SOCIAL HOUSING IN NSW DISCUSSION PAPER - THE THIRD WAVE OF SOCIAL HOUSING: RESPONSE BY: DESCRIBING THE NEW PARADIGM OF SOCIAL HOUSING WITHIN ...
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SOCIAL HOUSING IN NSW DISCUSSION PAPER RESPONSE BY: Compass Housing Services (“Compass”) February 2015 THE THIRD WAVE OF SOCIAL HOUSING: DESCRIBING THE NEW PARADIGM OF SOCIAL HOUSING WITHIN INTEGRATED HOUSING ASSISTANCE RESPONSES
CONTENTS Executive Summary 03 Welcoming Social Housing in NSW Discussion Paper 05 Social Housing as an Integrated Part of Housing Assistance 07 A new paradigm for a modern housing assistance system 09 Diagram: Segments within Social Housing 09 Describing the Third Wave of Social Housing 11 Table: Contrasting Current System and Third Wave of Social Housing 12 The Compass Pathways Initiative - Newcastle Autonomous Social Housing Region 14 Compass Initiatives 16 The Compass Grow Program 16 The Compass Grow a Star Program 17 The Newcastle Foyer Project 18 The Deep Place Approach to Sustainable Communities 18 Compass Response to the Three Pillars 19 Pillar 1: A social housing system that provides opportunity and pathways for client independence 20 Table: Pillar 1 Initiatives Proposed by Compass 20 Pillar 2: A social housing system that is fair 22 Table: Pillar 2 Initiatives Proposed by Compass 22 Pillar 3: A social housing system that is sustainable 23 Table: Pillar 3 Initiatives Proposed by Compass 23 About Compass 25 Conclusion 27 Compass Housing Services 02 Social Housing in NSW Discussion Paper | February 2015
EXECUTIVE SUMMARY Compass Housing Services These challenges include a (“Compass”), Australia’s largest lack of economic and social non-Government social participation for social housing housing provider, welcomes tenants, lengthening tenure, the NSW Government’s a burgeoning backlog of commitment to a fair and necessary maintenance, and sustainable social housing the stigmatisation of public system as a safety net for housing. vulnerable people and a means of providing pathways to Further, the NSW Government tenant independence. has identified the reducing but still important role of In particular, Compass social housing with the rise welcomes the NSW of Commonwealth Rental Government’s Assistance (CRA) and the need acknowledgement of the to integrate housing with significant challenges and broader social and economic opportunities that confront development initiatives. social housing, driven by profound underlying changes in demographics and Government (including the Commonwealth Government) policy and funding. Compass Housing Services 03 Social Housing in NSW Discussion Paper | February 2015
IN RESPONSE TO THE NSW GOVERNMENT’S LEADERSHIP, COMPASS PROPOSES RECOGNISING THAT AUSTRALIA NOW HAS A THIRD WAVE OF SOCIAL HOUSING. The first two waves of social housing focused upon housing workers and housing those in most need. In the Third Wave, social housing increasingly sits within a continuum of housing assistance strategies that also consider the wider social and economic landscape. THIS THIRD WAVE OF SOCIAL HOUSING IS CHARACTERISED AS SOCIAL HOUSING THAT: Is seamlessly integrated within a broader array of housing assistance mechanisms; Focuses on the impact that housing can have on people by considering all aspects of their lives, their pathways to social and economic participation, and the communities in which they live; Specifically, Compass is proposing to give Uses different but consistent approaches to expression to the Third Wave of Social Housing different groups; with the creation of a Newcastle Autonomous Provides encouragement for people in social Social Housing Region, based on the transfer of the housing to contribute to their own advancement management of the existing public housing within and the betterment of their community; the City of Newcastle (currently approximately 4,000 dwellings). Incorporates ambitious, defined and transparent goals and outcomes for both people and This initiative will develop and link multiple property; pathways that address tenant education and employment, transition to successful adulthood, Makes property decisions by considering: access to the private property market, service development and co-ordination, social housing • The capacity of the property to facilitate efficient asset renewal and the better financing of social support for people’s social and economic housing. participation; The NSW Government’s leadership in addressing • The economic efficiency and lifecycle stage of the the future of social housing has created a unique property; and opportunity to reposition social housing within a • The opportunities for redevelopment to increase more sustainable and productive housing assistance capacity, increase useful life, reduce costs and/or framework. Compass is proposing to deploy this release value; and new approach to social housing in the Newcastle Autonomous Social Housing Region Initiative, Positions social housing agencies as key partners building on proven practice from within NSW in all urban, economic and social initiatives. and beyond. Compass Housing Services 04 Social Housing in NSW Discussion Paper | February 2015
