NSW Offers Discount Land to NFPs for Affordable Housing
18 March 2010 at 3:30 pm
Housing NSW will soon be offering discounted land to Not for Profit organisations to increase availability of affordable housing for low income families.
NSW Housing Minister Mr David Borger says Housing NSW regularly receives requests Not for Profit organisations for financial assistance or through the transfer of property assets.
He says more recently there has been increased interest in access to vacant Housing NSW land to facilitate affordable home ownership.
As a result the NSW Government is responding by inviting “expressions of interest” from eligible Not for Profit Organisations to purchase Government land at specially discounted prices.
The Government says successful organisations will be able to buy land for at least $20,000 below local values enabling them to build more affordable homes for people in need.
The program will involve the sale of 20 Housing NSW blocks of land per year for 10 years but only applies to land that is vacant and surplus to Housing NSW’s needs.
Minister Borger says the standard discount for blocks of land will be $20,000 but there will be an additional benefit based on value of the block of land.
This benefit is currently set at $10,000 for blocks of land valued between $150-250,000 and $20,000 for blocks of land valued over $250,000.
But there are some conditions on the sale of the land.
Borger says in return for cheaper land, successful organisations will be expected to build homes with the support of corporate sponsors, discounted building materials and the use of volunteer labour or “sweat equity.”
He says one of the main conditions for purchasing these discounted homes is that any new owner will have to live in the property for eight years at least before they can sell it.
One NSW Not for Profit provider of affordable housing, Habitat For Humanity (HFH), has supported the initiative saying it will provide real pathways for homeownership for Australian families.
HFH Executive Director, NSW, James Allardice says this initiative by will keep the Australian dream of home ownership alive.
Expressions Of Interest will close April 9, 2010.
For more information visit www.housing.nsw.gov.au