COMMUNITY HOUSING PROVIDERS (NATIONAL LAW) (SOUTH AUSTRALIA) BILL

Second Reading

Adjourned debate on second reading.

(Continued from 29 October 2013.)

The PRESIDENT: Minister, will you be summing this up?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (17:50): Yes, sir, I will take the opportunity to sum up. Before I commence, however, I would like to take a moment to address some questions raised, I think, by the Hon. Tammy Franks in her contribution.

Clarification has been sought in relation to the government's processes for operating the scheme, which ensures 15 per cent affordable housing targets for all new significant housing developments. The 15 per cent affordable housing inclusion policy was introduced by the Housing Plan for South Australia in 2005. There have been 1,226 new affordable housing outcomes delivered to date, with a further 1,795 under negotiation in future developments. Inclusion of these affordable properties is mandatory in all government land sales and developments by government agencies.

The policy has also been adopted into the planning strategy and, therefore, must be considered by councils when amending their development plans. Consequently, many development plans now have objectives and principles of development control which call for inclusion of at least 15 per cent affordable housing.

Individual developers are asked to prepare an affordable housing plan showing the proposed mixed of affordable rental and affordable home ownership. Developers have several options by which to deliver affordable housing, including to work with a not-for-profit provider to develop affordable rentals, sales of NRAS-funded properties to private rental investors for affordable rental, development of home ownership opportunities and sale to other community and social housing providers.

I understand that not-for-profit providers have been provided with full information on opportunities in new developments and have been invited to participate. Several have taken up that invitation and are working in partnership with developers in Bowden, St Clair, Adelaide city and other developments.

Home ownership opportunities must be targeted to eligible low to moderate-income buyers for an exclusive offer period—generally of 90 days—and be advertised through the Affordable Homes Program site and listed as affordable homes on realestate.com. The total number and distribution of these affordable properties are identified by the developer in consultation with Renewal SA's affordable housing unit. An affordable housing plan is developed, setting out the tenure type, house form and sale price.

Information has been requested by the Hon. Ms Franks about what evidence there is that these affordable properties are actually benefiting people from a low socioeconomic background. Of the 474 affordable properties sold on the open market to date under this scheme, 295 were purchased by low to moderate-income households. All of the 752 sales to affordable rental providers are targeted to low to moderate-income households. Of these, approximately 200 new homes have been acquired by community housing providers and further strong take-up is expected over coming months.

The Hon. Tammy Franks also seeks information on Housing SA properties transferred to community housing organisations over the past five years. Housing SA constructed and transferred 616 properties to preferred growth providers over that period, with the final 23 properties being transferred during 2012-13.

The honourable member also refers to arrangements with local governments to contribute land to social housing developments. There has been a wide range of such joint venture-type programs in previous years, most recently through the Affordable Housing Innovations Fund, initiated by the state government in 2005. Over the subsequent five years, grants were provided to community organisations to deliver around 480 houses, with partnering organisations, including local government, contributing land and other resources on an approximately fifty-fifty basis with the state.

For example, PARAQUAD SA developed five dwellings on council-donated land in Mount Gambier for people with disabilities, valued at $150,000. The Unity Housing Company developed a further four dwellings in Gumeracha on council-donated land, valued at $225,000. I am advised that, while joint ventures continue to be encouraged, recent grant programs calls have not attracted significant land contributions.

I turn my attention to the question regarding the arrangements for appointing community housing providers as preferred growth providers. There are currently 16 such providers. They were appointed by Housing SA in July 2009 following a tender process to determine which community housing organisations had the capacity to prequalify for growth opportunities, for example, through transfers that I have mentioned. It is expected that the national regulatory system, which includes recognition of high capacity providers through a tiered registration structure, will replace the preferred growth provider arrangement during 2014.

The national regulatory system, introduced in South Australia through this legislation, will provide governments at all levels, financiers and other contributors with a high level of confidence about the governance and skill of community housing organisations. This is important as these organisations are key to the social housing of the future. While it is not possible to provide the honourable member with specific numbers of houses, as this will depend on the decisions of governments and the efforts of the organisations themselves, we can be confident that a strong regulatory system will underpin growth. For example, the state government has already announced the transfer of 5,000 public housing dwellings to community housing organisations ranked as having high capacity under the new regulatory arrangements.

In summing up, I would like to acknowledge those who have assisted in the carriage of this bill. Firstly, I would like to thank those opposite for their interest and comments on the bill and for their support in ensuring its passage. The bill was widely consulted on and groups, such as the Community Housing Council of SA and their member organisations have contributed their concerns and support. Their views were instrumental in the wording of the bill in its current form, I am advised. The Local Government Association also had input into the wording of this bill and I thank them for their support of the bill.

The bill will introduce a nationally consistent approach to the registration of registered community housing providers and will provide a platform for these providers to operate more easily across jurisdictions. It will also establish a separation of the government's current dual roles of funding and regulation, and establish a greater flexibility for new and innovative funding arrangements. The result will be a more robust and influential community housing sector which will complement Housing SA in the provision of high quality social housing in this state, and I commend the bill to the house.

