1,000 New Affordable Homes - Affordable Housing Initiative

⁠⁠⁠In 2018/19, the SA Housing Authority (the Authority) partnered with the housing sector and the broader community to develop a new State housing strategy, ‘Our Housing Future 2020-2030’.

The strategy targets the delivery of 20,000 new affordable housing outcomes through planning reforms, financial products as well as direct investment by the Government and community housing sector in the construction of new affordable housing.

As part of this strategic target, in the first instance the Authority is committed to delivering 1,000 new affordable home ownership opportunities through a new initiative, the Affordable Housing Initiative (the Initiative).

This Initiative will run until 2025 and create housing that is affordable to low and moderate-income earners in accordance with the criteria set by the SA Government. The Authority expects the new homes to be delivered through one or a combination of the following options:

1. Land owned by Suppliers; and/or
2. Land identified by Suppliers; and/or
3. Land owned by the Authority; and/or
4. Any other viable options.

As part of the Initiative, the Authority is looking to contribute to the State’s economic recovery from the COVID-19 pandemic by:

1. accelerating new housing delivery;
2. generating economic activity; and
3. generating new employment and apprenticeship opportunities within the residential construction sector.

This EOI is the first step in a two-stage procurement process.

In the first instance, the Authority will evaluate EOI proposals with the intention of establishing a shortlist of Suppliers. These suppliers will demonstrate that they have capability and capacity to deliver (develop and build) affordable housing products either on land owned by the Authority and / or on land owned by the Supplier and / or on land identified and purchased by either party. It should be noted that as this Initiative is forecast over a four-year period, future land opportunities may arise from either the Supplier and / or the Authority.

Negotiations and awards may be made with multiple successful Suppliers with the intention to collectively deliver approximately 750 – 1,000 affordable homes over a four-year period.. The Authority will consider other ad-hoc and opportunistic affordable housing developments as part of the delivery of 1,000 affordable homes.

For the avoidance of doubt, social housing is not part of this Initiative.

Benefits of Participating

The Affordable Housing Initiative will provide significant benefits to the successful Suppliers such as:

1. Tenure: Long term 4-year contract with opportunities for extension based on performance;
2. Volume: 1,000 homes to be built as part of a larger Program for 20,000 homes;
3. Finance: Government support in the form of equity participation (capital and / or land);
4. Apprentices: Government support for new apprenticeships; and
5. Low Risk: Collaborative commercial framework to minimise risk and maximise financial incentives.

Note:

The last queries date is 2:00 pm, 21 September 2020. All queries should only be directed towards the nominated contact person.