SOCIAL HOUSING IN NSW DISCUSSION PAPER - THE THIRD WAVE OF SOCIAL HOUSING: RESPONSE BY: DESCRIBING THE NEW PARADIGM OF SOCIAL HOUSING WITHIN ...

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SOCIAL HOUSING IN NSW DISCUSSION PAPER - THE THIRD WAVE OF SOCIAL HOUSING: RESPONSE BY: DESCRIBING THE NEW PARADIGM OF SOCIAL HOUSING WITHIN ...
SOCIAL HOUSING IN NSW
   DISCUSSION PAPER

                 RESPONSE BY:
       Compass Housing Services (“Compass”)
                 February 2015

   THE THIRD WAVE
  OF SOCIAL HOUSING:

     DESCRIBING THE NEW PARADIGM OF
    SOCIAL HOUSING WITHIN INTEGRATED
      HOUSING ASSISTANCE RESPONSES
SOCIAL HOUSING IN NSW DISCUSSION PAPER - THE THIRD WAVE OF SOCIAL HOUSING: RESPONSE BY: DESCRIBING THE NEW PARADIGM OF SOCIAL HOUSING WITHIN ...
CONTENTS

                           Executive Summary                                                                  03

                           Welcoming Social Housing in NSW Discussion Paper                                   05

                           Social Housing as an Integrated Part of Housing Assistance                         07

                           A new paradigm for a modern housing assistance system                              09

                               Diagram: Segments within Social Housing                                        09

                           Describing the Third Wave of Social Housing                                        11

                               Table: 	Contrasting Current System
                                        and Third Wave of Social Housing                                      12

                           The Compass Pathways Initiative -
                           Newcastle Autonomous Social Housing Region                                         14

                           Compass Initiatives                                                                16

                               The Compass Grow Program                                                       16

                               The Compass Grow a Star Program                                                17

                               The Newcastle Foyer Project                                                    18

                               The Deep Place Approach to Sustainable Communities                             18

                           Compass Response to the Three Pillars                                              19

                           	Pillar 1: 	A social housing system that provides
                                         opportunity and pathways for client independence                     20

                               Table: 	Pillar 1 Initiatives Proposed by Compass                              20

                               Pillar 2:   A social housing system that is fair                               22

                               Table:      Pillar 2 Initiatives Proposed by Compass                           22

                               Pillar 3:   A social housing system that is sustainable                        23

                               Table:      Pillar 3 Initiatives Proposed by Compass                           23

                           About Compass                                                                      25

                           Conclusion		                                                                       27

Compass Housing Services                             02                   Social Housing in NSW Discussion Paper | February 2015
SOCIAL HOUSING IN NSW DISCUSSION PAPER - THE THIRD WAVE OF SOCIAL HOUSING: RESPONSE BY: DESCRIBING THE NEW PARADIGM OF SOCIAL HOUSING WITHIN ...
EXECUTIVE SUMMARY

                           Compass Housing Services                    These challenges include a
                           (“Compass”), Australia’s largest            lack of economic and social
                           non-Government social                       participation for social housing
                           housing provider, welcomes                  tenants, lengthening tenure,
                           the NSW Government’s                        a burgeoning backlog of
                           commitment to a fair and                    necessary maintenance, and
                           sustainable social housing                  the stigmatisation of public
                           system as a safety net for                  housing.
                           vulnerable people and a means
                           of providing pathways to                    Further, the NSW Government
                           tenant independence.                        has identified the reducing
                                                                       but still important role of
                           In particular, Compass                      social housing with the rise
                           welcomes the NSW                            of Commonwealth Rental
                           Government’s                                Assistance (CRA) and the need
                           acknowledgement of the                      to integrate housing with
                           significant challenges and                  broader social and economic
                           opportunities that confront                 development initiatives.
                           social housing, driven by
                           profound underlying changes
                           in demographics and
                           Government (including the
                           Commonwealth Government)
                           policy and funding.

Compass Housing Services                  03                  Social Housing in NSW Discussion Paper | February 2015
IN RESPONSE TO THE NSW
GOVERNMENT’S LEADERSHIP,
COMPASS PROPOSES RECOGNISING
THAT AUSTRALIA NOW HAS A THIRD
WAVE OF SOCIAL HOUSING.

The first two waves of social housing focused upon
housing workers and housing those in most need.
In the Third Wave, social housing increasingly sits
within a continuum of housing assistance strategies
that also consider the wider social and economic
landscape.

THIS THIRD WAVE OF SOCIAL HOUSING IS
CHARACTERISED AS SOCIAL HOUSING THAT:

  Is seamlessly integrated within a broader array
 	
  of housing assistance mechanisms;

  Focuses on the impact that housing can have
 	
  on people by considering all aspects of their
  lives, their pathways to social and economic
  participation, and the communities in which they
  live;
                                                               Specifically, Compass is proposing to give
  Uses different but consistent approaches to
 	
                                                               expression to the Third Wave of Social Housing
  different groups;
                                                               with the creation of a Newcastle Autonomous
  Provides encouragement for people in social
 	                                                            Social Housing Region, based on the transfer of the
  housing to contribute to their own advancement               management of the existing public housing within
  and the betterment of their community;                       the City of Newcastle (currently approximately 4,000
                                                               dwellings).
  Incorporates ambitious, defined and transparent
 	
  goals and outcomes for both people and                       This initiative will develop and link multiple
  property;                                                    pathways that address tenant education and
                                                               employment, transition to successful adulthood,
  Makes property decisions by considering:
 	                                                            access to the private property market, service
                                                               development and co-ordination, social housing
•	The capacity of the property to facilitate efficient
                                                               asset renewal and the better financing of social
   support for people’s social and economic
                                                               housing.
   participation;
                                                               The NSW Government’s leadership in addressing
•	The economic efficiency and lifecycle stage of the
                                                               the future of social housing has created a unique
   property; and
                                                               opportunity to reposition social housing within a
•	The opportunities for redevelopment to increase             more sustainable and productive housing assistance
   capacity, increase useful life, reduce costs and/or         framework. Compass is proposing to deploy this
   release value; and                                          new approach to social housing in the Newcastle
                                                               Autonomous Social Housing Region Initiative,
  Positions social housing agencies as key partners
 	                                                            building on proven practice from within NSW
  in all urban, economic and social initiatives.               and beyond.

