Record investment in public and community housing to create 43,000 jobs over 4 years.
UDIA Victoria commends the Andrews Government on committing to Australia’s biggest ever investment in public and community housing as part of its 2020/21 Victoria State Budget.
Key points for industry:
- This package will deliver a total of 12,000+ new homes, and support approx. 10,000 jobs per year over the next four years.
- Investment for public land development, spot purchase program from private sector, and new opportunities with private sector and community housing partners.
- System reforms including a 10-year strategy for social and affordable housing developed with the not-for-profit sector and industry; rolling 4-year supply and delivery plans offering guidance to the market; rate exemptions for social housing to mitigate loss of revenue; streamlined planning and an independent review of Victoria’s social housing regulatory system.
- Government is ready to start building, and inviting proposals in priority local government areas. Do you have an in-progress or ready-to-build project that could be part of Government’s fast-start pathway? Click here to learn more.
Creating more than 40,000 jobs for industry over 4 years, Victoria’s Big Housing Build announcement provides a significant economic boost and project pipeline for the urban development industry, to help us bounce back from the impacts of COVID-19.
The Victorian Budget 2020/21 will deliver a historic $5.3 billion funding for a housing blitz to construct more than 12,000 new homes throughout metro and regional Victoria, as well as supporting around 10,000 jobs, per year over the next four years, to supercharge Victoria’s economic recovery through the pandemic and beyond.
This well-considered announcement captures the need to work with industry to develop a 10-year plan, and covers land, funding, planning, wider reforms and capacity building initiatives developed with consideration to a range of industry views. UDIA Victoria is confident this commitment represents a new era for cross-sector partnerships that will result in meaningful housing outcomes.
This package will:
- Support around 10,000 jobs, per year over the next four years, with 10 per cent of the work on major projects to be done by apprentices, cadets and trainees.
- Boost our state’s social housing supply by 10 per cent in four years and generate an estimated $6.7 billion in economic activity.
- Deliver 9,300 new social housing homes (inc. replacing 1,100 old public housing units) and 2,900 new affordable and low-cost homes.
- Include investment for:
- public land development ($532m);
- spot purchase program from private sector ($948m);
- new opportunities with private sector and community housing partners ($2.14b);
- funding for community housing sector via Social Housing Growth Fund ($1.38b);
- public housing upgrades and new builds ($498m + $185m).
- Include 25 per cent of funding for regional Victoria.
- Cover wider system reforms including:
- A 10-year strategy for social and affordable housing developed with the not-for-profit sector and industry;
- Rolling 4-year supply and delivery plans offering guidance to the market, and ensuring a high quality pipeline of social and affordable housing developments;
- Rate exemptions for social housing to be phased in with a new annual payment to the relevant local government area, set at a proportion of current rates to mitigate loss of revenue;
- Streamlined planning with Minister to be the Responsible Authority for projects funded by the Big Build Program;
- An independent review of Victoria’s social housing regulatory system;
- Community Housing sector development fund;
- Development of a Community Housing Compact with Local Government.
- The new homes will meet 7-star energy efficiency standards, saving tenants on their power bills.
- Government is ready to launch a Request for Proposals for in-progress or ready-to-build projects. Proposals are sought from across Victoria, with 21 priority local government areas identified. For more information, please click here.
- A new Government agency, Homes Victoria, has been established to work across government, industry and the social housing sector to deliver this record housing growth and to manage existing public housing.
- Combined with new housing from existing investments such as the Public Housing Renewal Program and Social Housing Growth Fund, construction of more than 15,800 new homes will begin over the next four years.