Cairns Seniors Community Housing Project
NAIF's loan to Community Housing Ltd and Tetris Capital Pty Ltd for the Cairns Seniors Community Housing Project which will provide 490 social, affordable and specialist disability accommodation (SDA) housing in Cairns, Queensland.
August 2024
Social Infrastructure
Cairns
In partnership with Housing Australia (HA) and the Queensland Government (through its Housing Investment Fund; HIF), the Cairns Seniors Community Housing Project will provide social, affordable and specialist disability accommodation (SDA) to address the housing shortage in Cairns. The project will deliver 490 dwellings, comprised of 245 social, 223 affordable and 22 SDA apartments, providing housing to around 690 people.
Proponent Background
The project is being developed by an experienced consortium who have delivered several community housing projects in Victoria under a similar funding model. The project was initiated through a HIF process that invites proponents to submit proposals for community housing projects.
Tetris is an Australian infrastructure developer, investor and manager, with over $3 billion of assets under management. It focuses on large-scale infrastructure and structured property projects. The CHL group of companies is the largest community housing provider (CHP) in Australia with over 11,000 properties under management. CHL manages over 1,300 community housing dwellings across Queensland through its subsidiary, Community Housing Queensland Limited (CHQL), which is the same entity that will operate this project.
Project Overview
The Cairns Seniors Community Housing Project aims to address the pressing housing shortage in northern Queensland by establishing a purpose-built seniors' community in Cairns.
The initiative responds to a critical public need, underscored by several key factors. Firstly, there is a growing population of elderly individuals facing homelessness or precarious housing situations in regional Queensland, with an annual increase of approximately 1.2% compared to 0.6% for the general population.
Secondly, Cairns has witnessed a significant rise in rental prices over the past five years, outstripping neighbouring cities and the state average. This surge in rental costs affects seniors, including an increasing number who do not own their own homes.
Thirdly, there has been a limited supply of new affordable housing in the region in recent years, leading to a shortage in long-term affordable housing and a strong demand for this type of accommodation.
The HIF's capital grants and operational subsidies play a crucial role in incentivising CHPs to develop, fund, and manage social and affordable housing projects throughout Queensland. With the HIF’s capital base recently doubled to $2 billion, initiatives like the Cairns Seniors Community Housing Project aim to address the pressing housing needs of seniors in the region.
How we helped
NAIF’s support has addressed a funding gap for the Cairns Seniors Community Housing Project. The gap is primarily due to two key factors: the lack of appetite of the commercial sector to provide loans for projects of this nature on the terms required, and the elevated operating and construction costs associated with the project’s regional location in Cairns.
NAIF's involvement is instrumental in providing financial support where commercial lenders are hesitant, thereby ensuring essential projects like the Cairns Seniors Community Housing Project can proceed. By understanding and responding to the unique challenges of regional developments, NAIF's financial assistance addresses the funding gap, enabling the project to move forward and fulfil its role in addressing the housing needs of seniors in Cairns.
The project will respond to strong demand for housing in Cairns and help address a housing shortage by delivering long-term affordable accommodation. The private rental vacancy rate in Cairns is currently very low at ca.1% (March 2024) and there are 3,200+ people (equivalent to 1800+ households) on the social housing register (ca. 64% of whom are Indigenous Australians).
Public Benefit
Independent analysis forecasts an economic impact of $140.8m to NAIF’s north QLD region over construction and a 20-year operational life, with 290 direct and indirect jobs forecast to be stimulated by the portion of construction spend in northern Australia, with a further 32 ongoing operational jobs forecast.
These homes will be transformative, providing life-changing opportunities for residents to age in place while remaining closely connected to local services, transport, and their community.
Alicia Follent
Chief Systems Officer at Community Housing Ltd
Related Links
Indigenous Engagement
- The Gimuy Walubara Yidinji people
Gimuy, known today as Cairns, is located in Far North Queensland on the traditional lands of the Gimuy Walubara Yidinji people. The Gimuy Walubara Yidinji maintain a deep cultural and spiritual connection to their Country, which spans diverse ecosystems including tropical rainforests, freshwater river systems, coastal mangroves and the Coral Sea. These landscapes are not only ecologically rich but are also central to traditional practices, stories and knowledge passed down through generations. The Gimuy Walubara Yidinji Elders Aboriginal Corporation plays a vital role in representing Traditional Owners, protecting cultural heritage, advocating for land and sea country, and promoting cultural education and community development. As the gateway to Cape York and the Torres Strait, Gimuy serves as a significant meeting place for First Nations peoples across the region and is a hub for cultural events, health services, and community connection.
Indigenous Engagement Strategy Commitments
- Committed to ongoing engagement with the Gimuy Walubara Yidinji people, including collaboration with the Gimuy Walubara Yidinji Elders Corporation to support First Nations participation targets throughout the life of the project.
- Commission a public artwork by a local Gimuy Walubara Yidinji artist (or an artist endorsed by the Elders Corporation) and make an annual donation to a trust or foundation nominated by the Gimuy Walubara Yidinji Elders Corporation.
- Aim to achieve a First Nations participation target of 3%, either through the value of subcontract works awarded to certified First Nations businesses or through an equivalent percentage of on-site labour hours performed by First Nations employees.
- Explore opportunities to incorporate Yidinji knowledge and language into the naming of buildings on site.
- Identify and support opportunities for cadetships, apprenticeships, or traineeships for First Nations people on site.
- Build partnerships with First Nations housing organisations to promote accommodation opportunities for First Nations people and connect with local First Nations organisations and service providers in Cairns to support services provision on-site.
Indigenous Engagement Strategy Outcomes
- Engagement continued with the Gimuy Walubara Yidinji Elders Corporation on the project and design.
- In 2024, construction commenced with strong early First Nations participation across employment and procurement on site, where First Nations employment reached 41.2% and Supply Nation-certified businesses engaged contributing to $6.5m making up for 45.4% of the total procurement for on-site works.