Compass Housing Services                                  04                Social Housing in NSW Discussion Paper | February 2015
WELCOMING SOCIAL
HOUSING IN NSW
DISCUSSION PAPER

COMPASS HOUSING WELCOMES                                A poor response to young people confronting
                                                       	
                                                        homelessness;
THE NSW GOVERNMENT’S
COMMITMENT TO A SOCIAL HOUSING                          Higher rates of domestic violence and crime;
                                                       	

SYSTEM THAT IS A SAFETY NET                             The poor condition and underutilisation of social
                                                       	
FOR VULNERABLE PEOPLE, PROVIDES                         housing;

OPPORTUNITIES AND PATHWAYS TO                           The mismatch between social housing location
                                                       	
CLIENT INDEPENDENCE, AND IS FAIR                        and employment opportunities;

AND SUSTAINABLE.                                        Alarm at the level of unaddressed antisocial
                                                       	
                                                        behaviour (ASB) within social housing; and

                                                        Government policy and practice barriers to more
                                                       	
                                                        innovative leadership by social housing landlords.
LIKE THE NSW GOVERNMENT, COMPASS
RECOGNISES THAT THE NSW SOCIAL HOUSING
SYSTEM IS CONFRONTING:
                                                      COMPASS RECOGNISES THAT GOVERNMENT HAS
  A lack of economic and social participation
 	                                                   EXTENSIVE AND DIVERSE RESPONSIBILITY FOR
  for social housing tenants;                         PROVIDING HOUSING.

  Lengthening tenure;
 	                                                   Specifically, Compass accepts the advice of Harris
                                                      Wheeler (Attachment: Advice regarding Social
  A burgeoning backlog of necessary
 	                                                   Housing paper: Harris Wheeler, Lawyers) that
  maintenance; and                                    Government’s responsibility to provide housing is
                                                      not always limited by the financial viability of that
  The stigmatisation of public housing.
 	
                                                      housing. Harris Wheeler identifies that Australia has
                                                      obligations to provide adequate housing (“the right
                                                      to live somewhere in security, peace and dignity”)
SPECIFICALLY, THE CHALLENGES CONFRONTING              as reflected in:
SOCIAL HOUSING HAVE RIGHTLY BEEN
IDENTIFIED AS:                                          Article 25 of the Universal Declaration of Human
                                                       	
                                                        Rights;
  Limited avenues or incentives for exits from
 	
  public housing;                                       Article 11 of the International Covenant on
                                                       	
                                                        Economic, Social and Cultural Rights; and
  Poor social and economic outcomes;
 	
                                                        Other international conventions to which
                                                       	
  Limited education, employment and health
 	                                                     Australia is a signatory covering discrimination
  (including and mental health) outcomes;               and the status of refugees.

Compass Housing Services                         05                 Social Housing in NSW Discussion Paper | February 2015
THE SECOND CONVENTION
REQUIRES SIGNATORIES TO FUND
“TO THE MAXIMUM AVAILABLE
RESOURCES” AND NOT JUST
AVAILABLE HOUSING FUNDING.

HARRIS WHEELER ASSERTS             COMPASS SUPPORTS THE                       In recognition of the changing
THAT “THE SUSTAINABILITY           THREE UNDERLYING PILLARS                   role of social housing, Compass
PILLAR … IS NOT CONSISTENT         OF REFORM PROPOSED BY                      proposes identifying this
WITH AUSTRALIA’S                   THE NSW GOVERNMENT:                        new approach as “The Third
OBLIGATIONS UNDER                                                             Wave of Social Housing”. This
INTERNATIONAL TREATIES”.1                                                     approach considers social
                                   PILLAR 1                                   housing as an integrated
Additionally, the viability of     A social housing system                    part of a broader Housing
housing should be considered       that provides opportunity                  Assistance scheme.
holistically within the context    and pathways for client
of broader social or economic      independence.                              To bring this vision to life,
initiatives i.e. the capacity of                                              Compass proposes the
that housing to contribute to         system that works
                                     A                                        establishment of a Newcastle
the objectives of the broader        to break the cycle of                    Autonomous Social Housing
program. For example, a social       disadvantage and builds                  Region that will showcase a
housing solution that allows an      people’s capacity to move                new and better framework,
older person to leave hospital       into or stay in the private              developed from robust and
may generate significant             market.                                  proven methodologies and
savings for the health system,                                                practice from within NSW and
but would be unviable if rental                                               outside, including overseas.
                                   PILLAR 2
income alone was relied upon
                                   A social housing system that
to calculate viability.
                                   is fair.

                                     An integrated and fair
                                      system that provides a
                                      safety net for vulnerable
                                      people.

                                   PILLAR 3
                                   A social housing system that is
                                   sustainable.

                                     A sustainable system that
                                      provides appropriate
                                      housing assistance now and              1
                                                                               Page 5, 13 February, 2015, Advice regarding
                                      into the future.                        Social Housing paper: Harris Wheeler, Lawyers.

Compass Housing Services                          06                 Social Housing in NSW Discussion Paper | February 2015
SOCIAL HOUSING AS
AN INTEGRATED PART OF
HOUSING ASSISTANCE

                           In response to the NSW Government’s leadership, Compass proposes
                           that social housing is seen as being part of a continuum of housing
                           assistance, and a central component of other social and economic
                           initiatives.

                           Today, housing assistance is broadly funded by the Commonwealth
                           through the recurrent funding of Commonwealth Rental Expenditure
                           (CRA) and the capital funding of social housing by the Commonwealth
                           and States (largely funded through rental collection) with shared funding
                           for homelessness responses. CRA is targeted at supporting people in
                           the private rental market.

