Social Bond Report 2023–24
Message from the Chair and CEO
In October 2023, the Australian Government expanded our mandate, at the same time renaming the organisation Housing Australia (formerly the National Housing Finance and Investment Corporation).
The expanded mandate includes primary responsibility for co‑investment financing to support the delivery of 40,000 social and affordable homes through the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF); as well as an additional $1 billion for the National Housing Infrastructure Facility (NHIF) targeting social housing for specific cohorts. These programs will help deliver social and affordable homes to Australians in need, including dwellings for women and children escaping domestic violence, Veterans, First Nations people and key workers.
Together with the Affordable Housing Bond Aggregator (AHBA), the HAFFF and NHAF are expected to support a pipeline of eligible projects meeting Housing Australia’s Sustainability Bond Framework and translating into Housing Australia becoming a regular issuer of social and sustainability bonds.
As an issuer, we exclusively issue social and sustainability bonds and are uniquely positioned to provide concessional finance to the community housing sector. Our programs also help establish the viability of social and affordable housing as an asset class in Australia.
Since 2019, Housing Australia has issued a total of $1.8 billion in social bonds to finance social and affordable housing.
Housing Australia also issued sustainability bonds in June 2021 and November 2023, collectively valued at $0.9 billion, reflecting the environmental benefits of new projects and the creation of sustainable communities.
In 2023–24, Housing Australia approved $876.8 million for social and affordable housing through the AHBA, with $484 million raised via three bond issuances (including taps to existing bonds), providing more than 2,400 homes for Australians in need over the past year. By securing concessional and longer tenor finance through the AHBA, these CHPs are estimated to save $140 million in interest savings over the period of their AHBA loans.
This report provides transparency to investors of Housing Australia’s bonds and forms a key disclosure requirement under Housing Australia’s Sustainability Bond Framework.
As the sustainability landscape continues to evolve globally and domestically, Housing Australia is maturing its sustainability approach. In the year ahead Housing Australia will develop its Sustainability Strategy to outline its focus and performance metrics to the market and stakeholders.
2023–24 highlights
- Opened first funding round of the Housing Australia Future Fund Facility and the National Housing Accord Facility programs
- $876.8m loans to CHPs approved by Housing Australia Board, supporting 2,400+ social and affordable homes
- $140m Estimated interest and fee savings for CHPs4
4. The total interest savings amount reported is a projection calculated at the time of approval and may vary to the final savings realised by the borrower.
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Case studies
‘Stability is everything’
Rental stability and affordability had become challenging for Tasmanian couple, Carolyn* and Bill.*
The couple were asked to move from a long-term rental, allowing the owners to move back in and then sell the home.
‘Moving back home felt better than ever’
Anna* and her family were among the first returning tenants in one of the newly built homes delivered under Homes Victoria’s Ground Lease Model 1 (GLM1) project. These homes have been delivered by the not‑for-profit housing consortium Building Communities, including Community Housing Limited (CHL), Tetris Capital and ICON.
‘Didn’t think it could happen to me’
When asked about finding a home with Evolve Housing, the first thing Andy* will tell you is that he’s “grateful and happy to be here”. After becoming homeless with only the clothes he was wearing and his dirt bike, Andy is grateful for the journey that brought him to Evolve Housing.