1. Parliamentary Internship Project
Better Housing Futures transfers in Tasmania
The advantages and disadvantages of ownership transfers compared to
management transfers of public housing to community housing
providers, and the effect on the State’s balance sheet.
Emmanuel Gruzman
October 2014
Parliamentary Supervisor: Rebecca White MP.

2. I
Executive summary
Under the initiative Better Housing Futures, between March 2013 and July 2014, Housing
Tasmania transferred the management of 3911 public houses, in two stages, to four
community housing providers.
One question arises: should ownership transfer follow. The report addresses this question,
divided in two aspects:
1. By discussing and understanding the advantages and disadvantages of ownership
transfer and all the implications deriving from such transfer.
2. By calculating the effect of ownership transfer on the State’s balance sheet. This
includes the possible effect ownership transfer can have on the State’s credit rating.
The methodologies utilised for this project are in-depth interviews with relevant actors and
agencies involved in the transfers of Better Housing Futures in Tasmania, community housing
providers, peak bodies and housing federations from other States. An extensive literature
review was also performed upon academic and government documents concerning both the
Better Housing Futures transfers as well as ownership and management transfers in other
States and countries.

3. Table of Contents
Executive summary.....................................................................................................................I
Findings.................................................................................Error! Bookmark not defined.
Recommendations ................................................................Error! Bookmark not defined.
Acknowledgments.....................................................................Error! Bookmark not defined.
List of tables.................................................................................................................................
Acronyms .....................................................................................................................................
1 Introduction........................................................................Error! Bookmark not defined.
1.1 Aims of this report ......................................................Error! Bookmark not defined.
1.2 Methodology...............................................................Error! Bookmark not defined.
2 (Dis)Advantages of title versus stock transfer ..................Error! Bookmark not defined.
2.1 Leveraging assets ......................................................Error! Bookmark not defined.
2.1.1 Interest Cover Ratio............................................Error! Bookmark not defined.
2.1.2 Loan to Value Ratio ............................................Error! Bookmark not defined.
2.2 Commonwealth Rent Assistance...............................Error! Bookmark not defined.
2.2.1 Sign-ups and rent settings..................................Error! Bookmark not defined.
2.3 Social versus affordable housing...............................Error! Bookmark not defined.
2.3.1 Transfer of vacant land and growth targets........Error! Bookmark not defined.
2.4 Realignment versus growth .......................................Error! Bookmark not defined.
2.5 Property management versus property renewal .......Error! Bookmark not defined.
2.6 Housing Tasmania’s strategic plan............................Error! Bookmark not defined.
3 Effect on the State’s balance sheet...................................Error! Bookmark not defined.
4 Findings .............................................................................Error! Bookmark not defined.
5 Recommendations.............................................................Error! Bookmark not defined.
References.................................................................................................................................1
Interviews..................................................................................Error! Bookmark not defined.

4. List of tables
Table 1: Tenanted public housing management and asset transfers 1995–2012, completed
transactions (dwellings) ............................................................Error! Bookmark not defined.
Table 2: Social Housing Initiative, completed transfers as at September 2012 ...............Error!
Bookmark not defined.
Table 3: Number and proportion of income units receiving CRA paying more than 30 per cent
of income on rent, with and without CRA, 2013.......................Error! Bookmark not defined.
Table 4: Median CRA entitlement, by location, 2013...............Error! Bookmark not defined.
Table 5: Yearly CRA income according to the progress of transferred leases ................Error!
Bookmark not defined.
Table 6: Public housing density and the average age of the dwellingsError! Bookmark not
defined.
Table 7: Misaligned dwellings in the Better Housing Futures transfersError! Bookmark not
defined.

5. Acronyms
BHF Better Housing Futures
CEH Centacare Evolve Housing
CHFA Community Housing Federation of Australia
CHL Community Housing Limited
CHP Community Housing Provider
COAG Council of Australian Governments
CRA Commonwealth Rent Assistance
CSHA Commonwealth-State Housing Agreement
DHHS Department of Health and Human Services
FaHCSIA Families, Housing, Community Services and Indigenous Affairs
IRC Interest Cover Ratio
LVR Loan to Value Ratio
NAHA National Affordable Housing Agreement
NBESP Nation Building - Economic Stimulus Plan
NFP Not-For-Profit
NRAS National Rental Affordability Scheme
SHI Social Housing Initiative
REIA Real Estate Institute of Australia
RFP Request For Proposal
RFT Request For Tenders
RMA Residential Management Agreement
RTA Residential Tenancy Agreement
SCRGSP Steering Committee for the Review of Government Service Provision
SDA Sales and Development Agreement
SHA State Housing Agency
SOMIH State Owned and Managed Indigenous Housing
TAHL Tasmanian Affordable Housing Limited

6. 1
References
Australian Government 2014a, Rent Assistance, Department of Human Services, viewed 13
August 2014, <www.humanservices.gov.au>.
----- 2014b, Programmes that duplicate State responsibilities, National Commission of Audit,
viewed 17 September 2014, <www.ncoa.gov.au>.
----- 2014c, National Rental Affordability Scheme, Department of Social Services, viewed 15
August 2014, <www.dss.gov.au>.
Community Housing Federation of Australia (CHFA) 2008, The National Affordable Housing
Agreement: a community housing perspective, pp. 1-31, viewed 12 September 2014,
<www.chfa.com.au>.
----- 2014, Allocation, eligibility, and rent setting in the Australian community housing sector,
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Council of Australian Governments (COAG) 2008, National Affordable Housing Agreement,
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----- 2009, Implementing the national housing reforms: a progress report to the council of
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<www.dhhs.Tasmania.gov.au>.
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23 September 2014, <www.dhhs.Tasmania.gov.au>.
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Department of Human Services 2009, ‘Implementing the national housing reforms’, A
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2014, <www.kpmg.com>.

7. 2
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