Compass Housing Services                  07                 Social Housing in NSW Discussion Paper | February 2015
COMMONWEALTH AND STATE AND TERRITORY
                                         FUNDING SHARES, 2012-2013 2

                                                                                                                                                                        Commonwealth
                                                                            67%: Commonwealth Rent Assistance
                                                                                                                                                                        Rent Assistance
                                                                                     ($3,628 million)                                                                   ($3,628 million)

          Commonwealth
                                                                                                                          2%: NRAS ($87 million)               National Rental Affordability Scheme (NRAS)
          ($5,439 million)
                                                           6%: NPA on Rem                                                                                                    ($117 million)
                                                                                    ote Indigenous
                                                                                                           Housing ($303 mil
                                                                                                                                       lion)
                                                      19%: Natio
                                                                      nal Afforda
                                                                                        ble Housin
                                                                                                      g (NAH) SP
                                                                                                                      P ($1,014 m
                                                                                                                                         illion)
                                                                        on)
                                                                  milli
                                                       S   ($29
                                              1%:
                                                    NRA              7%                                                                                                  Social Housing
                                                                            :N
                                                                              PA
                                                                                   on                                                                                   ($5,194 million)
                                                                                        Ho
                                                                                          me
                                                                                             les
                                                    95%:                                        sn
                                                                                                    es
      States and Territories                        Social Housing
                                                                                                      s(
                                                                                                         $1
                                                                                                            57
         ($4,092 million)                           ($3,878 million)                                             mi
                                                                                                                   llio
                                                                                                                       n)
                                                                                                                            +N
                                                                                                                               AH
                                                                                                                                    SP
                                                                                                                                       P(
                                                                                                                                           $2
                                                                                                                                               50
                                                                                                                                                    mi
                                                                                                                                                      llio
                                                                        5%: Hom                                                                           n)
                                                                                        elessnes                                                                        Homelessness Services
                                                                                                   s Servic
                                                                                                              es ($185
                                                                                                                            million)                                       ($591 million)

CRA HAS GROWN                                                     Over the same period, the amount of social housing stock has
SIGNIFICANTLY SINCE ITS                                           declined and turnover has decreased – accordingly, fewer people can
INCEPTION IN THE MID 1980S                                        be housed this way. (Social housing per head of population in NSW has
AND IS LIKELY TO CONTINUE                                         declined by 10 per cent over the last 10 years3).
TO GROW, BOTH IN TERMS OF
THE NUMBER OF RECIPIENTS                                          Without significant capital funding for new social housing stock (an
AND THE AMOUNT PAID TO                                            unlikely prospect in the current economic and political environment), this
THEM. (THIS WILL BE ESSENTIAL                                     trend is likely to continue. However, social housing remains an important
IF CRA IS TO RETAIN ITS                                           response to housing need within the broader housing assistance
EFFECTIVENESS, GIVEN THAT                                         framework, and a new approach must be undertaken if we are to
RENTAL MARKETS HAVE RISEN                                         maximise its effectiveness.
FASTER THAN THE CPI.)
                                                                  Compass is a long-standing Community Housing Provider with a trusted
                                                                  and established relationship with some of the most socially excluded
                                                                  people in our community.

                                                                  This unique experience can enable Compass to make a major
                                                                  contribution to the achievement of Government objectives, not only
                                                                  providing Government with access to ‘difficult to reach’ groups for
                                                                  improved housing services, but also to a wide range of agencies
                                                                  delivering social and economic interventions.

                                                                  Compass has pioneered a People, Places and Property approach to
                                                                  housing management that demonstrates the added value that housing
                                                                  services can bring to the achievement of educational, training, health
                                                                  and employment initiatives.

2
  Pg 16, Reform of Federation White Paper, Roles and Responsibilities in Housing and Homelessness ISSUES PAPER (2014), Department of Prime Minister and Cabinet,
Australian Government. 3 While public housing has declined by 25% ie there has been growth in community housing Pg 34, Reform of Federation White Paper, Roles and
Responsibilities in Housing and Homelessness ISSUES PAPER (2014), Department of Prime Minister and Cabinet, Australian Government.

Compass Housing Services                                                                           08                                           Social Housing in NSW Discussion Paper | February 2015
A NEW PARADIGM
FOR A MODERN HOUSING
ASSISTANCE SYSTEM

LIKE ANY SOCIAL ASSISTANCE SYSTEM, THE MOST                                                      A focus on reducing, eliminating or, at a
                                                                                                	
EFFECTIVE AND EFFICIENT HOUSING ASSISTANCE                                                       minimum, stopping escalation of the need for
SYSTEM SHOULD INCORPORATE:                                                                       assistance;

  Integrated access points;
 	                                                                                              A focus on prevention, diversion and early
                                                                                                	
                                                                                                 intervention; and
  A comprehensive set of integrated services and
 	
  products that are broadly available;                                                           Recognition and provision of appropriate services
                                                                                                	
                                                                                                 to ensure that state statutory obligations to care
  Robust and flexible management arrangements
 	                                                                                              for various cohorts are fulfilled.
  within a consistent policy framework;
                                                                                              Housing assistance may include the provision
  Transparent and consistent levels of subsidy;
 	                                                                                           of accommodation (Homelessness, Emergency
                                                                                              Accommodation, Social Housing, and Affordable
 	Few barriers between products and service
                                                                                              Housing) or assistance with the costs of private
    offerings;
                                                                                              rental or private ownership. This can be seen as a
 	Little or no service cliffs (i.e. where access to a                                       ‘whole system’ approach with a graded response to
    different product or service dramatically changes                                         a segmented population with different degrees of
    the level of assistance provided);                                                        housing support needs.

                                              SEGMENTS WITHIN SOCIAL HOUSING

     Person who                                    Person who
                                                                                                    Person who
     cannot work                                   cannot work                                                                                        Person who
                                                                                                   can work with
      and cannot                                     but can                                                                                           can work
                                                                                                    limitations*
       volunteer                                    volunteer

                                                                                                                                                       Assistance
     Long Term
                                                                                                                                                     with transition
   Social Housing                                            Segmented support continuum
                                                                                                                                                       to private
      Tenancy
                                                                                                                                                         rental

                                                                  *Includes varying degrees of limitation
                           • Inherent (disability or circumstantial (eg. sole carer for child under 5 years old, presently a child under 16), and;
                                                                    • Episodic or permanent limitation.

