The state government is considering the establishment of its own not-for-profit housing company as part of the affordable housing strategy due for release in coming weeks.
The state government is considering the establishment of its own not-for-profit housing company as part of the affordable housing strategy due for release in coming weeks.
The possibility has been greeted with concern by existing not-for-profit housing providers, who see the government body as providing unnecessary competition.
Housing Minister Troy Buswell has moved to assure existing affordable housing providers that a new government-backed company would not be a competitor.
Mr Buswell told WA Business News the government is committed to the development of a market in which a variety of housing providers offer a range of affordable housing products and options.
“Not-for-dividend housing companies operate with government support in other states as a vehicle for government to trial innovative, affordable housing initiatives in a manner that complements rather than competes with existing providers,” he said.
“The Department of Housing is continuing to investigate the potential role of such a venture.”
The government’s preferred model is believed to be the Brisbane Housing Company, which is jointly backed by the Queensland government and the City of Brisbane.
It has traditionally focused on the development of new housing stock, which is then transferred to community-based not-for-profit housing providers.
The major not-for-profit community housing providers in WA have misgivings about the state government’s position, contrasting it with Canberra’s stance.
Foundation Housing, Access Housing, Bethanie Housing and Southern Cross Housing, which collectively form the growth provider network, outlined their concern in a submission to a state parliamentary inquiry.
“The Commonwealth … is committed to growing the community housing sector into the affordable housing market, through asset transfers of properties,” the growth provider network’s submission stated.
“However, it remains to be seen whether the state has fully embraced the Commonwealth reforms.
“Certainly, the possible establishment of a government-owned and operated not-for-profit company may indicate a less than enthusiastic acceptance of the Commonwealth’s push to enhance the capacity of the not-for-profit sector.”
The growth provider network has also argued the Department of Housing has a significant conflict of interest.
“The department is a competing service provider and this conflicts with its other roles as the channel for Commonwealth and state funds, the regulator of the sector and the policy maker,” the network said.
Mr Buswell has sought to assuage those concerns.
“My vision is that an increasing proportion of the State’s social housing stock will be provided by the community housing sector.” he said.
Foundation Housing chief executive Kathleen Gregory said the growth providers had been acquiring the financial capacity and the skills to become developers in their own right, and did not see a need for government to set up its own company.
“It’s essentially replicating what we have already been building,” she said.
Access Housing chief Garry Ellender is an exception, saying “competition is good for us”.
“If government wants to set up a good, robust, business-oriented vehicle, I personally don’t have a problem with it,” he said.
“The issue I have is that the same entity is the regulator.
“There are lots of tensions in the (department’s) multiple roles.”
