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Parliamentary Questions


Question Without Notice No. 839 asked in the Legislative Council on 26 October 2021 by Hon Steve Martin

Parliament: 41 Session: 1

CORONAVIRUS — SOCIAL HOUSING ECONOMIC RECOVERY PACKAGE

839. Hon STEVE MARTIN to the Leader of the House representing the Minister for Housing:

I refer to the recently released Auditor General's report, Roll-out of state COVID-19 stimulus initiatives.

(1) As of September 30, how much of the allocated budget had been spent on the following initiatives —

(a) construction of up to 250 social housing dwellings and purchase of off-the-plan units for supported housing programs;

(b) maintenance programs for 3 800 regional social housing properties;

(c) refurbishment of 1 500 social housing dwellings; and

(d) deferment of payments and waiving of interest costs for Keystart customers?

(2) If the full allocated amount has not been spent for (a) to (d), what is the reason for this?

Hon SUE ELLERY replied:

I thank the honourable member for some notice of the question.

(1) (a)–(c) Information contained within the Office of the Auditor General report is now at least eight months out of date and the package was never designed to be fully spent or allocated by March 2021. Maintenance and refurbishment programs require significant planning and in most cases require relocation of tenants, vacation of the property or significant disruption to the tenant. The social housing economic recovery package is a targeted economic and social stimulus measure that is primarily focused on refurbishment and maintenance of social housing. The program was designed to support jobs in the WA construction industry over a number of years, while improving the life span and quality of homes available for social housing.

As at 30 September 2021, a total of $68.6 million has been awarded, supporting an estimated 365 jobs and generating approximately $141.8 million in economic activity, including construction of 62 new homes, worth $18.1 million; refurbishments of 398 homes, valued at $30 million; and maintenance works on 4 134 regional homes, worth $20.5 million.

A $92.8 million SHERP grants program is currently open to the community housing sector to deliver new social housing, refurbish existing ageing social housing, and provide maintenance to remote Aboriginal communities. This grants program comprises $33 million for approximately 100 community housing sector new builds, up to $5 million per development; $46.5 million for approximately 500 community housing sector refurbishments, up to $500 000 per property; and $13.3 million for remote Aboriginal community maintenance works, up to $100 000 per property.

(d) From the onset of the COVID-19 pandemic until September 2021, Keystart waived interest on 12 loan accounts for a total value of $75 053. Deferral of payments—principal—is not recognised as a cost, as these amounts are capitalised into the loan balance and repaid over the remaining term of the loan.

(2) The 2021–22 budget allocated a record $875 million spend in social housing, with a total investment of $2.1 billion over the next four years. This includes innovative approaches to delivering more social housing, including the delivery of modular and pre-fabrication housing, and repurposing affordable housing in the short term.

As part of the 2021–22 budget process, the SHERP budget has been re-profiled to provide a sustained pipeline of work for industry over the next four years. Recent economic stimulus measures to keep the Western Australian economy strong during the global pandemic have been highly effective, with around 27 000 homes approved for construction last financial year, including 4 000 in regional areas. This has supported thousands of additional jobs and is expected to increase housing supply over the coming months.