Common Ground Adelaide Apartments

Ms BEDFORD (Florey) (14:57): Sorry, they just scream all the time. I can't keep concentrating with them. My question is to the Minister for Social Housing. How is the state government providing housing support to some of the most disadvantaged members of society?

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) (14:57): I thank the member for this important question. I have spoken to the house previously about the invaluable work undertaken by Common Ground Adelaide Limited, a not-for-profit organisation with a primary purpose of addressing homelessness through the provision of affordable rental accommodation.

In May 2013, Common Ground Adelaide submitted a proposal to the commonwealth government's National Partnership Agreement on Homelessness Development Fund with support from the South Australian government. The development fund provides capital funding for approved initiatives which are targeted at addressing the housing needs of those experiencing homelessness.

The project submitted by Common Ground was for the development of supportive housing accommodation in the central business district of Adelaide on Mellor Street. It included utilising land and non-government partner contributions to fulfil the requirement for fifty-fifty state matching of any bids. I am extremely pleased that commonwealth government approval for the project was obtained in August 2013, offering funding support of $6.75 million.

The Mellor Street project comprises a seven-storey building which will contain 52 apartments in total, 39 one-bedroom and 13 two-bedroom units. I am advised that the ground floor will have four apartments and the other six floors will have eight apartments on each floor, three of which will be disability accessible. The project will house a combination of clients, including frail, aged, disabled, and sole parents, either already experiencing homelessness or at severe risk of homelessness due to their current housing circumstances.

On 26 September 2013, development approval was granted by the Development Assessment Commission, and on 24 December 2013, Hindmarsh Construction Australia was awarded the building contract following a tender process conducted by Common Ground. Construction commenced during February 2014, and the project is scheduled for completion during November 2014. In a demonstration of their support for this project, the Adelaide City Council agreed to sell council-owned land on lots 45 and 46 Mellor Street at the discounted price of $1 million to the South Australian Housing Trust, which then novated its rights to Common Ground through a deed of novation.

The total estimated project cost is $15.5 million, comprising $1 million for the land acquisition and $14.5 million for construction and other associated costs. This project also received approval under Shovel Ready, which is round 5 of the National Rental Affordability Scheme, to assist Common Ground in financing the costs associated with its funding contribution. Common Ground has invited me to attend a function at their Mellor Street building this month to thank all their major supporters and sponsors, and I couldn't be happier to attend.

The Mellor Street project was made possible with support from many South Australian organisations such as Santos, which not only committed funding but also people power, with a group of the company's international drilling team just yesterday volunteering to assist in readying Mellor Street for tenancy at the end of this year. This project is a shining example of the positive difference that can be achieved when the commonwealth and state governments work together with companies and not-for-profit organisations to make our communities a better place.