The new National Housing Finance and Investment Corporation’s first loan is for $35 million to Hume Community Housing.
NHFIC was created by the federal government in mid 2018 to administer an affordable housing bond aggregator to provide cheaper and longer-term finance for community housing providers.
The loan will be provided under NHFIC’s Affordable Housing Bond Aggregator and will allow Hume to access low interest and long term finance.
The funds will go towards the large community housing provider’s ongoing operations in providing affordable homes. It is currently managing around 2000 dwellings in Western Sydney and is currently expanding into the Hunter region to manage another 2200 homes.
“We are exceptionally pleased with the work we have been doing with NHFIC to spearhead this new source of finance as it represents an important milestone, not only for Hume but for the entire sector,” Hume Community Housing chief executive officer Nicola Lemon said.
“This announcement is both welcome and timely as Hume is undergoing a period of significant growth. We will be improving the lives and well-being of thousands more households,” she said.
PowerHousing Australia chief executive officer Nicholas Proud welcomed the announcement.
“This announcement heralds a new era for global investors that are waiting for the formation of affordable housing as an asset class in Australia which, when it comes, will see affordable, build-to-rent developments become a proven, long-term, safe investment place as it is in countries such as the US,” Mr Proud said.
“Low-cost affordable housing finance will be a vital component to ensure that Australia continues to supply and manage enough homes for population demand to put a lid on price rises, and will underpin residential industry jobs, state and federal budgets as new housing supply contracts in 2019.
Nathan Dal Bon was appointed the NHFIC’s first chief executive officer in December 2018.