) staf members’ wellbeing has a Systems Tenancy management framework major efect on their performance and we regard our workplace health IT strategy Privacy (Including Data Breach) and safety (WHS) responsibilities In 2018–19 Bridge Housing to be of utmost importance. implemented the first year of the As a result of changes to privacy three-year IT strategy, which was legislation in February 2018, Bridge All Bridge Housing managers and developed to support the current Housing reviewed and updated employees, contractors and visitors Strategic Plan. The main focus of its Privacy Policy Framework and have a shared responsibility to our strategy was a detailed review Procedures. To ensure these had contribute to the health and safety of of our infrastructure environment to been successfully implemented all persons in the workplace. The Board support other initiatives, including across the organisation, Bridge and management, in consultation the ofce relocation and the addition Housing commissioned PKF to with employees, are responsible of our new Brookvale ofce. review our privacy framework. for developing, implementing and continually reviewing Bridge In 2018–19, Bridge Housing called The audit concluded that Bridge Housing’s Workplace Health and for tenders from IT services firms Housing’s data protection and Safety Program. Promoting and to migrate Bridge Housing to privacy function is sound. The audit maintaining WHS and disseminating the cloud, upgrade to Ofce 365 also found that all employees are WHS information is primarily the and provide ongoing support. well-informed and compliant with responsibility of management. Bridge Housing elected to delay relevant policies and procedures, the project’s implementation until and Bridge Housing has established A WHS Committee manages work the completion of the SHMTP. appropriate review and approval health and safety at Bridge Housing. processes, including significant The WHS Committee comprises two The IT team played a major role oversight by the Executive and Board. employee representatives, as well as in leading the data interface and two management representatives: the transfer of FACS’ Property and Tenancy management framework CEO and the General Manager Finance Tenancy data relating to the new and Corporate Services, together with Northern Beaches properties The tenancy management function the Human Resources Manager and transferring to Bridge Housing. is critical to our tenants’ wellbeing the Compliance Ofcer. In 2018, the Further detail is provided below under and ensuring the ongoing financial Committee was expanded to include SDM – SHMTP data interface. sustainability of Bridge Housing. an operational business representative

Finance and Corporate Services report 75 Finance and Corporate Services report (continued)

The following corporate initiatives were delivery of a new payroll system, which new suppliers requisition also delivered under the IT Strategy: was delivered at the end of 2018–19. and authorisation Sage payroll system (HRIS) installed The second and third phases will Tenant refund request form focus on the implementation of new to replace our legacy system Flexi leave workflow request form human resources modules, which are SPM asset management system scheduled for completion in 2019–20. Briefing note workflow Deeplake Tenant Self Service Portal New MFiles workflow improvements Mobility and collaboration Deeplake will be progressively introduced tools (MFiles). In 2018–19, Bridge Housing expanded in 2019–20. These include contract management, document execution SDM – SHMTP data interface the use of Deeplake to provide tenant portal access for our tenants. request workflow and integration Bridge Housing, in collaboration The portal allows tenants to update with DocuSign, and invoice capture with FACS and LAHC, undertook their personal details, view online and authorisation workflow. extensive preparation and system rental statements or log repair testing to develop a system interface requests with Bridge Housing. The Human Resources and facilitate the successful transfer portal is available on our website. The quality of our services is of 1,228 property and tenancy records determined by our ability to attract from FACS and LAHC to Bridge SPM asset management system and retain high calibre people who Housing and Women’s Housing To support our future portfolio growth, have the skills, capacity and passion to Company upon completion of the Bridge Housing initiated a tender drive our performance. Bridge Housing SHMTP. Data transfer protocols were for a new asset management system. conducted an organisation review to developed to exchange data on an Following a competitive tendering ensure that the structure of the business ongoing basis to support the reporting process, SPM Assets was selected to was appropriate to support significant and delivery of contract arrangements. deliver the project. In 2018–19, Bridge growth, completed a remuneration Housing and SPM Assets worked review to ensure that we maintained Sage payroll system and human our position as a leader in the sector resources integration system together to configure the system and undertake field testing. The new system and continued to embed the Accelerate, In 2018–19, Bridge Housing will be implemented in 2019–20. Strive, and Flourish leadership program. initiated a tender for the acquisition Further information is presented of an integrated payroll and Digital records management in Our people on page 40. human resources information system system. Following a competitive In 2018–19, Bridge Housing 2019–20 Finance and Corporate tendering process, Sage People was continued to embed our digital Services Objectives selected to deliver the project. records management system, MFiles, Our Finance and Corporate Services System implementation will occur in which saw the introduction of the objectives for 2019–20 are detailed three phases. The first involved the following workflow improvements: in the Business Plan 2019–20. These include: achieve an operating EBITDA of $3.1 million, to meet short and long- term goals and objectives outlined in the Business Plan 2019–20 implement new accounting standards implement a systemised contract management system together with electronic signatures integrated to DocuSign renew our IT infrastructure environment including migrating to the cloud and Ofce 365 transition to new IT support provider and implement problem and incident management service desk refinance existing corporate debt facility implement electronic invoice capture and workflow management utilising MFiles as a platform implement business intelligence platform to improve our data Senior Financial Analyst Amber Yao assisting a Mandarin speaking Bridge Housing tenant reporting and analysis

76 Bridge Housing Limited Annual Report 2019 explore external and internal mentoring and coaching opportunities to support development of Bridge Housing’s staf secure and fit-out an accommodation solution for an ofce on the Northern Beaches to support the new operating environment after the SHMTP implement the SHMTP Change Management Plan and ensure regular communication and feedback to staf implement Sage HRIS as well as an online learning management system ensure positive and consistent culture and values across the City and Brookvale Ofces through meeting structures, training programs and team building initiatives identify mentoring and coaching opportunities to support staf development.

Sustainable Communities Manager Sarah Barclay and tenant Clive at the launch of the MyBridge portal

Tenant Participation Officer Anna Barker demonstrating the MyBridge portal

Finance and Corporate Services report 77 Financial summary 2018–19

Bridge Housing effectively Financial position the value of other property, plant and managed its finances in 2018–19 Revenue equipment increased by $72 million to $257 million primarily as a result of and achieved an operating Total operating revenue increased by the revaluation of existing properties $5.5 million or 15 per cent in 2018–19. ($65 million)40 and recognition of surplus before depreciation This was mainly due to increases in Leichardt properties ($7 million) and interest (EBITDA) of $3.9 rental revenue though indexation current liabilities increased by from the bi-annual rent review million compared to $2.5 million $2 million, primarily as a result process, the impact of additional of funding received from FACS in 2017–18. This represents a properties, and the culmination of a for the Community Housing full year of earnings from properties Assistance Program ($1 million) 56 per cent increase and was added the previous year. The revenue non-current liabilities decreased by primarily driven by the impact breakdown for 2015–19 is shown in the Revenue chart on page 79. $1 million primarily as a result of debt of acquiring new properties pay down of $2 million which was Expenses ofset by an increase in the financial and their associated revenue Total expenses excluding abnormal derivative liability of $1 million streams. Our total operating items increased by $5.3 million or 14 cash decreased by $2.2 million to per cent in 2018–19. The expenses $3.9 million, from $6.1 million in surplus is shown in the Financial breakdown for 2015–19 is shown in 2017–18. This was partly due to the results graph below. the Expenditure chart on page 79. It repayment of $2 million of debt. was impacted by the recognition of depreciation and interest expenses. Financial performance 2015–19 Excluding depreciation and interest, A five-year comparative analysis of our underlying operating expenses our financial performance, including increased by $4.1 million, or 12 per cent. our 2018–19 results, is available on Bridge Housing’s net assets increased page 80. This is an extract from our by $70 million to $231 million during audited Financial Report 2019. The 2018–19. Major movements were: 2019 Financial Report is available on Bridge Housing’s website.

Financial Results Equity (millions) 2015–19 Total equity (millions) 2015–19 Net profit before abnormal items Operating EBITDA Equity 4 250

3 200

2 150

1 100

0 50

-1 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

40 Bridge Housing’s valuation policy is to engage a qualified external valuer to revalue at least a third of the portfolio every year. Properties are selected to ensure broad coverage across diferent areas and housing types. The average increase in valuations is then applied across the whole portfolio. In 2018–19, as a result of a change in valuer and the adoption of a diferent valuation approach for Elger St Glebe there has been large increase in the value recognised for these 158 properties.

78 Bridge Housing Limited Annual Report 2019 Our 2015–19 report card We have analysed Bridge Housing’s key financial and operational ratios against KPIs over five years to 30 June 2019. The trend analysis shows that we performed well against our financial and non-financial KPIs during 2018–19. Profitability has improved and arrears have been maintained at a level below the industry benchmark. Both voids and vacancies remain below benchmark.

Economic dependency Bridge Housing relies on government subsidies, grants and resources, and income generated from our tenants’ rent. We do not rely on donations to fund our operations. Our major sources of revenue are identified in the revenue graph.

