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There are two funding Programs as part of this RFGT process. These are:
Program 1: Social Housing Accelerator Fund
Funding of $19.6 million for financial year 2024/25 is being tendered. The key objective is to deliver social housing. There is no specific target cohort group.
Program 2: Youth Transition Housing Fund
Funding of approximately $11.6 million for the financial year(s) 2024/25 and 2025/26 is being tendered. The key objective is to deliver housing dwellings for young clients in need .
The Programs are based on a co-contribution model where Government funds are combined with CHPs’ contributions of capital, debt, land, tax concessions, philanthropy, etc. to increase housing supply. CHPs also bring their community networks, partnerships and local connections that can support tenants who will eventually live in these properties.
The Grants must be used only for the social housing proportion of a project. A CHP can enhance the project’s financial viability as well as support integrated communities by including affordable housing (e.g. rental) in a project.
Tenderers must contribute financial resources (equity, debt, land) and may also commit non-financial resources (concession values, and donations) to the project.
Yes. The Grant fundings are targeting for two groups:
Grant funding limits are set between $500,000 and $5,000,000 per CHP to encourage a range of CHPs to apply. DCJ reserves the right to vary the limits up or down on a case-by-case basis.
The CHP will own the property and will be responsible for all expenses – including, but not limited to responsive and planned maintenance, structural works, insurance, rates, etc.
DCJ will register an Interest on the title (See Properties and Land section) with any future dealings to be agreed by DCJ. You should get independent legal advice to check if there are any impediments to DCJ registering an Interest on land your organisation owns.
A Tenderer can submit a maximum of two project proposals per application, one for each scheme listed above which can only total $5,000,000 per application.
All Community Housing Providers registered in NSW or Aboriginal Community Housing Providers registered under the NSW PARS can apply in line with the Community Housing Providers (Adoption of National Law) Act 2012.
Tier 3 CHP’s are encouraged to apply and must demonstrate experience or have the capacity to manage and deliver construction / acquisition at the required scale. DCJ wishes to encourage Aboriginal led delivery of community housing projects as per Clause 44 of the National Agreement on Closing the Gap.
Yes, and you will need to provide the following information:
Funds will only be released to registered CHP at the time of signing a Community Housing Assistance Agreement.
Yes. Partnership details will be required in the tender and in the Community Housing Assistance Agreement that will be put in place with successful Tenderers.
A Community Housing Assistance Agreement (CHAA) is the standard contract used by DCJ and a CHP for programs such as this. It is not subject to amendment unless there are specific and valid reasons. A CHAA template can requested by emailing the Homes NSW - Contract Unit at CHB_Contracts_Unit@homes.nsw.gov.au
The assets need to be owned by the CHP. A key driver of the funding model is to maximise the CHP’s financial contribution to deliver housing now and in the future as well as increase CHP’s ownership of capital stock. A CHP is unlikely to be able to borrow funds and/or build on land owned by another entity.
Yes. If the CHP decides to sell or re-develop, i.e. to deal with a property, it must advise DCJ and seek approval. DCJ cannot unreasonably withhold consent.
In brief, to protect the Government’s investment in the property, a reference is made to DCJ’s interest on the title of the property. This means that the CHP must consult with DCJ if it wants to deal in the property. A dealing could be selling it, taking out a mortgage, redeveloping it.
This operates as a gateway consent provision (that is - it is neither a mortgage nor a caveat) and the Housing Agency cannot unreasonably withhold consent – as set out in section 18.2 of the Community Housing Providers (Adoption of National Law) Act 2012.
Effectively this means a notation is put on the relevant title which simply states:
“Land is held subject to the provisions of section 18 Community Housing Providers (Adoption of National Law) Act 2012. Consent of the Secretary of the Department of Communities and Justice is required for plans and dealings inconsistent with the interests of the Secretary of the Department of Communities and Justice."
Tenderers are strongly encouraged to seek their own legal advice to check if there are any impediments to DCJ registering an Interest on land your organisation owns.
A grant will be paid in a lump sum following an agreed timeline.
The contributions to the project value are reflected as a percentage in the contract:
The following items contribute to the CHP’s ownership percentage of the project.
| Equity | Cash |
|---|---|
Land value |
The land must be owned by the CHP at the time of submitting a response to RTF |
Debt |
Actual or potential loan |
Tax concessions |
If the CHP is a charity, it may be eligible for tax concessions, reductions in council fees, etc. |
Philanthropic resources donations |
Includes pro-bono legal, architect, developer fees that the CHP would have paid for but have been donated. Accurate and realistic costing are required. |
Tenderers are strongly encouraged to investigate their eligibility for tax concessions.
No. DCJ funding can only be used for the acquisition and/or development of social housing dwellings proposed under the project.
Funds from this tender process may be granted if they are adding extra properties to the existing site. Funds cannot be used to fund additional costs for an existing project. The tender will ask you to explain/ justify how the additional funds will work to provide additional social housing on an existing capital project site
The RFGT will commence with an Industry Briefing on the 15th of May 2024. The tender will be opened on the 20th of May 2024 and run for around 20 business days. DCJ will be advertising the tender as widely as possible to allow people to register for the Industry Briefing.
An Industry Briefing provides information on the tenders and allows participants to ask general questions. Specific questions about a particular project idea will not be answered. These types of questions can be lodged in the data room for a response from DCJ.
No, due to probity limitations, DCJ will not respond to any questions relating to the details of responding to the RFT until the RFT is opened in on 20th of May 2024. This FAQ is intended to answer as many questions as possible. However, you may send questions to CHB_Contracts_Units@homes.nsw.gov.au which will be collated and used to inform the Industry Briefing if needed.
A data room is an on-line secure location where tender documentation will be placed, questions of a general or specific nature can be asked and answered, and where all final tenders are lodged. You will be given access via a registration process in May 2024.
More information about Social Housing Accelerator Fund can be found here.
22 Apr 2024