WELCOMING SOCIAL HOUSING IN NSW DISCUSSION PAPER COMPASS HOUSING WELCOMES A poor response to young people confronting homelessness; THE NSW GOVERNMENT’S COMMITMENT TO A SOCIAL HOUSING Higher rates of domestic violence and crime; SYSTEM THAT IS A SAFETY NET The poor condition and underutilisation of social FOR VULNERABLE PEOPLE, PROVIDES housing; OPPORTUNITIES AND PATHWAYS TO The mismatch between social housing location CLIENT INDEPENDENCE, AND IS FAIR and employment opportunities; AND SUSTAINABLE. Alarm at the level of unaddressed antisocial behaviour (ASB) within social housing; and Government policy and practice barriers to more innovative leadership by social housing landlords. LIKE THE NSW GOVERNMENT, COMPASS RECOGNISES THAT THE NSW SOCIAL HOUSING SYSTEM IS CONFRONTING: COMPASS RECOGNISES THAT GOVERNMENT HAS A lack of economic and social participation EXTENSIVE AND DIVERSE RESPONSIBILITY FOR for social housing tenants; PROVIDING HOUSING. Lengthening tenure; Specifically, Compass accepts the advice of Harris Wheeler (Attachment: Advice regarding Social A burgeoning backlog of necessary Housing paper: Harris Wheeler, Lawyers) that maintenance; and Government’s responsibility to provide housing is not always limited by the financial viability of that The stigmatisation of public housing. housing. Harris Wheeler identifies that Australia has obligations to provide adequate housing (“the right to live somewhere in security, peace and dignity”) SPECIFICALLY, THE CHALLENGES CONFRONTING as reflected in: SOCIAL HOUSING HAVE RIGHTLY BEEN IDENTIFIED AS: Article 25 of the Universal Declaration of Human Rights; Limited avenues or incentives for exits from public housing; Article 11 of the International Covenant on Economic, Social and Cultural Rights; and Poor social and economic outcomes; Other international conventions to which Limited education, employment and health Australia is a signatory covering discrimination (including and mental health) outcomes; and the status of refugees. Compass Housing Services 05 Social Housing in NSW Discussion Paper | February 2015
THE SECOND CONVENTION REQUIRES SIGNATORIES TO FUND “TO THE MAXIMUM AVAILABLE RESOURCES” AND NOT JUST AVAILABLE HOUSING FUNDING. HARRIS WHEELER ASSERTS COMPASS SUPPORTS THE In recognition of the changing THAT “THE SUSTAINABILITY THREE UNDERLYING PILLARS role of social housing, Compass PILLAR … IS NOT CONSISTENT OF REFORM PROPOSED BY proposes identifying this WITH AUSTRALIA’S THE NSW GOVERNMENT: new approach as “The Third OBLIGATIONS UNDER Wave of Social Housing”. This INTERNATIONAL TREATIES”.1 approach considers social PILLAR 1 housing as an integrated Additionally, the viability of A social housing system part of a broader Housing housing should be considered that provides opportunity Assistance scheme. holistically within the context and pathways for client of broader social or economic independence. To bring this vision to life, initiatives i.e. the capacity of Compass proposes the that housing to contribute to system that works A establishment of a Newcastle the objectives of the broader to break the cycle of Autonomous Social Housing program. For example, a social disadvantage and builds Region that will showcase a housing solution that allows an people’s capacity to move new and better framework, older person to leave hospital into or stay in the private developed from robust and may generate significant market. proven methodologies and savings for the health system, practice from within NSW and but would be unviable if rental outside, including overseas. PILLAR 2 income alone was relied upon A social housing system that to calculate viability. is fair. An integrated and fair system that provides a safety net for vulnerable people. PILLAR 3 A social housing system that is sustainable. A sustainable system that provides appropriate housing assistance now and 1 Page 5, 13 February, 2015, Advice regarding into the future. Social Housing paper: Harris Wheeler, Lawyers. Compass Housing Services 06 Social Housing in NSW Discussion Paper | February 2015
SOCIAL HOUSING AS AN INTEGRATED PART OF HOUSING ASSISTANCE In response to the NSW Government’s leadership, Compass proposes that social housing is seen as being part of a continuum of housing assistance, and a central component of other social and economic initiatives. Today, housing assistance is broadly funded by the Commonwealth through the recurrent funding of Commonwealth Rental Expenditure (CRA) and the capital funding of social housing by the Commonwealth and States (largely funded through rental collection) with shared funding for homelessness responses. CRA is targeted at supporting people in the private rental market. Compass Housing Services 07 Social Housing in NSW Discussion Paper | February 2015
COMMONWEALTH AND STATE AND TERRITORY FUNDING SHARES, 2012-2013 2 Commonwealth 67%: Commonwealth Rent Assistance Rent Assistance ($3,628 million) ($3,628 million) Commonwealth 2%: NRAS ($87 million) National Rental Affordability Scheme (NRAS) ($5,439 million) 6%: NPA on Rem ($117 million) ote Indigenous Housing ($303 mil lion) 19%: Natio nal Afforda ble Housin g (NAH) SP P ($1,014 m illion) on) milli S ($29 1%: NRA 7% Social Housing :N PA on ($5,194 million) Ho me les 95%: sn es States and Territories Social Housing s( $1 57 ($4,092 million) ($3,878 million) mi llio n) +N AH SP P( $2 50 mi llio 5%: Hom n) elessnes Homelessness Services s Servic es ($185 million) ($591 million) CRA HAS GROWN Over the same period, the amount of social housing stock has SIGNIFICANTLY SINCE ITS declined and turnover has decreased – accordingly, fewer people can INCEPTION IN THE MID 1980S be housed this way. (Social housing per head of population in NSW has AND IS LIKELY TO CONTINUE declined by 10 per cent over the last 10 years3). TO GROW, BOTH IN TERMS OF THE NUMBER OF RECIPIENTS Without significant capital funding for new social housing stock (an AND THE AMOUNT PAID TO unlikely prospect in the current economic and political environment), this THEM. (THIS WILL BE ESSENTIAL trend is likely to continue. However, social housing