Media release

NHFIC Social Bond Report 2021-22: timely new insights into community housing as sector attracts increasing investor interest

New research analysis reveals tenants living in community housing feel more secure, and have improved financial, employment and health outcomes. These insights are outlined in the 2021-22 Social Bond Report, published by the National Housing Finance and Investment Corporation (NHFIC).

The Report also includes information on increasing investor interest in the community housing sector as a recognised investment asset class; and profiles of the Community Housing Providers (CHPs) supported by the bonds issued during the past financial year.

Highlights for 2021-22 include:

  • NHFIC approved $509.3 million of new loans to CHPs, saving them an estimated $96.2 million in lower interest and fees over the life of the loans, and supporting the delivery of 3,296 social and affordable homes.
  • NHFIC continued to drive the growth of the Australian social bond[1] market; issuing $198 million in new bonds and attracting three new international investors.
  • The 2021-22 bonds are financing five CHPs to deliver 733 homes and will save them an estimated $25.9 million in lower interest and fees over the life of the loans.
  • New NHFIC research analysis reveals tenants living in community housing feel more secure, and have improved financial, employment and health outcomes.
  • NHFIC progressed work with the community housing sector to develop an industry-led Environmental Social Governance (ESG) Reporting Standard to help attract institutional investment and establish an asset class based on social and affordable housing.

NHFIC issues social and sustainable bonds to support its mandate of improving housing outcomes for Australians, with an emphasis on providing low-income and vulnerable Australians access to safe, stable and affordable housing. The groups supported through the bond program include vulnerable and at-risk women, First Nations people and people with disabilities.

The 2021-22 bonds provided funding to five CHPs: Home in Place (formerly Compass Housing Services), City West Housing, Evolve Housing, Haven; Home, Safe, and Community Housing (Qld) Limited.

Commenting on the report, NHFIC CEO Nathan Dal Bon said: “The new research demonstrates the benefits of community housing and that providing a safe, stable and secure home has many flow-on benefits for vulnerable Australians. Helping more people into homes requires substantial ongoing investment into the sector, so we are working closely with investors, superannuation funds and CHPs to develop innovative financing and investment solutions to facilitate this growth.

“NHFIC, which will be renamed Housing Australia, will be responsible for delivering 40,000 new homes under the Housing Australia Future Fund and National Housing Accord, and for financing new housing and related infrastructure through the National Housing Infrastructure Facility. We look forward to continuing to partner with investors, superannuation funds, the property industry, CHPs and governments at all levels to support more Australians in need.”

Since inception, NHFIC has approved $3.4 billion in funding for social and affordable housing through the Affordable Housing Bond Aggregator, supporting 39 community housing providers to deliver over 17,500 new and existing homes.
 

The Social Bond Report 2021-22 is available on the NFHIC website.

 

[1] NHFIC provides low cost, long-term loans to registered CHPs to enable more social and affordable housing. To raise the funds to lend to CHPs, NHFIC issues social and sustainability bonds into the wholesale capital market.