Goal: Providing support for low to moderate income households in the private market

The Department of Housing assists low to moderate income households to access and sustain private rental accommodation and home ownership. It offers a range of loans and grants, such as Bond Loans and Mortgage Relief, direct to the public. Community organisations also receive funding from the department to provide:

• information, advocacy and advice to tenants,
• information and referrals for home maintenance, repairs, modifications and home security for people with a disability and for people 60 years and over, and
• home modifications for frail-aged people and people with a moderate or severe disability to prevent their premature entry into a hostel, nursing home or similar institution.

Further, the department is developing a range of new products and services to broaden the range of assistance options provided to low-income households in the private market.

Providing assistance to help households access or maintain home ownership or private rental accommodation

The department provides loans and grants to assist households to access or maintain accommodation in the private market. In 2007-08, the department provided:

• 13,676 interest-free bond loans, at a cost of $12.5 million, to people who could not afford to pay a full bond to enable them to move into private rental accommodation,
• 1,218 rental grants, at a cost of $0.5 million, as a once-only payment of two weeks rent to help meet some of the costs associated with moving into private rental accommodation. This product is offered to people exiting crisis accommodation, correctional centres, community-based rent schemes and mental health facilities, as well as people subjected to domestic violence,
• 13 housing loans, at a cost of $0.8 million, for new home owners who had difficulty obtaining finance from a bank, building society, or other financial institution to purchase a home,
• 13 Mortgage Relief loans, at a cost of $0.1 million, for eligible home purchasers who suffered an unexpected change in their circumstances and were having difficulty in maintaining their regular mortgage repayments. Mortgage Relief offers short-term assistance by way of an interest-free loan of up to $12,000, and
• 70 social rental housing tenants with financial assistance to purchase the departmental property they were renting through the Sales to Tenants program.

At 30 June 2008, the department was managing a:

• Bond Loan portfolio consisting of 27,024 accounts, and
• Home Loan portfolio comprising 2,227 accounts. This includes a portfolio of 1,254 Rental Purchase Plan accounts. During 2007-08, 451 housing loan accounts were paid out as a result of sales, refinance or natural payouts of accounts. The department renegotiated with four rental purchase plan clients to finance and purchase additional shares in their property at a cost of $0.1 million.

The department granted $4.1 million to non-profit community organisations and local councils to operate Tenant Advice and Advocacy Services. These services provide tenants with access to information, advocacy and advice regarding their rights and responsibilities under the Residential Tenancies Act 1994 and the Residential Services (Accommodation) Act 2002. The program provides, where appropriate, information and referral to people in housing need to access safe, secure and affordable housing. These providers assisted 71,088 people in 2007-08.

In addition to annual funding, a further $0.8 million was allocated to 22 of the 24 Tenant Advice and Advocacy Service (Queensland) registered providers to assist clients affected by closures of residential services facilities.

A client satisfaction survey for the Tenant Advice and Advocacy Service (Queensland) was completed in August 2007. Results of this survey showed:

• 96% of participants were either satisfied or very satisfied with the service they received,
• 98% of participants were satisfied or very satisfied with the quick response from the service, staff's understanding of their situation and needs, and the ability of staff to make them feel comfortable and at ease, and
• 97% of participants were either satisfied or very satisfied with the knowledge and expertise of the staff member who spoke to them.

To assist aged people and people with a disability to remain in their homes, in 2007-08 the department funded community organisations to:

• assist 60,910 households through Home Assist Secure services with free information and referral relating to home maintenance, repairs, modifications and home security, at a cost of $14.3 million. Subsidised assistance with minor home maintenance, repairs, modifications and security is also available for eligible clients who are in receipt of an Australian Government pension or benefit, and are unable to make use of alternative assistance, and
• undertake 969 modifications to homes under the Home and Community Care Home Modification Service to prevent premature entry into a hostel, nursing home or similar institution, at a cost of $5.5 million. This service provides information, assessment, project management and/or financial assistance with home modifications.

Helping people remain in their own homes

Many people need just a little help to remain safe and secure in their own homes. To support older people and people with a disability, the department funds Home Assist Secure services across Queensland. In 2007–08 alone, approximately 61,000 households used these services.

Delivered by 41 providers throughout the State, Home Assist Secure offers free information and referrals on home maintenance, repairs and modification, fall prevention and home security. Minor home modifications such as installation of smoke alarms, hand-held showers, window locks, non-slip floors, grab rails and ramps are also available through this service.

Homessa Inc., a community organisation which has delivered Home Assist Secure services to residents in the Maryborough, Cooloola, North and South Burnett areas since 1993, has assisted 4,372 households with 8,683 Home Assist Secure services in 2007–08. Of the clients assisted, three and a half times more women than men aged over 60 utilised the service, and 63% of these clients had a disability.

Ms Colleen Ensor, Program Coordinator of Homessa Inc., said that Home Assist Secure takes the worry out of home maintenance for many older people and people with disabilities. “People can trust Home Assist Secure to deliver a quality, trustworthy service,” Ms Ensor said.

Developing options to assist clients to access or sustain private market tenure

As part of the realisation of one social housing system, the department announced in April 2008 the RentConnect scheme, which will provide housing assistance to people in the private rental market. RentConnect expands the range of housing assistance offered by the department and provides helpful hints on how to find rental homes in the private market.