remains an important IF CRA IS TO RETAIN ITS response to housing need within the broader housing assistance EFFECTIVENESS, GIVEN THAT framework, and a new approach must be undertaken if we are to RENTAL MARKETS HAVE RISEN maximise its effectiveness. FASTER THAN THE CPI.) Compass is a long-standing Community Housing Provider with a trusted and established relationship with some of the most socially excluded people in our community. This unique experience can enable Compass to make a major contribution to the achievement of Government objectives, not only providing Government with access to ‘difficult to reach’ groups for improved housing services, but also to a wide range of agencies delivering social and economic interventions. Compass has pioneered a People, Places and Property approach to housing management that demonstrates the added value that housing services can bring to the achievement of educational, training, health and employment initiatives. 2 Pg 16, Reform of Federation White Paper, Roles and Responsibilities in Housing and Homelessness ISSUES PAPER (2014), Department of Prime Minister and Cabinet, Australian Government. 3 While public housing has declined by 25% ie there has been growth in community housing Pg 34, Reform of Federation White Paper, Roles and Responsibilities in Housing and Homelessness ISSUES PAPER (2014), Department of Prime Minister and Cabinet, Australian Government. Compass Housing Services 08 Social Housing in NSW Discussion Paper | February 2015
A NEW PARADIGM FOR A MODERN HOUSING ASSISTANCE SYSTEM LIKE ANY SOCIAL ASSISTANCE SYSTEM, THE MOST A focus on reducing, eliminating or, at a EFFECTIVE AND EFFICIENT HOUSING ASSISTANCE minimum, stopping escalation of the need for SYSTEM SHOULD INCORPORATE: assistance; Integrated access points; A focus on prevention, diversion and early intervention; and A comprehensive set of integrated services and products that are broadly available; Recognition and provision of appropriate services to ensure that state statutory obligations to care Robust and flexible management arrangements for various cohorts are fulfilled. within a consistent policy framework; Housing assistance may include the provision Transparent and consistent levels of subsidy; of accommodation (Homelessness, Emergency Accommodation, Social Housing, and Affordable Few barriers between products and service Housing) or assistance with the costs of private offerings; rental or private ownership. This can be seen as a Little or no service cliffs (i.e. where access to a ‘whole system’ approach with a graded response to different product or service dramatically changes a segmented population with different degrees of the level of assistance provided); housing support needs. SEGMENTS WITHIN SOCIAL HOUSING Person who Person who Person who cannot work cannot work Person who can work with and cannot but can can work limitations* volunteer volunteer Assistance Long Term with transition Social Housing Segmented support continuum to private Tenancy rental *Includes varying degrees of limitation • Inherent (disability or circumstantial (eg. sole carer for child under 5 years old, presently a child under 16), and; • Episodic or permanent limitation. Compass Housing Services 09 Social Housing in NSW Discussion Paper | February 2015
TENANT ENGAGEMENT WILL BE STRUCTURED AN ESCALATING RANGE OF INCENTIVES AROUND PLANS, INCENTIVES AND SUPPORTS COULD INCLUDE: THAT HELP TENANTS SECURE BETTER EDUCATION, MORE EMPLOYMENT AND/OR MORE Structured payment arrangements; PARTICIPATION IN THEIR COMMUNITY THROUGH Education; VOLUNTEERING AS THEIR POTENTIAL CAPACITIES PROVIDE. Rental reduction based on changed behaviours; Issues that are placing tenancies at risk should Behavioural contracts; be addressed by intelligence-led decision making – in other words, a well-researched general Rehabilitation programs; understanding of why tenancies fail will provide Support programs; and a framework by which individual cases can understood and considered in terms of their specific Changes in security of tenure mix of circumstances. This should then inform (e.g. from tenancy to license). the provision of responses that are tailored to the tenant, but could also include outright eviction The key would be to identify the underlying (where the indications are that compliance would cause(s) and assess what combinations of be unlikely even with support and a ‘last chance’ responses are most likely to generate the required licensed tenure). responses, and also what to do if they fail. Eviction would remain an option. The proposal is to build a graduated set of responses with both positive and negative In fact, to achieve the paradigm shift required to incentives to deal with issues such as failure to pay effectively move to the Third Wave of social housing rent, property damage and anti-social behaviour will require both growth and transfer of the control - rather than relying simply on eviction (and the of social housing to more diverse and locally threat thereof). responsive entities: Community Housing providers. The shape of the incentives will be best determined by the response most likely to achieve the required outcome, so will vary depending on the COMPASS ENDORSES THE NSW FEDERATION issue affecting the client. It is assumed that the OF HOUSING ASSOCIATIONS ASSERTION THAT: issues may be generated by a range (and possibly The Community Housing industry is combination) of causes – ranging from lack of delivering for NSW; education, poor behaviour, cognitive impairment linked to disability, as well as drug and alcohol The Community Housing Industry is ready abuse. to do more; An Affordable Housing Strategy is required to co-ordinate efforts; New investment in housing is required as part of essential infrastructure; and Property transfers are required to achieve a viable social housing system. Compass Housing Services 10 Social Housing in NSW Discussion Paper | February 2015
