Hobart City Deal delivers $30 million to build 130 new houses

Four social housing providers will share $30 million to build more than 130 new properties in the South as part of the long-awaited Hobart City Deal.

Housing Minister Roger Jaensch and Premier Will Hodgman welcome the $30 million funding announcement.

FOUR social housing providers will receive a share in $30 million to build more than 130 new properties in the South as part of the long-awaited Hobart City Deal.

Housing Choices Tasmania, Community Housing Limited and CatholicCare Tasmania will receive $8 million each to build a total of 104 houses, while the Supported Affordable Accommodation Trust will receive $6 million to build 27 homes for people with a disability.

CatholicCare executive director Tim Gourlay said his organisation planned to build social housing for priority applicants in Chigwell, Glenorchy and Claremont.

“For $8 million, we believe we’re going to add another $9 million of value — so more than double that [investment] — and deliver 55 affordable and social homes for that $17 million,” Mr Gourlay said.

EDITORIAL: FINALLY, OUR DEAL IS READY

Announcing the deal on Friday, Clark independent MHR Andrew Wilkie said he had been lobbying the Federal Government since last year for funding for affordable housing in the South.

Federal member for Clark Andrew Wilkie. Picture: LUKE BOWDEN

“The reason these four service providers have been chosen is because of their assurance that they have projects that are virtually ready to go,” Mr Wilkie said.

“At least one service provider already has the land … but they’ve all come forward with proposals that are either shovel-ready or almost shovel-ready.”

Tasmania loses about $15 million a year out of its housing budget due to a historic debt racked up between the 1950s and 1980s when it borrowed money from the Commonwealth to increase its public housing stock.

Tasmanian Liberal senator Eric Abetz said that debt, worth about $170 million, was “continually on the agenda” for the Federal Government but would not elaborate on the nature of those discussions.

Senator Eric Abetz.

State Housing Minister Roger Jaensch said he continued to lobby for relief on the debt.

“Maybe if we Tasmanians make very good use of this $30 million we can show the feds how good an investment releasing some of that other money back to us would be as well,” he said.

Franklin Labor MHR Julie Collins said the funding announcement was too little, too late, pointing to Labor’s alternative affordable housing strategy as building “thousands” of new properties.

But she said the Opposition would only honour the $30 million deal if it was in the April budget.

“This announcement today is barely a drop in the ocean compared to what is required to make up for six years of inaction,” she said.