Mixed Tenure Development

Community Housing Industry Association NSW

Review of Development Feasibility, Risk and Governance

Mixed tenure development projects are increasingly considered as an opportunity to part-fund or cross-subsidise development of social and affordable housing. Community housing providers (CHPs)’ development and asset strategies are built on a range of organisational and financial considerations, including alignment with core business, strategic direction, capacity and capability, financial risk and exposure, and opportunity costs.

New opportunities for social and affordable housing funding are on the horizon. The introduction of new affordable housing contribution schemes through planning legislation may provide a new, although limited, funding stream for affordable housing. In addition, the NSW Government has commenced a funding model in which providers are required to incorporate mixed tenure to reduce reliance on capital funding for project feasibility.

CHIA NSW supports community housing providers and identifies considerations for CHPs that are delivering new housing who may seek to further leverage funding through mixed tenure projects.

What we did

Atlas assessed the opportunities for leveraging and delivering more affordable housing supply through mixed tenure developments. The project undertook an analysis of various tenure mixes and developed guidance to help CHPs understand risk and feasibility in mixed tenure projects.

This project provided support to CHPs’ decision-making by providing analysis and evidence on the elements that impact the feasibility and risk profile of mixed tenure housing development projects.