DESCRIBING THE THIRD WAVE OF SOCIAL HOUSING THE DEVELOPMENT OF SOCIAL HOUSING IN AUSTRALIA CAN BE DIVIDED INTO TWO CLEAR HISTORICAL WAVES: INITIALLY AS HOUSING FOR WORKERS, AND THEN FOR THOSE WHO ARE HOMELESS AND THOSE MOST IN NEED. Today, Compass proposes reframing how social housing in NSW is considered to better recognise how it currently operates, the challenges that the sector confronts and to capture the opportunities that are emerging. Social housing can now be identified as entering a third wave, where housing is considered alongside broader social and economic initiatives that aim increase the capacity and the participation of citizens, and encompasses a broad range of housing assistance options. UNDER THE THIRD WAVE, SOCIAL HOUSING: Focuses on the impact that housing can have on people by considering all aspects of their lives, their pathways to social and economic participation, and the communities in which they live; Uses different combinations of social housing products and services (including assistance into the private market) for different groups: people of working age, children, young people, older people, people with a disability, and people who are homeless or displaced by family violence; Places reasonable obligations on people in social housing to contribute to their advancement and the betterment of their community; Has ambitious, defined, measurable and transparent goals for both people and property outcomes; Focuses on different pathways to social and economic participation for the different segments while being bound by a consistent and integrated framework; Focuses on property by considering its capacity to enable people’s social and economic participation, its economic efficiency and lifecycle stage and the opportunity for redevelopment to increase capacity and useful life, reduce costs and/or release value; and Considers social housing agencies as key partners in all urban, economic and social initiatives. Compass Housing Services 11 Social Housing in NSW Discussion Paper | February 2015
Compass asserts that social and economic initiatives are best delivered at a neighbourhood and community level, and that social housing THIS MOVE TO A developments must contribute to engaged, functional, productive, and NEW ROLE FOR socially and economically sustainable communities that include but extend beyond social housing. SOCIAL HOUSING WILL HAVE A SIGNIFICANT Compass is currently enhancing its existing range of social interventions with the use of the “Deep Place” approach developed in the UK to tackle IMPACT ON HOW IT IS poverty, poor health and low educational attainment in marginalised DEVELOPED, ARRANGED communities, and to move communities challenged by long-term AND INTEGRATED INTO inequalities to more socially and economically sustainable futures4. THE FUTURE. Social housing agencies play a key role in this approach by providing housing-led social and economic regeneration leadership. This work within Compass is being led by Professor Dave Adamson, a significant Welsh expert in social housing regeneration. In this context, it is informative to compare the current social housing system with that which is emerging in the Third Wave of Social Housing. Contrasting Current System and Third Wave of Social Housing AREA CURRENT SYSTEM THIRD WAVE OF SOCIAL HOUSING Highest in need given Segmented approach with viability and sustainability Access priority. of community considered. Limited and inconsistent between Assistance Fully integrated, with all products available to all Government and .non- Integration providers of housing assistance. Government providers of housing assistance. Tenants streamed depending on potential to work Similar policies apply Segmentation and volunteer and those covered by state statutory duty to all. of care obligations. Permanent tenure for those not able to work. Mixture of long term Limited term linked to development and reviews for Lease Tenure and short term leases those that can work with limitations. on individual basis. Limited term linked to development and exit plans for those who can work. http://bit.ly/1DglyOh 4 TABLE CONTINUES OVER PAGE Compass Housing Services 12 Social Housing in NSW Discussion Paper | February 2015
Contrasting Current System and Third Wave of Social Housing (Continued) AREA CURRENT SYSTEM THIRD WAVE OF SOCIAL HOUSING For suitable situations, a transition to license could be provided as an alternative to eviction. This tenure Options limited to would include a requirement to meet defined behaviour, License Leases or eviction. supported by case-management with appropriate services. There would not be access to the usual tenancy appeal mechanisms. Comprehensive assessment of influencing factors that can be addressed such lack of support services for people with mental health issues. Anti-Social Reluctance/Inability to A dual approach to tenancy management that supports Behaviour affectively address. tenants with social or health barriers to tenancy compliance but with assertive enforcement of tenancy and neighbourhood rules and use of eviction and engagement with police in cases of criminality or serious anti-social behaviours. 