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Greater Bendigo Housing Strategy

Issues and Opportunities – Affordable, Social and Community Housing

June 2016 V.01

2 Greater Bendigo Housing Strategy – Issues and Opportunities

Contents Overview and Summary ........................................................................ 3

Affordable, social and community housing ............................................ 4

Who is living in or at risk of housing stress? .......................................... 8

Ageing population needs ..................................................................... 10

Affordable Housing Policy: .................................................................. 12

Name Signature Date

Prepared by: Lindy Wilson Authorised by: Endorsed by Council’


Overview and Summary What is the Purpose of this Housing Strategy - Issu es and Opportunities Discussion Paper? The purpose of this Discussion Paper is to set out the range of issues that relate to the future provision of housing across Greater Bendigo and facilitate the development of a Housing Strategy for adoption by Council. The focus of the Discussion Paper is the question: what policies and actions should Council employ to ensure that all our residents can access appropriate housing to meet their current and future needs? This Discussion Paper has been prepared to stimulate community engagement and debate and assist Council in adopting a Strategy. Comments on the contents are invited. How is the Discussion Paper structured? The Paper is structured in a number of sections for ease of readership. Section One provides a comprehensive summary of the range of issues and topics that Council is seeking to address. Section Two provides a comprehensive analysis of Greater Bendigo’s housing needs. Most of this section is provided as an extensive appendix to the whole Discussion Paper Section Three tackles whether there is sufficient land set aside across the whole City and particularly in urban Bendigo to meet our needs and how Council is proposing to tackle the City’s long term land supply. Section Four sets out how Council has addressed housing as part of its Planning Scheme through adopted strategies, the tools that are

available in the planning scheme to address housing needs and how Council is proposing to use those tools. Section Five addresses issues are 10 minute neighbourhoods and neighbourhood character. Section Six (this section) addresses housing affordability and provides ideas and options as to what role could consider pursuing.


Affordable, social and community housing The City of Greater Bendigo Housing Strategy needs to understand the work and role that Council could play in affordable, social and community housing. Data and research provided in this paper identifies and offers evidence of a number of issues and who in our community is facing or suffering housing insecurity. The 2011 Australian Bureau of Statistic Census provides most of the data and while a new census will be undertaken in August this year it is unlikely that the results will be available before mid-way through 2017. Benefits of affordable housing: • Low income households will have greater financial flexibility due to

not being in ‘housing stress’. • Improved health benefits of households not living in stress, thus

reducing demand for health services. Key Issues in Bendigo: • The gap is widening between increased housing costs and median

household income. • There is decreasing home ownership rates. • The rental market is becoming permanent form of housing tenure

for some. • A tight and expensive private rental market locking some low-

moderate-income earners out of affordable and appropriate housing, and solutions to low cost housing will not emerge naturally.

• ‘Age in place’ programs need to be explored to meet the needs of older Australian ‘right size’.

• A rental market that is difficult for people on fixed income (welfare payments)

• Pensioners and welfare dependent (including people with disabilities) find themselves priced out of the private rental markets

and seek relief by accessing social housing, which provides a much needed safety net but there is fierce competition and demand.

• Social housing is in short supply and waiting lists are long and social housing has become last resort housing with many left to ask ‘where do I go’.

• An adequate supply of social housing it would mean older Australians are able to age in place, people with disabilities have access to housing that meets their particular needs. Also women escaping domestic violence would not be forced to stay in motels or worse stay in abusive relationships.

• A need for federal, state and local government policies around affordable housing.


House Prices: • The City of Greater Bendigo is undergoing significant growth and

demographic change, increasing property prices will impact on some households obtaining appropriate and affordable housing.

• Median house and land prices in the City of Greater Bendigo

doubling between 2002 and 2012

Source: http://www.dtpli.vic.gov.au/property-and-land-titles/property-information/property-prices

Changing housing tenure: • A lower proportion of dwellings are fully owned, a higher proportion

of dwelling are being purchased with a mortgage or rented.

