The Turnbull Government today released a Consultation Paper on the proposed National Housing Finance and Investment Corporation (NHFIC), the National Housing Infrastructure Facility (NHIF) and the affordable housing bond aggregator for public consultation.
These important measures, announced as part of the comprehensive housing affordability plan in the 2017-18 Budget, continue the work of the Turnbull Government to ensure Australians have more opportunities to own their own home or access more affordable rental accommodation.
The Consultation Paper seeks feedback on the potential structure and governance of the NHFIC and the operation of the NHIF and affordable housing bond aggregator.
The NHFIC is set to be established by 1 July 2018. It is recommended the NHFIC is established as a corporate commonwealth entity with an independent Board.
The NHIF seeks to provide $1 billion over five years to support local governments in financing critical infrastructure to reduce bottlenecks that impede development and build the infrastructure needed to speed up the supply of new housing.
It is expected that the NHIF will consider ‘greenfield’ and ‘urban infill’ infrastructure projects that can demonstrate an increase in supply and target those areas that are experiencing affordability pressures.
The affordable housing bond aggregator aims to provide cheaper and longer term finance for community housing providers. It will do this by aggregating their borrowing requirements and issuing bonds into the wholesale market at a lower cost and for a longer-term than traditional bank finance.
These bonds would be passed through the bond aggregator to eligible community housing providers at similar interest rates and tenors. The bond aggregator’s proposed design features are a result of recommendations from the Affordable Housing Implementation Taskforce in its report, Establishment of an Australian Affordable Housing Bond Aggregator.
The Government encourages interested stakeholders to make a written submission on the matters raised in the Consultation Paper by 20 October 2017.
The Consultation Paper and details of the consultation process are available on the Treasury website
A copy of the Taskforce report is also available on the Treasury website