Housing Affordability Fund
The Housing Affordability Fund is being established to assist up to 50,000 new home buyers across Australia over 5 years by lowering the burden of infrastructure and regulatory costs built into the purchase price of a new home.
The Housing Affordability Fund will address two significant 'supply-side' barriers to housing development: 'holding costs' associated with the time taken by planning and approval processes and the impacts of fees and charges to support infrastructure. Grants will target greenfield and infill areas where high dwelling demand currently exists and is forecast in the next five years. Criteria for assessing applications will be agreed between the Australian, state, territory and local governments.
As part of the Fund, the Government will invest up to $30 million, to roll out nationally electronic development assessments (eDAs) and online tracking services. This will improve the lodgement and assessment of development applications, reducing processing times and holding costs associated with new developments.
The Housing Affordability Fund will commence from 1 July 2008 and will be distributed by direct grants to local governments based on a competitive application process. Proposals will be assessed against transparent, needs-based selection criteria, with innovative development specific proposals that cut development costs or that result in broader reform also being considered. The Fund will encourage collaboration between states, territories, local government and industry.
Total Government Funding
$512 million over five years ($359 million over the next four years).