Bridge Housing’s Aboriginal and Torres Strait Islander Advisory Group and staff

Expenditure Revenue Expenditure composition (millions), 2015–19 Revenue composition (millions), 2015–19 Rents paid Maintenance Insurance & other property expenses Rental Income Govt Grants -Operating Depreciation Management expenses Rates and utilities Other Bank Interest Administration expenses Interest Expense 44 44 40 40 36 36 32 32 28 28 24 24 20 20 16 16 12 12 8 8 4 4 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Financial summary 2018–19 79 Financial summary 2018–19 (continued)

Our five year report card

Key performance indicators five year analysis Benchmark 2015 2016 2017 2018 2019

Tenant satisfaction

Overall satisfaction with the organisation (%) 75 81 N/A 84 N/A 87

Service development

Total number of housing properties 1,716 1,767 1,915 2,244 2,334

Finance management

Staf cost as a percentage of total revenue (%) 13.8 14.4 13.1 15.4 15.4 Property costs as a percentage of total revenue (%) 77.3 75.4 67.3 70.5 68.9 Administration cost as a percentage of total revenue (%) 6.0 6.0 6.1 7.1 6.2 Profitability ratio - operating EBITDA/operating revenue (%) 1.8 3.7 4.3 6.8 9.2 Liquidity ratio - current assets/current liabilities 4.0 1.9 1.6 1.6 0.9 Cash flow ratio - operating cash inflows/ 1.0 1.2 1.1 1.1 1.1 operating cash outflows Interest cover ratio - operating EBITDA/interest expense 2 0 0 8.9 2.7 3.3 Loan to value ratio (%) 35% 5.4 14.7 11.7 14.2 9.6 Return on assets - EBITDA/assets (%) 0.5 0.9 0.9 1.3 1.5 Cash at end of year $7.2m $8.3m $4.7m $6.1m $3.9m Operating EBITDA $0.5m $1.1m $1.4m $2.5m $3.9m Net profit -$1.8m -$2.5m $3.7m $23.75m $4.46m Reserve for future planned maintenance ($m) 0 0 0 0 0

Housing management

Arrears (%) 2.5%* 1.9 1.3 1.5 1.7 1.7 Rent loss via void (%) 2.5%* 1.0 1.0 0.6 0.2 0.2 Rent loss via vacancy (%) 2.5%* 0.6 0.3 0.4 0.2 0.2 Void days 28 days* 30 27 18 24 27 Vacant days 14 days* 17 16 10 15 14 Number of tenants exiting the service because 15 8 2 5 6 of possession order enforcement Eviction rate (%) 10 7.5 4.4 0.9 2.3 2.6

Human resources

Staf engagement 75 74 79 81 81 Ratio of staf to lettable properties 1:39 1:38 1:37 1:42 1:36 Staf turnover (%) 16 22 24 21 18 Number of full time equivalent staf 44 46 52 54 66

* Benchmarks established by the National Regulatory System for Community Housing (NRSCH). See Registration Return Guide, www.nrsch.gov.au.

80 Bridge Housing Limited Annual Report 2019 Key Financial Viability Measures The following graphs highlight the key measures that demonstrate the financial health and sustainability of our business. Cost structure Cash balance Costs as percentage of revenue, 2015–19 End of year cash balance ($ millions), 2015–19 Staff cost Property costs Administration cost 100 9 8 80 7 60 6 5 40 4 3 20 2 1 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Our cost structure remains reasonably consistent with that Our cash balance at 30 June 2019 was $3.9 million. This is a of the 2017–18 financial year although operating costs have decrease of $2.2 million on the previous year’s balance and slightly decreased as a percentage of revenue, reflecting the maintains a relatively strong cash balance whilst minimising higher percentage revenue growth. the level of debt.

Profitability ratio Liquidity ratio EBITDA/operating revenue, 2015–19 Current assets/current liabilities, 2015–19 10 9 4.5 8 4 7 3.5 6 3 5 2.5 4 2 3 1.5 2 1 1 0.5 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

This ratio measures earnings before interest, tax, depreciation The working capital (liquidity) ratio measures Bridge and amortisation (EBITDA) as a percentage of operating Housing’s ability to repay its short-term debt using short- revenue. The percentage has increased again this year as a term assets. Bridge Housing’s liquidity ratio at 30 June 2019 result of the continued growth of our profitability. has decreased to 0.9. This is because we have chosen to use surplus cash to repay debt into our redraw facility. We have access to $11 million of unused debt as at 30 June 2019. In addition we classified our financial derivative as a current liability as at 30 June 2019 as we made the decision to pay out the swap in July 2019.

Arrears Voids and vacants Rent arrears as percentage of revenue, 2015–19 Average days void and vacant, 2015–19 2.0 Void Days Vacant Days 35 30 1.5 25 20 1.0 15 0.5 10 5 0.0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

This ratio measures our rental arrears as a percentage of Average void days refers to the number of days on average that operating revenue. The ratio has remained stable at 1.7 per our properties are unavailable for letting due to maintenance cent and remains well below the industry benchmark of 2.5 work requirements. Average vacancy days refers to the average per cent. number of days a property is vacant once it is available for letting. Both are in line with industry benchmarks.

Financial summary 2018–19 81 Financial summary 2018–19 (continued)

Five-year financial results at a glance (In ‘000 AUD) 2015 2016 2017 2018 2019

Where does all the How much we... $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 money come from? … Charged tenants for Rents 15,875,519 16,599,747 18,564,344 20,390,457 23,348,309 living in the properties Non- Operating Grants … Received from received such as Sepp 0 0 0 0 0 government 10, Capital Grants … Received from Operating Grants received 12,987,086 12,907,198 13,790,931 16,111,861 18,409,475 government … Received from investment of Interest 307,997 160,171 202,604 41,749 56,945 surplus funds Fees for service, water … Received from usage recharge, tenant 633,116 665,932 3,681,108 759,298 1,039,977 other activities reimbursement … Received from Other Contribution 0 0 0 23,996,549 7,210,375 government -Properties Vested

… Fair value gain Fair Value adjustments 0 0 0 0 0

Total Revenue (Excluding Other Contribution) 29,803,718 30,333,048 36,238,988 37,303,366 42,854,706

Where does all the money go?

… Spent renting properties Rents paid -16,976,955 -17,634,588 -18,401,228 -19,637,107 -21,573,926

… Spent on property Rates and utilities -1,566,013 -1,482,824 -1,699,312 -2,044,478 -2,422,547 rates & utilities … Spent on maintaining Maintenance -4,007,347 -3,303,724 -3,921,294 -4,276,597 -4,865,788 the properties … Spent on other Insurance & other -497,237 -444,735 -355,897 -346,001 -650,962 property expenses property expenses … Allocated on other Depreciation and -1,270,589 -1,318,696 -1,486,054 -1,925,083 -2,916,040 property expenses amortisation … Spent on administration Administration and -1,790,453 -1,822,241 -2,224,966 -2,641,673 -2,675,503 expenses overhead expenses … Spent on salary and Management expenses -4,120,110 -4,371,971 -4,757,646 -5,761,381 -6,617,491 related costs

… Interest Expense Interest Expense -46,603 -90,247 -727,137 -965,559 -1,224,713

Impairment / Fair … Fair value loss -1,340,625 -2,336,288 1,010,803 52,846 -1,058,665 Value adjustments

… Other project costs Write-offs 0 0 0 0 -2,510,178

Total Expenditure -31,615,932 -32,805,314 -32,562,590 -37,545,033 -46,515,814

82 Bridge Housing Limited Annual Report 2019 Five-year financial results at a glance (In ‘000 AUD) 2015 2016 2017 2018 2019

Where does all the How much we... $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 money come from? … Have kept to help Surplus for the year -1,812,214 -2,472,267 3,676,398 -241,668 3,661,108 with future activity … Have retained of Retained profits 103,181,516 107,828,482 124,488,663 162,291,350 233,753,690 previous years’ surpluses brought forward

Transfer to Reserve for … Have transferred to Planned maintenance 0 0 0 0 0 Reserve for PMP program

… Have transferred to Transfer to Assets Reserve for property -21,646,664 -28,105,844 -47,238,292 -57,368,033 -121,861,667 Revaluation Reserve revaluations

… Have transferred to Transfer to Other Reserve Reserve for property 0 0 0 0 0 for property development development

… Have retained to help Retained profits 79,722,638 77,250,371 80,926,768 104,681,649 108,230,915 with future activity carried forward

Balance Sheet

… Were owed by our Debtors 1,802,659 1,932,658 4,045,909 5,169,933 6,792,699 tenants and others

… Had in the bank Cash assets 7,175,488 8,260,471 4,698,328 6,072,320 3,898,212

… Had paid for property, Property, plant and 99,732,840 120,035,938 142,458,967 185,499,187 255,862,327 furniture and equipment equipment

… Owed to members Other Liabilities -2,403,924 -7,974,532 -7,156,622 -8,542,014 -12,250,310 & others

… Owed to financial Debt -4,937,761 -16,898,321 -15,881,521 -26,149,743 -24,210,346 institutions

Net Assets 101,369,302 105,356,215 128,165,060 162,049,682 230,092,582

… Have retained to provide for future planned Reserve 0 0 0 0 0 maintenance program

… Have retained to Assets Revaluation 21,646,664 28,105,844 47,238,292 57,368,033 121,861,667 provide for assets Reserve

… Have retained to provide for future Other Reserve 0 0 0 0 0 property development

… Have retained for Retained profits 79,722,638 77,250,371 80,926,768 104,681,649 108,230,915 future activities

Total Equity 101,369,302 105,356,215 128,165,060 162,049,682 230,092,582

Our comprehensive Financial Report 2019 is available to download at www.bridgehousing.org.au

Financial summary 2018–19 83 Bridge Housing in the community

Bridge Housing staff strive to be responsible, caring members of the communities in which we live and work. We support the good work of other organisations that enhance the wellbeing of our communities. We share and extend the reach of our community engagement through Facebook, LinkedIn and Twitter.

