Big Housing Build not extended, projects delayed

Last month’s state government budget did not commit new money for the Big Housing Build program, despite the crisis affordability crisis growing in Victoria.

A number of projects have been delayed since they were first announced, including the redevelopment of the Virginia Hill public housing estate in Bendigo, located in the electorate of Premier Jacinta Allan.

Virginia Hill’s demolition and redevelopment was announced in September 2021; promised to be fast tracked by ex-premier Andrews in 2023; and only just recently has seen a new round of community consultation started up.

The restarting of the project has followed homeless people starting to use it as a site to occupy because of no affordable accommodation in Bendigo. Private rental vacancies in the local area are extremely low.

Back in 2021 ABS census data advised that the median rent in Bendigo was $300 per week. Now the median rent is $460/470 per week, as advised by real estate agent services. This is a 50 per cent-plus increase in under four years while Homes Victoria slowed the pace of redevelopment.

There were soil contamination issues that were subsequently resolved, so this can’t justify the delay. Construction is starting late this year, which means at least mid-2027 before completion. The median weekly rent based on the trend since 2021 by then will mostly likely be $550-plus.

The current plan is a mix of community and so-called affordable housing. For Homes Victoria “affordable” in regional Victoria is 100 per cent local market rents. The state government has yet to justify charging market rents in regional Victoria.

Given the magnitude of the crisis in Bendigo the redevelopment should be 100 per cent public housing.

Is Homes Victoria destined to be in the dustbin of history?

There were reports in the media that the Allan government’s drive for saving would lead to public servant redundancies. Homes Victoria was mentioned as a target, and it was suggested that Development Victoria would absorb its public housing demolition and estate redevelopment role of eliminating any ongoing public housing provision. The anticipated redundancy plan was held off until the end of this month.

Just prior to the last Victorian election in 2022, a document seized under Freedom of Information revealed that Homes Victoria was effectively insolvent. That is, it had spent more than its budget allocation from Treasury. Recent media reports indicate this has not been resolved, even with the Big Housing Build funding.

The newly re-elected federal government has committed to build 100,000 homes for first home buyers and will be working with the Victorian Government to secure a Victorian target. Development Victoria specialises in building new homes for home buyers. If the plan is to have public housing estates handed over to Development Victoria to build for first home buyers, which happened under the PHRP, it should be vigorously opposed.

Victoria needs a publicly owned home builder and renovator to maintain existing public housing and build more, funded by the federal government. •

Prepared with the assistance of the Save Public Housing Collective.