PUBLIC HOUSING AND COVID-19
REFURBISH AND BUILD MORE
The importance of a safe, secure home
The COVID-19 pandemic demonstrates just how important it is to have a safe, secure home. All of us are now sharply aware of the extent to which our homes support and keep us safe during the pandemic – but not everyone has a safe, secure place to call home.
It is time to remind government that housing should be a basic human right for all.
Public housing is an essential foundation for a fair society
Public housing is already proving its enormous value for very low to moderate income tenants during the COVID-19 crisis. Residents are secure in their tenancy and rent reductions are available to households who have lost jobs. The Victorian Government has also made it clear that there will be no rent increases as a result of tenants receiving higher COVID-19 payments from the federal government.
What COVID-19 reveals about housing in Victoria
The COVID-19 crisis has further revealed the scale of housing inequality in Victoria and the inadequacy of public housing provision across Victoria.
It is now being estimated that close to 100,000 people – adults and children – are on Victoria’s Housing Register, the state’s waiting list, which was growing daily even before the pandemic. The waiting list doesn’t include many thousands more who were homeless and in severe housing stress before the COVID-19 crisis. As an indication of how serious it is, DHHS’s own data shows that priority applications have surged since early 2017 in most regions across the state.
The waiting list will only increase as the economic and social impacts of COVID-19 swell the numbers of those experiencing housing stress and homelessness. Many people sleeping rough have been temporarily housed and their permanent accommodation has to be addressed.
Government response to date
The Victorian Government has introduced new laws for tenants in the private sector. A $500 million relief package provides landlords with land tax relief and tenants with direct rental support. Tenants have to negotiate with their real estate agents and landlords to secure rent reductions and then go through mediation if they cannot reach agreement. These new laws however do not guarantee rent reductions; the stopping of the accrual of rental debts; nor evictions at the end of September this year. The new laws also appear to prevent tenants currently on month-to-month tenancies from moving out until September.
Public housing investment is necessary and possible
An economic stimulus package has been announced by the State Government, backed by $24.5 billion of new borrowings. Public housing has not been included in that package.
Direct provision of public housing can and should be a central component of State Government policy to recover from the pandemic.
The NSW Government has included public housing in its COVID-19 stimulus package, dedicating $60.5 million to a program for maintenance works and upgrades on public housing properties. It is now being reported that the NSW Government will be announcing more investment. This should be happening in Victoria.
There are many vacant public housing dwellings in Victoria that can be immediately renovated.
The announced sales of public land to developers should be abandoned and this land should have new public housing built on it.
The Australia Institute (TAI) have released their proposals for a COVID-19 stimulus package with new public housing construction at the top of their list, followed by investments to deal with homelessness (www.tai.org.au). TAI also propose investment in new community housing, in addition to public housing.
The Community Housing Industry Association, the sector’s peak body, has also called for construction of social housing units similar to that undertaken in the 2008 stimulus package.
We do not support additional public funds going to the community housing sector as there is no evidence that it gives first preference to the most disadvantaged applicants for housing.
Recent research from AHURI (Report 306 Social Housing as Infrastructure – an Investment Pathway) has proven that direct provision of public housing is the most cost effective way to provide the housing that is urgently needed.
A revised stimulus package with public housing should include: the refurbishment of existing stock and increasing its energy efficiency; using public lands to create new public housing stock to address urgent need now and into the future; and providing a fairer housing system for everyone.
Demands
Public housing be included in a broadened stimulus package with the following measures:
Bring currently vacant public housing units into active use through a program of refurbishment and repair for those currently homeless and in temporary COVID-19 crisis accommodation.
Immediately cease the Public Housing Renewal Program on all sites including those already under contract and move to a refurbishment model; build public housing where demolition has happened or stock has been independently assessed as having reached end of life; retain estates as 100% public housing; allow all residents to return.
Cease the sale of State Government land and undertake a review of which sites are available for the direct provision of public housing and start building.
Map and assess the availability of other publicly owned land for rapid start-up and construction, including Commonwealth Government holdings.
All tenants’ rights, including those in private rental and community housing, be strengthened with the following measures:
Strengthen the legislation by: ensuring no evictions; allowing short-term leases to be terminated by tenants; requiring landlords to accept rent proposals tenants can afford; keeping rents controlled; and prohibiting accrual of rental arrears as debts.
Extend the period of the current legislation beyond the end of September.
COVID-19 public housing investment will:
rapidly create jobs throughout Victoria
end homelessness by providing safe, secure homes for people in need
retain and protect existing public housing stock as a valuable public asset
establish as permanent Victorian Government policy: everyone has a right to a safe, secure home
re-affirm the value of public housing to a fair and just society