Source: ID Profile

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City of Greater Bendigo - Median House, Unit and Land Price

Median Vacant Land Price Median Unit Price Median House Price

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Fully owned Mortgage Renting

City of Greater Bendigo Housing Tenure over time

1991 1996 2001 2006 2011


Housing affordability • Housing mortgage and rental costs have surpassed household

income growth over the past decade, which could affordability issues.

Source: ID Profile

• The Greater Bendigo Wellbeing Survey 2015 identified what people

sacrificed spending as a result of housing costs.

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CoGB Gr. Bendigo

(C) -

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East SLA

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% Increase in Median Income, Rent and Mortgage Payments -

2001-11


Affordable Rental • Greater Bendigo has one of the lowest proportions of affordable

rentals in Regional Victoria, only 60% of rentals are affordable to low and medium income earners in the municipality.

• This could be a result of consistently low rental vacancy rates in

Greater Bendigo, which may have driven rental prices up. • A low proportion of affordable rentals can likely impact on renter’s

ability to accumulate savings for future purchases and affect future sales in the first home buyers’ market.

Source: DHS rental report December 2015

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Proportion of Affordable Rents in the City of Greater Bendigo

One Bedroom Two Bedroom Three Bedroom

Four Bedroom Greater Bendigo


Who is living in or at risk of housing stress? There are particular groups in Australia who are at higher risk of poverty. Children and older people face the highest risk of poverty, with women more likely to be living below the poverty line than men. Others at high risk of living in poverty include:

• people who are unemployed • single people over 65 • people in households reliant on government payments

(including carer and disability support) • single parent families • single people without children • people from non English speaking backgrounds

Victims of Violence According to the State Government submission to the Royal Commission into Domestic Violence housing is critical for victims of family violence. In a study of women’s economic wellbeing during and following family violence, women nominated finding safe, affordable, appropriate accommodation post separation as their single biggest concern. The total Victorian Government expenditure on housing assistance in 2015-16 is $420.8 million. Victims of family violence face considerable hurdles in rebuilding their lives after a crisis incident or cycle of violence. In Australia, family violence is a key driver of homelessness, with people escaping family violence at significant risk of needing emergency shelter and relief. Consequently, the government needs strategies for emergency accommodation, social housing (public and community) and affordable private housing that enable victims to leave violent homes quickly and safely.

Disadvantage The Salvation Army - National Economic & Social Impact Survey 2015 is the fourth consecutive report by the Salvation Army exploring the level of deprivation and disadvantage experienced by those who access Emergency Relief Services. This report provides a detailed analysis of 2,406 responses to the survey distributed through 262 Salvations Army ER and community support services across Australia during February 2015. The results from the study revealed a bleak picture of entrenched and persistent poverty and disadvantage for a significant proportion of people who access Salvation Army Emergency relief support services. Individuals and their families struggle to meet everyday expenses, essential items and financial commitments. Summary of key findings are:

• 88% receive income support. • 76% live in rental accommodation and 13% were homeless. • 59% of income is spent on accommodation expenses. • 78% in private rental housing experience extreme housing

stress. • After accommodation expenses only have $17.86 per day to live

on. • 75% cut down on basic necessities • 59% delay or are unable to pay utility bills • 57% had gone without meals. • 87% adults and 60% children go without five or more essential

items in life. • 34% parents could not afford fresh fruit and vegetables on a

daily basis for their children. • Participants reported a low personal wellbeing index score.


Underemployment1 The Australian Housing and Urban Research Institute has identified that underemployment significantly increases the changes of housing insecurity, those most vulnerable are single-earner households in the private rental market. Underemployment refers to employment that is insufficient in terms of the number of hours of paid work as assessed by the employee. It is a cause of low income and is highly correlated with insecure employment, particularly casual contracts. This can make it difficult to meet fixed commitments such as rent and mortgage payments. Unlike unemployment, however, underemployment persons generally do not qualify for income support or rent assistance. Whether underemployment is a major policy issue depends on its prevalence and duration, and whether it affects those who have sole responsibilities for house payments and are let able to draw on resources such as other household members or on the wealth and security of home ownership. This study sought to examine the links between underemployment and housing insecurity. • Underemployment is widespread, especially amongst unskilled

workers, young people and women and it persists for longer than a year for one in three individuals.

