$35 million has been granted to a NSW community housing group, marking the first loan to be extended by the national government as part of their new National Housing Finance and Investment Corporation (NHFIC).
The NHFIC is an independent corporate Commonwealth entity established as a key part of the federal Government’s plan to help reduce pressure on housing affordability. The body will issue various loans, investments and grants to encourage investment in housing, with a particular focus on affordable housing.
Hume Community Housing were the recipients of $35 million inaugural loan, which will be put towards their general operations and management of around 2,000 homes in western Sydney and will a further 2,200 dwellings in the Hunter region.
Combined, the group provides affordable housing for around 9,000 individuals.
National Treasurer Josh Frydenberg said “this commitment is a key milestone toward NHFIC building a loan portfolio with community housing providers that will see it issue its first affordable housing bond in coming months.”
NHFIC CEO, Nathan Dal Bon said “Hume and its CEO, Nicola Lemon, were strong supporters of the establishment of NHFIC and we are delighted that Hume will be able to utilise the benefits that NHFIC finance offers.”
Under the corporation’s umbrella, the NHFIC also operates the Affordable Housing Bond Aggregator (AHBA) to provide better funding solutions for registered community housing providers. A $1 billion National Housing Infrastructure Facility will also fund loans and invest in local infrastructure such as site works, transport, water and power.
Hume Community Housing CEO, Nicola Lemon has commented on the good-timing of this loan as Hume enters a period of significant growth.
“We will be improving the lives and well-being of thousands more households. The access to NHFIC financing and the cost benefits derived will go a long way to assist us deliver on our purpose, to create opportunities for our customers to prosper, through the provision of outstanding homes and quality services,” Ms Lemon said.