ACT government to develop affordable housing fund as part of $345 million budget 2023-24 package

The ACT government has established a $60 million affordable housing project fund where community housing providers and build-to-rent operators will be able to submit proposals for financial support for "shovel-ready" projects.

The fund is part of a centrepiece budget announcement from the government with more than $300 million allocated to affordable housing initiatives.

A bulk of this funding, $233 million, will go towards public housing for repairs and new properties.

There will also be $11 million given to accelerate land release and planning changes to allow the private market to build more new housing. This will include a new site in Gungahlin for a build-to-rent project.

There will also be a series of multi-unit sites released next financial year, which the government said will include requirements for more than 200 affordable, community and public housing properties.

The affordable housing project fund already includes money for three build-to-rent projects and another project in Strathnairn for 22 affordable housing properties. The government has said this would result in about 180 new affordable housing rental properties.

But the government has not announced plans for more social housing properties than what it has previously promised.

The government said the $345 million investment would help it deliver the 600 affordable rentals and 400 new public housing properties promised in the Labor and the Greens power-sharing agreement.

The ACT will also be given $50 million from the Commonwealth in the coming weeks to spend on social housing. The territory will determine how this will be spent in the coming months.

Chief Minister Andrew Barr said housing affordability was a priority for the territory government.

"We are increasing housing stock across the board with a range of new initiatives designed to increase choice, access and affordability," he said.

"This year's ACT budget includes a range of measures to ensure Canberra has the right mix of housing to meet the needs of our growing population.

"This includes a particular focus on increasing the supply of affordable rental properties across the territory."

Housing advocates have previously called on the government to do more to increase the supply of housing in the territory, with estimates suggesting there is a shortfall of more than 3000 social housing dwellings in the capital.

MORE A.C.T. BUDGET 23-24 NEWS:

Public housing stock in the territory fell to its lowest level in a decade, the Productivity Commission revealed earlier this year. The ACT had 10,744 public housing properties, down from its 2018 peak of 11,181.

The government has said this decline is due to the fact older properties had been taken out of the market as part of the government's renewal program. The number of public housing properties is unlikely to have a notable increase until 2025.

The territory government has embarked on a growth and renewal program of its public housing stock over recent years. Under the program, which is expected to finish in 2026-27, 1000 existing properties will be renewed and another 400 extra public housing properties will be added.

"By the end of 2023-24, it is expected that around half (700 dwellings) will have been delivered," budget papers say.

Housing Minister Yvette Berry said the budget investment would have more than $177 million for public housing maintenance and more than $55 million would build 140 public housing properties.

"More than bricks and mortar, a home is the foundation for building a good life for ourselves, our families and our communities," she said.

"This year's budget improves housing choice, access and affordability, especially for vulnerable and low income Canberrans."

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