SA Housing Trust rules overhaul as taxpayers to fund almost $40m extra to plug surge in vacant South Australian public homes

Vulnerable South Australians will be fast-tracked into empty public homes amid SA’s crippling shortage crisis as taxpayers spend almost $40m extra to fix a surge of vacant properties. Subscribe to read the changes.

Housing and Urban Development Minister Nick Champion said the Trust has been “tasked with exploring a new model to redress the challenges we face with respect to our public housing vacancy rates”. Picture: Supplied

Vulnerable South Australians will be fast-tracked into empty public homes amid SA’s crippling shortage crisis as taxpayers spend almost $40m extra to fix a surge of vacant properties.

A scathing official review published today lays bare a catalogue of failures with the almost $1bn SA Housing Trust maintenance contract exposed after an Advertiser investigation.

Amid opposition calls for an independent inquiry, the state government will announce an extra $37.1m for the Trust’s renovation budget over the next five years to tackle “deficiencies”.

The Trust review, marked “sensitive” and released after a Cabinet “noting”, found a fiasco with underperformance, customer service, disputes, communication and late orders.

Ministers have accepted all but one of the report’s six recommendations but will investigate increasing “below market rate” tradie pay, travel allowances and other financial loadings.

In a major overhaul of contractor and tenancy rules, tenants will be now free to move into a “safe, clean and functional” empty property instead of when all upgrades finish.

“Vacant property turnaround times must be improved, and homes made available to new tenants as quickly as possible,” the 22-page report concluded.

Despite trade shortages, taxpayers will also hire extra tradies, on top of contracted workers, to tackle more than 2700 weekly repair reports.

Investigators reported a 20 per cent surge in vacant Trust properties amid a “significant” backlog of late works to fix crumbling buildings despite a “consistent” volume of work.

Official figures show overdue orders peaked at 15,677 in June 2023 but had “stabilised” to more than 13,000.

“This backlog … ultimately results in tenants experiencing longer than acceptable wait times for repairs and longer turnaround times for vacant properties,” it found.

“This poor performance puts significant administrative strain on all maintenance service delivery contractors and staff.

“This backlog must be reduced as quickly as possible and improved processes – which may require additional resources – put in place.”

Despite subcontractors complaining at not being paid – and contractors being hit with secret fines – the three-month inquiry found no evidence of “systematic underpayment or payment delays”.

There was, however, “minor noncompliance” from two contractors as the report criticised “confusing rules” and urged better dispute resolutions.

There are more than 34,000 public houses in SA, making the state government the state’s biggest landlord. Picture: Brenton Edwards

“A rate increase alone will not fully address the issues … head contractor systems, processes and relationships must also be improved,” the report concluded.

The state’s largest landlord manages almost 34,000 Housing Trust rental properties, which has an average age of 44 years.

Documents released under Freedom of Information laws found common complaints were black mould, termites, failing hot water systems, derelict fencing and poor kitchens or bathrooms.

The almost eight-year contract, awarded in September 2022, hired Spotless Facility Services for Adelaide, Hills, Barossa Valley and Fleurieu Peninsula.

Torrens Facility Management covers the Riverland and South-East while RTC Facilities Maintenance (SA) manages the Far North and west coast.

The report, from Trust chairwoman Mary Patetsos, Renewal SA chairman Stephen Hains, SA Water’s leader Alan Holmes and Department for Housing and Urban Development chief executive David Reynolds, does not name and shame providers.

Housing Minister Nick Champion said the Trust has been “tasked with exploring a new model to redress the challenges we face with respect to our public housing vacancy rates”.

“For the first time in a generation the Malinauskas Labor Government is improving the quality and quantity of public housing in this state,” he said.

“This funding is an important first step to begin tackling the deficiencies within our maintenance program.”

Housing and Urban Development Minister Nick Champion said Labor was investing in public homes. Picture: Supplied

Michelle Lensink called for an overhaul in 2023 Picture: Russell Millard Photography

Opposition spokeswoman Michelle Lensink, who in 2023 called for fast-tracking of tenants into suitable homes, reiterated calls for the spending watchdog, Auditor-General Andrew Blaskett to independently investigate failures.

“Labor has now been in power for three years of a four-year term,” she said.

“For the sake of housing trust tenants who need maintenance done, they need to take full responsibility for failures currently taking place.”

Originally published as SA Housing Trust rules overhaul as taxpayers to fund almost $40m extra to plug surge in vacant South Australian public homes