NSW Government initiative to increase social housing leasing periods
Community Housing Providers (CHPs) will have greater contractual certainty, to enhance the delivery of social housing outcomes, via new initiative by the NSW Government.
A change in contractual arrangements offered by the NSW Land and Housing Corporation (LAHC) will open the door for CHPs to transition from existing three-year general social housing leases, to 20-year leases on their LAHC owned portfolio.
NSW Minister for Water, Property and Housing Melinda Pavey announced the initiative today by opening an Expression of Interest process, calling for applications from interested CHPs.
A staged implementation process will initially focus on Tier One CHPs that express interest in taking-up the 20-year leases, for which LAHC will review and determine their eligibility to transition around 14,000 properties to 20-year leases.
Stage two will see a review of the suitability for Tier Two and Tier Three CHPs to transition to 20-year leases, covering approximately 1400 properties.
Minister Pavey said this significant increase (about 570 per cent) in the prescribed time-frame for leases will provide greater certainty in contractual obligations between LAHC and CHPs.
Mrs Pavey said, "a 20-year lease will enable CHPs to consider leveraging more secure longer-term revenue streams, to grow their portfolio, employ more people and engage with financiers and investors, to ultimately deliver higher quality homes.”
Minister for Families, Communities and Disability Services Gareth Ward said this initiative followed the successful transfer late last year of 14,000 properties to nine CHPs, under the Social Housing Management Transfer program.
