Nathan Dal Bon, Chief Executive Officer, NHFIC
In its Social Bond Report 2021-22, the National Housing Finance and Investment Corporation (NHFIC) noted an increase in investor interest in community housing, at the same time the federal government pushes for more private sector investment.
In addition to assisting in the delivery of 3,296 social and affordable houses, NHFIC granted $509.3 million in new loans to community housing providers (CHPs), saving them an estimated $96.2 million in lower interest and fees over the life of the loans, the report said.
NHFIC issued $198 million in new bonds and attracted three new international investors, taking total bonds issued to $2.195 billion. This is split between $1.8 billion in social bonds and $408 million in sustainability bonds.
All six NHFIC bonds support social and affordable housing outcomes, in addition to sustainability outcomes achieved by NHFIC’s sustainability bond. NHFIC’s social bonds represent 15 per cent of all Australian dollar social bonds outstanding in the Australian debt capital markets.
The report said NHFIC now has more than 60 institutional investors in its bonds and has built up a core group of repeat investors.
The 2021-22 bonds are financing five CHPs to deliver 733 homes and will save them an estimated $25.9 million in lower interest and fees over the life of the loans.
The 2021-22 bonds provided funding to five CHPs: Home in Place (formerly Compass Housing Services), City West Housing, Evolve Housing, Haven; Home, Safe, and Community Housing (Qld) Limited.
In order to fulfil its mission of improving housing outcomes for Australians, NHFIC issues social and sustainable bonds, with a focus on giving low-income and vulnerable Australians access to secure, affordable homes.
The $10 billion Housing Australia Future Fund and another 10,000 under the new housing agreement announced in the most recent federal budget will each contribute 30,000 of the 40,000 new social and affordable houses that the NHFIC is responsible for building.
“NHFIC, which will be renamed Housing Australia, will be responsible for delivering 40,000 new homes under the Housing Australia Future Fund and National Housing Accord, and for financing new housing and related infrastructure through the National Housing Infrastructure Facility,” NHFIC CEO Nathan Dal Bon said.
“We look forward to continuing to partner with investors, superannuation funds, the property industry, CHPs and governments at all levels to support more Australians in need.”
The report also highlighted new analysis which reveals tenants living in community housing feel more secure, and have improved financial, employment and health outcomes.
“The new research demonstrates the benefits of community housing and that providing a safe, stable and secure home has many flow-on benefits for vulnerable Australians,” Mr Dal Bon said.
“Helping more people into homes requires substantial ongoing investment into the sector, so we are working closely with investors, superannuation funds and CHPs to develop innovative financing and investment solutions to facilitate this growth.”