• Housing insecurity is statistically higher amongst underemployed households that adequately employed households, especially private renters.

• Almost two-thirds (60%) of underemployed adults live in households with other earners, which generally cushions the negative housing effects on their underemployment.

• However, 40 per cent of underemployed adults live with no other wage earner, making them more vulnerable to housing payment arrears and risk. Most are single people or lone parents, women and in the private rental market.

1 Underemployment is defined as working less than 35 hours in a given week

• Welfare or labour market reforms that reduce uncertainty of income for underemployed persons might reduce housing payment risks. Policy interventions or assistance should targe individuals and households where underemployment is severe, sustained or recurrent and there is no other wage earner in the household.

• On the housing market side, reform of commonwealth Rent Assistance (CRA) to assist underemployed households would reduce inequalities compared with unemployed households.

Homelessness In Australia, there are over 105,237 homeless people. Nearly half of those are under 25 year of age. • If 1 in 200 people in

Australia are homeless or 42.6 per 10,000 that equates to between 450 to 550 people in CoGB.

• There could be over two hundred children and young people in Bendigo, who are without a place to call home.

Source: http://homelessnessaustralia.org.au/index.php/about-homelessness/homeless-statistics


Ageing population needs While baby boomers are changing the needs of our aging population health and frailty will continue to affect older Australians in the latter years of their life. According to a report prepared by the City Futures Research Centre,2 there are a number of factors that will dictate the extent to which declining health – both physical and cognitive – will affect housing choice.

• The availability of aged services in the home, both formal and informal;

• The potential for home modifications to improve accessibility; • Neighbourhood character and broader access to services and

amenities; • The availability of more suitable independent housing options;

and • The specific ongoing financial situation, deteriorating health,

growing health care costs or specific health events such as stroke, or passing of a spouse could create an acute need for housing choice to be reassessed.

Providing aged care services has dual benefits of improving health outcomes and reducing government cost, these services will need to continue to grow into the future. While our population is living longer the number of people with a disability is predicted to significantly increase over the next two decades. For these people to live in the community there will need to be a range of housing options and some that have in-house care options. Poorly serviced rural areas will limit the potential for people to age in their existing community. The informal care provided by a partner or other family member has been recognised and supported by policy reforms such as ongoing pensions, respire care, carer support and counselling services, but this is dependent on family circumstances, health of a partner and with a

2 Understanding housing and location choices of retiring Australians in the ‘baby’ boom generation –

scoping report prepared for the National Housing Supply Council by City Futures Research Centre.

high lone person households the geographical proximity of family members. A constraining factor could be the potential to modify homes in response to deteriorating mobility and health. Is the housing suitable and what is the financial cost to the individual? Support for home modification is not well organised, the adaption of the built environment to meet the needs of an ageing population is not limited to the building, and equally applies to the surrounding neighbourhood. Social housing for older people3 There is a greater shift to social housing by older Australians as a response to chronic insecurity in the rental market. Social housing is unlikely to adequately response to these demands because of a lack of growth in the sector, completing demands from other population groups, (increasing proportion of low-income older households will be renting in the market sector). The report highlighted the challenges facing the social housing sector as: the overall volume of housing available, larger population seeking social housing, the prevailing proportions of households who cannot afford home ownership and increasing levels of demand, suitability of the social housing stock to suit the complex needs and limited independence of older Australian, this could be accommodated by more growth in specialised housing. Evidence shows that renters and social housing renters are more likely to end up in nursing homes. Finally the cost of providing and the need for high levels of subsidy because of the low incomes of the older tenants along with the complex needs will mean specialised and therefore expensive to build housing will be needed. 3

http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2012

/housing%20in%20the%20baby%20boom%20generation/Documents/PDF/housing_in_the_baby_bo