White Ribbon Australia Having attained White Ribbon Australia workplace accreditation in 2017–18, Bridge Housing continued to demonstrate our organisational commitment to preventing violence against women through our fundraising and awareness events. Coinciding with our ofce relocation, our staf conducted an online auction of goods and services for White Ribbon Day in November 2018, which was followed by a staf morning tea in March 2019. During the year, Bridge Housing raised over $1,500 for White Ribbon Australia.41 Diversity and Inclusion Events Acknowledging the incredible Financial Controller Becky Chan and GM Finance and Corporate Services David Miller celebrating diversity of our organisation, Bridge Chinese New Year 2019 Housing staf celebrated Chinese New Year in February 2019, Harmony Community events 2018 NAIDOC Week Day in March 2019, and the end of Ramadan in June 2019 with a 2018 Bridge Run During NAIDOC Week 2018, Bridge Housing partnered with Redfern series of multicultural feasts and The Bridge Housing Harriers team Community Centre to sponsor a gatherings. Staf spoke about the participated in the 2018 Blackmore’s flag-raising ceremony. Our staf also significance of these celebrations Sydney Running Festival in established a stall on NAIDOC Day, within their respective cultures. September 2018. Competing for the coinciding with the NAIDOC Inner fifth consecutive year, the 16-person Volunteering and team building City Family and Sports Day, which team raised $2,572 for the First was held at the National Centre of Bridge Housing provides one paid Peoples Disability Network, a not-for- Indigenous Excellence in Redfern. volunteering day per year for all staf. profit organisation which advocates In 2018–19, our employees attended for the interests of Aboriginal and 2019 Yabun Festival a volunteer day at The Settlement Torres Strait Islander people with Bridge Housing staf hosted a stall (housing) and completed gardening disability in Australia and overseas. the Yabun Festival celebrations work on a Bridge Housing property, working alongside our contractors. 2018 Street Count in Glebe on 26 January 2019 to recognise the cultural contribution In 2018, for the tenth consecutive 2018 Volunteer Day of Aboriginal and Torres Strait year, Bridge Housing staf Islander people to Australia. In October 2018, Bridge Housing volunteered in the City of Sydney staf volunteered at The Settlement, a Council’s Homelessness Street 2019 National non-government organisation which Count. Conducted in February and Reconciliation Week provides housing for Aboriginal August of each year, the Street Count Bridge Housing rolled out the red and Torres Strait Islander families collects data on the number of people carpet for tenants, staf and friends in inner Sydney. Bridge Housing who are sleeping rough or staying during National Reconciliation Week donated plants and gardening in temporary accommodation. in May 2019 with a screening of the tools to undertake a makeover at Results are used to help inform the film Top End Wedding. The free event The Settlement’s garden located at City of Sydney’s Homelessness at Dendy Circular Quay attracted Edward Street, Darlington, cleaned Strategy and other local initiatives. more than 100 people, including up the storage room to create more 50 Bridge Housing residents. space for activities, and prepared the room for The Settlement’s Annual General Meeting.

41 White Ribbon Australia entered liquidation on 11 October 2019

84 Bridge Housing Limited Annual Report 2019 “I want to say massive Thank You for your team’s support for the Working Bee. We were able to not only rejuvenate the entire garden but also give our Art Room the BEST clean out it has had in a long Bridge Housing staff participating in the 2018 Volunteer Day at The Settlement Redfern time. We were touched by the passion and enthusiasm your team showed. The team spent the day laughing and motivating each other and it was such a pleasure to watch. The gardens and Art Room are already being utilised and have already made a diference in program delivery. Without the support of Bridge Housing…we wouldn’t…have capacity to ensure we have the most optimum space to run exciting and engaging programs for the community.” Phoebe Ferguson Senior Youth Programs Worker, The Settlement

2019 Volunteer Day Bridge Housing staff and contractors participating in the 2019 Volunteer Day In February 2019, our staf volunteers undertook gardening and lawn maintenance work on a Bridge Housing property. During the day, our volunteers were guided by three employees from our lawn maintenance and cleaning contractors, Australian Facilities Landscape (AFL). Staf completed a range of tasks including preparing soil, planting, trimming hedges, setting out stepping stones and raking the garden and driveways. Bridge Housing’s staf volunteers were also supported by Asset Group Services, our head contractor for the East portfolio, who provided a delicious BBQ lunch and provided six supervisors to lend a hand in the garden.

Members of Bridge Housing’s Prevention of Violence Against Women Working Group

Bridge Housing in the community 85 Key facts

This section of the Annual Report shows the changing profile of Bridge Housing by examining our property portfolio, tenancies and the diversity of our tenants.

Bridge Housing tenants, directors, CEO and staff at Elger Street Glebe

Properties We lease capital properties from the Department of Family and Community Services on recurrent three-year leases. Our capital property portfolio also How many? includes 242 properties vested to us under the Nation Building Economic Bridge Housing’s property Stimulus Plan (NBESP). portfolio increased from 2,244 to 2,344 properties in 2018-19. Location The additional properties came Fifty-nine per cent of our properties – or 1,367 homes – are located in Inner Sydney primarily from the completion of 14 and the Eastern Suburbs. Since 2010, we have also increased our presence in Inner properties under the Communities and Greater Western Sydney and have 967 homes from Balmain to Blacktown. Plus Project Management program, the vesting of 11 properties to Bridge Type Housing by the NSW Government Our properties are predominantly one and two- bedroom units in two, three and the expansion of our afordable and four-storey buildings. We have a smaller number of two and three-bedroom housing management portfolio through houses. We seek properties that will best match the type and size of our tenant and HomeGround Real Estate Sydney. applicant households.

Property location Percentage of properties by Sydney Property type metropolitan region, 2015–19 Percentage of property by dwelling type and number of bedrooms, 2017–19 Inner Sydney Inner West Eastern Suburbs 2017 2018 2019 Canterbury-Bankstown Central West West 45 100 40 90 35 80 30 70 60 25 50 20 40 15 30 10 20 10 5 0 0 2015 2016 2017 2018 2019 Boarding 1 Br H 2 Br H 3 Br H 4 Br H 4 plus Studio I Br U 2 Br U 3 Br U 4 Br U House

86 Bridge Housing Limited Annual Report 2019 Tenancies Household composition New tenancies Household type (percentage), 2015–19 Number of new tenancies and transfers, 2015–19 Who we house Single Sole parent Couple New Tenants Transfers The majority of our tenancies are Couple w children Other single-person households (67 per cent). The second-largest tenant 100 600 90 550 group is sole-parent households 80 500 (13 per cent). Couples with or 450 70 400 without children make up 12 per 60 350 cent of the tenancies we manage. 50 300 40 250 Our tenant households are 30 200 predominantly headed by women (58 150 20 100 per cent). Women’s demand for social 10 50 housing reflects the lower incomes 0 0 of female-headed households. 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Nearly one-quarter (23 per cent) of our households are headed by male and female tenants aged 50-59 years. In contrast, younger tenants Gender and age aged 29 years and below comprised Tenants by ages and gender (number), 2019 7 per cent of head tenants. Female Male The number of people housed 10 to 19 We accommodated 350 new tenants 20 to 29 in 2018-19, through vacancies and 30 to 39 additions to our property portfolio. There were 103 tenants living in our 40 to 49 capital properties; 34 accommodated 50 to 59 by our fee-for-service program, and 60 to 69 109 by our leasehold program. 70 to 79 80 to 89 This shows the importance of 90 to 99 vacancies in creating additional 100 or Over housing opportunities for 500 400 300 200 100 0 100 200 300 400 500 people on our waiting list. Internal transfers refer to existing Bridge Housing tenants moving to another Bridge Housing property. This helped us meet the changing Tenancy housing needs needs of our tenants Percentage of tenancies by duration in years, 2015–19 through the Housing Pathways <1Y 1 to 2 2 to 5 system by making under-occupied 5 to10 10 to15 15 + properties available for households with more family members. 100 90 How long tenants stay 80 70 Bridge Housing provides long-term 60 secure accommodation for low to 50 moderate income households in 40 regions with low rental and purchase 30 afordability. Forty-seven per cent of 20 our tenants have been with Bridge 10 Housing for more than five years and 0 65 per cent for more than two years. 2015 2016 2017 2018 2019

Key facts 87 Key facts (continued)

Tenants Income Tenant income source (percentage), 2019 Income 35 Bridge Housing tenants are predominantly supported by 30 Centrelink (82 per cent). The major categories include: people receiving 25 the Disability Support Pension (31 per cent), aged pensioners (22 per 20 cent), and people receiving the 15 Newstart Allowance (17 per cent). Twelve per cent of our tenants live 10 on their wages. Approximately half are in our afordable housing 5 program and the other half are 0 social housing tenants who either work full or part time. Their DSP Age Parenting Newstart O/Pensions Wages O/ Income average full time earnings are $53,000 per annum and part- time earnings average $24,600. Language and cultural Language Cultural identification Tenant ethnicity (percentage), 2019 identification Preferred language (percentage), 2019 English Vietnamese Arabic Australian ATSI Vietnamese Bridge Housing tenants and applicants are diverse, both Spanish Cantonese Russian Chinese Lebanese New Zealander culturally and linguistically. They Mandarin Turkish Chinese, nec Sudanese British Russian speak more than 50 languages. Greek Other English Other After English, the major languages represented are Vietnamese, Arabic, Spanish, Russian and Chinese languages, which together account for 14 per cent of all tenants. Seven per cent of tenants identify as being from an Aboriginal or Torres Strait Islander background.

