Housing is the hottest topic at the moment, with agencies and organisations across the country putting their expertise towards various ways of analysing and addressing the multi-faceted issue. It is a crisis of availability and affordability across the country, affecting home buyers as prices and interest rates continue to increase, but most particularly the detrimental effects are being felt by renters.

In Victoria, the latest Rental Report collated by the Department of Families, Fairness and Housing shows that median rent prices in regional areas rose 2.6 per cent in the first quarter of 2024. Only 13 per cent of rental properties available in Mount Alexander Shire during this period were considered by the department to be affordable. Meanwhile, nearby Maryborough has the unfortunate distinction of scoring the second highest on the ‘Rental Pain Index’ (a metric to measure conditions for renters) in Victoria, according to a new report by Suburbtrends. It is clear that in our region, renters are having a difficult time.

One of the proposed solutions includes encouraging owners of vacant dwellings to make their houses available to rent in order to increase supply. Local group My Home Network, which is auspiced by Dhelkaya Health, quotes ABS data showing Mount Alexander Shire has more than 1,100 vacant dwellings, and has been liaising directly with owners and potential tenants to benefit them both.

An advocacy group called Grounded Community Land Trust announced results of a study into long versus short term rentals last month, and is calling for a cap or licence for short term rental properties, particularly in tourist towns. Its data shows that in some places, including Hepburn Shire, short term rentals are in much more plentiful supply than long term rentals.

The State Government, meanwhile, has released draft housing targets for Local Government Areas, stating a goal figure for new houses to be built before 2051. The target for Mount Alexander Shire is for 4,300 new homes in that time, based on a matrix of factors including an area’s proximity to jobs and services; access to public transport; environmental hazards like flood and bushfire risk; current development trends and places already identified for more homes.

As a step towards providing more affordable home options in the shire, Mount Alexander Shire Council unanimously agreed at its last meeting on a proposal to establish an Affordable Housing Trust. This will be an independent, charitable organisation to hold land and funds for the development of affordable housing locally.

Council’s affordable housing trust: how will it work?

The council announced that the Mount Alexander Affordable Housing Trust will provide affordable housing solutions for the local community and that it will operate independently of Council, be overseen by a trustee and informed by an advisory committee.

The Tarrangower Times discussed the details of the Mount Alexander Affordable Housing Trust with Clare Richards, Housing Solutions Broker from Mount Alexander Shire Council.

In particular, the [Tarrangower] Times wanted to know about where the Trust houses would be built, who might have access to the affordable homes and how decisions would be made for the Trust.

Ms Richards was clear that the Trust would operate independently of council. “Council is playing a role in getting the trust up on its own two feet,” she said. “Once it is fully-functioning as an organisation, the council will be a community stakeholder like other community stakeholders. And each year the council can decide whether or not to make an investment that year.”

The [Tarrangower] Times asked how the Trust would be different to traditional ideas of social housing.

“It is not social housing,” said Ms Richards. “The Trust has a broad mandate and it has a lot of flexibility as to how it can deliver.” She explained that the Trust would partner with existing organisations that have skills and experience in a particular field, who would then deliver the necessary services. “What is more likely is that it will obtain suitable parcels of housing and then partner with a stable not-for profit. This gives flexibility for different demographics with different needs, for example over-55s,” she explained.

In terms of who would live in the homes built by the trust, Ms Richards provided some clarity about eligibility. “The eligibility criteria for residents will also be flexible,” she explained. “Anyone who can’t afford housing in the shire; that includes a lot of people, including people who are working. And people who have housing needs that are not typically met by the market, for example older or escaping domestic violence.”

The [Tarrangower] Times also raised questions about where the homes would be built and whether normal processes for permits and resident responses would apply to homes built for the Affordable Housing Trust.

“The scope of the trust is for the whole shire. How the trustee obtains land is going to be a decision for the trust,” said Ms Richards. “They can receive donations and that can include land, or opportunity to purchase land significantly under-market.”

She confirmed that the trustee would be subject to the same planning processes that apply to other home builders, and said that homes built by the Trust would be to a high standard. “The Trust is inherently conservative in the sense of conserving and stable. It lends itself to design building that is built to high quality, sustainable, with a focus on health and wellbeing.”

Ms Richards said that in relation to the State Government housing targets, the current information is that any houses built would count towards the final figure.

The Council stated that establishing the trust is just the first step in the process. “Council has funded $500,000 to the trust to establish the funding base,” said Ms Richards. “This provides the opportunity to find partners who will match.”

In summary, the plan for the Affordable Housing Trust is that capital raised through tax-deductible donations of land and money will be used to develop and build affordable homes across Mount Alexander Shire. Council states that homes purchased or built through the trust will remain affordable, forever. 

This article appeared in the Tarrangower Times, 12 July 2024.