Inquiry into Affordable Housing Parliament of Australia Senate Economics References Committee Inquiry into Affordable Housing 1.0 Introduction Frankston City Council welcomes the opportunity to make a submission to the Parliament of Australia Senate Economics References Committee’s Inquiry into Affordable Housing. Housing affordability is an important issue with potential to impact the wellbeing and connectivity of local communities. Frankston City Council is committed to ensuring that housing in the municipality is appropriate for the diversity of need within the community. Frankston City Council, like all local governments, has a complex role in relation to housing, in particular affordable housing. Council has responsibilities in the planning and regulation of housing; in the development and regulation of the urban environment; in monitoring and fostering housing supply; as well as in advocating for vulnerable communities; and working with community service organisations involved in health and wellbeing, including homelessness. 1.1 Inquiry Framework In preparation of this submission, Frankston City Council has considered the Terms of Reference used by the Senate Standing Committees on Economics. The major focus of this submission is on the policies relating to housing and homelessness of the Commonwealth and Victorian governments, how they positively affect local communities, and where their approach can to be altered to improve their effectiveness. The submission provides a particular focus on more vulnerable groups within the community, including women and children, socio-economically disadvantaged groups and adults with disabilities with ageing carers. 2.0 A Place Based Approach to Housing Policy Between 2006 and 2011 Australian governments have made significant commitments to social and affordable housing, both in one-off investments through the Australian Fiscal Stimulus Package, and in mid- to long-term commitments including the National Rental Affordability Scheme, the National Affordable Housing Agreement and the national partnership agreements that underpin it. Collectively, this represents a significant reversal in the long term trend of reduced investment in housing by Australian governments. Unfortunately, despite the increased funding, according to Australian Bureau of Statistics census, homelessness in Australia increased by 17.6% between 2006 and 2011, while housing affordability has decreased, particularly for renters1. 1 ABS Housing Occupancy and Costs, 2011-12. Page | 1 Frankston City Council Inquiry into Affordable Housing Frankston City Council contends that a targeted approach to funding through a place based approach to housing policy is required that ensures affordable housing is provided in areas of and for population groups of greatest need. 2.1 The National Affordable Housing Agreement The National Affordable Housing Agreement (NAHA) has allowed important improvements in the provision of services to the homeless and housing insecure. Through NAHA, new programs have been implemented across the country, which have seen a renewed, innovative and coordinated effort to support the long-term homeless into meaningful housing, including via intensive outreach programs. Meanwhile, the National Partnership Agreement on Social Housing (NPASH) has seen small, but much needed increases across the country in appropriate housing targeted to population need groups including the homeless, people with a disability, and those who have experienced family violence. Aspects of the NAHA that demonstrate the significant value of a place based approach to the provision of housing and homelessness services, as well as the other aspects of NAHA that demonstrate the systematic inefficiencies that arise when considerations of place are not prioritised are discussed below. The Specialist Homelessness Services (SHS), jointly funded by state and federal governments, provides an example of the importance of targeting that is not just place based, but that which continues to be cognisant of housing need by population group. By targeting services to the needs of particular population groups including people who are homeless or at risk of homelessness and women and children affected by family violence, the SHS ensures that housing and homelessness support is available to those who would benefit most. Further work indicative of the positive impact of a place based approach as per the NAHA is the Victorian government review of its housing and homelessness services framework. This resulted in the implementation of the ‘Opening Doors’ framework which provides a regional entry point for housing services in each recognised Department of Human Services local area. This targeted approach has been enormously effective in addressing place based need. The Frankston regional ‘open door’ assists over 2,200 clients per year – one for every 65 persons in the municipality. Place based service delivery is one of the most effective means of ensuring that local need is understood and addressed, and is critical to effective practice in housing and homelessness service provision. The ‘open door’ also broker the Housing Establishment Fund for the local area, assisting those in housing need to access the private rental market. Unfortunately other elements of housing provision are not place based. This limits the benefits that can be achieved through the elements of NAHA that are locally focused such as the above mentioned ‘open door’, and intensive place based outreach programs. For example, Frankston lacks appropriate crisis housing, and as the metropolitan municipality with the highest level of family violence2, requires dedicated local women’s and children’s housing Page | 2 Frankston City Council Inquiry into Affordable Housing which is currently at inadequate levels. Existing services are inhibited by the lack of appropriate transition and crisis housing available to their clients. The NPASH did not provide any social housing in the local area which indicates that further integration of approaches to housing and homelessness are required if all parts of the sector are to support one another. In particular, Frankston City Council calls for a greater level of place based prioritisation, based around local need and conglomeration of house insecure groups in future housing policy. 2.2 The National Rental Affordability Scheme The market mechanisms favoured by the National Rental Affordability Scheme (NRAS) do not adequately address need when delivering publically funded affordable housing. Specifically, it is argued that locations with higher levels of need for affordable housing should be prioritised through the NRAS. Housing developers are responsible for planning and delivering affordable housing through the current NRAS. This has resulted in the prioritisation of locations with potential future profitability of affordable housing developments; as opposed to locations with higher social needs. NRAS funded properties are only required to provide accommodation at a marginally lower rate than the market rate. Further, a lower rental is required for the relatively short term of 10 years. These stipulations encourage the prioritisation of developments in locations where rents can be maximised – particularly after the 10 years has expired and the accommodation can be rented to households outside of the low and moderate income brackets. This in some cases creates an inequitable distortion in which ‘affordable housing’ is being developed for high income earners in areas where housing need is limited. As the majority of urban neighbourhoods have at least some level of need for affordable housing, it is crucial that decisions in regard to the allocation of public funding for affordable and social housing developments are influenced by comparative local need to ensure that low- cost housing is available to those most in need of it. 3.0: Planning and policies that support vulnerable groups. 3.1 Women and children Women and children are reported by the local housing service sector as one of the most vulnerable groups within the community to experiencing inadequate housing, including homelessness. Within the City of Frankston, there are a range of complex needs that impact housing affordability and therefore access for vulnerable women and families. In particular these needs include family violence and breakdown, socio-economic disadvantage, and adult disability which require enduring and flexible responses that are integrated and coordinated across multiple sectors. 2 Keleher, H. (2012) Population Health Atlas Frankston Mornington Peninsula Primary Care Partnership and Frankston-Mornington Peninsula Medicare Local Page | 3 Frankston City Council Inquiry into Affordable Housing Frankston has the highest rate of family violence 3in metropolitan Melbourne. Family violence provides a key reason why women and children live within inappropriate housing and / or become homeless. There is also a higher proportion of one parent families within City of Frankston4 (14%) than across Greater Melbourne (10%). This indicates a higher rate of family breakdown often associated with associated poorer access to appropriate housing due to a greater likelihood of a lower family income. The impact on children who have experienced inappropriate housing and / or homelessness can be significant. Instability of housing, particularly when combined with breakdown of the family unit and or socio-economic disadvantage can contribute to significant disruption to age and stage development