AFFORDABLE HOUSING

In reply to Ms CHAPMAN (Bragg—Deputy Leader of the Opposition) (27 June 2013).

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Transport and Infrastructure, Minister for Mineral Resources and Energy, Minister for Housing and Urban Development): The Minister for Social Housing has been advised:

$30 million will be for Housing SA to construct approximately 100 social housing dwellings with an average cost of $300,000 (GST inclusive) per property, including land value. The majority of dwellings built will be constructed on existing land owned by the South Australian Housing Trust. Where land is not available, land will be purchased on the open market.

$20 million of the funding has been provided to nine community housing providers as capital grants to support the construction of 128 new affordable rental dwellings. In total, 82 homes to be built under this package are dedicated specifically to people with high support needs, with 29 of these allocated specifically for people living with disability. These organisations will be responsible for sourcing the land, determining the built form and managing the whole development process.

It is up to community housing providers to source land and projects will not involve developments on government owned land, although Renewal SA may assist community housing providers in identifying suitable, market based land opportunities.

Housing SA will apply a fee of 4.35 per cent of expenditure incurred to cover the cost of salaries and administration expenses attributable to the management and delivery of those projects. Projects are charged this internal fee to ensure that the cost of the assets produced includes all costs incurred in developing/constructing those assets. This is consistent with Australian Accounting Standards and is accepted by the Auditor-General.

Community housing capital grant funding has been devoted to supporting project development costs.