88 Bridge Housing Limited Annual Report 2019 Acknowledging our partners

Warmest thanks to our many support partners who help Bridge Housing support our tenants and maintain the tenancies of some of the most vulnerable members of our community.

By working with high-performing support partners across Sydney, we deliver on our Bridging Support: Bridge Housing’s Support Partnership Strategy. Elsewhere in this report we have acknowledged the important role other organisations and individuals have played in Bridge Housing achieving its vision and mission.

Acknowledging our partners 89 Glossary and abbreviations

Glossary

Affordable housing Housing that is affordable for households on low-to-moderate incomes – the bottom 40 per cent of households – when housing costs are low enough to enable the household to meet other basic long-term living costs. Housing costs should be less than 30 per cent of household income for these occupants.

Build-to-Rent Build-to-rent is a form of residential development involving apartment blocks or complexes purpose-built for rental occupation and held in single ownership as long-term revenue-generating assets.

Commonwealth Rent A non-taxable Commonwealth Government supplementary payment added to the benefit or Assistance (CRA) family payment of people who rent in the private rental market and pay above applicable rent thresholds.

Communities Plus Communities Plus is a new generation of integrated housing developments being delivered in partnership with the private, non-government and community housing sectors and includes sites in metropolitan Sydney and regional NSW. Bridge Housing has tendered for several metropolitan Sydney opportunities.

Community housing Housing that is managed and sometimes owned by a not-for-profit community organisation.

Future Directions Future Directions for Social Housing in NSW sets out the state’s strategic priorities for social for Social Housing housing over the next 10 years; more social housing; more opportunities, support and incentives to avoid and/or leave social housing; and a better social housing experience.

Homelessness The 2016 Australian Bureau of Statistics (ABS) statistical definition of homelessness is: When a person does not have suitable accommodation alternatives they are considered homeless if their current living arrangement: is in a dwelling that is inadequate; or has no tenure, or if their initial tenure is short and not extendible; or does not allow them to have control of, and access to space for social relations.

Housing First Housing First is an approach that offers permanent, affordable housing as quickly as possible for people experiencing homelessness, and then provides links to the community-based supports people need to keep their housing and avoid returning to homelessness. Bridge Housing piloted Housing First with its Platform 70 program and the model is now integrated into the business.

Housing Pathways Housing Pathways is a single statewide waiting list, combining the waiting lists of FACS and participating community housing providers. All new applications are logged on the NSW Housing Register.

Housing stress The condition of households (in the bottom 40 per cent of income distribution) paying more than 30 per cent of their gross income on mortgage or rental repayments.

Inclusionary zoning Inclusionary zoning is a land use planning intervention by government that either mandates or creates incentives so that a proportion of a residential development includes a number of affordable housing dwellings.

Lower-income A household with income in the bottom 40 per cent of all household income distribution. household

Median multiple A measure of housing affordability derived from calculating housing costs using the multiple of median incomes. A median multiple over 5 is ‘severely unaffordable’. The median multiple and other similar housing affordability price-to-income-multiples are used to compare housing affordability between markets by the OECD, IMF and The Economist.

Nation Building The Australian Government allocated $42 billion to stimulate the economy during the global Economic Stimulus financial crisis in 2008–09 and the NSW Government received $2 billion of this to deliver 6,000 Plan (NBESP) social housing homes. Most of the dwellings were scheduled to have title vested to community housing providers through tender. Bridge Housing secured 240 dwellings, predominantly in Parramatta and Bankstown.

90 Bridge Housing Limited Annual Report 2019 National Housing The National Housing and Homelessness Agreement is an agreement between the and Homelessness Commonwealth government and the state and territory governments, which was created in the Agreement (NHHA) 2017-18 Budget and came into effect on 1 July 2018. The purpose of the NHHA is to contribute to improving access to affordable, safe and sustainable housing across the housing spectrum, including to prevent and address homelessness, and to support social and economic participation. National Housing An independent Commonwealth Government entity established in 2018 to encourage investment Finance and Investment in housing, particularly, affordable housing. Corporation (NHFIC) National Rental An Australian Government scheme from 2008–2014 that provided annual incentives for a ten Affordability year period to institutional investors and other eligible bodies to create 50,000 new affordable Scheme (NRAS) rental properties rented to low-to-moderate income families at 20 per cent below market rents. Property Transfer A 2009–10 FACS program to transfer the management of 3000 public housing estates to Program community housing providers. Bridge Housing was allocated 196 properties in South Coogee and Balmain. Social & Affordable The SAHF is a NSW Government program to deliver more social and affordable housing in Housing Fund (SAHF) partnership with government and non-government organisations, landholders and the private sector. Tenders for SAHF are underway. Social housing Rental housing that is provided and/or managed by government or non-government organisations, including public and community housing. Social Housing The Social Housing Management Transfer program involves the management transfer of 14,000 Management housing tenancies to community housing providers, including the delivery of private rental Transfer Program assistance products under Housing Pathways. Bridge Housing secured the Northern Beaches SHMTP package, with the transfer to be completed in August 2019. State Environmental SEPP No 70: Affordable Housing (2009) establishes a consistent planning regime for the Planning Policy (SEPP) provision of affordable rental housing. The State Environmental Planning Policy (Affordable Rental Housing) 2009 (AHSEPP) was introduced on 31 July 2009 to increase the supply and diversity of affordable rental and social housing in the state. Sydney Metropolitan This incorporates the new and retained local government areas determined by the NSW Area Government in 2016-17 across the Greater Sydney metropolitan region. For more information: https://www.strongercouncils.nsw.gov.au/ Voluntary Planning Voluntary Planning Agreements (introduced under NSW planning law in 2005) can be Agreement negotiated with the state planning authority when plans are amended or developments assessed, and can include contributions for affordable housing.

Abbreviations

AGM Annual General Meeting KPI Key performance indicator AICD Australian Institute of Company Directors LAHC Land and Housing Corporation ASX Australian Securities Exchange LGA Local government area ATTAG Aboriginal and Torres Strait Islander NDIS National Disability Insurance Scheme Tenant Advisory Group NHHA National Housing and Homelessness Agreement CEO Chief Executive Officer NRAS National Rental Affordability Scheme CHIA Community Housing Industry Association NRSCH National Regulatory System for Community CRA Commonwealth Rent Assistance Housing EBITDA Earnings before interest, tax, depreciation SAHF Social and Affordable Housing Fund and amortisation SEPP State Environmental Planning Policy EOI Expression of Interest SHMTP Social Housing Management Transfer Program EOS Employee Opinion Survey SOPA Sydney Olympic Park Authority FACS Family and Community Services TAG Tenant Advisory Group GSC Greater Sydney Commission VPA Voluntary planning agreement ICT Information communication technology

Glossary and abbreviations 91 Appendix 1: Our performance

Our Business Plan 2018-19 is summarised in the table below and shows our critical success factors. Our Performance Highlights are on page 4.

Critical success factors Goal Target (performance measure) Status What we achieved Aims for 2019–20 1. Providing quality homes and services 1.1 Engage our residents Implement first year of Building Bridges Year 1 Action Plan implemented 19 per cent engagement across five key Building Year 2 Action Plan implemented and strengthen local 2018-2021 Bridges focus areas communities Implement the Good Neighbours initiative to Hold one Good Neighbours workshops A workshop was held at Elger Street Glebe with 23 Hold two Good Neighbour Workshops on the Northern encourage positive neighbourhood relations tenants Beaches and one Good Neighbours workshop in through an improved sense of safety and Central Sydney 11 block meetings held belonging in the community

Implement the Our Place Green Space Our Space Green Space initiative Two new community gardens launched in Balmain and Continue to implement Our Space Green Space initiative to give tenants a say in their built implemented Waverley initiative environment

Implement the Bridge Housing in Participate in 4 community events Bridge Housing participated in following community Participate in 6 community events Communities initiative to celebrate and events – Redfern Playgroups in the Park, Redfern strengthen connections across our diverse Neighbour Day, Yabun, Waterloo Summer on the tenant community Green and the Waterloo, Don’t Lose Your Marbles Challenge. Bridge Housing ran a stall at the NAIDOC @ NCIE event and sponsored the and sponsored the annual NAIDOC Flag Raising event in Redfern Held Time to Talk workshops for Arabic and Russian speakers.