25% of income Market-based escalating to 75% of market. Rental (plus CRA for For non-working tenants rent is set low, but linked to community Housing). market not income. Structured program for every tenant who can work and/or volunteer. Created by partnerships with local Education Limited. schools, TAFE institutions and informal learning providers in the third sector. Structured program for every tenant who can work including social enterprise programs. Employment Limited. Creation of work opportunities in social enterprises and social procurement relationships with local anchor organisations (e.g. hospitals, universities, etc). Volunteer development and support program linked Community Limited. to Community Engagement, which deploys volunteering Engagement as a transition to the labour market where possible. Ongoing support (including financial as required) in the Private Limited. private rental market as a key element of the segmented Rental continuum of support identified above. Significant levels Service of difference in the Limited difference in subsidy level between social Cliffs subsidy of people with housing and private rental. similar needs. Compass Housing Services 13 Social Housing in NSW Discussion Paper | February 2015
THE COMPASS PATHWAYS INITIATIVE NEWCASTLE AUTONOMOUS SOCIAL HOUSING REGION COMPASS AIMS TO ADVANCE THE THREE PILLARS OF SOCIAL HOUSING PROPOSED BY THE NSW GOVERNMENT WITH A NEW INITIATIVE – THE COMPASS PATHWAYS INITIATIVE – THAT WILL BRING “THE THIRD WAVE OF SOCIAL HOUSING” TO LIFE. The Compass Pathways Initiative (“the Initiative”) proposes the creation of a Newcastle Autonomous Social Housing Region, based on the transfer of the management of the existing public housing within the City of Newcastle (currently approximately 4,000 dwellings). The zone will be used to develop, deploy and refine new approaches to asset and social management, and will be resourced by $11m of Commonwealth Rental Assistance (CRA) and savings from social housing management rationalisation. Stock transfer has provided a major route to more sustainable and effective housing provision in a range of jurisdictions, notably in the UK where different models have been deployed within the devolved regions. General outcomes have included improved housing management, delivery of social regeneration, employment, educational and health initiatives with higher levels of tenant satisfaction5. 5 Year 6: The Socio-Economic Impact of the Welsh HA and Community Mutual Sector, Wales Economic Research Unit, Cardiff Business School, Cardiff University 2013, Pawson et al (2009), The Impacts of Housing Stock Transfer in Urban Britain, JRF. Compass Housing Services 14 Social Housing in NSW Discussion Paper | February 2015
THE INITIATIVE’S MULTIPLE PATHWAYS ARE DESIGNED TO LINK AND IMPROVE ASSET MANAGEMENT AND SOCIAL MANAGEMENT: Asset Renewal Pathway with a comprehensive maintenance program, the development of new stock for older tenants currently living in underutilised stock, and the redevelopment of the vacated properties; Pathway to Successful Adulthood through the development of a Youth Foyer to provide structured accommodation, employment, education and living skill development for young homeless people; Better Financing Pathway providing finance through a combination of commercial debt and social impact and housing bonds. The redesign of the Community Housing Leasing Program (CHLP) will be included; Tenant Development Pathway will resource education and employment supports via social enterprises (e.g. one providing property maintenance and one for NDIS client support services ), underpinned by an incentivised social housing rental model; Service Development and Co-ordination Pathway will be built around a Newcastle NDIS provider network and a NDIS housing advisory service; and Pathway to the Private Market including both Private Rental Headlease Program and the development of shared/ mixed equity ownership models. Compass Housing Services 15 Social Housing in NSW Discussion Paper | February 2015
COMPASS INITIATIVES COMPASS HAS A NUMBER OF INITIATIVES UNDER WAY OR IN DEVELOPMENT, OFTEN UNDERTAKEN IN BROADER COMMUNITY PARTNERSHIPS. THE COMPASS GROW PROJECT The Compass GROW Program takes a holistic approach to community development programs. Compass assists our clients to achieve self-reliance, contribute to solutions and participate in outcomes that affect them as individuals and ensure they are actively participating as members of the community. The GROW program incorporates community development and environmental aspirations, aiming to enrich the lives of tenants through enhancing their personal, social, environmental and economic sustainability. THE GROW PROGRAM ALSO INCREASES TENANTS’ AWARENESS OF AND PARTICIPATION IN: Health & nutrition programs; Sustainable living practices; and Esteem and well-being programs; Factors affecting security of tenure. Community contribution; economic participation; and generational advancement; The program focuses on the principles of social inclusion and environmental sustainability. Compass Housing Services 16 Social Housing in NSW Discussion Paper | February 2015
THE COMPASS GROW A STAR PROGRAM THE COMPASS GROW A STAR PROGRAM WAS INITIALLY A SPORT-BASED PROGRAM THAT WAS THEN FURTHER DEVELOPED TO HELP YOUNG PEOPLE ACHIEVE THEIR DREAMS AND ASPIRATIONS, WHILE STRIVING TO BE THE BEST THEY COULD. The program has evolved so that it is more holistic and seeks to give opportunities to young people to pursue any field including, but not limited to: sport, education, arts, dance, music and employment. An intended outcome of the GROW a Star program is to interrupt the endemic cycle of family unemployment, limited education and poverty by giving young people the opportunity and support to break free. Over the period of the program’s operation, an unintended consequence has emerged, that is, in some cases connectedness and confidence has increased for parents/carers too. Evidence clearly demonstrates that education and employment interrupts the cycle of systemic and entrenched poverty. This evidence propels the GROW a Star program as it provides practical supports to children and young people, making a significant difference in their lives and future opportunities. Compass Housing Services 17 Social Housing in NSW Discussion Paper | February 2015
