‘Very disappointed’: Shock over social housing groups’s sell-off plan

The Housing Minister has vowed to investigate the decision by a social housing provider – partly owned by the state government and Brisbane City Council – to sell an entire unit block in the midst of the housing crisis.

A Brisbane-based social and affordable housing provider – partly owned by the state government and Brisbane City Council – has made the extraordinary decision to sell an entire inner-city apartment block in the midst of the housing crisis.

Housing Minister Leeanne Enoch slammed the decision to sell the 27 apartments and vow­ed to investigate how the independent charity engaged with shareholders in the future.

The Brisbane Housing Company (BHC) says proceeds of the sale of the Kelvin Grove apartment complex will be used to build 110 new units in the city.

The controversial decision prompted calls from former Labor housing minister Robert Schwarten for a parliamentary inquiry into the BHC, claiming it was never set up to “run its own race”.

The entire School Street, Kelvin Grove complex is up for grabs. Picture: Ray White

The revelations of the sell-off sparked a sharp rebuke on Wednesday from Ms Enoch, who hit out at the HBC, saying she was “very disappointed” by the decision of the organisation’s board.

The Queensland government and the city council are both ordinary shareholders of the BHC, which is an independent charity.

Ms Enoch said she and Lord Mayor Adrian Schrinner had agreed, as joint shareholders, to “look into” how BHC engaged with the council and the state government going forward.

“At a time of obvious housing stress, when the Department of Communities and Housing has deliberately paus­ed its own business-as-usual divestment strategy, the sale of these properties is ­extremely disappointing,” Ms Enoch said.

“I recognise it is an independent decision of the board.”

BHC chief executive Rebecca Oelkers said the proceeds from the sale of the School St property would provide 32 new, purpose-built units that would be ready by March 2023.

“Additionally, the sale will leverage a further 78 units in Yeronga planned for completion in 2024,” she said.

“Together with the Department of Housing, and other strategic partners, BHC has plans to increase the supply of social and affordable housing by 2000 homes by 2025.”

Labor MP for Cooper, Jonty Bush, also criticised the sale of the apartments – which fall within her electorate.

“Everyone knows that we’re in the middle of an affordable housing crisis,” she said.

“If these units are sold now we will lose them forever and never replace these affordable housing options in the inner city.”

BHC is selling their Kelvin Grove unit block to fund social housing in other parts of Brisbane. Picture: Ray White

The BHC says a 2016 review of its portfolio, as well as feedback from School St residents, found the building’s design and accessibility meant it was no longer appropriate for affordable and social housing.

For the past five years, the apartments have been rented on the private market.

Mr Schrinner said the council wanted to see “more affordable, secure housing” made available to the city’s residents – not fewer.

Mr Schwarten, who was a minister in the Beattie and Bligh governments said: “It’s now 20 years since I set it (BHC) up. It’s time there was a review of it.”