The Victorian and federal governments have announced funding of $1.31 billion for the construction and operation of 1,275 new social and affordable homes.
This latest funding round under the Housing Australia Future Fund (HAFF) will see the federal government contribute $991 million while the Victorian Government will tip in $360 million.
The state government says the development will benefit “Victorians doing it tough,” such as low-income families, older women, and young people who are risk of being homeless.
In addition, more than 100 homes will be built to “support self-determined housing for Aboriginal Victorians”.
“Today’s announcement is proof that when the Commonwealth and State governments leads on housing, we get results that change lives,” said the Federal Minister for Housing, Clare O’Neil.
“Every one of these new homes represents hope for a family in Victoria doing it tough. Whether it’s a mum and her kids escaping domestic violence, a veteran struggling to find affordable housing, or a frontline worker priced out of their own community — these homes will give people the foundation they need to rebuild their lives.
Victoria’s Minister for Housing and Building, Harriet Shing, added that “There is always more to do, and this partnership will ensure we can continue to build more social and affordable homes than any other state to meet a growing need.”
“This investment from the Commonwealth will make a world of difference — from the middle of Melbourne to the edges of the state — home by home, street by street, and community by community,” Minister Shing said.
The announcement has been welcomed by community groups, with Community Housing Industry Association Victoria (CHIA Vic) spokesperson Jess Pomeroy saying that “it’s heartening to see state and federal governments working together to provide the urgent financial support needed to build more social homes”.
“Across the first two rounds of the HAFF, Victoria has received the highest amount of investment at $4.3 billion, which will deliver 5,418 social and affordable homes, the most of any state or territory. This represents more than 30 per cent of the total funding pool and almost 30 per cent of all homes,” added Pomeroy.
But she says that the state needs to do more.
“Waiting lists for social housing continue to grow and currently 146,000 families and individuals need a rent-capped home they can actually afford,” she said.
“Recent data shows that Victoria needs 80,000 new homes over the next 10 years to reach a minimum target of 4.5% social housing, which is the national average. Currently, Victoria is sitting at the bottom of the league table at 2.9%, which means we have a substantial way to go.
“To address this gap, we need to see all levels of government continuing to work together to create the funding certainty and planning environment that will support the ongoing growth of the not-for-profit community housing sector.”
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