Implement the Big Ideas Grants program Big Ideas Grants awarded to eligible tenants Two grants awarded for a community BBQ area and to Big Ideas Grants program implemented and grants to provide resourcing for tenants who want establish an art club at Elger Street, Glebe awarded to eligible tenants to work to improve outcomes for the tenant community

Implement first place-based initiative under First place-based initiative implemented at Place-based strategy implemented in Elger Street, Continue to deliver place-based initiatives at Elger Places People Want to Live Strategy in Elger Elger Street, Glebe Glebe with art time tenancy management on-site and Street, Glebe Street, Glebe service outreach with Uniting to assist access to aged Develop implementation plan for Places People Want care services to Live in the Northern Beaches

Implement the Young People’s Engagement Strategy implemented Young people’s engagement implemented through Strategy implemented and 10 per cent of young people Strategy to ensure young people have a say digital engagement and 11 tenants aged between 18 engaged in our work and access local opportunities and 35 engaged in Bridge to Work

Implement Bridge to Work tenant 40 tenants engaged in employment or Exceeded target with 33 tenants placed in employment 40 tenants engaged in employment or training through employment program in partnership with training through the program by the end of June 2019 and 15 successfully completing the program CoAct the 13 week benchmark

Review and implement Bridge Housing’s Advance scholarship program reviewed and Scholarships allocated to 26 successful applicants with Scholarships allocated to successful applicants scholarship program to deliver the Advanced revised program ready for implementation a focus on education and employment opportunities Scholarship Program

92 Bridge Housing Limited Annual Report 2019 Key: Completed In progress Not completed Critical success factors Goal Target (performance measure) Status What we achieved Aims for 2019–20 1. Providing quality homes and services 1.1 Engage our residents Implement first year of Building Bridges Year 1 Action Plan implemented 19 per cent engagement across five key Building Year 2 Action Plan implemented and strengthen local 2018-2021 Bridges focus areas communities Implement the Good Neighbours initiative to Hold one Good Neighbours workshops A workshop was held at Elger Street Glebe with 23 Hold two Good Neighbour Workshops on the Northern encourage positive neighbourhood relations tenants Beaches and one Good Neighbours workshop in through an improved sense of safety and Central Sydney 11 block meetings held belonging in the community

Implement the Our Place Green Space Our Space Green Space initiative Two new community gardens launched in Balmain and Continue to implement Our Space Green Space initiative to give tenants a say in their built implemented Waverley initiative environment

Implement the Bridge Housing in Participate in 4 community events Bridge Housing participated in following community Participate in 6 community events Communities initiative to celebrate and events – Redfern Playgroups in the Park, Redfern strengthen connections across our diverse Neighbour Day, Yabun, Waterloo Summer on the tenant community Green and the Waterloo, Don’t Lose Your Marbles Challenge. Bridge Housing ran a stall at the NAIDOC @ NCIE event and sponsored the and sponsored the annual NAIDOC Flag Raising event in Redfern Held Time to Talk workshops for Arabic and Russian speakers.

Implement the Big Ideas Grants program Big Ideas Grants awarded to eligible tenants Two grants awarded for a community BBQ area and to Big Ideas Grants program implemented and grants to provide resourcing for tenants who want establish an art club at Elger Street, Glebe awarded to eligible tenants to work to improve outcomes for the tenant community

Implement first place-based initiative under First place-based initiative implemented at Place-based strategy implemented in Elger Street, Continue to deliver place-based initiatives at Elger Places People Want to Live Strategy in Elger Elger Street, Glebe Glebe with art time tenancy management on-site and Street, Glebe Street, Glebe service outreach with Uniting to assist access to aged Develop implementation plan for Places People Want care services to Live in the Northern Beaches

Implement the Young People’s Engagement Strategy implemented Young people’s engagement implemented through Strategy implemented and 10 per cent of young people Strategy to ensure young people have a say digital engagement and 11 tenants aged between 18 engaged in our work and access local opportunities and 35 engaged in Bridge to Work

Implement Bridge to Work tenant 40 tenants engaged in employment or Exceeded target with 33 tenants placed in employment 40 tenants engaged in employment or training through employment program in partnership with training through the program by the end of June 2019 and 15 successfully completing the program CoAct the 13 week benchmark

Review and implement Bridge Housing’s Advance scholarship program reviewed and Scholarships allocated to 26 successful applicants with Scholarships allocated to successful applicants scholarship program to deliver the Advanced revised program ready for implementation a focus on education and employment opportunities Scholarship Program

Appendix 1: Our performance 93 Appendix 1: Our performance (continued)

Critical success factors Goal Target (performance measure) Status What we achieved Aims for 2019–20 1.2 Uphold a customer Implement 2018–19 tenant satisfaction survey Survey implemented and final report Completed in March 2019. Response rate of 38 per cent Review completed and Customer Service service focus across and develop action plan for implementation submitted and action plan developed. Benchmarking and Tenant Satisfaction Survey in 2019–20 approach for 2020-21 agreed our services Action plan developed Customer Service Leadership Group meet at least biannually

Achieve tenant satisfaction with asset Minimum tenant satisfaction rating of 75 per Achieved 80 per cent overall satisfaction with Achieve tenant satisfaction with asset maintenance maintenance services of at least 75 per cent cent achieved maintenance services services of at least 75 per cent

1.3 Deliver quality, Continuously improve housing policies and New and/or revised policy and procedures Developed and/or reviewed new policies including New and/or revised policy including: Ending a Tenancy proactive tenancy procedures to support clear, transparent implemented across Operations Registrable Persons Policy and Wellbeing Policy Policy (Disposal of Tenant Goods), Rent Policy, Water management decision making and quality service delivery Charging and Compliments, Complaints and Appeals

Tenant new social housing dwellings in the All properties tenanted within required Completed Continue to tenant new social housing properties in following redevelopments timeframe line with Allocations Policy i) 110 units in Elger Street, Glebe 14 units in Clemton Park

Keep arrears at or below the regulator Arrears at or below regulator benchmark Arrears at 1.71 per cent in June 2019 Arrears maintained at or below regulator benchmark benchmark of under 2 per cent

Keep voids and vacancies at or below the Voids and vacancies at or below the sector Voids were an average of 27 days during 2018–2019 Voids and vacancies maintained at or below sector sector benchmark benchmark benchmark Vacancies were an average of 14 days during 2018–2019

Implement year 1 of STEP to Home to house 22 people housed Exceeded target and housed 50 people in 10 months 50 people housed by Bridge Housing 45 people out of target of 90

1.4 Successfully Begin implementation of transition plan Transition Team established in line with Implementation team commenced operations with Deliver Northern Beaches Transition Plan for transition and embed for Social Housing Management Transfer Transition Plan timelines and budget strong focus on tenant and community engagement seamless transition in August 2019 to Bridge Housing new residents in the Program in Northern Beaches management Northern Beaches

1.5 Maintain properties Implement new head contract for lift New contract ready for implementation in New head contractor for lift maintenance appointed New lift maintenance contract started in 2019–20 to a high standard maintenance 2019-20 that meet resident needs Continue a strategic whole-of-life approach Undertake priority asset management Achieved the upgrade of over 50 properties including Undertake annual review of Strategic Asset to asset management upgrades common areas valued at $230,000 in Balmain Management Plan

2. Growing sustainably to meet affordable housing need

2.1 Increase the number Finalise contract negotiations on the Seven Contract negotiations completed by LAHC confirmed that the project will not proceed No further work required of properties we own Hills development September 2018 through tenders, procurement and Finalise contract negotiations on the North Contract negotiations completed by Mirvac has advised that the project will not proceed No further work required development Parramatta development September 2018

Engage in selected Communities Plus Secure one Communities Plus site by June No small site opportunities released in 2018-19 Engage in new opportunities as they become available. opportunities as a developer as they become 2019 available

Review the opportunity to participate in Due diligence undertaken on SAHF Bridge Housing was shortlisted to submit a Request for No further work required Social and Afordable Housing Fund Opportunities Proposal, which was unsuccessful

Complete negotiations to redevelop the Development rights secured over Dulwich Negotiations with LAHC for Dulwich Hill site Contract exchange/settlement forecast for Q1 2019-20 Dulwich Hill site Hill site by December 2018 completed

Deliver our leveraging target commitments Procurement / development sites identified Procurement / development sites identified Deliver our leveraging target commitments of six to eight properties

Secure sites made available through Secure one site tendered by Government No opportunities in 2018-19 Secure one site tendered by State Government and planning system and local government Local Government

94 Bridge Housing Limited Annual Report 2019 Key: completed in progress delayed Critical success factors Goal Target (performance measure) Status What we achieved Aims for 2019–20 1.2 Uphold a customer Implement 2018–19 tenant satisfaction survey Survey implemented and final report Completed in March 2019. Response rate of 38 per cent Review completed and Customer Service service focus across and develop action plan for implementation submitted and action plan developed. Benchmarking and Tenant Satisfaction Survey in 2019–20 approach for 2020-21 agreed our services Action plan developed Customer Service Leadership Group meet at least biannually

