Commonwealth Coat of Arms of Australia

 

National Housing Finance and Investment Corporation Investment Mandate Amendment (Social and Affordable Housing) Direction 2022

I, Julie Collins, Minister for Housing, Minister for Homelessness, and Minister for Small Business, make the following direction.

Dated  18 November   2022

Julie Collins

Minister for Housing
Minister for Homelessness
Minister for Small Business

 

 

 

Contents

1 Name

2 Commencement

3 Authority

4 Schedules

Schedule 1—Amendments

National Housing Finance and Investment Corporation Investment Mandate Direction 2018

1  Name

  This instrument is the National Housing Finance and Investment Corporation Investment Mandate Amendment (Social and Affordable Housing) Direction 2022.

2  Commencement

 (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this instrument

The day after this instrument is registered.

24 November 2022

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

 (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

  This instrument is made under subsection 12(1) of the National Housing Finance and Investment Corporation Act 2018.

4  Schedules

  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1Amendments

 

National Housing Finance and Investment Corporation Investment Mandate Direction 2018

1  Section 4

Insert:

Act means the National Housing Finance and Investment Corporation Act 2018.

constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.

housingenabling infrastructure—see subsection 21A(2).

housingenabling infrastructure project—see subsection 21A(1).

housingenabling infrastructure special purpose vehicle—see subsection 22(2).

local governing body has the same meaning as in the Local Government (Financial Assistance) Act 1995.

social or affordable housing project—see subsection 21A(3).

social or affordable housing special purpose vehicle—see subsection 22A(2).

2  Section 4 (definition of special purpose vehicle)

Repeal the definition.

3  Section 4

Insert:

underlying eligible member:

 (a) of a housingenabling infrastructure special purpose vehicle—means a member of the housingenabling infrastructure special purpose vehicle that is an entity mentioned in paragraphs 22(1)(a) to (f); or

 (b) of a social or affordable housing special purpose vehicle—means a member of the social or affordable housing special purpose vehicle that is an entity mentioned in paragraphs 22A(1)(a) to (f).

4  Section 4 (definition of Underlying eligible member)

Repeal the definition.

5  Part 4 (simplified outline)

Repeal the simplified outline, substitute:

The National Housing Infrastructure Facility

The purpose of the NHIF is:

 (a) to overcome impediments to the provision of housing that are due to the lack of necessary infrastructure; and

 (b) to increase the availability of social and affordable housing.

The NHIF does this by providing finance for eligible infrastructure and housing projects that would not otherwise have proceeded, or that would only have proceeded at a much later date or with a lesser impact on new social or affordable housing.

6  Before section 22

Insert:

21A  Housingenabling infrastructure projects and social or affordable housing projects

 (1) A housingenabling infrastructure project is a project that:

 (a) would provide housingenabling infrastructure; and

 (b) would not itself provide housing; and

 (c) would not provide community infrastructure, such as parks, daycare centres or libraries.

 (2) Housingenabling infrastructure is:

 (a) critical infrastructure to support new housing (particularly new social or affordable housing), including new or upgraded infrastructure for services such as water, sewerage, electricity, telecommunications or transportation; or

 (b) site remediation works relating to new housing (particularly new social or affordable housing), including the removal of hazardous waste or contamination.

 (3) A social or affordable housing project is a project that would provide new social or affordable housing (whether or not the project would also provide other types of new housing).

7  Section 22 (at the end of the heading)

Add “for housingenabling infrastructure projects”.

8  Subsection 22(1)

After “under the NHIF”, insert “for a housingenabling infrastructure project”.

9  Paragraph 22(1)(b)

Omit “as defined in section 4 of the Local Government (Financial Assistance) Act 1995”.

10  Paragraphs 22(1)(c) and (d)

Omit “corporation to which section 51(xx) of the Constitution applies”, substitute “constitutional corporation”.

11  Paragraph 22(1)(g)

Before “special purpose vehicle”, insert “housingenabling infrastructure”.

12  Subsection 22(2)

Repeal the subsection, substitute:

 (2) An entity is a housingenabling infrastructure special purpose vehicle if:

 (a) it has a purpose of undertaking housingenabling infrastructure projects; and

 (b) at least one of its members is an entity mentioned in paragraphs (1)(a) to (f).

