july 6th 2023 - New norfolk opening with federal housing minister

Today’s opening of a new shared home for six people with a disability in New Norfolk represents a milestone for Tasmania’s private sector initiative to fund modern, specially designed homes for vulnerable people. It’s being opened this morning by the Federal Housing Minister, Julie Collins.

The Supported Affordable Accommodation Trust has now designed and constructed on land
purchased by the Trust 27 x two bedroom units on 9 sites under a federal government grant.
Through the $6 million grant, 54 Tasmanians now have accommodation that allows them to live partially or completely independently. The Supported Affordable Accommodation Trust (SAA) has also used its financial model to provide housing for 12 other Tasmanians in Launceston through its own borrowings, with another 12 to be accommodated this year in new homes in Burnie. All of these residents now have a modern, specially designed home, that is affordable on a disability pension.

The Trust was founded by Tasmanian businessman Bob Gordon who had difficulties securing
suitable supported accommodation for one of his sons. There is, however, a cloud hanging over future funding as the 9 th home completed and handed over today represents the culmination – for the time being - of the current federal grant. As a pilot program, both in its structure and delivery of homes, the SAA Trust has been a great success and believes its model could be expanded nationally, and adapted for other purposes.

“We’ve been approached by other community sectors who would like to adapt our model for other vulnerable people such as homeless Tasmanians living on the streets, aging pensioners, youth without homes and victims of domestic violence”, said Bob Gordon. “However, the current grant has run its course, and we’re now only able to proceed with new developments through donations, bequests and our own borrowings – at a time when interest rates are very high.”

The SAA Trust is in talks with both the federal and state governments, but newly introduced
regulations mean that the SAA Trust must become a registered housing provider. “We’ve embarked on that path,” said Mr Gordon, “but it is a complicated bureaucratic process that could take us about 12 months. Although state and federal ministers are very supportive, their hands are tied until the SAA Trust can gain certification as a registered housing provider. In the meantime, our access to funding will be based mostly on bequests and donations.”

The Federal funding grant was initially secured thanks to the efforts of Andrew Wilkie MP and has since been enthusiastically supported by each of the federal governments along the journey. The current Housing Minister, Julie Collins MP, is a strong supporter of the SAA Trust model that uses earnings generated by grant funded units to reinvest in future builds. Under the federal grant, the SAA Trust has designed and delivered its specially designed modular
homes at an average $274,000 per two bedroom unit, inclusive of land so far (although these prices have increased lately). All units have achieved 6 star energy ratings along with Silver Level Liveable Housing Design ratings while being specifically designed to meet the needs of people with disabilities.

This last site completed in New Norfolk has 3 x two bedroom units and a shared unit with a staff sleep over room. A further 2 sites (each with 3 x 2 bedroom units and shared unit) have been completed in Greater Launceston using a combination of invested funds and TPT Wealth loaned funds who have supported this initiative with competitive rates.

The SAA Trust has also committed to building a combination of 2 bedroom units and single bedsits for 12 people in the Burnie region using loaned funds in 2023/24. However, higher interest rates make this more costly than previous builds and direct investments and grants would be preferred (if made available) as they provide greater returns that can be reinvested in future builds.

Montagu Community Living in New Norfolk
The New Norfolk site opening today will be the third SAA Trust site managed by Montagu
Community Living following the commissioning of identical builds in Sorell and Clarendon Vale. 

Russell Penman, CEO of Montagu Community Living, said his group were keen to secure their
third site with the SAA Trust due to their unique design. “Unlike most share-homes, these units are specifically designed to facilitate quality support while also providing privacy and individual space in a very peaceful environment,” said Mr Penman.

“Our experience with the identical designs in Sorell and Clarendon Vale is that the units are of a very high quality, energy efficient and easy to maintain – which saves the tenants money in terms of electricity, cleaning and maintenance. Most importantly, the design allows the tenants to be independent and develop life skills. They can purchase food and cook their meals in their own kitchen while still being able to access support when required without it intruding on their personal space. One tenant has expressed his view that it is fantastic to have a quiet space he can call his own and to be able to welcome his own visitors”.