Options for Housing Coops

1
Options for Housing Co-ops

• Presentation by Karine Shellshear
• Association to Resource
• Co-operative Housing (ARCH)

2
Factors Impacting on Co-op Futures

• An ageing population
• Ageing assets and changing physical needs
• Changing income capacity
• Limitations on ongoing volunteerism, and
  participation
• Maintaining social diversity and income mix
• Will Governments grow co-ops - where do they fit ?

3
A Background of Changing Needs

• Many co-ops were started by singles, single
  parents with children and young families
• Families change their composition changes
  incomes change family size changes and the
  capacities of people within families change
• When buildings are no longer suitable they need
  to be sold or modified to meet the current co-op
  populations needs

4
Ageing Co-op Populations

• As co-op members age their capacity to actively
  participate falls into question
• Secondary services are being developed to assist
  in managing change including home modifications
• Re-adaptation of assets will allow for
  ageing-in-place and preservation of existing
  communities
• Some income and age mix will ensure rental
  incomes cover costs over time

5
Options for Future Sustainability

• A single equity ownership framework or headlease
  is ideal for co-ordinating,purchasing, selling,
  maintaining and modifying assets and providing
  other services(Vic)
• Brokering financial services major maintenance
  and even a management arm may help sustain and
  support co-ops into the future
• Member services for future economic and ecologic
  gain could include bulk audits for energy
  efficiency bulk purchases and installments

6
Capacity Building

• Skill and capacity building remain the
  cornerstone of the Co-operative Housing Sectors
  future sustainability
• ARCH training aims to strengthen governance,
  build capacity, and enhance the performance of
  co-ops in registration
• Intensive training is available to assist co-ops
  experiencing difficulty and
• Accredited training in social housing
  (Certificate 3 and 4) is designed to build
  confidence and establish career pathways into the
  workforce
• ARCHs focus is also to develop new models and
  increase members capacity for growth in
  Affordable Housing and Joint ventures

7
Creating New Opportunities

• Co-ops are one of a number of social housing
  solutions for creating diversity and social mix
  - more promotion needed
• Banking Institutions such as Bendigo Bank, Wespac
  and Macquarie are now keen to engage in community
  housing enterprises including shared and mixed
  equity solutions
• Councils are becoming more proactive in housing
  affordability as traditional residents move away
  and areas lose social diversity
• Co-ops could play a key role in future Affordable
  Housing development
• Partnerships with LG and Growth associations can
  provide new options for co-op development and
  future sustainability
• Self-build low-cost building materials are
  currently being experimented with and could have
  some impact on future costs
• Access to Super, FHO, Stamp Duty wavers - can all
  help reduce costs
• ARCH is exploring new models that involve member
  equity

8
Home Grown Affordable Housing

• Where surplus and debt equity raising is possible
  - ARCH is assisting in brokering new development
  opportunities for co-ops, free of Government
  funding, and owned by the Co-op
• Co-op buys land and develops through borrowings

Kapitbahayan Affordable Housing Project for
Pilipino families
9
The ARCH/CHL and Willoughby LG NSW Affordable
Housing Pilot

• In 2004 the Centre for Affordable Housing
  announced the availability of 1.7 in funds for a
  pilot - debt equity project
• Willoughby Council, ARCH and CHL Victoria -
  developed a partnership for the Affordable
  Housing proposal using a hybrid co-op assoc.
  model
• Willoughby Council (one of 2 councils recognised
  under SEPP 70) has pockets of land throughout the
  LGA and has a long term history of active
  engagement in housing affordability

• Site at Barton Rd Artarmon on the edge of the
  Gore Hill Freeway

10
Barton Rd - Locality and Value for

• The site is well situated near schools, play
  areas, transport and infrastructure, other medium
  density developments, including public housing
• The Council already under SEPP 70 can require a
  small percentage of affordable housing when
  rezoning
• The actual site is valued at approximately 3 m
• CHL will develop 39 Units (12 x 1bd and 27x2bd)
• 11x 2b will be sold to re-imburse dev. (4.5m)
• Affordable Housing yield (16 x 2 plus 12 x 1)
  28 dwelling units - 9 will be transfer to Council
  in exchange for the land
• 19 will be owned by CHL and all 28 managed by CHL
  with the tenant body

11
NSW Debt Equity Pilot

• Sourcing Costs
• 1.7 m from the Centre for Affordable Housing
• 4.5 m from Unit Sales (11 x 2bd)
• 1.691 m from Private Finance Debt Equity)
• Total of 9 million (plus land - 3m)
• Management
• CHL role Developer/Project Manager, Investor,
  Pt/owner and co-manager (with representatives
  from the tenant body)
• Willoughby Council part owner land supplier
  will ensure key workers and local targets are met
  (Farci Women and Families)
• ARCH will train and develop skills for high level
  tenant participation within a hybrid model and
  will also offer Accredited Social Housing Training

Entrance to the site
12
Other Initiatives with Local Government

• Marrickville Council has allowed for exploration
  of a former hospital site for Affordable Housing,
  including housing co-ops
• Sydney University students have researched
  affordable housing solutions for the site
• Paramatta and Sydney Councils are currently
  investigating the potential of Affordable Housing
  shared equity joint ventures
• The Bega Community are doing their own shared
  equity co-op concept

13
Hospital Site Marrickville
14
Summary of Options

• A Sector Ownership Framework - or Headlease
  framework
• A central agent to broker financial and asset
  management services as well as other secondary
  services
• An ongoing focus on Capacity Building
• Assistance for brokering growth
• Potential equity partnerships with other players
  LG and other Community Housing

15
Thank You!

• From the NSW Co-operative Housing Sector