REVALUATION OF PROPERTIES
The acquired properties were funded by Homes Victoria’s Social Housing Growth Fund along with debt from Treasury Corporation Victoria (TCV) and equity contribution from Housing Choices Australia. The Group continued work on delivering the remaining 348 new housing outcomes as part of the Homes Victoria’s Big Housing Build program and an additional 200 new housing outcomes as part of Homes Victoria’s Build and Operate Round 2 program. In Western Australia, the Group continued work to build 49 new housing outcomes as part of the Department of Communities Social Housing Economic Recovery Package New Build Grants which are undergoing development due diligence. For Specialist Disability Accommodation, work continues on the redevelopment of the existing portfolio of properties and identifying further developments opportunities.
The remaining undrawn TCV debt of $49 million will be used as part of the funding for the delivery of remaining new housing outcomes as part of Homes Victoria’s Big Housing Build program. In Western Australia the Commonwealth Bank facility is $33 million which is drawn to $27 million. This debt expires in November 2025 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 the Department of Communities' Social Housing Economic Recovery Package (SHERP) New Builds grant stream.
Housing Choices Australia holds a substantial asset base of $1.5 billion (2023: $1.3 billion). Freehold properties represent the majority of Housing Choices Australia assets. Independent valuations of land and buildings are undertaken at all sites at least once every three years. Independent valuers value each site on a standalone basis and attribute appropriate valuations to the asset components of land and buildings. An adjustment of $56 million was made at 30 June 2024 to increase the carrying amount of land and buildings to fair value. The adjustment is reflected in property, plant and equipment in the Statement of Financial Position and Other Comprehensive Income in the Statement of Profit or Loss and Other Comprehensive Income.
CASH
Housing Choices Australia manages its cashflows 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. As at 30 June 2024, the group held balances totalling $55 million (2023: $46 million). Cash balances are expected to fall in the coming years as funding received to date will be invested in new social, a ordable, specialist disability housing and long-term asset management programs. Funds are held prior to the commencement of projects and then applied as the developments progress.
CAPITAL GRANTS
DEBT
Capital grants received in the year largely relate to state and federal government grants for new developments in Tasmania ($20 million) with a further $29 million in Victoria. These grants form part of the funding mix for new projects together with debt and cash invested by Housing Choices Australia.
In Tasmania, debt is held with Housing Australia (former National Housing Finance and Investment Corporation). The debt facilities total $55 million, of which $49.7 million was drawn at 30 June 2024. The interest rates are locked in until Housing Australia complete their next bond issuance when the interest rates will be fixed for a 10/12-year term. The debt under this facility is being used for a number of projects in Tasmania as part of the funding for developments under the Tasmania State Government’s Community Housing Growth program. In South Australia, debt is held with Housing Australia. The debt facility totals $16.5 million which remains fully drawn at 30 June 2024. The facility is fixed to July 2031. The current debt facility was used to partly fund development projects in South Australia. In Victoria, debt facilities are held with Housing Australia ($55 million) and TCV ($104 million). The Housing Australia facility has a 10-year term with fixed interest rates and the TCV loan is a 30-year facility with fixed interest for 15 years at rates. $55 million Housing Australia debt and $55 million TCV debt were drawn at 30 June 2024.
PROJECTS
During the year, the organisation continued to deliver development projects. In Tasmania, three projects were completed, resulting in 100 new housing units as part of the Tasmanian State Government’s Community Housing Growth Program. Additionally, 113 more units are currently under development within the same program.
In South Australia, a 14-unit development in Felixstow is under construction and was completed in August 2024.
In Victoria, Housing Choices Australia completed 146 new housing outcomes and received a further 103 properties under management during the year.
| 39 Annual Report 2023-24
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