July 2011 e-brief 8/2011 Social housing by Louise O'Flynn 1. Introduction housing management. 85% of these were public housing, 11% were The phrase social housing is often community housing, 3% were used interchangeably with terms such Aboriginal Housing Office dwellings, as 'affordable', 'public' or 'low cost' and 1% was crisis accommodation.4 In housing.1 Social housing is one 2010, there were over 83,000 people mechanism adopted by Local, State on the social housing waiting list in and Commonwealth Governments to NSW.5 address the housing affordability problem in NSW. This e-brief outlines the history of the NSW social housing system and looks Since its introduction in the early at the current situation for the three 1900s, the focus of social housing has social housing subsectors. It also shifted from "supplying affordable considers government social housing properties for rental or home purchase initiatives, briefly outlines the NSW to low and middle income working social housing regulatory framework families, towards providing and highlights several stakeholder accommodation on a priority needs perspectives on the system. basis to households with special needs or in challenging circumstances".2 2. History of the NSW social Today, households in social housing housing system generally have very low incomes; receive a government pension as their The provision of social housing in main source of income; are mostly NSW has changed considerably over single persons; and are older than the its life.6 It has transitioned from population in general.3 housing for low income working families in the early 1900s to a social The current NSW social housing housing system that involves all levels system encompasses: of government, the not-for-profit sector and other organisations, with the aim Public housing. of helping those who are "most in Community housing. need."7 Aboriginal housing. The history of the development of In NSW in 2010, there were more than social housing in NSW is set out on 150,000 dwellings under social the Housing NSW website. This e-brief Page 1 of 15 E-Brief Social housing presents an overview of developments partnerships with private developers since the 1980s. and community housing groups."13 Consequently, the stock of community It was in the 1980s that the Housing housing doubled in NSW.14 Commission "refocused" its housing priorities to those: According to Allen, in today's social housing system: ...most in need and away from just public housing for 'blue collar Public housing tenants…are workers'. Nuclear, working-class overwhelmingly recipients of social families were now no longer the security benefits, rather than wage typical applicants. Growing earners. Many...have complex numbers of single people, needs, including a range of non- including sole parents, the housing support requirements."15 homeless, older people, people with disabilities began applying for Allen further noted that in 2006-07: 8 public housing. Almost 10% of newly housed Over 150,000 homes were built in the public housing tenants were 1980s, with more than 270,000 people homeless or at risk of given assistance to buy homes. The homelessness. Housing Commission was also 97% had a Centrelink benefit as renamed the Department of Housing their main source of income. during this period, with the rebadged Over 30% were recipients of the Department focused on rehabilitating Disability Support Pension. old public housing stock. Landcom, originally founded in 1975, was Almost 4% were frail aged, and established to "offer affordable houses over 11% were older persons. 9 2% were young adult household on Sydney's fringe." It was 16 amalgamated with the Department of heads aged under 20. Housing in the mid 1980s to "ensure the timely and affordable supply of The profile of public housing tenants new home sites."10 In 1993 the informed the State Government's 2005 amalgamation was reversed.11 plan, "Reshaping Public Housing". Allen described the aim of the According to Mike Allen, Director Reshaping Public Housing reforms as General of Housing NSW, in 1987, to ensure that NSW has a "fair" public "non-aged single people and people housing system "which both helps those most in need while remaining who needed support services to live 17 independently became eligible for sustainable into the future." public housing for the first time", while "demand from pensioner and other These reforms "enshrined as a beneficiary groups increased principle the allocation of public 12 housing on the basis of greatest throughout the 1980s." 18 19 need." Housing NSW stated that the 2.1 1990 onwards Reshaping Public Housing reforms "represent a fundamental policy shift in the delivery of public housing in During the 1990s, the Department of 20 Housing "sought housing solutions in NSW" the private and rental markets using innovations, such as head leasing and Page 2 of 15 E-Brief Social housing Under the reforms, changes were not-for-profit community housing made to: organisations. Aboriginal housing: approximately People eligible for public 4,600 dwellings are owned by housing. Aboriginal community organisations Length of tenancy. and an additional 4,500 dwellings How people in need receive are managed by Housing NSW on support. behalf of the Aboriginal Housing Rental costs. Office. Water usage charges. Market rental value reviews. 