THE NEWCASTLE FOYER PROJ ECT THE FOYER PROJECT FOR HOMELESS YOUNG PEOPLE COMBINES ACCOMMODATION WITH EMPLOYMENT, EDUCATION AND TRAINING SUPPORT IN THE HUNTER REGION, NSW AND IS IN THE PLANNING STAGES. THE CORE ELEMENTS OF THIS APPROACH WILL BE: Strength to strength: Identifying and building on the strengths of the young people participating in the program to help overcome any barriers. Joined up service delivery: Building on existing services in the local area to provide a holistic service that connects housing, education, health and welfare. THE DEEP PLACE APPROACH Focus on diversity: Providing for and tailoring to the diversity of needs for each individual as TO SUSTAINABLE COMMUNITIES well as catering to the diversity of young people experiencing homelessness – from cultural diversity, to varying abilities, singles, couples and young parents. FROM MAY 2015, COMPASS WILL BE DEVELOPING THIS INNOVATIVE APPROACH TO SOCIAL AND ECONOMIC REGENERATION. The community partners involved in the progressing this business case are Hunter TAFE NSW, Life Without Barriers, Compass Housing, Hunter Youth Developed in Wales, UK, to tackle the child poverty 2020, and Rotary Charlestown. rate of 33%, the program combines a ‘total place’ approach to public services with an economic These key elements are central to the Foyer development strategy based on the ‘foundational model. Foyers combine stable accommodation economy’ model of the Manchester Business with employment, education and training support, School. providing homeless young people with the necessary skills to forge independent sustainable lives. It seeks to reconnect long-term, economically inactive communities with newly created job The aim of this program is to help young people opportunities developed in partnership with local who are homeless or at risk of homelessness anchor organisations. to develop the skills they need to lead happy, independent and productive lives. By combining social procurement strategies with targeted recruitment and training of social housing tenants, it tackles the ‘cause of the causes of SPECIFIC OBJECTIVES INCLUDE: poverty’ i.e. the low level of economic activity in Reduce the number of young people cycling social housing communities. through the housing system. It also encourages more effective collaboration Increase the number of young people completing between public, private and third sector education qualifications. organisations and service providers by creating a ‘coalition for change’ that focuses on improved Increase the number of young people employment, health and educational outcomes for productively employed. marginalised communities. Compass Housing Services 18 Social Housing in NSW Discussion Paper | February 2015
COM PASS RESPONSE TO THE THREE PILLARS 1 A SOCIAL HOUSING SYSTEM THAT PROVIDES OPPORTUNITY AND 2 PATHWAYS FOR CLIENT INDEPENDENCE A SOCIAL HOUSING SYSTEM THAT IS FAIR 3 A SOCIAL HOUSING SYSTEM THAT IS SUSTAINABLE Compass Housing Services 19 Social Housing in NSW Discussion Paper | February 2015
PILLAR 1: A SOCIAL HOUSING Compass, in describing the Third Wave of Social Housing, asserts that there should be both support and incentives (social and economic) SYSTEM THAT PROVIDES for people to move towards independence. This may include a move OPPORTUNITY AND from social housing tenancy to subsidised, private rental. PATHWAYS FOR CLIENT Both tenure and rent setting models will need to be adapted to support INDEPENDENCE such a pathway approach. Those who are unable to work may still be encouraged to make a contribution (for both their own benefit and that of the broader community) through formal and informal volunteer roles. Compass already has well developed practice and strategies to support pathways to better education, better employment and ultimately private housing. PILLAR 1 A social housing system that provides opportunity and pathways for client independence. AREA FOCUS INITIATIVE PROPOSED BY COMPASS Establish and deploy education and employment plans for tenants who can work (including with limitations). Partner with Job Network providers and Registered Training Organisations. Establish social enterprises e.g. Compass’s Connect with Handy Manny on Central Coast which is planning employment. to engage suitable skilled up tenants to complete minor repairs and lawn mowing. Create employment opportunities in the local economy through social procurement practices and targeted recruitment and training of tenants Employment, education with capacity to work. and other community engagement products and services: Connect with Develop a Youth Foyer to provide structured education and accommodation, employment, education and living training. skills development for young homeless. Employ appropriate tenants as NDIS support workers – employ jobs specialist – partner with other employment providers. Connect with community Presently high outcome with tenants ‘giving back’ engagements. via volunteering. Has been involved in tenant education outcomes – more of this. TABLE CONTINUES OVER PAGE Compass Housing Services 20 Social Housing in NSW Discussion Paper | February 2015
PILLAR 1 (continued) AREA FOCUS INITIATIVE PROPOSED BY COMPASS Strengthen The FACS delivery staff are to be employed by partnerships Compass with remaining FACS staff to concentrate between CHPs on audit and QA roles. and FACS. Strengthen partnerships between Development of the Deep Place, Coalition for CHPs and Change approach to public service partnership. government Strengthen partnerships agencies. with other government agencies, non-government organisations and the Strengthen private sector: partnerships Initiate discussions about the development of with the private social housing bonds with private investors. sector. Develop more formal arrangements with specific Strengthen services providers to enable a clearer pathway partnerships of support to tenants (e.g. as utilised in The Way with the Not for Home Program). Profit sector. Develop housing-led access routes to ‘difficult to reach’ sections of the community. Develop Private Rental Headlease Program. Administer the Rental Bond Loan Program. More actively support Transition Administer the Mortgage Default Prevention clients to transition out of out of social Program. social housing: housing. Promote shared/mixed equity ownership models that are based on community accepted, fair distributive principles. Compass Housing Services 21 Social Housing in NSW Discussion Paper | February 2015
PILLAR 2: A SOCIAL HOUSING SYSTEM THAT IS FAIR Compass is committed to system that is fair, albeit within a range of housing and service settings, and that accommodates a diverse range of people. PILLAR 2 Initiatives Proposed by Compass - A social housing system that is fair. AREA FOCUS INITIATIVE PROPOSED BY COMPASS Develop a clear and Definition of Workgroup, multi-disciplined, broad based etc. measurable definition of the safety net to determine. the safety net required to to support Develop a segmented housing support model support vulnerable people vulnerable that meets the clients’ needs in ways appropriate in social housing: people. to their abilities and capacity. Tenant Relations Support Officers undertake Understanding regular visits and assessments, including referrals Improve our understanding of clients’ to appropriate services as required. of clients’ needs in order to needs. tailor programs and services, Develop evidence-based interventions. and improve wrap around support to tenants: Wrap around Develop the Newcastle NDIS Partnership. support. Prioritisation. Employability and neighbourhood resilience. Replace social housing waiting list with a housing Waiting list assistance approach that extends beyond social management. Undertake further work housing. on applicant eligibility and prioritisation, waiting list management, dwelling Develop a range of support responses ranging Dwelling allocation and rent practice: from long-term social housing tenure to allocation. transitionary tenures and private sector transition. Discounted market based rental linked to people’s Rent practice. choices and development pathways. Explore options to provide Better prepare greater tenant choices as a tenants for the Provide housing assistance aimed at supporting way to better prepare tenants private rental those who can exit into the private market. for the private rental market: market. Compass Housing Services 22 Social Housing in NSW Discussion Paper | February 2015
PILLAR 3: A SOCIAL HOUSING Housing of the most vulnerable is a central role for the social housing system. As such, social housing is often part of a broader assistance program SYSTEM THAT structured to discharge the Government’s responsibility (in some cases IS SUSTAINABLE statutory) to provide those most in need. In this context, sustainability is best defined as a search for the most efficient use of resources rather than one that can be abandoned if revenues are not sufficient. Sustainability can be defined in financial, social and political terms. The housing system must be seen as “fair” by the broader population if it is to be truly sustainable. One of the most significant and promising changes to the social housing system in the last decade has been the rapid development to scale of Community Housing Providers (CHPs) and Housing Associations (HAs). These rapidly growing not for profits, of which Compass is the biggest, are evolving to be much stronger and more private sector-like in their approach, while moderating the pursuit of profit with the effectiveness of human services delivery. These agencies provide a platform for housing assistance to be provided at the community level and articulated more easily into other social and economic initiatives. The Third Wave of Social Housing represents significant changes to the existing system with many of these initiatives reflected in the Compass Pathways Initiative, which is framed around the creation of a Newcastle Autonomous Social Housing Region. PILLAR 3 Initiatives Proposed by Compass – A social housing system that is sustainable. AREA FOCUS INITIATIVE PROPOSED BY COMPASS Redevelopment of the vacated properties. Fund the NSW Develop Social Housing Bonds. social housing system within Develop Social Impact Bonds. Explore how best to fund the existing the NSW social housing Develop commercial debt facilities. envelope. system, within the existing envelope, while Introduce mixed/shared equity schemes. ensuring transparency and accountability: Ensuring transparency Publish housing targets and progress. and accountability. TABLE CONTINUES OVER PAGE Compass Housing Services 23 Social Housing in NSW Discussion Paper | February 2015