Achieve tenant satisfaction with asset Minimum tenant satisfaction rating of 75 per Achieved 80 per cent overall satisfaction with Achieve tenant satisfaction with asset maintenance maintenance services of at least 75 per cent cent achieved maintenance services services of at least 75 per cent

1.3 Deliver quality, Continuously improve housing policies and New and/or revised policy and procedures Developed and/or reviewed new policies including New and/or revised policy including: Ending a Tenancy proactive tenancy procedures to support clear, transparent implemented across Operations Registrable Persons Policy and Wellbeing Policy Policy (Disposal of Tenant Goods), Rent Policy, Water management decision making and quality service delivery Charging and Compliments, Complaints and Appeals

Tenant new social housing dwellings in the All properties tenanted within required Completed Continue to tenant new social housing properties in following redevelopments timeframe line with Allocations Policy i) 110 units in Elger Street, Glebe 14 units in Clemton Park

Keep arrears at or below the regulator Arrears at or below regulator benchmark Arrears at 1.71 per cent in June 2019 Arrears maintained at or below regulator benchmark benchmark of under 2 per cent

Keep voids and vacancies at or below the Voids and vacancies at or below the sector Voids were an average of 27 days during 2018–2019 Voids and vacancies maintained at or below sector sector benchmark benchmark benchmark Vacancies were an average of 14 days during 2018–2019

Implement year 1 of STEP to Home to house 22 people housed Exceeded target and housed 50 people in 10 months 50 people housed by Bridge Housing 45 people out of target of 90

1.4 Successfully Begin implementation of transition plan Transition Team established in line with Implementation team commenced operations with Deliver Northern Beaches Transition Plan for transition and embed for Social Housing Management Transfer Transition Plan timelines and budget strong focus on tenant and community engagement seamless transition in August 2019 to Bridge Housing new residents in the Program in Northern Beaches management Northern Beaches

1.5 Maintain properties Implement new head contract for lift New contract ready for implementation in New head contractor for lift maintenance appointed New lift maintenance contract started in 2019–20 to a high standard maintenance 2019-20 that meet resident needs Continue a strategic whole-of-life approach Undertake priority asset management Achieved the upgrade of over 50 properties including Undertake annual review of Strategic Asset to asset management upgrades common areas valued at $230,000 in Balmain Management Plan

2. Growing sustainably to meet affordable housing need

2.1 Increase the number Finalise contract negotiations on the Seven Contract negotiations completed by LAHC confirmed that the project will not proceed No further work required of properties we own Hills development September 2018 through tenders, procurement and Finalise contract negotiations on the North Contract negotiations completed by Mirvac has advised that the project will not proceed No further work required development Parramatta development September 2018

Engage in selected Communities Plus Secure one Communities Plus site by June No small site opportunities released in 2018-19 Engage in new opportunities as they become available. opportunities as a developer as they become 2019 available

Review the opportunity to participate in Due diligence undertaken on SAHF Bridge Housing was shortlisted to submit a Request for No further work required Social and Afordable Housing Fund Opportunities Proposal, which was unsuccessful

Complete negotiations to redevelop the Development rights secured over Dulwich Negotiations with LAHC for Dulwich Hill site Contract exchange/settlement forecast for Q1 2019-20 Dulwich Hill site Hill site by December 2018 completed

Deliver our leveraging target commitments Procurement / development sites identified Procurement / development sites identified Deliver our leveraging target commitments of six to eight properties

Secure sites made available through Secure one site tendered by Government No opportunities in 2018-19 Secure one site tendered by State Government and planning system and local government Local Government

Appendix 1: Our performance 95 Appendix 1: Our performance (continued)

Critical success factors Goal Target (performance measure) Status What we achieved Aims for 2019–20 2.2 Increase the number Consolidate the operations of HomeGround Year 1 Business Plan delivered Secured moderate growth All Bridge Housing Fee-for-Service properties are of properties that we Real Estate Sydney managed in HomeGround Sydney by June 2020 manage Engage with councils to build relationships Identify opportunities with local councils Ongoing – Multiple opportunities identified in 2019- Identify at least 1 development opportunity with a to enhance afordable housing supply 20 through draft Local Strategic Planning Statement Council within Bridge Housing’s operating area processes

Investigate opportunities arising from the Identify one afordable housing opportunity No opportunities released in 2018-19 Engage in new opportunities as they become available introduction of afordable housing targets and other changes to the planning system

Work with development partners to engage Secure a partnership on Communities Plus Participated in Telopea and Redfern opportunities in Engage in new opportunities as they become available in selected Communities Plus opportunities site 2018-19 as CHP Manager as they become available

Complete Clemton Park Project Deliver 14 units by December 2018 Project delivered six weeks ahead of schedule Complete defects liability inspection for Clemton Park Management site units 3. Supporting our people and improving workplace wellbeing 3.1 Take an adaptive Review our organisation structure to support Organisation structure review completed Structure reviewed and revised structure implemented Implement Human Resources projects with a focus approach to our growth and change and strategy approved on building Bridge Housing’s positive organisational organisational culture across two ofces structure which supports growth and change 3.2 Attract, recognise, Create an intern, graduate and trainee Go live with program by December 2018 Program created in partnership with CareerTrackers Implement and evaluate the CareerTrackers Internship reward and retain program program quality staff Review the Total Rewards Program, including Implement new total rewards program by Remuneration strategy endorsed by the Board and Undertake staf survey the remuneration strategy January 2019 implemented Total Rewards Program Evaluation completed by June 2020

Review recruitment channels and Go live with new recruitment strategy by Commenced. To be finalised in conjunction with Expand the Recruitment Strategy to engage with arrangements, including preferred suppliers September 2018 SHMT recruitment strategy Universities and TAFEs 3.3 Develop, train and Review and update the Learning and Revised policy and Learning and Completed and presented to all staf and resulted in Review and implement online Learning Management support our people Development policy and program Development program approved by a whole-of-company positive culture and leadership Platform (LMS) December 2018 program

Develop proposal to introduce employee Proposal submitted to HR Committee by Program approved. Implementation underway. Develop a proposal to embed strengths profiling in strengths profiling as part of the Employee March 2019 performance reviews, development plans and other HR Development Plan processes in line with implementation of new HRIS 3.4 Create a more Identify and secure long term Lease signed by October 2018 Relocated to new ofces in December 2018 No further work on ofce relocation project required flexible, fit for accommodation solution for Bridge purpose workplace Housing’s head ofce Review Diversity Policy and develop a Policy revised and Action Plan adopted by Revised policy completed and draft Strategy developed Finalise Diversity and Inclusion Strategy and Diversity and Inclusion Strategy March 2019 implement Year 1 Action Plan 3.5 Retain and build Onboarding and inclusion of Northern Strategy signed of by the Executive by June All staf on boarded and inducted and clear strategies Undertake Northern Beaches staf Pulse Survey upon our positive Beaches staf into Total Rewards Program 2019 in place to ensure inclusion in the broader organisation opening of Brookvale Ofce and then follow up after organisational and develop strategies for inclusion three & six months culture as we grow 4. Governing and managing effectively 4.1 Maintain strong Deliver an operating EBIDTA of $3.2 million Ensure operating EBIDTA of $3.2 million Achieved an operating EBITDA of $3.9 million Maintain our financial viability by meeting budget corporate governance projections and organisational Ensure operating EBITDA exceeds $3.1 million management Undertake Year 1 of the three year Internal All audits completed Completed internal audits on privacy management and Undertake Year 2 of the three year Internal Audit Plan Audit Plan tenancy management framework. 2018-2021

Develop and implement new Reconciliation New RAP innovate plan developed and Second Reconciliation Action Plan developed New Innovate RAP developed and first year of Action Action Plan 2019-2021 launched Plan implemented

96 Bridge Housing Limited Annual Report 2019 Key: completed in progress delayed Critical success factors Goal Target (performance measure) Status What we achieved Aims for 2019–20 2.2 Increase the number Consolidate the operations of HomeGround Year 1 Business Plan delivered Secured moderate growth All Bridge Housing Fee-for-Service properties are of properties that we Real Estate Sydney managed in HomeGround Sydney by June 2020 manage Engage with councils to build relationships Identify opportunities with local councils Ongoing – Multiple opportunities identified in 2019- Identify at least 1 development opportunity with a to enhance afordable housing supply 20 through draft Local Strategic Planning Statement Council within Bridge Housing’s operating area processes

Investigate opportunities arising from the Identify one afordable housing opportunity No opportunities released in 2018-19 Engage in new opportunities as they become available introduction of afordable housing targets and other changes to the planning system

Work with development partners to engage Secure a partnership on Communities Plus Participated in Telopea and Redfern opportunities in Engage in new opportunities as they become available in selected Communities Plus opportunities site 2018-19 as CHP Manager as they become available

