The National Housing Finance and Investment Corporation has announced more than $85 million in finance for social and affordable housing across NSW.
Announcing the program on Wednesday the organisation said it had allocated $45.7 million in loan funding to community housing provider BlueCHP for the construction of at least 93 new dwellings in affordable housing projects at Lane Cove and Liverpool in Sydney. It’s the NHFIC’s first construction loan.
The sites have been acquired under the NSW government’s Communities Plus program.
The loan, which will extend for two years at an interest rate of less than 4 per cent, will hopefully generate savings of more than $600,000 each year for the housing provider.
An additional $6 million loan will become available once the project is finished to support the community housing provider’s retention of 48 dwellings for affordable housing, including for people with disabilities.
A minimum of 24 new social housing dwellings will also be delivered to the NSW Land and Housing Corporation.
“Extending our financing into construction enables us to work with CHPs to accelerate the delivery of new housing supply for Australians in need,” NHFIC CEO Nathan Dal Bon said.
“This project demonstrates how NHFIC can support CHPs to work with state and territory housing bodies to unlock sites in key areas and construct much-needed rental dwellings across the full spectrum of affordable and social housing.”
The corporation also announced a $40 million loan to Bridge Housing to support almost 300 social and affordable dwellings across Glebe, Blacktown, Parramatta, Ashfield, Punchbowl and Dulwich Hill.
The housing provider will refinance existing projects and fund new ones through the 10-year low interest loan.
It’s expected to save the community housing provider as much as $7 million in interest and other costs compared to market rates.
To be split into two tranches, the first block will be used to refinance the provides existing development program, including 158 housing units for seniors in Glebe, 65 affordable homes in Blacktown, 38 new apartments in Parramatta and a nine dwelling development for older women at Ashfield.
The second tranche will be used to develop 16 townhouses in Dulwich Hill in Sydney’s inner-west, as well as the acquisition and refurbishment of eight units in Punchbowl in south-west Sydney.