Housing Australia loans fund an additional 2,400 social and affordable homes in 2023-24

Today, Housing Australia released its annual Social Bond Report 2023-24 to update the industry on outcomes and benefits of social and affordable housing projects financed by Housing Australia’s social and sustainability bonds.

The report shows that $876.8 million of AHBA loans were approved last financial year, which will support the supply of more than 2,400 social and affordable homes across Australia. Financing provided exclusively to the community housing sector in the form of long-term loans has enabled the sector to save an estimated $140 million in interest and fees during the life of the loan.

Since inception, Housing Australia has approved $4.1 billion in AHBA loans to registered community housing providers to support the development of more than 18,800 social and affordable homes. The AHBA loans have helped the sector save an estimated $740 million in interest and fees.

Housing Australia bonds align with the International Capital Market Association (ICMA) guidance for social and sustainability bonds. The seven bonds successfully sourced capital from 70 domestic and international investors to issue more than $2.6 billion in social and sustainability bonds to support AHBA loans, consisting of $1.8 billion in social bonds and $0.9 billion in sustainability bonds.

The Federal Government’s Housing Australian Future Fund Facility and National Housing Accord Facility, along with an additional $1 billion for the National Housing Infrastructure Accord Facility has expanded the organisations mandate to increase the supply of housing. Together with existing financing programs, Housing Australia will provide funds that enable delivery of more homes for those who require support including women and children leaving family violence, veterans, women at risk of homelessness, older women at risk of homelessness, First Nations people, and key workers.

Housing Australia CEO Scott Langford said, “Housing Australia played a significant role in contributing to the growth of Australia’s social bond market by establishing social and affordable housing as a recognised asset class to deliver more safe and secure homes.

“Our ambitions remain focused on further driving investments to an underserved market through continued participation in the Australian debt capital markets to build larger, more liquid bond lines over time that can facilitate investment to increase the supply of social and affordable housing across Australia.”

Read the Social Bond Report 2023-24 here.