Compass Housing Services                                                             09                             Social Housing in NSW Discussion Paper | February 2015
TENANT ENGAGEMENT WILL BE STRUCTURED                         AN ESCALATING RANGE OF INCENTIVES
AROUND PLANS, INCENTIVES AND SUPPORTS                        COULD INCLUDE:
THAT HELP TENANTS SECURE BETTER
EDUCATION, MORE EMPLOYMENT AND/OR MORE                         Structured payment arrangements;
PARTICIPATION IN THEIR COMMUNITY THROUGH
                                                               Education;
VOLUNTEERING AS THEIR POTENTIAL CAPACITIES
PROVIDE.                                                       Rental reduction based on changed behaviours;

Issues that are placing tenancies at risk should               Behavioural contracts;
be addressed by intelligence-led decision making
– in other words, a well-researched general                    Rehabilitation programs;
understanding of why tenancies fail will provide
                                                               Support programs; and
a framework by which individual cases can
understood and considered in terms of their specific           Changes in security of tenure
                                                              	
mix of circumstances. This should then inform                  (e.g. from tenancy to license).
the provision of responses that are tailored to the
tenant, but could also include outright eviction             The key would be to identify the underlying
(where the indications are that compliance would             cause(s) and assess what combinations of
be unlikely even with support and a ‘last chance’            responses are most likely to generate the required
licensed tenure).                                            responses, and also what to do if they fail. Eviction
                                                             would remain an option.
The proposal is to build a graduated set of
responses with both positive and negative                    In fact, to achieve the paradigm shift required to
incentives to deal with issues such as failure to pay        effectively move to the Third Wave of social housing
rent, property damage and anti-social behaviour              will require both growth and transfer of the control
- rather than relying simply on eviction (and the            of social housing to more diverse and locally
threat thereof).                                             responsive entities: Community Housing providers.

The shape of the incentives will be best determined
by the response most likely to achieve the
required outcome, so will vary depending on the              COMPASS ENDORSES THE NSW FEDERATION
issue affecting the client. It is assumed that the           OF HOUSING ASSOCIATIONS ASSERTION THAT:
issues may be generated by a range (and possibly
                                                               The Community Housing industry is
                                                              	
combination) of causes – ranging from lack of
                                                               delivering for NSW;
education, poor behaviour, cognitive impairment
linked to disability, as well as drug and alcohol              The Community Housing Industry is ready
                                                              	
abuse.                                                         to do more;

                                                               An Affordable Housing Strategy is required
                                                              	
                                                               to co-ordinate efforts;

                                                               New investment in housing is required as
                                                              	
                                                               part of essential infrastructure; and

                                                               Property transfers are required to achieve
                                                              	
                                                               a viable social housing system.

Compass Housing Services                                10                  Social Housing in NSW Discussion Paper | February 2015
DESCRIBING THE THIRD WAVE
OF SOCIAL HOUSING

                           THE DEVELOPMENT OF SOCIAL HOUSING IN AUSTRALIA CAN BE DIVIDED
                           INTO TWO CLEAR HISTORICAL WAVES: INITIALLY AS HOUSING FOR
                           WORKERS, AND THEN FOR THOSE WHO ARE HOMELESS AND THOSE
                           MOST IN NEED.

                           Today, Compass proposes reframing how social housing in NSW is
                           considered to better recognise how it currently operates, the challenges
                           that the sector confronts and to capture the opportunities that are
                           emerging. Social housing can now be identified as entering a third wave,
                           where housing is considered alongside broader social and economic
                           initiatives that aim increase the capacity and the participation of citizens,
                           and encompasses a broad range of housing assistance options.

                           UNDER THE THIRD WAVE, SOCIAL HOUSING:

                             Focuses on the impact that housing can have on people by
                            	
                             considering all aspects of their lives, their pathways to social and
                             economic participation, and the communities in which they live;

                             Uses different combinations of social housing products and services
                            	
                             (including assistance into the private market) for different groups:
                             people of working age, children, young people, older people, people
                             with a disability, and people who are homeless or displaced by family
                             violence;

                             Places reasonable obligations on people in social housing to
                            	
                             contribute to their advancement and the betterment of their
                             community;

                             Has ambitious, defined, measurable and transparent goals for both
                            	
                             people and property outcomes;

                             Focuses on different pathways to social and economic participation
                            	
                             for the different segments while being bound by a consistent and
                             integrated framework;

                             Focuses on property by considering its capacity to enable people’s
                            	
                             social and economic participation, its economic efficiency and lifecycle
                             stage and the opportunity for redevelopment to increase capacity and
                             useful life, reduce costs and/or release value; and

                             Considers social housing agencies as key partners in all urban,
                            	
                             economic and social initiatives.

Compass Housing Services                  11                   Social Housing in NSW Discussion Paper | February 2015
Compass asserts that social and economic initiatives are best delivered
                                           at a neighbourhood and community level, and that social housing
THIS MOVE TO A                             developments must contribute to engaged, functional, productive, and
NEW ROLE FOR                               socially and economically sustainable communities that include but
                                           extend beyond social housing.
SOCIAL HOUSING WILL
HAVE A SIGNIFICANT                         Compass is currently enhancing its existing range of social interventions
                                           with the use of the “Deep Place” approach developed in the UK to tackle
IMPACT ON HOW IT IS
                                           poverty, poor health and low educational attainment in marginalised
DEVELOPED, ARRANGED                        communities, and to move communities challenged by long-term
AND INTEGRATED INTO                        inequalities to more socially and economically sustainable futures4.
THE FUTURE.                                Social housing agencies play a key role in this approach by providing
                                           housing-led social and economic regeneration leadership. This work
                                           within Compass is being led by Professor Dave Adamson, a significant
                                           Welsh expert in social housing regeneration.

                                           In this context, it is informative to compare the current social housing
                                           system with that which is emerging in the Third Wave of Social Housing.

                           Contrasting Current System and Third Wave of Social Housing

    AREA                   CURRENT SYSTEM              THIRD WAVE OF SOCIAL HOUSING

                           Highest in need given       Segmented approach with viability and sustainability
    Access
                           priority.                   of community considered.

                           Limited and
                           inconsistent between
    Assistance                                         Fully integrated, with all products available to all
                           Government and .non-
    Integration                                        providers of housing assistance.
                           Government providers
                           of housing assistance.

                                                       Tenants streamed depending on potential to work
                           Similar policies apply
    Segmentation                                       and volunteer and those covered by state statutory duty
                           to all.
                                                       of care obligations.

                                                       Permanent tenure for those not able to work.