3.1 Public Housing Property maintenance. Public housing property Public housing refers to dwellings portfolio renewal.21 owned (or leased) and managed by State and Territory housing authorities The Reforms also applied to all to provide affordable accommodation applicants for and tenants of Aboriginal to people on low incomes and those with special needs. In NSW the Housing Office properties managed by 25 Housing NSW.22 According to Housing relevant authority is Housing NSW. NSW, many elements of the Reshaping Public Housing reforms Between 2000 and 2010, NSW saw a have now been implemented.23 7.3% decrease in the supply of public housing (9,164 fewer public housing 26 In his role as Director General of dwellings). In June 2010, there were 5,861 new allocations of public Housing NSW, Mike Allen emphasised 27 that social housing in NSW needs to housing tenancies. Of these, 69.5% meet: were allocated to applicants assessed with ‘greatest need’. According to Shelter NSW, this proportion of Heightened demand from people allocations on a 'greatest need' basis with complex needs. compares with 39.1% in 1999-2000. 28 Demographic changes, including the ageing population and the rapid Greatest needs households are growth in smaller households. defined as low-income households Increasing demand for adaptable subject to one or more of the following housing that can meet a range of circumstances: special needs without requiring major structural modification.24 They were homeless. Their life or safety was at risk in 3. Social housing subsectors their accommodation. Social housing in NSW is divided into Their health condition was three subsectors: aggravated by their housing. Their housing was inappropriate to their needs. Public housing: approximately They had very high rental housing 122,000 properties are managed by 29 Housing NSW. costs. Community housing: approximately 19,000 dwellings are managed by Within the "greatest need" category is a sub-category of applicants with a "special need". Shelter NSW further Page 3 of 15 E-Brief Social housing explained that of the new allocations to 50,000 NSW social housing dwellings those in "greatest need' in 2009–10, are under-occupied, with almost 64.3% were allocated to applicants 11,000 people living on their own in with a "special need".30 Special needs houses with more than three households are defined as low-income bedrooms. A Housing NSW households that meet one of the Spokeswoman is quoted in the article following criteria: explaining that it does not currently have enough one and two bedroom Satisfy the Indigenous household properties into which to move tenants definition. who are under-occupying larger social Have a household member with a housing properties. disability. Where a principal tenant is aged The 2010 National Social Housing 24 years or under. Survey found that less than half (48%) Where a principal tenant is aged of adults living in public housing across 75 years or more.31 Australia were in the labour force. The Australian Institute of Health and According to the Australian Institute of Welfare considers that this may reflect Health and Welfare, households in the priority allocation policies applied 36 public housing tend to remain in tenure by housing departments. for long periods, contributing to the low number of new allocations in The National Social Housing Survey government-provided housing. The asked a sample of public housing majority of tenancies in public rental tenants across Australia to indicate housing (nationally 61%) have been in their overall level of satisfaction with effect for more than 5 years and more the services provided by (or through) than one-third of public housing their housing department, and their households had been in the same satisfaction with the location and tenancy for more than a decade. amenity aspects of their dwellings. In Occupancy rates are also consistently NSW, 64% of respondents stated that high in NSW public housing (98.9%).32 they were either satisfied or very satisfied with the services provided by In NSW, the number of people on the Housing NSW. This was the lowest public housing waiting list has been level of satisfaction recorded of all Australian States and Territories, with falling, with a 38.5% drop between 37 2000 and 2010 (37,893 fewer a high of 84% in Queensland. people).33 The largest waiting list drop from one year to another was between 3.2 Community Housing 2005 and 2006 (21.1% drop), which according to Shelter NSW was mainly In addition to housing provided by due to a tightening of eligibility criteria, Housing NSW, social housing is also and reviews of the status of previous provided by the not-for-profit sector in applicants.34 As at June 2010, there the form of community housing.