More than 21,000 new homes in latest round of Albanese government’s $10bn housing fund
The Albanian government will deliver 21,000 new social and affordable homes in the largest ever tranche of its $10 billion Housing Australia Future Fund, although fewer than 1000 homes have already been built.
By the end of the third round, HAFF will have secured deals to build 40,000 new homes by mid-2029, according to the Commonwealth government. In all of these agreements, the delivery of 55,000 houses is targeted.
The third round of funding is expected to open in late January and will provide concessional loans and grants at reduced rates to social housing providers as well as state and territory governments.
Housing Minister Clare O’Neil said all Australian governments “must build”.
“After a decade of indecision under the coalition and relentless opposition in parliament, the Australian Housing Future Fund is being built,” Ms O’Neil said.
“More homes. More speed. More scale.”
Ms O’Neil said the Albanian government supports social and affordable housing “in every corner of our country”.
More than 100 applicants received funding under the first round of HAFF, including providers such as Anglicare, Housing First and Uniting.
The third round will include the introduction of a new regional and rural component.
A special funding stream will also be made available for projects carried out by or in partnership with First Nations housing organisations.
The third round also set a rent target of 10 per cent First Nations tenants, as well as an expedited application process and new delivery and co-investment partnerships with industry, provincial and territorial governments.
Only 889 houses have been built so far
The Albanian government hopes that by offering concessional loans under HAFF, it will reduce the debt burden on providers, which slows down development.
However, officials announced during Senate estimates that 889 homes have been built so far following the first and second rounds of financing.
CEO Scott Langford denied accusations that HAFF had purchased homes.
He said the Senate anticipates providers are open to home improvement “on their own.”
“Or they may contract with a developer for a new home at various points in their development cycle, such as pre-construction or construction,” he said.
The former Coalition built 373 social and affordable homes in almost a decade in government.
The Albanian government hopes to build 1.2 million houses, including those under HAFF, by mid-2029.
But as we approach the end of 2025, state and federal governments continue to strive to achieve this goal.
Housing Australia, which administers delivery loans under HAFF, has also reportedly suffered recent staff losses.
Chair Carol Austin resigned from Housing Australia last month, stating it was “time to move on to a new chair”.
HAFF aims to deliver 55,000 social and affordable homes rented to low-income people at a lower income, as well as affordable homes offered at below-market prices to qualified key workers.
