Mackay Regional Council to vote on $18m transfer in housing stock to Blue CHP

A big change to Mackay’s housing landscape is on the horizon with councillors to decide whether to allow a Brisbane company to take majority ownership, potentially unlocking 19 new dwellings.

Mackay Regional Council will vote on June 21 on whether to transfer ownership of its $18m social housing portfolio to Blue CHP. Photo: Zoe Devenport

A Brisbane-based Tier 1 housing provider is on the cusp of leading social housing development in Mackay.

Councillors will vote this week on whether to transfer majority ownership of Mackay Regional Council’s $18.6m social housing portfolio to Blue CHP, a community-housing and specialist disability accommodation company that has delivered 1900 social homes across Queensland and NSW.

Greater Whitsunday Housing Project leader Tonia Wilson said the council’s move to bring in Blue CHP would attract more state government and federal funding for affordable homes.

“Blue CHP is a Tier 1 community housing provider which means they can actually develop affordable housing in our region,” she said.

“They are the only Tier 1 CHP in the whole of the country that is currently working within our region.

“The partnership with Blue CHP is absolutely critical to unlocking additional housing stock within our region and accessing that state and federal funding.”

Mackay Regional Council owns the four units at 11 Kate St in East Mackay. Picture: MRC

There are presently 90 properties, spread from Finch Hatton to Bucasia, under the control of Mackay Regional Housing Company Ltd.

The council established the not-for-profit company in 2009 to encourage social housing development. The council thereafter typically provided the land and the state government the funds for buildings.

The vote on Wednesday will decide whether Blue CHP will become the majority shareholder of the company, which originally had 10 shareholders, a mix of council, not-for-profit and commercial actors.

Blue CHP would be allocated four shares, the council two and one for Greater Whitsunday Communities.

It is understood there would not be any change to the agreements in place for tenants who occupy the properties.

Documents state the council would retain substantial sway over major decisions at the new company.

Mackay Regional Council owns the land at 49-53 Bucas Drive in Bucasia. Picture: MRC

“Significant work has been undertaken to ensure that any critical decisions require full majority approval, meaning Mackay based approval,” the June 21 council meeting agenda states.

“For example, asset disposal of more than 10 per cent needs 75 per cent majority approval.

“Given that Blue CHP are making a major investment by becoming involved with the Company it was seen as reasonable that they held day-to-day control by virtue of director numbers etc, however again the key decision of concern regarding assets has been controlled by requiring large majority (75 per cent) approval.”

The council will also vote on whether to offload seven parcels of land to the company for 19 new dwellings.

“Noting the current housing crisis, the opportunity to secure funding and provision of up to 19 dwellings is a significant project for the Mackay community,” agenda documents state.

The seven plots of land are at 1 Coles Road and 84, 86 and 88 Bedford Road in Andergrove and 49, 51 and 53 Bucas Drive in Bucasia, with a total value pegged at $752,000.

“The proposed building projects will be fully covered by either the Queensland Housing Investment Growth Initiative funding or financing by the Housing Company,” the document states.

The National Regulatory System for Community Housing grants community housing providers a Tier 1 status if they operate at a large scale and show excellence in delivering social housing.

Originally published as Mackay Regional Council to vote on $18m transfer in housing stock to Blue CHP