om_generation.ashx


Retirement homes and ‘over 55’ complexes The proportion of older population living in retirement homes is small and there are a higher number of lone persons compared to couples. Historically this has been because of the death of the partner and the higher incidence of divorces among baby boomers could translate into a higher proportion living in such complexes, retirement villages have been identified as the fastest growing form of housing for older Australians albeit from a low base. Hostels and nursing homes proportional to the number of people in residential aged care is falling, accept for the very old which is still proportionally significant. There is significant ongoing demand for such services and even with the changing demographics of the baby boomers when the time comes residential aged care should be an important and significant part of aged care and housing policies. Older Renters Baby boomers are more likely to reach retirement as a home owner, a significant minority continues to rely on the rental; most are in such a position due to personal circumstances and financial constraints. The working age population have the ability to compete in the rental market, retirees less likely to because reduced ongoing income, pensions and other welfare are built on the assumption that home ownership will remove ongoing housing costs. Aged persons living in the private rental sector could be identified as those having the greatest need, having to contend with insecurity of tenure, inappropriateness of housing and lack of suitability of accommodation as they age, and affordability issues. Renters are significantly more mobile than home owners; reasons could be the low moving costs, difficulty adapting a rented home to meet changing health circumstances and affordability. The Commonwealth provides rent assistance to help retirees with no income other than the pension to rent.


Affordable Housing Policy: State Government Housing position On 26 November 2014, the Victorian Government announced its platform for housing-related initiatives, known as the Plan for Fairer Safer Housing4 The goals of Fairer Safer Housing include:

• ensuring access to safe, affordable and secure housing • improving housing accessibility for the elderly and people with a

disability • enhancing the security of tenancies (security of tenure) • increasing protections for people living in caravan and

residential parks • providing more options for vulnerable tenants.

Over the next three years, this website (www.fairersaferhousing.vic.gov.au) will provide a way for the community to engage with the Victorian Government on Fairer Safer Housing projects, including action on housing affordability, planning reform, better building regulations, and a new Integrated Community Care system supporting the health and well-being of all Victorians. City of Greater Bendigo Affordable Housing Policy p osition Currently the City does not have any policy on affordable housing. In Victoria, 44 of the 79 municipalities have adopted or are developing housing strategies that address affordable housing, including Geelong, Ballarat, Shepparton, Mildura and Horsham There has been consistent community opinion/support for the City to be involved in housing affordability (from the past three CoGB Wellbeing Surveys):

4 http://fairersaferhousing.vic.gov.au/home

o 71.1% agreed or strongly agreed that Council has an important role in helping to support people experiencing temporary homelessness and housing insecurity

o 69.1% agreed or strongly agreed that more should be done by Council to make sure there is always some housing available for rent by people on low incomes

o 63.8% agreed or strongly agreed that more should be done by the Council to make sure that people on low incomes have opportunity to buy/build their own home

Advocate, facilitator, broker • Moving forward Council could be involved in a range of different

affordable housing roles, such as: o Advocate

♦ Providing assistance and advice during the development phase of a project

♦ Ongoing liaison with government agencies, housing associations and local welfare organisations in order to share knowledge, promote advocacy and identify opportunities

♦ Requires minimal resourcing commitment o Facilitator

♦ Bringing together and supporting connections between government agencies, housing associations and local welfare organisations

♦ Requires minimal resourcing commitment o Broker

♦ Accept and manage distribution of contributions/donations to affordable housing projects

♦ Private rental brokerage and shared equity schemes ♦ Council could drive the agenda and direction when exploring

opportunities for community housing developments between housing providers, developers, private investors and the local community.

♦ Requires financial and resource commitment


o Supplier ♦ Development is often in partnership with a housing

organisation ♦ Provision of land/air rights – Council contributes air rights to

a Council owned site which is not used intensively e.g. a Council parking lot

♦ Requires financial and resource commitment

The following map shows the “economic value” of land across Bendigo this is based on rate values in 2014 divided by the total property area, it does not include the cost of building and/or maintaining infrastructure. In relation to residential development it is the retirement villages that provide the highest economic value.