The National Housing Finance and Investment Corporation (NHFIC) this week has issued its second bond, valued at $315 million, to secure 360 new social and affordable homes for Australians.
The second bond brings the total number of dwellings the Morrison Coalition Government is supporting through NHFIC, to more than 1,000 new and 3,600 existing social and affordable homes in less than 18 months since it commenced operations.
NHFIC’s second bond, which will be used to provide loans through its Affordable Housing Bond Aggregator, will collectively save seven community housing providers around $50 million in interest and other costs.
The community housing providers to receive loans from NHFIC through this second bond include;
- Housing First and the Port Phillip Trust, Victoria, $72 million
- Haven Home Safe, Victoria, $65 million
- Housing Choices Australia, Victoria, $55 million
- Bridge Housing, New South Wales, $51.14 million
- Foundation Housing, Western Australia, $35 million
- Anglicare SA, South Australia, $32 million
- Church of Christ, Queensland, $4.86 million
The loans will be used to provide working capital for the construction, acquisition and refurbishment of new social and affordable homes, as well as to refinance debt at lower rates for a longer tenure for existing dwellings.
Cost savings can be channelled into new projects and providing additional tenant services ranging from employment and training through to domestic violence and aged care support.
NHFIC’s second bond was once again oversubscribed by investors, both domestic and international, demonstrating the potential for Australia’s community housing providers to grow significantly, and NHFIC provides the vehicle to make this happen.