Pillar+Post recently submitted a paper with our ideas on how the Turnbull government could boost the supply of affordable rental housing using innovative financing models.
We proposed a simple and scalable model that will deliver affordable housing quickly, efficiently and beautifully. We think it is possible to do this by developing locally designed, manufactured and fabricated affordable housing, built to a high standard using modular building techniques and funded via a combination of bank funding and bonds.
The government has said affordable housing is “too large a problem” for governments to solve and finance alone, and it needs help designing financing models that will boost the supply of homes for low-income households.
It released an issues paper with four potential financing models that could be used to attract funding from private investors.
They include: housing bonds (to attract debt financing of affordable housing), a housing trust (to attract large-scale investors), a housing co-operative (to provide homes for its members), and social impact bonds (to allow investors to pursue social and financial returns).
Click here to read our submission.