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Viability and future role of small and medium sized community housing organisations

Viability and future role of small and medium sized community housing organisations. Presentation to Shelter Tasmania Bringing Housing Together Forum. Eddy Bourke 13 July 2011. Overview. What Shelter Tasmania wanted (and what you thought you might hear about): Models for mergers

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Viability and future role of small and medium sized community housing organisations

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  1. Viability and future role of small and medium sized community housing organisations Presentation to Shelter TasmaniaBringing Housing Together Forum Eddy Bourke13 July 2011

  2. Overview • What Shelter Tasmania wanted (and what you thought you might hear about): • Models for mergers • Pros and cons of consortia/alliance models • Is big always beautiful? • Future of small and medium community housing organisations—survival or extinction? • Where to?... • What I’ll actually talk about: • The project that CHFA completed this year that looked at the viability and future role of small and medium community housing organisations (SMCHOs)

  3. Who are we talking about? Neighbourhood housing providers: • Are small to medium providers (generally less than 250 properties); • Have close connections to a place-based local community; or • An affinity with the aspirations and needs of a niche or specific community of tenants. Examples include people exiting homelessness, people with disabilities, and other groups with defined experiences, aspirations or needs for housing and/or support.

  4. National regulatory framework • Currently being COAGulated • NSW have carriage over these negotiations (not the Commonwealth) • Will have common legislation across different jurisdictions with mutual recognition • The system will be tiered, and the structure will reflect organisational risk.

  5. Australian sector profile • Latest AIHW data (as at 30 June 2010): • 959 mainstream community housing dwellings managing nearly 46,000 dwellings under the NAHA • 88% of organisations manage less than 50 dwellings, whilst just 5% manage 200 or more • Tasmania has 89 organisations managing 1,103 dwellings

  6. Economies of scale • There are a range of views on economies of scale • KPMG modelling: 75% of providers (i.e. those managing less than 20 dwellings) do not have the capacity to form sufficient economies of scale • NSWFHA: important future for smaller providers • FaHCSIA: ‘ideal size’ is 5,000

  7. Sector consultation • Discussion paper October 2010 • National consultation workshop in Brisbane November 2010 • Semi-structured interviews (March 2011)

  8. What we found • Strengths of SMCHOs • Challenges to viability • Aspirations for growth • Barriers to growth • Innovations for viability and growth

  9. Collaboration approaches

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