Charity slams bank blacklist of affordable homes

The reported refusal by a major bank to provide financing for housing developed through the government's National Rental Affordability Scheme has been slammed by charity group Mission Australia. 

“It would be a shame if this is true re: NRAS properties,” Mission Australia CEO Toby Hall has tweeted. 

A document leaked to The Age revealed that one of the four major banks will not provide financing to more than 300 apartment projects, including developments associated with the federal government's NRAS. 

The scheme aims to provide housing for low- and moderate-income households at least 20% below the prevailing market rates. 

Investors who buy properties that form part of the scheme receive tax-free incentives for 10 years, provided they continue to comply with conditions relating to tenant eligibility and rent discounts. 

Mission Australia provides a range of affordable and social rental housing for low-income households through its MA Housing Initiative, with rents charged at a 25% discount to market rates. 

The charity group manages 1,500 properties throughout Western Sydney, in the Mid North Coast of NSW, Footscray and Narre Warren in Victoria and in Hobart, Tasmania.

Under the NRAS scheme, the government plans to support up to 35,000 new dwellings in the years up to 2014-15, with a further 15,000 dwellings to be supported beyond 2014-15.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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