Community housing asset ownership
In June 2009, the previous Minister for Housing announced the transfer of ownership of social housing properties to selected not-for-profit community housing providers. This has been a significant reform for the sector as owning the properties that they manage gives community housing providers an asset base to secure private sector finance for investment in more housing.
The reform supported the NSW Government to meet and exceed its target of growing community housing to 30,000 homes by 2016. The social housing properties transferred included a proportion of homes that were already under community housing management but the majority of homes were built under the Nation Building Economic Stimulus Plan.
Community Housing Asset Ownership Policy
The Community Housing Asset Ownership Policy sets out FACS Housing's requirements of vesting ownership of properties to selected community housing providers. The policy outlines the prerequisites for asset ownership and the requirements that community housing providers had to meet in order to be eligible to own Government-funded social housing.
The Asset Ownership Policy is part of a broader assurance framework in NSW that integrates regulatory and legislative controls with policy levers in order to manage risk and support growth and development of a dynamic and sustainable not-for-profit housing system. This provides assurance to stakeholders (tenants, financiers, tax payers and government) that funded housing providers are viable, independent and innovative.
Dealing in Vested Assets
In March 2010, the Housing Act 2001 was amended to enable FACS Housing to transfer ownership and the registration of properties. As mentioned, this enabled community housing providers to use their assets as leverage against borrowing private finance to deliver additional homes to help meet the demand for affordable housing.
With the vesting of properties to selected community housing providers, the Community and Private Market Housing Directorate developed a new process for dealings in vested assets. This process is in line with contracting requirements under the Community Housing Agreement – Capital Properties – Vested, whereby, “a community housing provider must not transfer or otherwise deal in land in which the Corporation holds an interest unless the Corporation consents”.
Dealings include sale, mortgage, lease, redevelopment or subdivision of vested assets.
The Vested Assets Process Flowchart outlines the steps for community housing providers to apply for approval to deal in vested assets. An Application Form to seek prior approval from the Community and Private Market Housing Directorate is available on request.
For a copy of the Application Form or any other queries regarding this process, please email SCP-CHD@facs.nsw.gov.au.
The Tripartite Deed sets out the contractual relationships between FACS Housing, a community housing provider and a finance institution lending funds to that provider.
For more information please refer to: