Human Services Minister Michelle Lensink reveals report into Housing SA finances
HOUSING SA has sold about $1.5 billion worth of properties over the past 15 years and served as a “cash cow” for the previous Government to “prop up the Budget”, the new minister says.
HOUSING SA has sold about $1.5 billion worth of properties over the past 15 years and served as a “cash cow” for the previous Government to “prop up the Budget”, says the new minister.
Human Services Minister Michelle Lensink told The Advertiser a report to be released today paints a worrying picture of the public housing provider’s financial position.
Ms Lensink said the report by PwC – a three-yearly review required by law – reveals that Housing SA’s cash balance plummeted from $397 million in 2015-16 to $205 million in 2016-17.
Government figures show that of the $1.5 billion million worth of properties sold – or about 7500 houses – only about five per cent were bought by existing tenants.
The backlog of maintenance work on the remaining 33,000 Housing SA properties has blown out to at least $700 million.
“The housing system in SA has been used as a cash cow,” Ms Lensink said yesterday, adding: “The asset base has been used and neglected. (It) has just been used by the (previous) Government to prop up the Budget,” she said.
Ms Lensink said the report stated Housing SA had increased property sales, eaten into its cash surplus and stalled maintenance spending.
She said as much as $27,000 needed to be spent on individual houses to upgrade kitchens or bathrooms that were first built in the 1950s or 1960s.
The PwC report is also expected to show that as the public housing stock shrinks the number of South Australians experiencing housing stress has grown from about 22 per cent to almost 40 per cent over the past decade. Those under housing stress spend more than 30 per cent of their income on keeping a roof over their head.
About 4000 people are in urgent need of public housing, despite almost 2200 properties becoming available last year.
The former Labor Government committed $200 million to build 1000 new public homes, which are still being constructed. Ahead of the March state election, Labor promised an extra $150 million to build 600 more homes.
In April, two inspectors began an audit of Housing SA properties to determine their condition and the extent of necessary maintenance. It is the first full scale audit in 15 years. Ms Lensink said the audit was expected to take two to three years, as the inspectors moved “house by house” through the system.