Complete Clemton Park Project Deliver 14 units by December 2018 Project delivered six weeks ahead of schedule Complete defects liability inspection for Clemton Park Management site units 3. Supporting our people and improving workplace wellbeing 3.1 Take an adaptive Review our organisation structure to support Organisation structure review completed Structure reviewed and revised structure implemented Implement Human Resources projects with a focus approach to our growth and change and strategy approved on building Bridge Housing’s positive organisational organisational culture across two ofces structure which supports growth and change 3.2 Attract, recognise, Create an intern, graduate and trainee Go live with program by December 2018 Program created in partnership with CareerTrackers Implement and evaluate the CareerTrackers Internship reward and retain program program quality staff Review the Total Rewards Program, including Implement new total rewards program by Remuneration strategy endorsed by the Board and Undertake staf survey the remuneration strategy January 2019 implemented Total Rewards Program Evaluation completed by June 2020

Review recruitment channels and Go live with new recruitment strategy by Commenced. To be finalised in conjunction with Expand the Recruitment Strategy to engage with arrangements, including preferred suppliers September 2018 SHMT recruitment strategy Universities and TAFEs 3.3 Develop, train and Review and update the Learning and Revised policy and Learning and Completed and presented to all staf and resulted in Review and implement online Learning Management support our people Development policy and program Development program approved by a whole-of-company positive culture and leadership Platform (LMS) December 2018 program

Develop proposal to introduce employee Proposal submitted to HR Committee by Program approved. Implementation underway. Develop a proposal to embed strengths profiling in strengths profiling as part of the Employee March 2019 performance reviews, development plans and other HR Development Plan processes in line with implementation of new HRIS 3.4 Create a more Identify and secure long term Lease signed by October 2018 Relocated to new ofces in December 2018 No further work on ofce relocation project required flexible, fit for accommodation solution for Bridge purpose workplace Housing’s head ofce Review Diversity Policy and develop a Policy revised and Action Plan adopted by Revised policy completed and draft Strategy developed Finalise Diversity and Inclusion Strategy and Diversity and Inclusion Strategy March 2019 implement Year 1 Action Plan 3.5 Retain and build Onboarding and inclusion of Northern Strategy signed of by the Executive by June All staf on boarded and inducted and clear strategies Undertake Northern Beaches staf Pulse Survey upon our positive Beaches staf into Total Rewards Program 2019 in place to ensure inclusion in the broader organisation opening of Brookvale Ofce and then follow up after organisational and develop strategies for inclusion three & six months culture as we grow 4. Governing and managing effectively 4.1 Maintain strong Deliver an operating EBIDTA of $3.2 million Ensure operating EBIDTA of $3.2 million Achieved an operating EBITDA of $3.9 million Maintain our financial viability by meeting budget corporate governance projections and organisational Ensure operating EBITDA exceeds $3.1 million management Undertake Year 1 of the three year Internal All audits completed Completed internal audits on privacy management and Undertake Year 2 of the three year Internal Audit Plan Audit Plan tenancy management framework. 2018-2021

Develop and implement new Reconciliation New RAP innovate plan developed and Second Reconciliation Action Plan developed New Innovate RAP developed and first year of Action Action Plan 2019-2021 launched Plan implemented

Appendix 1: Our performance 97 Appendix 1: Our performance (continued)

Critical success factors Goal Target (performance measure) Status What we achieved Aims for 2019–20 4.2 Maintain Manage and expand debt facilities efectively Adequate funding is available to meet Refinanced existing debt facilities through an NHFIC facilities in place by November 2019 strong financial to meet future funding requirements business requirements expanded $40 million facility through the NHFIC management, risk management Ensure compliance with all banking Banking covenants are met at all times Met all covenants at all times during the year Banking covenants are met at all times during the year and operational covenants during the year performance Enhance 20-year forecast model to improve Model upgraded by December 2018 Model used successfully to model impact of raise $40m Upgrade 20-year forecast model business forecasting and raise finance funding through NHFIC

4.3 Meet our regulatory Implement new lease accounting standards New standards incorporated into 2018-19 Work is progressing to plan and on track to implement New standards incorporated into 2019-20 accounts and compliance accounts the new standards in 2019–20 responsibilities

4.4 Undertake leading Involve tenants in planning through the Ensure tenant feedback through Tenant Tenant feedback collected through Tenant Reference Engage with tenants through Tenant Reference practice in strategic Tenants in Operations and Planning (TOP) Reference Group (8 meetings), Your Group (8 meetings), Your Views Panel (2 policies) and Group (6 meetings), Your Views Panel (2 policies) and and business Views Panel (2 policies) and Maintenance Maintenance Management Committee (2 meetings) Maintenance Management Committee (2 meetings) planning, monitoring Management Committee (2 meetings) and reporting

4.5 Adopt evolving Implement new Payroll and HR Management New system implemented by July 2019 Payroll system implemented but HR modules will be Implement the Human Resources Information System technologies system to improve integration, automation progressively rolled through the first two quarters of Project including timesheets, Performance Talent and that improve and reporting 2019–20 Succession and Recruitment resident outcomes and improve Implement self-service portal for our Tenants Tenant portal implemented in 2018-19 Tenant Portal implemented and rolled out to tenants Research, scope and identify requirements for Phase 2 organisational though expansion of Deeplake software of the Tenant Portal performance Implement Strategic Asset Management System identified and implemented by System implemented Through SPM Assets achieve portfolio maintenance Reporting system to support planning and March 2019 budgeting and planning efciencies financial forecasting All properties migrated for 2020-21 asset planning process

Implement electronic signatures using Electronic signature procedure and system Project underway and will be implemented in quarter Expand the use MFiles Digital records management MFiles implemented one 2019–20 system to incorporate electronic invoice capture and authorisation

Implement electronic invoice capture and Electronic invoice capture and workflow Project delayed until 2019–20 as other initiatives were Implemented by March 2020 workflow management management system implemented prioritised

Implement cloud based IT infrastructure Go live by December 2018 Project delayed until 2019–20 as other initiatives were Implement Ofce 365 in conjunction with cloud environment prioritised infrastructure solution

4.6 Measure and report Refine our Outcomes Framework in Outcomes and indicators embedded in Realigned key domains in The Diference We Make to Finalise The Diference We Make, Bridge Housing’s on the outcomes of alignment with FACS Human Services Bridge Housing reporting better align with NSW Government’s framework Outcomes Framework in alignment with FACS Human our services Framework Services Framework and contracting requirements 5. Engaging our partners and enhancing our industry leadership

5.1 Communicate Meet with State and Federal Government At least one meeting with each key Federal Meetings held with key Federal and State At least one meeting with each key Federal and State proactively and representatives in Bridge Housing’s and State representative representatives representative work closely with operating regions our partners and stakeholders Support councils to enhance afordable Identify one opportunity with a local council No opportunities identified in 2018-19 Engage with Greater Sydney local councils to build housing supply within operating region relationships to enhance afordable housing supply

Maintain engagement with leading property At least four meetings with developers Meetings held with 6 leading property developers At least four meetings with developers developers

5.2 Build on our strong Upgrade Website Migrate website to new provider and Website migrated and new website launched Maintain website brand and reputation upgrade

5.2 Advocate strongly for Participate actively in industry organisations Active memberships maintained CEO and GMs actively participated in industry Active memberships maintained continued growth and organisations development of the community housing Speak at and attend conferences, seminars CEO or GMs to attend all major conferences CEOs and GMs attended all major conferences and CEO or GMs to attend all major conferences and at sector and cross sector forums and at least two presentations given by two presentations given by CEO and GM at major least two presentations given by Bridge Housing Bridge Housing conferences

98 Bridge Housing Limited Annual Report 2019 Key: completed in progress delayed Critical success factors Goal Target (performance measure) Status What we achieved Aims for 2019–20 4.2 Maintain Manage and expand debt facilities efectively Adequate funding is available to meet Refinanced existing debt facilities through an NHFIC facilities in place by November 2019 strong financial to meet future funding requirements business requirements expanded $40 million facility through the NHFIC management, risk management Ensure compliance with all banking Banking covenants are met at all times Met all covenants at all times during the year Banking covenants are met at all times during the year and operational covenants during the year performance Enhance 20-year forecast model to improve Model upgraded by December 2018 Model used successfully to model impact of raise $40m Upgrade 20-year forecast model business forecasting and raise finance funding through NHFIC

4.3 Meet our regulatory Implement new lease accounting standards New standards incorporated into 2018-19 Work is progressing to plan and on track to implement New standards incorporated into 2019-20 accounts and compliance accounts the new standards in 2019–20 responsibilities

4.4 Undertake leading Involve tenants in planning through the Ensure tenant feedback through Tenant Tenant feedback collected through Tenant Reference Engage with tenants through Tenant Reference practice in strategic Tenants in Operations and Planning (TOP) Reference Group (8 meetings), Your Group (8 meetings), Your Views Panel (2 policies) and Group (6 meetings), Your Views Panel (2 policies) and and business Views Panel (2 policies) and Maintenance Maintenance Management Committee (2 meetings) Maintenance Management Committee (2 meetings) planning, monitoring Management Committee (2 meetings) and reporting