                           Mixture of long term        Limited term linked to development and reviews for
    Lease Tenure           and short term leases       those that can work with limitations.
                           on individual basis.
                                                       Limited term linked to development and exit plans for
                                                       those who can work.

http://bit.ly/1DglyOh
4
                                                                                                       TABLE CONTINUES OVER PAGE

Compass Housing Services                                  12                  Social Housing in NSW Discussion Paper | February 2015
Contrasting Current System and Third Wave of Social Housing (Continued)

    AREA                        CURRENT SYSTEM            THIRD WAVE OF SOCIAL HOUSING

                                                          For suitable situations, a transition to license could
                                                          be provided as an alternative to eviction. This tenure
                                Options limited to        would include a requirement to meet defined behaviour,
    License
                                Leases or eviction.       supported by case-management with appropriate
                                                          services. There would not be access to the usual tenancy
                                                          appeal mechanisms.

                                                          Comprehensive assessment of influencing factors that
                                                          can be addressed such lack of support services for
                                                          people with mental health issues.

    Anti-Social                 Reluctance/Inability to   A dual approach to tenancy management that supports
    Behaviour                   affectively address.      tenants with social or health barriers to tenancy
                                                          compliance but with assertive enforcement of tenancy
                                                          and neighbourhood rules and use of eviction and
                                                          engagement with police in cases of criminality or serious
                                                          anti-social behaviours.

                                25% of income             Market-based escalating to 75% of market.
    Rental                      (plus CRA for             For non-working tenants rent is set low, but linked to
                                community Housing).       market not income.

                                                          Structured program for every tenant who can work
                                                          and/or volunteer. Created by partnerships with local
    Education                   Limited.
                                                          schools, TAFE institutions and informal learning providers
                                                          in the third sector.

                                                          Structured program for every tenant who can work
                                                          including social enterprise programs.
    Employment                  Limited.                  Creation of work opportunities in social enterprises
                                                          and social procurement relationships with local anchor
                                                          organisations (e.g. hospitals, universities, etc).

                                                          Volunteer development and support program linked
    Community
                                Limited.                  to Community Engagement, which deploys volunteering
    Engagement
                                                          as a transition to the labour market where possible.

                                                          Ongoing support (including financial as required) in the
    Private
                                Limited.                  private rental market as a key element of the segmented
    Rental
                                                          continuum of support identified above.

                                Significant levels
    Service                     of difference in the      Limited difference in subsidy level between social
    Cliffs                      subsidy of people with    housing and private rental.
                                similar needs.

Compass Housing Services                                    13                  Social Housing in NSW Discussion Paper | February 2015
THE COMPASS
PATHWAYS INITIATIVE
NEWCASTLE AUTONOMOUS SOCIAL HOUSING REGION

                           COMPASS AIMS TO ADVANCE THE THREE PILLARS OF SOCIAL HOUSING
                           PROPOSED BY THE NSW GOVERNMENT WITH A NEW INITIATIVE –
                           THE COMPASS PATHWAYS INITIATIVE – THAT WILL BRING “THE THIRD
                           WAVE OF SOCIAL HOUSING” TO LIFE.

                           The Compass Pathways Initiative (“the Initiative”) proposes the creation
                           of a Newcastle Autonomous Social Housing Region, based on the
                           transfer of the management of the existing public housing within the
                           City of Newcastle (currently approximately 4,000 dwellings). The zone
                           will be used to develop, deploy and refine new approaches to asset and
                           social management, and will be resourced by $11m of Commonwealth
                           Rental Assistance (CRA) and savings from social housing management
                           rationalisation.

                           Stock transfer has provided a major route to more sustainable and
                           effective housing provision in a range of jurisdictions, notably in the UK
                           where different models have been deployed within the devolved regions.
                           General outcomes have included improved housing management,
                           delivery of social regeneration, employment, educational and health
                           initiatives with higher levels of tenant satisfaction5.

                           5
                            Year 6: The Socio-Economic Impact of the Welsh HA and Community Mutual Sector, Wales Economic
                           Research Unit, Cardiff Business School, Cardiff University 2013, Pawson et al (2009), The Impacts of Housing
                           Stock Transfer in Urban Britain, JRF.

Compass Housing Services                         14                            Social Housing in NSW Discussion Paper | February 2015
THE INITIATIVE’S MULTIPLE PATHWAYS ARE
                           DESIGNED TO LINK AND IMPROVE ASSET
                           MANAGEMENT AND SOCIAL MANAGEMENT:

                           	Asset Renewal Pathway with a comprehensive
                             maintenance program, the development of new stock for
                             older tenants currently living in underutilised stock, and the
                             redevelopment of the vacated properties;

                           	Pathway to Successful Adulthood through the
                             development of a Youth Foyer to provide structured
                             accommodation, employment, education and living skill
                             development for young homeless people;

                           	Better Financing Pathway providing finance through a
                             combination of commercial debt and social impact and
                             housing bonds. The redesign of the Community Housing
                             Leasing Program (CHLP) will be included;

                           	Tenant Development Pathway will resource education
                             and employment supports via social enterprises (e.g. one
                             providing property maintenance and one for NDIS client
                             support services ), underpinned by an incentivised social
                             housing rental model;

                            Service Development and Co-ordination Pathway will
                           	
                            be built around a Newcastle NDIS provider network and a
                            NDIS housing advisory service; and

                           	Pathway to the Private Market including both Private
                             Rental Headlease Program and the development of shared/
                             mixed equity ownership models.

Compass Housing Services                                 15                   Social Housing in NSW Discussion Paper | February 2015
COMPASS INITIATIVES
COMPASS HAS A NUMBER OF INITIATIVES UNDER WAY OR IN DEVELOPMENT,
OFTEN UNDERTAKEN IN BROADER COMMUNITY PARTNERSHIPS.

                           THE COMPASS GROW PROJECT

                           The Compass GROW Program takes a holistic approach to community
                           development programs. Compass assists our clients to achieve
                           self-reliance, contribute to solutions and participate in outcomes that
                           affect them as individuals and ensure they are actively participating as
                           members of the community.

                           The GROW program incorporates community development and
                           environmental aspirations, aiming to enrich the lives of tenants
                           through enhancing their personal, social, environmental and economic
                           sustainability.

                           THE GROW PROGRAM ALSO INCREASES TENANTS’ AWARENESS
                           OF AND PARTICIPATION IN:

                             Health & nutrition programs;
                            	                                            Sustainable living practices;
                                                                         	
                                                                          and
                             Esteem and well-being
                            	
                             programs;                                    Factors affecting
                                                                         	
                                                                          security of tenure.
                             Community contribution;
                            	
                             economic participation; and
                             generational advancement;

                           The program focuses on the principles of social inclusion and
                           environmental sustainability.

