Community housing programs were developed in the 1990s in Australia to provide a flexible and responsive social housing service for low-income earners. Community Housing Providers (CHPs) aimed to foster tenant participation and address the housing needs of people on a pension or benefit who faced discrimination and prejudice in the private rental market, and who had neither the income nor the resources to access homeownership.
By definition, community housing encompasses a wide range of stock, tenure and accommodation types, from housing associations to co-ops for people with independent living skills. Many community organisations also provide a variety of tenures, such as short-term crisis accommodation, DFV shelters, disability housing, transitional housing and long-term supported housing for people with limited independent living skills and long-term support needs.
Case study: The Salvation Army
Like other organisations, The Salvation Army successfully tendered for government stock transfer programs in the 1990s in several states, and hundreds of empty public housing properties were transferred to them. State governments provided seed funding to set up community housing programs, which were intended to provide not just choice for applicants but also exit points from homeless and DFV services.
Since their humble beginnings, community housing programs have received little or no recurrent funding from state governments or parent organisations and have relied on tenant rental contributions and Commonwealth Rent Assistance for their income.
"Community housing programs have received little or no recurrent funding from state governments or parent organisations."
The initial allocation of community housing properties went to applicants with serious support needs due to alcohol, drug and gambling addiction, and family breakdown. Family violence and chronic homelessness often resulted in poor housing outcomes including low rental returns, high maintenance costs, high tenancy turnovers, property damage and failed relationships, which were in part due to the lack of skilled community housing tenancy workers, bad referrals, poor property allocation and a lack of good management.
In December 1998, a manager with a background in community managed housing was appointed to ensure The Salvation Army did not incur a financial loss, contractual failure or reputational damage in Tasmania. The program was reviewed, and property transfer targets were reduced from 200 properties in 12 months to 120 properties. Responsible support and sensitive allocation practices were introduced; good maintenance and arrears practices were also initiated. A viable mix of tenants with independent living skills and support needs was achieved via the use of applicant interviews, client support agreements and sensitive allocation practices.
After 12 months of operation, a new service agreement was negotiated with Housing Tasmania and the program has operated purely on rental income for the last 25 years. This community housing program has also been able to demonstrate how a successful community housing program should operate.
Support issues
There is no surprise that people receiving government pensions or benefits find it difficult to access affordable, secure housing in the private rental sector.
There is a number of factors contributing to this situation: Increasing cost of market rents and bonds; prejudice; discrimination; a history of bankruptcy; a lack of rental references; and a decline in the number of low-cost rental housing due to the rise of short-stay accommodation and increased demand due to a growing population and increased numbers of foreign students. These factors have all combined to impact on the ability of low-income earners to find affordable and appropriate housing.
"The willingness of tenants to accept support can be undermined by difficulty in accessing it."
Many community housing tenants (>80%) have independent living skills. Tenants with support needs (<20%) have a variety of needs that impact on their ability to pay rent, look after their property and interact positively with their neighbours. Community housing providers provide a limited amount of tenancy support and try to link tenants into specialist homeless services for outreach support to maintain the tenancy and achieve positive housing outcomes.
The willingness of tenants to accept support, address their issue(s) and maintain long-term housing can be undermined by the difficulty in accessing support due to the high demand for support services, high caseloads and limited follow-up. People who have no support needs might be prioritised over applicants with support needs due to providers needing a regular rental income to operate and service loans directly related to new properties they’re building.
Success factors
Successful community housing programs function well due to the dedicated work of experienced, skilled, supportive and professional teams. CHPs recognise the importance of good property management, and good allocation policies and practices, which are ‘sensitive’ and seek to place applicants in areas of support and significance to them, such as near family, schools and services.
"Paying rent will be required in the real world, so it’s important we prepare our tenants."
The best CHPs strive to achieve and maintain high occupancy levels (>99%) and low vacation rates using sensitive allocation practices and supportive tenancy provision reflect a strong client focus. Good rent recovery practices facilitated using Centrepay and low rent arrears need to be a priority as they reflect the fact that rental contributions are often the program’s only source of income. Paying rent will be required in the real world, so it’s important we prepare our tenants.
Affordable rents (25% of household income plus CRA) and responsive maintenance policies and practices are similarly important, as they allow the CHP to generate an income, help to improve the condition of properties and meet the tenants’ community needs. All these factors are underpinned by good financial management, housekeeping and budgeting skills.
Lessons to learn
The main lesson for community housing programs has been that growth via debt financing, leveraging of state funding or the transfer of public housing stock needs be incremental and well-planned. CHPs need to consolidate existing stock (and tenancies) before they can attempt to grow and introduce new stock and tenants into the program.
The desire to ‘rescue’ and place primary homeless clients in properties without adequate support services needs to be ‘tempered’ by the knowledge that setting people up to fail reinforces negative outcomes and reduces future housing options. Sensitive allocation requires tenants to have the necessary support services engaged to promote a successful tenancy outcome, which goes beyond the standard CHP expectations regarding regular rent payment, good property condition and ‘quiet enjoyment.’
"Setting people up to fail reinforces negative outcomes and reduces future housing options."
CHPs continue to grow, and they currently manage over 114,000 properties nationally (AIHW 2024). The larger stock transfer programs in several states have included the successful transfer of tenanted public housing properties. These transfers have identified the need and the demand for more support and community development services.
Tier 1 CHPs currently manage >24% of all community housing stock, and they think big in terms of property development, access to funding from government(s) and the ‘holy grail’ of superfunds. However, the major challenge for the community housing sector will be how they manage their relationship with specialist homeless services. Their ability, capacity and desire to provide quality, supportive housing services to people who are at risk of, or are, experiencing homelessness is the key to continuity of success.
CONCLUSION
The development of a national Social Housing and Homeless plan by the Commonwealth Government should be a positive step forward for community housing providers. CHPs will need to position themselves in relation to Commonwealth housing and homelessness policy and the increasing demand for community managed housing by the clients of specialist homeless services.
"To improve the provision of community housing, there is a need to increase the level of housing and homelessness training."
A coherent social housing plan would facilitate the development and provision of a range of cohesive community housing options. The development of generic national homeless and social housing measurement and evaluation tools would also allow (supply and demand) data to be collated, analysed and used to better inform community housing planning.
To improve the provision of community housing, there is a need to increase the level of housing and homelessness training. By refining our staff skill-base and knowledge of homeless and housing options, we will be better able to provide supportive housing services. However, the management of transitional properties should not be undertaken by CHPs, as specialist homeless services can separate the provision of support and tenancy functions to achieve more successful housing outcomes.
References
Australian Institute of Health and Welfare (2024) Housing assistance in Australia 2024, AIHW, Australian Government, accessed 01 November 2024.
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