Athletes’ villages to be excluded from $2b social housing fund

Victoria will not funnel its share of the $2 billion social housing fund into Commonwealth Games infrastructure and will only be able to renovate existing stock considered uninhabitable under a deal to be finalised with the Albanese government by the end of the week.

The terms are designed to ensure most of the $496 million in federal money set aside for Victoria will go towards dedicated new social housing supply and not existing social housing or, as some feared, regional athletes’ villages that won’t enter the market until well after the Games are completed in March 2026.

Premier Daniel Andrews (left) and Prime Minister Anthony Albanese at a recent national cabinet meeting in Brisbane.Credit: Dan Peled

Tender documents seen by The Age state an indicative handover date for legacy Commonwealth Games housing of April 2027, due to expected landscaping, repair and refurbishment works.

Earlier this week, the federal government had not ruled out allowing Victoria to use the social housing fund for Games infrastructure, much to the frustration of local councils and housing groups. But under the deal, Victoria will not be allowed to use the funding for the athletes’ villages.

A federal government spokeswoman confirmed Victoria was on track to receive its $496 million by July 1.

“States have some flexibility in how they use the funds to boost social housing stock,” she said.

Master Builders boss Tristan Moseley said he expected the cash injection to deliver 1200 homes, based on what the Victorian government’s Big Housing Build had been able to deliver so far.

One Labor MP, speaking on the condition of anonymity to discuss internal matters, warned the figure may be as low as 700 or so homes, but the government would have more to say on housing later this year. The MP added there was a push among the Labor caucus for the government to prioritise two- and three-bedroom apartments.

Those suggested figures would put the average cost to deliver each new home somewhere between $400,000 and $700,000.

A Victorian government spokesman said Homes Victoria was still establishing which projects the money would go to. “However, the Victorian government has no plans to spend the additional funding on Commonwealth Games infrastructure.”

Premier Daniel Andrews last week said the federal funds would be used to purchase existing properties, upgrade current social housing stock and build new homes, but would not be drawn on any specific breakdown.

A full itemisation of state spending will be provided to national cabinet in August. About the same time, Victoria will deliver a housing statement that is expected to include planning reforms and an Airbnb crackdown.

State Deputy Opposition Leader David Southwick urged the government to hand down its housing statement as soon as possible.

“We need a plan as to where these homes are going to be built, what these homes look like and, ultimately, who’s going to have them,” he said.

Property Council boss Cath Evans said the Commonwealth’s $496 million cash injection should be spent on as many new social housing dwellings as possible.

“These funds urgently need to be deployed now so they can be used to help solve Victoria’s housing crisis sooner rather than later,” she said.

Tenants Victoria chief executive Jennifer Beveridge said any boost to community and public housing stock would be welcomed.

However, she urged the government not to forget legal support services as part of its broader housing package, arguing they were an “early intervention against homelessness and a bulwark against evictions”.

Moseley said the housing statement should include projects for smaller builders and residents in regional Victoria. He added that red tape should be cut to reduce the delays and costs associated with building new homes.

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