Salisbury, South Australia

The City of Salisbury was next with their presentation on its Brahma Green Affordable Housing Project.

The City of Salisbury is growing at an unprecedented rate due to a rapidly expanding economy. While job opportunities continue to be created, national and international trends placed home ownership out of reach to many existing residents of Salisbury and it was becoming increasingly difficult for key workers on modest incomes such as teachers, nurses, and industry labour to live and work within the city. The Brahma Green Affordable Housing Project aims to assist first home buyers who would otherwise be unable to enter the housing market by converting surplus City land into a form of shared equity in the property.

Working in partnership with HomeStart Finance (a state organized financing entity), a unique legal and financial model including a shared appreciation/deferred payment mortgage was developed. The City's equity contribution to the project enables the purchaser to significantly increase their borrowing capacity. When the property is sold, the City will recoup the value of its stake, plus a share in the property’s appreciated value. Alternatively, the purchaser can choose to buy out City’s share. The City Council sought to achieve high standards of aesthetics, environmental outcomes, energy efficiency and low ongoing maintenance costs. The eleven homes all have a seven star energy efficiency rating and access to recycled stormwater.
More info on financing piece here (PDF).

This sort of project is not uncommon in US, but great to see Australian's taking best practice and implementing to meet their needs.