13  After section 22

Insert:

22A  Eligible project proponents for social or affordable housing projects

 (1) To be eligible for finance under the NHIF for a social or affordable housing project, the project proponent must be:

 (a) a State or Territory; or

 (b) a local governing body; or

 (c) a local governmentowned corporation (other than a utility provider) that is a constitutional corporation; or

 (d) a State governmentowned corporation (other than a utility provider) that is a constitutional corporation; or

 (e) a Territory governmentowned corporation (other than a utility provider) that is a constitutional corporation; or

 (f) a registered community housing provider that is a constitutional corporation; or

 (g) a social or affordable housing special purpose vehicle that is a constitutional corporation.

Note: If the project proponent is a local governing body, the project may be financed only through a grant of financial assistance to a State or Territory: see subsection 24(6).

 (2) An entity is a social or affordable housing special purpose vehicle if:

 (a) it has a purpose of undertaking social or affordable housing projects; and

 (b) at least one of its members is an entity mentioned in paragraphs (1)(a) to (f).

14  Paragraphs 23(a) to (c)

Repeal the paragraphs, substitute:

 (a) is:

 (i) a housing-enabling infrastructure project; or

 (ii) a social or affordable housing project; and

15  Paragraph 23(d)

Before “affordable housing”, insert “social or”.

16  Subsection 23A(1)

Omit “(1)”.

17  Paragraph 23A(1)(a)

After “potential projects,”, insert “in each State and Territory”.

18  Paragraph 23A(1)(a)

Omit “funding”, substitute “financing”.

19  Subsection 23A(2)

Repeal the subsection.

20  Subsection 24(1)

Repeal the subsection, substitute:

 (1) A project may be financed under the NHIF through:

 (a) one or more loans; or

 (b) if the project is a housingenabling infrastructure project—one or more investments; or

 (c) one or more grants; or

 (d) any combination of any of the above.

21  Subsection 24(4)

After “in relation to a”, insert “housingenabling infrastructure”.

22  At the end of section 24

Add:

Financing local governing bodies for social or affordable housing projects

 (6) If the project proponent for a social or affordable housing project is a local governing body, the project may by financed only through a grant of financial assistance to a State or Territory.

Note: A term or condition for the grant of financial assistance may be that the State or Territory make a loan, investment or grant to the local governing body.

23  Paragraph 25(1)(a)

After “section 22”, insert “or 22A”.

24  Paragraph 25(2)(a)

Before “affordable housing”, insert “social or”.

25  Paragraph 25(2)(h)

Before “special purpose vehicle”, insert “housingenabling infrastructure special purpose vehicle or a social or affordable housing”.

26  Paragraph 26(1)(b)

Repeal the paragraph, substitute:

 (b) if the project is a housingenabling infrastructure project—the extent of any public benefit that would result from the housingenabling infrastructure;

 (ba) if the project is a social or affordable housing project—the extent of any public benefit that would result from the new housing;

27  At the end of Part 4

Add:

Division 3General matters

28A  Quarterly reporting to Minister in relation to NHIF

 (1) As soon as practicable after the end of:

 (a) the 3 months starting on 1 January 2023; and

 (b) each successive 3 months;

the NHFIC must report to the Minister on the activities of the NHFIC under Divisions 1 and 2 during the 3 months.

 (2) Without limiting subsection (1), a report for 3 months must set out the following information in relation to each housingenabling infrastructure project or social or affordable housing project that the NHFIC decided, during the 3 months, to finance under the NHIF:

 (a) the project proponent of the project;

 (b) the location of the project;

 (c) the types of persons that would be assisted by the project;

 (d) the relative amounts of:

 (i) social housing; and

 (ii) affordable housing; and

 (iii) other housing;

  that would be provided by the project;

 (e) information about the financing for the project under the NHIF, including:

 (i) whether the financing is to be through a loan, investment or grant, or through a combination of 2 or more of these types of financing; and

 (ii) details of each loan, investment or grant for the project;

 (f) the level of financing for the project from sources other than the NHIF;

 (g) the expected completion date of the project.

28  In the appropriate position in Part 7

Insert:

Division 4Amendments made by the National Housing Finance and Investment Corporation Investment Mandate Amendment (Social and Affordable Housing) Direction 2022

39  Application of amendments

  The repeal of subsection 23A(2) of this Direction made by the National Housing Finance and Investment Corporation Investment Mandate Amendment (Social and Affordable Housing) Direction 2022 applies in relation to periods of 3 months starting on or after 1 January 2023.