Compass Housing Services                  16                  Social Housing in NSW Discussion Paper | February 2015
THE COMPASS GROW A STAR PROGRAM

                           THE COMPASS GROW A STAR PROGRAM WAS INITIALLY A SPORT-BASED
                           PROGRAM THAT WAS THEN FURTHER DEVELOPED TO HELP YOUNG
                           PEOPLE ACHIEVE THEIR DREAMS AND ASPIRATIONS, WHILE STRIVING
                           TO BE THE BEST THEY COULD.

                           The program has evolved so that it is more holistic and seeks to give
                           opportunities to young people to pursue any field including, but not
                           limited to: sport, education, arts, dance, music and employment.

                           An intended outcome of the GROW a Star program is to interrupt the
                           endemic cycle of family unemployment, limited education and poverty
                           by giving young people the opportunity and support to break free.

                           Over the period of the program’s operation, an unintended consequence
                           has emerged, that is, in some cases connectedness and confidence has
                           increased for parents/carers too.

                           Evidence clearly demonstrates that education and employment
                           interrupts the cycle of systemic and entrenched poverty. This evidence
                           propels the GROW a Star program as it provides practical supports to
                           children and young people, making a significant difference in their lives
                           and future opportunities.

Compass Housing Services                                       17                   Social Housing in NSW Discussion Paper | February 2015
THE NEWCASTLE FOYER PROJ ECT

THE FOYER PROJECT FOR HOMELESS
YOUNG PEOPLE COMBINES ACCOMMODATION
WITH EMPLOYMENT, EDUCATION AND TRAINING
SUPPORT IN THE HUNTER REGION, NSW
AND IS IN THE PLANNING STAGES.

THE CORE ELEMENTS OF THIS APPROACH WILL BE:

 	Strength to strength: Identifying and building on
   the strengths of the young people participating in
   the program to help overcome any barriers.

 	Joined up service delivery: Building on existing
   services in the local area to provide a holistic
   service that connects housing, education, health
   and welfare.
                                                                THE DEEP PLACE APPROACH
 	Focus on diversity: Providing for and tailoring
   to the diversity of needs for each individual as             TO SUSTAINABLE COMMUNITIES
   well as catering to the diversity of young people
   experiencing homelessness – from cultural
   diversity, to varying abilities, singles, couples and
   young parents.                                               FROM MAY 2015, COMPASS WILL BE DEVELOPING
                                                                THIS INNOVATIVE APPROACH TO SOCIAL AND
                                                                ECONOMIC REGENERATION.
The community partners involved in the progressing
this business case are Hunter TAFE NSW, Life
Without Barriers, Compass Housing, Hunter Youth                 Developed in Wales, UK, to tackle the child poverty
2020, and Rotary Charlestown.                                   rate of 33%, the program combines a ‘total place’
                                                                approach to public services with an economic
These key elements are central to the Foyer
                                                                development strategy based on the ‘foundational
model. Foyers combine stable accommodation
                                                                economy’ model of the Manchester Business
with employment, education and training support,
                                                                School.
providing homeless young people with the
necessary skills to forge independent sustainable lives.         It seeks to reconnect long-term, economically
                                                                inactive communities with newly created job
The aim of this program is to help young people
                                                                opportunities developed in partnership with local
who are homeless or at risk of homelessness
                                                                anchor organisations.
to develop the skills they need to lead happy,
independent and productive lives.                               By combining social procurement strategies with
                                                                targeted recruitment and training of social housing
                                                                tenants, it tackles the ‘cause of the causes of
SPECIFIC OBJECTIVES INCLUDE:
                                                                poverty’ i.e. the low level of economic activity in
 	Reduce the number of young people cycling                    social housing communities.
   through the housing system.
                                                                It also encourages more effective collaboration
 	Increase the number of young people completing               between public, private and third sector
   education qualifications.                                    organisations and service providers by creating
                                                                a ‘coalition for change’ that focuses on improved
 	Increase the number of young people                          employment, health and educational outcomes for
   productively employed.                                       marginalised communities.

Compass Housing Services                                   18                Social Housing in NSW Discussion Paper | February 2015
COM PASS RESPONSE
TO THE THREE PILLARS

                           1   A SOCIAL HOUSING SYSTEM THAT
                               PROVIDES OPPORTUNITY AND

                           2
                               PATHWAYS FOR CLIENT INDEPENDENCE

                               A SOCIAL HOUSING SYSTEM THAT IS FAIR

                           3   A SOCIAL HOUSING SYSTEM THAT
                               IS SUSTAINABLE

Compass Housing Services       19         Social Housing in NSW Discussion Paper | February 2015
PILLAR 1:
A SOCIAL HOUSING                          Compass, in describing the Third Wave of Social Housing, asserts
                                          that there should be both support and incentives (social and economic)
SYSTEM THAT PROVIDES                      for people to move towards independence. This may include a move
OPPORTUNITY AND                           from social housing tenancy to subsidised, private rental.
PATHWAYS FOR CLIENT                       Both tenure and rent setting models will need to be adapted to support
INDEPENDENCE                              such a pathway approach. Those who are unable to work may still be
                                          encouraged to make a contribution (for both their own benefit and that
                                          of the broader community) through formal and informal volunteer roles.

                                          Compass already has well developed practice and strategies to support
                                          pathways to better education, better employment and ultimately
                                          private housing.

                                                       PILLAR 1
               A social housing system that provides opportunity and pathways for client independence.

    AREA                                 FOCUS                INITIATIVE PROPOSED BY COMPASS

                                                              Establish and deploy education and employment
                                                              plans for tenants who can work (including with
                                                              limitations). Partner with Job Network providers
                                                              and Registered Training Organisations.

                                                              Establish social enterprises e.g. Compass’s
                                         Connect with         Handy Manny on Central Coast which is planning
                                         employment.          to engage suitable skilled up tenants to complete
                                                              minor repairs and lawn mowing.

                                                              Create employment opportunities in the local
                                                              economy through social procurement practices
                                                              and targeted recruitment and training of tenants
    Employment, education                                     with capacity to work.
    and other community
    engagement products
    and services:                        Connect with         Develop a Youth Foyer to provide structured
                                         education and        accommodation, employment, education and living
                                         training.            skills development for young homeless.

