New round of funding for ­community housing providers

The government’s bond aggregator has unveiled a second round of funding for ­community housing providers valued at $315m.

National Housing Finance and Investment Corporation CEO Nathan Dal Bon

The federal government’s bond aggregator has unveiled a second round of funding for ­community housing providers valued at $315m.

The National Housing Fin­ance and Investment Corporation’s new round of loans will support the financing of more than 2000 properties, incorporating more than 360 new social and affordable dwellings, and will bring the bond aggregator’s total loan pool to social bonds to more than $800m.

Seven community housing providers across the country have been approved for the loans, including Bridge Housing ($51.14m) in NSW, Victorian companies HousingFirst and the Port Phillip Trust (total $72m), Haven Home Safe ($65m) and Housing Choices Australia ($55m) in Victoria, Churches of Christ ($4.86m) in Queensland, Foundation Housing ($35m) in Western Australia and South Australia’s Anglicare ($32m).

NHFIC chief executive Nathan Dal Bon said investors had been driving the strong demand for loans.

“NHFIC is very pleased with the strong level of demand from both local superannuation funds and offshore investors for its bonds and to see CHPs from around Australia benefiting from NHFIC’s finance,” he said.

“Super funds have an increasing desire to invest in social and affordable housing in Australia and NHFIC’s bonds provide them with an opportunity to do this at scale.

“These bonds have also drawn commitments from significant international investors, which is further evidence of community housing emerging as a new investment asset class in Australia.”

Loans in this round will be given with a fixed interest rate of 2.07 per cent on a 10.5-year interest-only period. The low figures are anticipated to save community housing providers about $50m in interest payments over the decade.

ANZ has again partnered with the NHFIC for funding round.