Bill read a second time.

Committee Stage

In committee.

Clause 1.

The Hon. T.A. FRANKS: I have two questions, both of which are issues which came up in our consultations. I am afraid I could not quite get them together for the second reading part of the questions, so I apologise for that, but I knew that we still had clause 1 to go.

One of the concerns I would like to raise is the ability of the minister to place a charge over the assets of an organisation. There was concern from some groups and stakeholders that we spoke to that that charge may be out of proportion to the support that they may have received from government and, indeed, it may place a limit or impact on the ability of that community housing provider to access finance leveraging the government funding it does receive. Could the minister provide some assurances that that will not be the case?

The Hon. I.K. HUNTER: My advice is that exactly that issue was raised with the government and led to a government amendment in the other place in relation to the interest the government has in the asset, and that was amendment No. 2 at clause 20, page 12, to delete paragraph (d) and substitute a new paragraph (d), the imposition of a charge over land, etc.

The Hon. T.A. FRANKS: I thank the minister for that response. I have a final issue to raise, which is in regard to the open space levy. I understand from stakeholders I have spoken to that, indeed, they are impacted by the open space levy to the tune of around $6,000 to $6,500 per allotment. There was widespread support for an exemption to be given for not-for-profits in regard to some sort of a waiver of the open space levy. I ask the minister whether or not that is being considered and whether it is possible.

The Hon. I.K. HUNTER: My advice is that it is possible and that it is currently under discussion with stakeholders, but the stakeholders have also advised the government that they do not want to hold up the passage of this bill for those discussions; they are prepared to continue with the government on this matter.

Clause passed.

Remaining clauses (2 to 37) and schedules 1 and 2 passed.

Schedule 3.

The Hon. I.K. HUNTER: I move:

Amendment No 1 [SusEnvCons–1]—

Clause 5, page 40, lines 20 to 24—Delete paragraph (c) and substitute:

(c) without limiting paragraph (b), accommodation provided by a community housing provider registered under the Community Housing Providers National Law that is incorporated on a not-for-profit basis for the benefit of the public, other than accommodation provided by such a body—

(i) that has as a principal object of the body the provision of housing for members of the body; or

(ii) that is excluded from the ambit of this paragraph by the Minister by notice published in the Gazette;

Amendment No 2 [SusEnvCons–1]—

Clause 5, page 40, lines 26 to 29—Delete subsection (1a) and substitute:

(1a) For the purposes of paragraph (c) of the definition of supported accommodation in subsection (1)—

(a) a body will not be regarded as incorporated on a not-for-profit basis—

(i) if a principal or subsidiary object of the body is—

(A) to secure a pecuniary profit for the members of the body or any of them; or

(B) to engage in trade or commerce; or

(ii) if the constitution or rules of the body provide that the surplus assets of the body on a winding-up are to be distributed to its members or to another body that does not have identical or similar aims or objects; and

(b) the Minister may, by notice in the Gazette, vary or revoke a notice that has been previously published in the Gazette under that paragraph.

Amendment No 3 [SusEnvCons–1]—

Clause 16, page 47, after line 1—Insert:

(8) A transitioning housing association will (while its registration under the SACCH Act continues) be taken to continue to be within the ambit of paragraph (c) of the definition of supported accommodation under section 4 of the Local Government Act 1999 despite the substitution of that paragraph by an amendment made by this Act.

All three of my amendments are related. The first amendment seeks to provide additional clarity and certainty for the Local Government Association, I am advised, and its members of the government's intention to maintain the status quo in relation to community housing providers which are eligible to receive council rate rebates. The Local Government Act 1999 needs to be updated through a related amendment under this bill to ensure that housing cooperatives which primarily provide accommodation for their members and which do not now receive a council rate rebate will continue to be ineligible. The Local Government Association, on behalf of its board and members, has been consulted in the drafting of this amendment, and it is in agreement with the government's intention.

In relation to my second amendment, the South Australian Cooperative and Community Housing Act 1991, which is set to be repealed with the passage of this bill, currently requires housing associations to be established as a not-for-profit entity and as such limits the rate rebate of not-for-profit entities. In keeping with the government's intention of maintaining the status quo for local governments, this amendment will ensure that rate rebates will be limited to community housing providers which are incorporated on a not-for profit basis.

The Hon. T.A. FRANKS: The Greens will be supporting all the government amendments.

The Hon. K.L. VINCENT: Likewise.

The Hon. I.K. HUNTER: I will explain amendment No. 3. I am advised that it is a technical addition to ensure that housing associations which currently receive the rate rebate in the Local Government Act 1999 will continue to do so throughout their transition from registration under the South Australian Co-operative and Community Housing Act to registration under this bill.

The Hon. R.I. LUCAS: The member for Morphett advises that the Liberal Party will support all three amendments.

Amendments carried; schedule as amended passed.

Title passed.

Bill reported with amendment.

Third Reading

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (18:06): I move:

That this bill be now read a third time.

Bill read a third time and passed.