Common Ground Adelaide Apartments

The Hon. S.W. KEY (Ashford) (14:46): My question is directed to the Minister for Social Housing. Can the minister tell the house how a new social housing project will benefit vulnerable South Australians?

The Hon. Z.L. BETTISON (Ramsay—Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Multicultural Affairs, Minister for Ageing, Minister for Youth, Minister for Volunteers) (14:46): Today, I had the great privilege of attending the opening of the Common Ground Adelaide Crowther Street and Shannon Place apartments in the city—two new social housing developments targeted towards vulnerable South Australians at risk of homelessness or those who would find it extremely difficult to secure and sustain tenancies in the private rental market.

Common Ground is a not-for-profit organisation which provides rental housing in a mixed community setting to low-income people and those at risk of homelessness in parallel with personal support to create pathways to independent and fulfilling lives for tenants. The state government has now provided more than $2 million to Common Ground for the two new developments, which will house 12 men and women who would otherwise struggle to acquire and maintain safe, affordable accommodation.

The Crowther Street project is a four-storey, medium-density apartment building comprising seven one-bedroom dwellings which will be targeted towards vulnerable people who would find it extremely difficult to secure and sustain a tenancy in the private rental market, such as older people or those with permanent, complex and multiple disabilities. The Shannon Place project is a four-storey, medium-density apartment building comprising five one-bedroom dwellings which will provide a stable place to live for people on low incomes needing affordable accommodation in the city.

Both projects have been developed by the GE Group of Companies with Common Ground being the purchaser upon completion. The total estimated purchase cost of the Crowther Street apartments is $2 million, which will be partially met through an Affordable Housing Stimulus Package grant of $1.3 million, which I will explain shortly. The cost of the Shannon Place apartments is $1.4 million, which will also be partially met through an Affordable Housing Stimulus Package grant of $0.8 million.

Common Ground will meet the remaining costs through a combination of corporate donations and debt finance from the National Australia Bank. The organisation also received approval under round 5 of the National Rental Affordability Scheme, which will assist in meeting financing costs associated with its funding contributions.

In June 2013, the Premier announced the release of an Affordable Housing Stimulus Package, including $20 million for community housing capital grants. This funding program aims to provide an immediate economic stimulus for the local construction industry and to increase growth within the community housing sector.

Under this program, Common Ground was successful in securing grants of approximately $2 million towards development costs for these 12 inner city apartments. In total the funding program will deliver 130 new affordable rental homes, including 40 across a number of regional locations; 84 of those will be targeted with high support needs including 32 to be allocated to people living with mental illness.

Community housing providers approved under the scheme will bring private finance and other equity contributions of approximately $13 million to generate these additional social housing outcomes. Incentives provided through the state and commonwealth governments will support the ongoing viability of these developments and, therefore, the outcome for tenants.

I would like to touch on the role of Santos in supporting Common Ground. Santos is Common Ground Adelaide's foundation sponsor, contributing $3 million to help establish their operation in South Australia. Santos's involvement is a really good example of government, business and the community sector working together to solve complex social issues.

The SPEAKER: The minister's time has expired. The member for Morphett.