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$50 million finance facility for affordable housing

Released 05/02/2008

046/08 5 February 2008

A thousand more affordable homes for rent and sale will be built, thanks to a historic agreement entered into today by the ACT Government and Community Housing Canberra.

Contracts exchanged this morning provide a $50 million finance facility for CHC to invest in affordable housing – the first time a government in Australia has worked with a community organisation on such an innovative scheme, Chief Minister Jon Stanhope said today.

“The exchange of contracts with Community Housing Canberra puts in place another important plank of the ACT Government’s Affordable Housing Action Plan,” Mr Stanhope said. “The finance facility provided by the Government will assist CHC develop 1,000 affordable dwellings for rent and sale over the next ten years.

“CHC plays a vital role in assisting Canberrans on low-to-moderate incomes by providing affordable housing which is appropriate to their needs. It is for this reason that the Government is very pleased to provide this $50 million finance facility to CHC today to enhance its capacity to deliver more affordable housing solutions for more Canberrans. With this loan the Government is helping CHC to deliver an ambitious ten-year development program that aims to provide 500 dwellings for rent to low-to-moderate income households, and 500 dwellings for sale to moderate income homebuyers.

“Providing community and not-for-profit housing is an important component of the affordable housing strategy and the exchange of contracts today follows other commitments to CHC which the ACT Government has put in place. Under the Affordable Housing Action Plan, the Government has also committed the transfer of 132 properties from Housing ACT to CHC; the direct grant of 3 properties at Holt, Gungahlin and Gungaderra; the development of a program of rolling land sales to CHC; and legislation to exempt CHC from payment of conveyance duty and land tax.

“The ACT Government is the first in the country to provide such a facility to a community organisation and I’m sure this innovative scheme will help increase the affordable community housing base in Canberra.”

The Affordable Housing Action Plan was released in April 2007 and the Government has already delivered many of the commitments contained in the Plan including:

· increasing the supply of affordable land to the market;

· introducing over the counter sales of affordable housing blocks;

· streamlining land release and planning approval systems;

· providing new house and land packages priced between $200,000 and $300,000;

· introducing an Excellence in Housing Affordability Award;

· making more effective and targeted use of public housing; and

· introducing conveyance duty concessions.

Statement Ends

Media Contact: Penelope Layland 6205 9777 0438 289 714 penelope.layland@act.gov.au

Paul Kindermann 6205 1690 0403 600 955 paul.kindermann@act.gov.au