The Group also received funding to build 425 new housing outcomes as part of Homes Victoria’s Big Housing Build program. In Western Australia 12 new housing outcomes were completed during the year. The Group also received approval to build 49 new housing outcomes as part of Department of Communities (Western Australia) Social Housing Economic Recovery Package New Build grant program. In Specialist Disability Accommodation there is around $7 million of cash available to reconfigure the Specialist Housing Group, fund the redevelopment of the existing portfolio of properties and provide funding for further developments. Debt In Tasmania debt is held with the National Housing Finance and Investment Corporation (NHFIC). The debt facilities total $25 million and were fully drawn at 30 June 2022. The facilities have 12 year terms at interest rates between 2.0% and 2.5%. The NHFIC debt refinanced previous facilities with Westpac and are being used to partly fund a number of developments in Tasmania. Additional debt from NHFIC will be used as part of the funding for the units being developed under Tasmania State Government’s Community Housing Growth Program. In South Australia debt is held with the National Housing Finance and Investment Corporation (NHFIC). The facilities total $22 million of which $16.5 million was drawn at 30 June 2022. The facility has a 12 year term at an interest rate around 2.5%. The debt facility refinanced previous facilities with NAB and is being used to partly fund a number of developments in South Australia.
In Victoria debt is held with NHFIC and Treasury Corporation of Victoria (TCV). The TCV loan is to fund the delivery of 99 new units under the Social Housing Growth Fund program of the Victorian State Government. Additional debt from TCV will fund new housing outcomes as part of Homes Victoria’s Big Housing Build program. In Western Australia the Commonwealth Bank facility is $40 million of debt which is drawn to $27 million. This debt expires in November 2023 and considerations for the refinancing of this debt and the capacity required for new developments, including obligations under the Community Housing Agreement (CHA) will be considered in the new financial year. Additional debt will be used to partly fund new outcomes as part of Department of Communities (Western Australia) Social Housing Economic Recovery Package New Build grant program. Cash Housing Choices Australia diligently manages its cash flows to ensure that it holds adequate cash on hand and on deposit to meet the obligations of management arrangements with state governments, operational and financing obligations, investment in future projects, and additional demands that may arise from time to time. Across the group there are significant balances held in cash totalling $51 million (2021: $62 million). These cash balances will continue to fall in the coming years as funding received to date will be invested in new projects. Some of these projects are identified above. Funds arising from financing arrangements with NHFIC, discussed above, result in cash being drawn in full, in anticipation of new capital projects. These funds are held prior to the commencement of projects and then applied as the developments progress. These projects will deliver new social housing outcomes in Victoria, Tasmania, South Australia and Western Australia.
Capital grants Capital grants received in the year largely relate to State and Federal Government grants for new developments in Tasmania ($14 million) with a further $22 million in Victoria and $0.4 million in Western Australia. These grants form part of a funding mix for new development projects together with debt and cash invested by Housing Choices Australia. Projects There are a number of developments that have been approved, delivered, are in progress or will commence in the new financial year. These developments will use existing cash resources, debt and capital grants to provide new social and affordable housing and the redevelopment of the portfolio of Specialist Disability Housing. Other resources are required to meet the obligations under a range of management programs with State Governments. In Tasmania during the year, 15 development projects were completed which created 159 new housing outcomes under the Tasmanian State Government’s Community Housing Grant and Department of Social Services Capital Works Funding Agreement programs. A further 165 units are also being developed under Tasmania State Government’s Community Housing Growth Program. In South Australia the Bowden project is due to be completed by 31 October 2022. This project will deliver 36 new housing outcomes - of which 18 will be owned by Housing Choices South Australia. In Victoria Housing Choices completed 81 new housing outcomes during the year. The projects were funded through various sources including Homes Victoria’s Social Housing Growth Fund (New Rental Development Program and the Build and Operate Program), Victorian Property Fund Grants, along with significant debt and equity co-contribution from Housing Choices Australia.
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