                                                              Employ appropriate tenants as NDIS support
                                                              workers – employ jobs specialist – partner with
                                                              other employment providers.
                                         Connect with
                                         community            Presently high outcome with tenants ‘giving back’
                                         engagements.         via volunteering.

                                                              Has been involved in tenant education outcomes –
                                                              more of this.

                                                                                                      TABLE CONTINUES OVER PAGE

Compass Housing Services                                 20                  Social Housing in NSW Discussion Paper | February 2015
PILLAR 1 (continued)

    AREA                           FOCUS                   INITIATIVE PROPOSED BY COMPASS

                                   Strengthen
                                                           The FACS delivery staff are to be employed by
                                   partnerships
                                                           Compass with remaining FACS staff to concentrate
                                   between CHPs
                                                           on audit and QA roles.
                                   and FACS.

                                   Strengthen
                                   partnerships
                                   between                 Development of the Deep Place, Coalition for
                                   CHPs and                Change approach to public service partnership.
                                   government
    Strengthen partnerships        agencies.
    with other government
    agencies, non-government
    organisations and the          Strengthen
    private sector:                partnerships            Initiate discussions about the development of
                                   with the private        social housing bonds with private investors.
                                   sector.

                                                           Develop more formal arrangements with specific
                                   Strengthen              services providers to enable a clearer pathway
                                   partnerships            of support to tenants (e.g. as utilised in The Way
                                   with the Not for        Home Program).
                                   Profit sector.          Develop housing-led access routes to ‘difficult to
                                                           reach’ sections of the community.

                                                           Develop Private Rental Headlease Program.

                                                           Administer the Rental Bond Loan Program.
    More actively support          Transition              Administer the Mortgage Default Prevention
    clients to transition out of   out of social           Program.
    social housing:                housing.
                                                           Promote shared/mixed equity ownership models
                                                           that are based on community accepted, fair
                                                           distributive principles.

Compass Housing Services                              21                   Social Housing in NSW Discussion Paper | February 2015
PILLAR 2:
A SOCIAL HOUSING SYSTEM THAT IS FAIR
Compass is committed to system that is fair, albeit within a range of housing
and service settings, and that accommodates a diverse range of people.

                                                        PILLAR 2
                           Initiatives Proposed by Compass - A social housing system that is fair.

    AREA                                    FOCUS                  INITIATIVE PROPOSED BY COMPASS

    Develop a clear and                     Definition of          Workgroup, multi-disciplined, broad based etc.
    measurable definition of                the safety net         to determine.
    the safety net required to              to support             Develop a segmented housing support model
    support vulnerable people               vulnerable             that meets the clients’ needs in ways appropriate
    in social housing:                      people.                to their abilities and capacity.

                                                                   Tenant Relations Support Officers undertake
                                            Understanding          regular visits and assessments, including referrals
    Improve our understanding               of clients’            to appropriate services as required.
    of clients’ needs in order to           needs.
    tailor programs and services,                                  Develop evidence-based interventions.
    and improve wrap around
    support to tenants:
                                            Wrap around
                                                                   Develop the Newcastle NDIS Partnership.
                                            support.

                                            Prioritisation.        Employability and neighbourhood resilience.

                                                                   Replace social housing waiting list with a housing
                                            Waiting list
                                                                   assistance approach that extends beyond social
                                            management.
    Undertake further work                                         housing.
    on applicant eligibility and
    prioritisation, waiting list
    management, dwelling                                           Develop a range of support responses ranging
                                            Dwelling
    allocation and rent practice:                                  from long-term social housing tenure to
                                            allocation.
                                                                   transitionary tenures and private sector transition.

                                                                   Discounted market based rental linked to people’s
                                            Rent practice.
                                                                   choices and development pathways.

    Explore options to provide              Better prepare
    greater tenant choices as a             tenants for the        Provide housing assistance aimed at supporting
    way to better prepare tenants           private rental         those who can exit into the private market.
    for the private rental market:          market.

Compass Housing Services                                      22                  Social Housing in NSW Discussion Paper | February 2015
PILLAR 3:
A SOCIAL HOUSING                             Housing of the most vulnerable is a central role for the social housing
                                             system. As such, social housing is often part of a broader assistance program
SYSTEM THAT
                                             structured to discharge the Government’s responsibility (in some cases
IS SUSTAINABLE                               statutory) to provide those most in need. In this context, sustainability is best
                                             defined as a search for the most efficient use of resources rather than one
                                             that can be abandoned if revenues are not sufficient. Sustainability can be
                                             defined in financial, social and political terms. The housing system must be
                                             seen as “fair” by the broader population if it is to be truly sustainable.

                                             One of the most significant and promising changes to the social housing
                                             system in the last decade has been the rapid development to scale of
                                             Community Housing Providers (CHPs) and Housing Associations (HAs). These
                                             rapidly growing not for profits, of which Compass is the biggest, are evolving
                                             to be much stronger and more private sector-like in their approach, while
                                             moderating the pursuit of profit with the effectiveness of human services
                                             delivery. These agencies provide a platform for housing assistance to be
                                             provided at the community level and articulated more easily into other social
                                             and economic initiatives.

                                             The Third Wave of Social Housing represents significant changes to the
                                             existing system with many of these initiatives reflected in the Compass
                                             Pathways Initiative, which is framed around the creation of a Newcastle
                                             Autonomous Social Housing Region.

                                                         PILLAR 3
                       Initiatives Proposed by Compass – A social housing system that is sustainable.

    AREA                                    FOCUS                  INITIATIVE PROPOSED BY COMPASS

                                                                   Redevelopment of the vacated properties.
                                            Fund the NSW           Develop Social Housing Bonds.
                                            social housing
                                            system within          Develop Social Impact Bonds.
    Explore how best to fund
                                            the existing
    the NSW social housing                                         Develop commercial debt facilities.
                                            envelope.
    system, within the
    existing envelope, while                                       Introduce mixed/shared equity schemes.
    ensuring transparency and
    accountability:
                                            Ensuring
                                            transparency
                                                                   Publish housing targets and progress.
                                            and
                                            accountability.

                                                                                                           TABLE CONTINUES OVER PAGE

Compass Housing Services                                      23                  Social Housing in NSW Discussion Paper | February 2015
PILLAR 3 (continued)

    AREA                              FOCUS                  INITIATIVE PROPOSED BY COMPASS

                                      Stock                  Develop and deploy a comprehensive
                                      maintenance.           maintenance program.