4.5 Adopt evolving Implement new Payroll and HR Management New system implemented by July 2019 Payroll system implemented but HR modules will be Implement the Human Resources Information System technologies system to improve integration, automation progressively rolled through the first two quarters of Project including timesheets, Performance Talent and that improve and reporting 2019–20 Succession and Recruitment resident outcomes and improve Implement self-service portal for our Tenants Tenant portal implemented in 2018-19 Tenant Portal implemented and rolled out to tenants Research, scope and identify requirements for Phase 2 organisational though expansion of Deeplake software of the Tenant Portal performance Implement Strategic Asset Management System identified and implemented by System implemented Through SPM Assets achieve portfolio maintenance Reporting system to support planning and March 2019 budgeting and planning efciencies financial forecasting All properties migrated for 2020-21 asset planning process

Implement electronic signatures using Electronic signature procedure and system Project underway and will be implemented in quarter Expand the use MFiles Digital records management MFiles implemented one 2019–20 system to incorporate electronic invoice capture and authorisation

Implement electronic invoice capture and Electronic invoice capture and workflow Project delayed until 2019–20 as other initiatives were Implemented by March 2020 workflow management management system implemented prioritised

Implement cloud based IT infrastructure Go live by December 2018 Project delayed until 2019–20 as other initiatives were Implement Ofce 365 in conjunction with cloud environment prioritised infrastructure solution

4.6 Measure and report Refine our Outcomes Framework in Outcomes and indicators embedded in Realigned key domains in The Diference We Make to Finalise The Diference We Make, Bridge Housing’s on the outcomes of alignment with FACS Human Services Bridge Housing reporting better align with NSW Government’s framework Outcomes Framework in alignment with FACS Human our services Framework Services Framework and contracting requirements 5. Engaging our partners and enhancing our industry leadership

5.1 Communicate Meet with State and Federal Government At least one meeting with each key Federal Meetings held with key Federal and State At least one meeting with each key Federal and State proactively and representatives in Bridge Housing’s and State representative representatives representative work closely with operating regions our partners and stakeholders Support councils to enhance afordable Identify one opportunity with a local council No opportunities identified in 2018-19 Engage with Greater Sydney local councils to build housing supply within operating region relationships to enhance afordable housing supply

Maintain engagement with leading property At least four meetings with developers Meetings held with 6 leading property developers At least four meetings with developers developers

5.2 Build on our strong Upgrade Website Migrate website to new provider and Website migrated and new website launched Maintain website brand and reputation upgrade

5.2 Advocate strongly for Participate actively in industry organisations Active memberships maintained CEO and GMs actively participated in industry Active memberships maintained continued growth and organisations development of the community housing Speak at and attend conferences, seminars CEO or GMs to attend all major conferences CEOs and GMs attended all major conferences and CEO or GMs to attend all major conferences and at sector and cross sector forums and at least two presentations given by two presentations given by CEO and GM at major least two presentations given by Bridge Housing Bridge Housing conferences

Appendix 1: Our performance 99 Index

Aboriginal and Torres Strait Islander Tenants Advisory Group (ATTAG) 11, 79 Leasehold program 7, 9, 55, 60-61, 66, 68, 87 Achievements see Performance Management Operating System 72 Affordability 20-23, 70-71, 90-914 Maintenance (planned & responsive) 3, 7, 10, 13, 29, 38-39, 55, 57, 60-61, 62-63, 79-80, 82-83, 94-95, 98-99 Affordable Housing SEPP / SEPP 70 (AHSEPP) 25, 32, 70-71 , 90-91 Maintenance satisfaction survey 61 Annual General Meeting (AGM) 50 Mission and vision 2-3, 15, 40, 42, 89 Arrears 13, 55, 57, 63, 79-81, 94-95 Nation Building Economic Stimulus Plan (NBESP) 6-7, 86, 90 Australasian Housing Institute (AHI) 30, 31, 84 National Disability Insurance Scheme (NDIS) 29-30, 58, 91 Australasian Reporting Awards 5, 11, 49 National Housing and Homelessness Agreement (NHHA) 29, 91 Awards 5, 11-12, 17-18, 23, 44, 49 National Housing Finance and Investment Corporation (NHFIC) 5, 9, 10-11, 13, 28-32, Bridge to Work 9, 12, 17, 56, 59, 64-65, 92-93 50, 68, 72-73, 91 Building Bridges 4, 9, 12, 15, 18, 55-56, 58-59, 62, 64, 69, 92-93 National Rental Affordability Scheme (NRAS) 32, 37, 74, 82, 95 Build to Rent 29, 31, 68, 90 National Regulatory System for Community Housing (NRSCH) 29, 49, 80, 81 Business Plan 2-5, 56-57, 67, 69, 73, 75-76, 92-99 Northern Beaches See SHMTP Commonwealth Government 10, 15, 28-32, 64, 91, 98-99 NSW Government 4, 6-7, 10, 12, 20, 28, 30-32, 37, 57, 66, 70-71, 86, 90-91, 99 Commonwealth Rent Assistance (CRA) 7, 18, 28, 54, 90-91 Outcomes Framework (The Difference We Make) 57, 61, 62-63, 98-99 Community building See Building Bridges Organisational chart 339 Community Housing Leasing Program 4, 7, 70 Parental leave 44 City of Canada Bay 7-9, 22, 58 People and Culture Strategy 40 Communities Plus 5, 7, 10, 30-31, 66-68, 86, 90, 94, 96 Performance 4-5, 46-48, 62-63, 78-83, 92-99 Community Housing Industry Association (CHIA) 15, 24, 28, 37, 61, 91 Portfolio growth 4-7, 9-10, 12, 14-15, 68, 70-71, 76, 94-97 Customer Service 4, 9, 12-13, 38-39, 54-61, 62-63, 94-95 Property Transfer Program See SHMTP Cyclical Maintenance Program See Planned Maintenance Program Reconciliation Action Plan (RAP) 9, 42, 44, 57, 59, 96-97 Design Guidelines 69 Rent review 58, 78 Department of Family and Community Services (FACS) 3-4, 6-7, 10-11, 18-20, 22-23, 26, Risk management 14, 48-50, 74-75, 98-99 29-31, 58, 75-76, 78, 86, 90-91, 98-99 Social and Affordable Housing Fund (SAHF) 10, 30-32, 66, 68, 91, 94-95 Disability housing 9, 30, 55, 58, 61 Social Housing Management Transfer Program (SHMTP) 4, 6, 7, 10-13, 15, 17, 18-19, Diversity policy / Diversity and inclusion strategy: 4, 14, 40, 44-45, 47-48, 96-97 29-32, 38, 40-41, 57-58, 60, 62, 66, 72-73, 75-77, 91, 94 Employee Opinion Survey (EOS) 13-14, 41-42, 45, 52, 91 Social media 5, 9, 14-15, 17 FACS See Department Sponsorship 24 Federal election See Commonwealth Government Staff engagement 10, 40-45, 80 Federal Government See Commonwealth Government State election See NSW Government Financial Summary 78-83 Strategic Plan 2-6, 10, 12, 15, 46, 50, 55, 66, 72, 92-99 Financial viability measures 81 Support partners 2-4, 12, 26, 56, 58, 66, 89 Five-year report card 13, 78-83 Supported Transition & Engagement Program (STEP to Home) 4, 9, 12, 23, 26, 55-56, Future Directions 6, 10, 30-31, 90 58, 94-95 Glebe, Elger Street 6, 7, 9, 22, 27, 30, 55-57, 59-60, 66, 69, 92-95 Sydney Olympic Park Authority (SOPA) 7, 9, 22, 58, 91 Governance principles 46-51 Tenant Advisory Group (TAG) 9, 11, 63, 91 Greater Sydney Commission (GSC) 32, 70 Tenant Satisfaction Survey 4, 5, 55-56, 61-63, 94-95 Hand Up 9 Total Rewards Program 4, 40, 43-45, 73, 96-97 HomeGround 4-5, 7, 9, 12, 15-17, 22, 54, 57, 59, 66, 71, 86, 96-97 Vested properties 4, 7, 70-71, 82, 86, 90 Homelessness 10-11, 23, 26, 29, 84, 90-91 Voids and vacancies 4, 15, 61, 63, 82, 85 Housing Pathways 54, 58, 87, 90-91 Voluntary planning agreements (VPAs) 13, 55, 57, 75, 79-81, 94-95 Information technology 75 Waverley Council 7, 9, 22, 58 Internal audit 14, 48-50, 72-75, 96-97 White Ribbon 84 Land and Housing Corporation (LAHC) 3-4, 7, 10, 12, 30-31, 37, 60, 63, 66-68, 76, 91, 95 Work Health and Safety 14, 75 Learning and development 40-43, 73, 96-97

100 Bridge Housing Limited Annual Report 2019 Bridge Housing Orbit! Day 2019

Editor: Caitlin McDowell The Bridge Housing Annual Report is printed on EcoStar Graphic Design: Karl Reimann – www.deepspace.com.au carbon neutral paper. EcoStar is made from 100% Photography: John Kung – www.johnkung.com recycled post-consumer fibre and FSC certified. Josephine Ki – www.josephineki.com Bridge Housing Orbit! Day 2019

Head Office: Level 9, 59 Goulburn Street, Sydney NSW 2000 Northern Beaches Office: Level 1, 660–664 Pittwater Road, Brookvale NSW 2100

Postal address: PO Box 20217, World Square NSW 2000 Telephone: (02) 8324 0800 Email: [email protected] Website: www.bridgehousing.org.au

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