Assistance will be available to clients through the trial of the RentConnect Advisory Services in the department's Central Queensland and Caboolture area offices from late September 2008. The RentConnect Advisory Service will provide assistance tailored to a client's circumstances, and may include:

• information and education about seeking a tenancy,
• advice and coaching on the application process for a private tenancy,
• assistance with finding suitable properties,
• assistance with collating documents for applications,
• referrals to real estate agents, and
• referrals to obtain community assistance.

Two other RentConnect products will be trialled in the same locations in 2009:

• an interest free loan to help with some of the costs involved in establishing a new private rental tenancy which may be used to cover rent in advance, moving costs and the expense of connecting utilities such as gas and electricity, and
• a tenancy guarantee which is a commitment by the department to compensate landlords up to $1,000 for unpaid rent or property damage, which exceeds the rental bond.

In 2007-08, the department invested $1.5 million to introduce the Pathways Shared Equity Loan product to provide tenants who were no longer eligible for social housing with the opportunity to purchase their social rental property if they were able to do so.

Under this loan offering, the prospective home buyer can apply for a loan to purchase a share of their rental home and enter into a co-ownership agreement with the department, who retains the remaining share. The tenant must purchase a minimum 60% share of the property and they can gradually increase their share over time depending on their financial circumstances.

Information about the Pathways Shared Equity Loan was sent to potentially eligible tenants in early 2008 as to how the loan works and providing a contact point for enquiries. As at 30 June 2008, there had been 452 enquiries for this product.

Social housing tenants become home owners

More social housing tenants have been able to realise the great Australian dream of home ownership this year.

Through a Pathways Shared Equity Loan available from the department, eligible tenants have taken the opportunity to purchase a share in the departmental property they are renting. Tenants must purchase a minimum 60% share of the property, with the opportunity to buy further shares over time. All applicants undergo a thorough assessment process to ensure the loan is suited to their circumstances.

Carolyn, who had been a social housing tenant for four years, worked with the department to secure the Stafford property she and her 13-year-old daughter were living in by taking up this opportunity.

“The loan is a fantastic option for tenants seeking home ownership like me who cannot afford to take out a full mortgage, but can repay a smaller loan,” Carolyn said.

“My daughter starts high school next year, and is feeling happy and secure knowing that we won't be required to move. So, she'll be able to start and stay in the same school until she finishes her schooling.

“The loan for us represents not only security for the future, but also freedom to do certain things, like choosing paint colours for the walls!”

During 2007-08, the department continued its trial of the Rent Start program in the Gold Coast and Sunshine Coast regions. Rent Start assists clients transition from social housing into the private rental market by securing private rental properties for clients on the wait list for long-term social housing, but assessed as able to remain in the private market.

Funding of $10 million, over a four-year period, has been committed to facilitate the program's delivery through community housing providers. Approximately 600 potentially eligible applicants on the wait list for the Gold Coast and Sunshine Coast were contacted by the department with details on the Rent Start program, with a total of 47 applicants expressing an interest and being referred to community housing providers. A total of 23 housing solutions in the private rental market were provided on the Sunshine Coast and the Gold Coast at a total cost of $0.5 million.

In 2008-09, the trial will be extended to Cairns and Townsville.

Assisting the clients and owners/operators in the supported accommodation and residential services industry

In 2007-08, the department purchased 11 dwellings under the Crisis Accommodation Program, at a cost of $3.3 million, to provide housing options for people displaced through the closure of Level 3 private residential services in the Central Queensland Coast and in North Queensland. In addition, grant funding totalling $1.9 million was provided to 18 registered transitional housing providers across Queensland to assist people displaced by closures of Level 1 and 2 private residential services.

The department assisted the supported accommodation industry to meet the costs of installing sprinkler systems to comply with fire safety standards. A grant product was targeted to Level 3 providers who accommodate people who would require assistance to evacuate the accommodation in an emergency. As at 30 June 2008, eight grant applications were approved at a cost of $0.1 million.

During 2007-08, the Department of Housing also led the whole-of-Government response to 14 confirmed closures of private residential services. The department assisted 72 residents affected by the closures by assessing their needs and providing assistance with alternative accommodation and support options available through government and community agencies.

Measuring our performance

Households assisted to access or sustain private market accommodation

The following provides a breakdown of the households the department has assisted over the past three years.

Measure: Key measure from the department's Strategic Plan 2007-2012 and an output measure from the Ministerial Portfolio Statement 2007-08.

Private housing assistance clients satisfied with the overall level of service from providers

Source: Surveys.

Registered providers

Measure: Output measure from the Ministerial Portfolio Statement 2007-08.

Timeliness measures

Measure: Output measures from the Ministerial Portfolio Statement 2007-08.

2008-2013

The department will continue to provide support for low to moderate income households in the private market. The initiatives to achieve this goal are to:

• assist households to access the private rental market or home ownership
  • provide financial assistance to help eligible households access home ownership or private rental accommodation, and
  • deliver products to assist clients to access the private market, including those transitioning out of social housing
• assist households to maintain private rental tenure or home ownership
  • provide financial assistance to help households maintain home ownership,
  • deliver products to assist clients to sustain private market tenure,
  • deliver maintenance and modification services to assist people to remain in their own homes, and
  • fund advice and advocacy services to assist households in the residential rental market with information, advocacy and advice regarding their rights and responsibilities.

Key measures

• Total number of households assisted to access or sustain private market tenure.
• Percentage of private housing assistance clients satisfied with the overall level of service from providers.