Federal government guarantees investment in affordable housing

Over the past 18 months, Treasurer Scott Morrison and Treasury officials have been working on the bond aggregator – the National Housing Finance and Investment Corporation (NHFIC) – to raise money at lower rates from the wholesale bond market for not-for-profit community housing providers.

Last Friday, Assistant Treasurer Michael Sukkar made an appearance at the National Housing Conference in Sydney to announce a government guarantee on investment in affordable housing. The guarantee is a crucial piece of the affordable housing architecture and complements the affordable housing “bond aggregator” mechanism announced in the 2017 budget.

These combined measures should forge an efficient private investment pathway into social and affordable housing for superannuation funds, insurance companies, and other entities eager for low-risk returns.

The federal government’s Affordable Housing Working Group outlined this approach, drawing on a number of reports commissioned through the Australian Housing and Urban Research Institute (AHURI).

Click here to read more.