PILLAR 3 (continued) AREA FOCUS INITIATIVE PROPOSED BY COMPASS Stock Develop and deploy a comprehensive maintenance. maintenance program. Plan for a fully sustainable The development of new stock to decant older Suitable for system which, at a minimum, tenants in underutilised stock. the needs of has stock that is maintained tenants. Establish a NDIS housing advisory service. and suitable for the needs of tenants: Consider environmental sustainability as part of Environmental the procurement strategies used in both sustainability. construction and maintenance functions. Different mix Consider the impact on the of government, sustainability of the system non- that might result from a Redesign of the Community Housing Leasing government different mix of government, Program (CHLP). and private non-government and private sector sector participants: participants. Mix and Consider the mix and modes modes of Development of a segmented service with a range of social housing products social housing of products reflecting he demographic complexity and services required to assist products and of those seeking social housing support. those in need: services. Increase the role of Increase the role of CHPs in CHPs in the Create the Newcastle Autonomous Social the management of tenants management Housing Region. and dwellings. of tenants and dwellings. Compass Housing Services 24 Social Housing in NSW Discussion Paper | February 2015
ABOUT COMPASS Compass Housing Services (“Compass”) is Australia’s largest community housing group and operates out of NSW with significant operations in Queensland. Compass employs 95 staff in the head office, with nine branch facilities and five outreach locations. Compass is a Tier 1 accredited housing provider, currently managing 3,500 properties housing 5,700 tenants in NSW, as well as another 850 properties in Queensland. From June 2015, it will manage another 4,700 dwellings in Logan City. Compass is leading the development of a national secular social housing group of organisations6 that will bring together a varied set of agencies that are deeply embedded in their communities and service a diverse range of needs. Compass recent won the management rights of the Logan Renewal Initiative with 4,700 dwellings. 5 Vision 2020, a vision for an integrated secular-based housing and other human services national brand: Concept Paper (Compass Housing) Compass Housing Services 25 Social Housing in NSW Discussion Paper | February 2015
PREVIOUSLY COMPASS HAS SECURED : AWARD S : Affordable Housing Innovations Fund 2008: 2008 Excellence Award Community Housing - $600,000 in capital funding High commendation: Service to tenants Debt Equity Scheme (2008): 2008 Excellence Award Community Housing - $1.3m in capital funding Award for Excellence: Annual Reporting Building Better Cities (2208): $660,000 in capital 2008 Excellence Award Community Housing funding from Newcastle Council - High Commendation: Overall excellence in community housing Social Housing Growth Fund Round 1 (2009): Awarded $17m in capital funding 2008 Excellence: Award Community Housing - High Commendation: Tenant participation Social Housing Growth Fund Round 2 (2009): Awarded $5m in capital funding 2009 Bronze partner status in NSW Sustainability Advantage program NRAS Round 2 (2009): $5.6m. 2010 Hunter Business Chamber Award for Growth Provider Status NSW (2010): Environmental Sustainability 1,000 properties. 2010 Excellence Award Community Housing - NRAS Round 4 (2010): $9.6m. Award for Excellence Service to tenants Office of Environment & Heritage 2011 Silver partner status in NSW Sustainability and Department of Training (2010): Advantage program $60,000 for energy efficiency training. 2011 Hunter Business Chamber Award for Asset Ownership 2010: $19.8m in stock. Environmental Sustainability Nation Building (2010): $90.3m. 2012 Finalist Hunter Business Chamber Award Now about $140m more. for Customer Service SAIF (2012): $7.4 to deliver 20 disability dwellings. 2012 Finalist Hunter Business Chamber Award for Innovation to Environmental Sustainability NRAS 5 (2013); $3.9m 2012 Finalist Upper Hunter Business Chamber 2012 Australian Housing Institute NSW Leading Practice Award 2013 NSW Federation of Housing Associations Excellence in Green Initiatives 2013 NSW Federation of Housing Associations Overall Excellence in Community Housing COMPASS HAS SIGNIFICANT FINANCIAL CAPACITY, CURRENTLY MANAGING ASSETS VALUED AT MORE THAN $1 BILLION AND WITH REVENUE OF $35M P.A. It has with net assets of $338m with debts of $25m Led by an experienced Executive, Compass has a skilled team of people dedicated to delivering better social housing outcomes across two states. Compass Housing Services 26 Social Housing in NSW Discussion Paper | February 2015
CONCLUSION COMPASS, AUSTRALIA’S LARGEST COMMUNITY HOUSING PROVIDER, WELCOMES THE NSW GOVERNMENT’S COMMITMENT TO A VIBRANT AND EVOLVING SOCIAL HOUSING SYSTEM THAT IS A SAFETY NET FOR VULNERABLE PEOPLE, PROVIDES OPPORTUNITIES AND PATHWAYS TO CLIENT INDEPENDENCE, AND IS FAIR AND SUSTAINABLE. Compass recognises the changing role of social housing within a broader housing assistance framework and is proposing a new paradigm, the “Third Wave of Social Housing” that will provide a diverse and integrated housing assistance response to different segments of the community, depending on the individual’s need and capacity. Specifically, Compass proposes the establishment of a Newcastle Autonomous Social Housing Region Initiative to begin to deploy this new approach. Compass Housing Services 27 Social Housing in NSW Discussion Paper | February 2015
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