The ACT’s biggest community housing provider is facing an “increasingly difficult” future, after the territory government forced it to start paying back a $50 million loan at $2.5 million a year last year.
Ten years ago, the ACT government loaned CHC $50 million to get established, as part of a wider agreement to produce 1000 affordable homes over 10 years.
While CHC has since been paying back the interest on the loan, when the 10-year period ended last year, the government started making CHC pay back the principal at a rate of $2.5 million a year for 20 years, instead of rolling over the loan for a further period.
The government maintains it is still meeting the overarching terms of the agreement with CHC, Chief Minister and Treasurer Andrew Barr would not explain why his government opted to have the principal paid back at the first opportunity to do so.
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