Page 1

Brisbane Housing Company: Briefing for LGAQ best practice study tour Feb 2010

David Cant CEO BHCL


Overview What is BHC? Purpose, structure, method; Merits of the model; outcomes achieved; Evolution of the business since incorporation; Examples of projects delivered; Nation building social housing initiative; Prospects for the future; Our thoughts about the planning process .


What is Brisbane Housing Company? An organisation that exists to provide affordable rental housing solutions for those on low incomes A public company limited by shares and an independent charity That was incorporated in 2002 and now has over 700 homes rented to those in need The result of an innovative joint venture between State Government and Brisbane City with participation of community shareholders drawn from the commercial and community sectors


Purpose To get more value for money for Queensland s social housing investment by: Attracting participation and investment by local government A tax efficient structure that maximises Commonwealth subsidies to tenants An innovative rental policy that encourages tenants to seek work, enables BHC to generate surpluses and service debt Operating as a social business which innovates to achieve best practice and value for money


Governance Structure Ordinary Shareholders 3 Shares Chair & 3 Directors

Community Shareholders 15 Shares 5 Directors Board

Appoint CEO


Method Business model at outset »Capital grants to make the portfolio sustainable »Rents at no more than 74.9% of market »Tenants sourced from public wait list »Products include shared and self contained, apartments and townhouses »Build and hold


Milestones Incorporation

2002

Private finance secured

2003

500th Unit tenanted

2006

Group structure incorporated

2007

1000+ Units completed

2010-2011


Merits of the model Public company structure enables BHC to harness the resources of organizations and individuals (e.g. community shareholders and directors); Commercial approach + operational focus = assists in getting results Not for profit model locks in assets for long term community benefit. Streamlined funding agreements


What has been achieved? Successful creation of a portfolio worth >$150M by which BHC has accommodated over 1,850 households from the public housing wait list Multi-award winner in both housing development and management Value for money in operations with low overheads, low arrears and vacancies Success in delivering alternative housing models e.g. mixed use and projects for clients with complex needs


Social outcomes 100% from public housing wait list Low and very low income households are being assisted <2% paying over 30% of income; Rents seen as value for money; High satisfaction with location of homes and services provided


Stable communities We (and the tenants) see this as long term housing Over 30% of tenants have said that they have taken paid employment since commencing a BHC tenancy. Evidence of very low income households raising their expectations e.g. moving from boarding rooms to larger units


Evolution of the model to date Cross subsidy of residential (from subdivisions) Projects for clients with complex needs Mixed use (2 to date, 3 more underway) Westpac structured equity dialogue interrupted by GFC Mixed tenure with NRAS and market for sale


Group structure Why? How? And implications? need to quarantine charitable status from activities that are not charitable Belt and braces approach . Increased complexity and administration


NBSHI stage 1 Constance Street, Fortitude Valley 80 Social Housing units 2 levels non residential (community hub) Land gifted by BCC Currently under construction Total Scheme cost $16.32M Fiscal stimulus grant $12.45M

CONSTANCE STREET


NBSHI Stage 1 Blackwood Street Mitchelton 16 Social Housing units active elderly 15 market for sale units Retail and commercial floors Currently under construction Total Scheme cost $13.9M Fiscal stimulus grant $3.18M

BLACKWOOD STREET


NBSHI Stage1 Masters Street, Newstead 26 Social Housing units; 30 NRAS units;39 market for sale units Total Scheme cost $29.87M; Fiscal stimulus grant $6.2M Currently under construction with marketing campaign ( ARIS ) commenced


NBSHI Stage 1; Kulgun Avenue Richlands 21 townhouses for social housing; Total scheme cost $4.9m, fiscal stimulus grant $4.9m; Currently under construction

BLACKWOOD STREET


NBSHI Stage 2; Carselgrove Avenue, Fitzgibbon 64 dwellings; 48 social housing and 16 NRAS; Total scheme cost $14.2m, fiscal stimulus grant $10.5m; Land to be acquired from ULDA; DA approved, construction imminent


NBSHI Stage 2; Church Street, Fortitude Valley 83 dwellings all social housing, two floors non residential with one to be used for learning and development centre for youth by Red Cross Total scheme cost $22m, fiscal stimulus grant $14.5m; Construction commences imminently


Other BHC NBSHI projects being progressed Bowen Hills Wooloongabba Chermside Newmarket Red Hill

mixed tenure project with fiscal stimulus grant of $9m mixed tenure project with fiscal stimulus grant of $6.1m mixed tenure, mixed use project with grant of $7.5m affordable housing project with stimulus grant of $6m mixed tenure project with fiscal stimulus grant of $6.4m


Summary NBSHI

Portfolio (dwellings) BHC core NRAS MFS Commercial

459 (+707 = 1166) 102 166 2269m2


Thank you for your attention. David Cant CEO BHCL

Brisbane Housing Presentation by David Cant  

Briefing for LGAQ best practice study tour David Cant CEO BHCL Feb 2010 Overview What is BHC? Purpose, structure, method; Merits of the mode...

Read more
Read more
Similar to
Popular now
Just for you