Affordable subsidised housing

• HIA does not support inclusionary housing policies or affordable housing quotas.
• Whilst public housing stock numbers decline and waiting lists grow, the quota system is in effect a tax on new home purchasers, who ultimately will bear the cost of any development subsidy that the quota requires. This unfairly places the burden of providing affordable housing onto new home purchasers.
• Further, affordable housing quotas do not address the underlying root causes of the affordability problem they provide only minuscule and random relief to what is a much larger community issue that requires a whole of community solution.
• House price increases have occurred as a result of multiple factors including constrained land supply, increasing taxes and charges, cumbersome zoning and development approval processes. These items should all take priority for governments to address.
• HIA remains committed to finding workable, affordable housing solutions. Whilst the industry is often unfairly targeted, it must nonetheless be part of the any overall affordable housing solution.
• Other options that governments could pursue include
  o The creation of market opportunities through development incentives or bonuses, cooperative partnerships,
  o seed funding initiatives,
  o innovative planning mechanisms that encourage product diversity in a local context and
  o encouragement of greater institutional investment in affordable housing projects and
  o innovative financing options eg shared equity
• Social housing is the responsibility of government and should be adequately funded using general rates and revenue, not by placing the burden on new home owners.