Nation Building Economic Stimulus Plan

Features

Nation Building Economic Stimulus Plan Social Housing Initiative

On 3 February 2009, the Australian Government announced the implementation of a $6.4 billion Social Housing Initiative under the Nation Building Economic Stimulus Plan (ESP).

Across Australia this initiative will provide funding of $6 billion over three and a half years from 2008-09 to 2011-12 for the construction of new social housing and a further $400 million over two years for repairs and maintenance to existing public housing.

In Tasmania this translates to around $140 million for the construction of 500 new houses and $9.3 million for repairs and maintenance to another 500 existing houses.

New Construction

The 500 new homes to be constructed under the ESP are to be delivered in two stages:

Stage 1

Stage 1 provided $16.1 million to the Tasmanian Government for new construction projects that could be completed rapidly and ready for occupation by the end of June 2010.

Following a successful Expression of Interest process the Tasmanian Government has allocated this funding to the purchase or construction of 66 new properties in locations such as Howrah, Shorewell, Kingston, Oatlands, George Town and Clarence, most of which are already in development.

Stage 2

Stage 2 of the ESP Social Housing Initiative is where the bulk of the Stimulus Plan funding (up to $123 million) will be made available for social housing.

As a part of the Tasmanian Government’s response to ESP Stage 2, the DHHS is purchasing the construction of new social housing through multiple tender processes  

Depending on the number and quality of tenders received, and subject to Australian Government approval, as many as 435 new properties will be built across Tasmania under ESP Stage 2 by 31 March 2011.

The DHHS recently advertised a call for Expressions of Interest and Request for Tenders against Stage 2. The deadline for submissions is now closed and proposals are being assessed.

Assessment and Next Steps

The Tasmanian Government is currently processing the large number of Expressions of Interest and Tenders for new construction projects received under ESP Stage 2.

An evaluation panel has been formed which will assess each proposal against set selection criteria. This assessment will then be used to develop a list of preferred tenders for Australian Government approval.

Timelines for the approval of ESP 2 tenders are as follows:

• Tasmanian Government Assessment of Preferred Tenders – Report due to the Australian Government by end of June 2009.
• Australian Government Approval – Final approval of funding for ESP 2 projects due to States and Territories by end of August 2009.

Once these steps have been completed all applicants will be advised if their proposal has been successful or unsuccessful and construction of new homes under ESP Stage 2 can commence.

To hasten the construction process, the Tasmanian Government may commence negotiations with some preferred tenderers prior to the receipt of Australian Government approval. At least 75% of the new constructions must be completed by December 2010.

Planning Approval

The Tasmanian Government has taken steps to ensure the timeframe set out by the Australian Government for the implementation of the ESP are met and the State receives its share of funding.

The introduction of the Nation Building and Jobs Plan Facilitation (Tasmania) Act will ensure faster planning approvals for projects funded under the ESP.

Resources on the new planning approval process for ESP projects set out under the new Act are available below:

• Planning Approval Summary – Fact sheet outlining changes to planning processes for ESP projects.
• Planning Approval Flow Chart – Step-by-step guide to ESP project approval process.
• Nation Building & Jobs Plan Facilitation Act 2009 – Presentation outlining changes to Tasmanian planning processes for ESP projects.

Repairs and Maintenance

$8.3 million of the funding provided to Tasmania under the ESP for repairs and maintenance has been allocated to the major renovation of 166 ageing Housing Tasmania properties by 30 June 2010. Without these upgrades these properties would be otherwise uninhabitable and may have been sold or left vacant. The upgrades will allow these properties to continue to be tenanted as part of Housing Tasmania’s rental stock.

$1 million has been allocated to retrofitting energy efficiency features into another 350 properties by the end of this year.

Further Information

Presentations on implementation of the ESP Social Housing Initiative in Tasmania are available below:

• Overview – Australian Government presentation on nation-wide implementation.
• Tasmanian Response – Tasmanian Government presentation on local implementation.
• Pre-Tender Briefing – Summary and guidance on Tasmanian tender processes for ESP social housing construction.

For further information phone Kristy Warren on 6236 5619 or email kristy.warren@dhhs.tas.gov.au.

The Australian Government Nation Building Economic Stimulus Plan Website provides information and updates on implementation across Australia.