    Plan for a fully sustainable                             The development of new stock to decant older
                                      Suitable for
    system which, at a minimum,                              tenants in underutilised stock.
                                      the needs of
    has stock that is maintained
                                      tenants.               Establish a NDIS housing advisory service.
    and suitable for the needs
    of tenants:

                                                             Consider environmental sustainability as part of
                                      Environmental
                                                             the procurement strategies used in both
                                      sustainability.
                                                             construction and maintenance functions.

                                      Different mix
    Consider the impact on the
                                      of government,
    sustainability of the system
                                      non-
    that might result from a                                 Redesign of the Community Housing Leasing
                                      government
    different mix of government,                             Program (CHLP).
                                      and private
    non-government and private
                                      sector
    sector participants:
                                      participants.

                                      Mix and
    Consider the mix and modes
                                      modes of               Development of a segmented service with a range
    of social housing products
                                      social housing         of products reflecting he demographic complexity
    and services required to assist
                                      products and           of those seeking social housing support.
    those in need:
                                      services.

                                      Increase
                                      the role of
    Increase the role of CHPs in
                                      CHPs in the            Create the Newcastle Autonomous Social
    the management of tenants
                                      management             Housing Region.
    and dwellings.
                                      of tenants and
                                      dwellings.

Compass Housing Services                                24                  Social Housing in NSW Discussion Paper | February 2015
ABOUT COMPASS

                           Compass Housing Services (“Compass”) is Australia’s largest community
                           housing group and operates out of NSW with significant operations in
                           Queensland. Compass employs 95 staff in the head office, with nine
                           branch facilities and five outreach locations.

                           Compass is a Tier 1 accredited housing provider, currently managing
                           3,500 properties housing 5,700 tenants in NSW, as well as another 850
                           properties in Queensland. From June 2015, it will manage another 4,700
                           dwellings in Logan City.

                           Compass is leading the development of a national secular social housing
                           group of organisations6 that will bring together a varied set of agencies
                           that are deeply embedded in their communities and service a diverse
                           range of needs.

                           Compass recent won the management rights of the Logan Renewal
                           Initiative with 4,700 dwellings.

                           5
                            Vision 2020, a vision for an integrated secular-based housing and other human services national brand:
                           Concept Paper (Compass Housing)

Compass Housing Services                         25                           Social Housing in NSW Discussion Paper | February 2015
PREVIOUSLY COMPASS HAS SECURED :                                AWARD S :
 	Affordable Housing Innovations Fund 2008:                    	2008 Excellence Award Community Housing -
   $600,000 in capital funding                                    High commendation: Service to tenants

 	Debt Equity Scheme (2008):                                   	2008 Excellence Award Community Housing -
   $1.3m in capital funding                                       Award for Excellence: Annual Reporting

 	Building Better Cities (2208): $660,000 in capital           	2008 Excellence Award Community Housing
   funding from Newcastle Council                                 - High Commendation: Overall excellence in
                                                                  community housing
 	Social Housing Growth Fund Round 1 (2009):
   Awarded $17m in capital funding                              	2008 Excellence: Award Community Housing -
                                                                  High Commendation: Tenant participation
 	Social Housing Growth Fund Round 2 (2009):
   Awarded $5m in capital funding                               	2009 Bronze partner status in NSW Sustainability
                                                                  Advantage program
 	NRAS Round 2 (2009): $5.6m.
                                                                	2010 Hunter Business Chamber Award for
 	Growth Provider Status NSW (2010):                             Environmental Sustainability
   1,000 properties.
                                                                	2010 Excellence Award Community Housing -
 	NRAS Round 4 (2010): $9.6m.                                    Award for Excellence Service to tenants
 	Office of Environment & Heritage                             	2011 Silver partner status in NSW Sustainability
   and Department of Training (2010):                             Advantage program
   $60,000 for energy efficiency training.
                                                                	2011 Hunter Business Chamber Award for
 	Asset Ownership 2010: $19.8m in stock.                         Environmental Sustainability
 	Nation Building (2010): $90.3m.                              	2012 Finalist Hunter Business Chamber Award
   Now about $140m more.                                          for Customer Service
 	SAIF (2012): $7.4 to deliver 20 disability dwellings.        	2012 Finalist Hunter Business Chamber Award
                                                                  for Innovation to Environmental Sustainability
 	NRAS 5 (2013); $3.9m
                                                                	2012 Finalist Upper Hunter Business Chamber

                                                                	2012 Australian Housing Institute NSW Leading
                                                                  Practice Award

                                                                	2013 NSW Federation of Housing Associations
                                                                  Excellence in Green Initiatives

                                                                	2013 NSW Federation of Housing Associations
                                                                  Overall Excellence in Community Housing

           COMPASS HAS SIGNIFICANT FINANCIAL CAPACITY,
           CURRENTLY MANAGING ASSETS VALUED AT MORE THAN
           $1 BILLION AND WITH REVENUE OF $35M P.A.

           							It has with net assets of $338m with debts of $25m
           							Led by an experienced Executive, Compass has a
                   skilled team of people dedicated to delivering better
                   social housing outcomes across two states.

Compass Housing Services                                   26               Social Housing in NSW Discussion Paper | February 2015
CONCLUSION

                           COMPASS, AUSTRALIA’S LARGEST COMMUNITY HOUSING
                           PROVIDER, WELCOMES THE NSW GOVERNMENT’S COMMITMENT TO
                           A VIBRANT AND EVOLVING SOCIAL HOUSING SYSTEM THAT IS A SAFETY
                           NET FOR VULNERABLE PEOPLE, PROVIDES OPPORTUNITIES AND
                           PATHWAYS TO CLIENT INDEPENDENCE, AND IS FAIR AND SUSTAINABLE.

                           Compass recognises the changing role of social housing within a broader
                           housing assistance framework and is proposing a new paradigm, the
                           “Third Wave of Social Housing” that will provide a diverse and integrated
                           housing assistance response to different segments of the community,
                           depending on the individual’s need and capacity.

                           Specifically, Compass proposes the establishment of a Newcastle
                           Autonomous Social Housing Region Initiative to begin to deploy this
                           new approach.

Compass Housing Services                 27                  Social Housing in NSW Discussion Paper | February 2015
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