Wollongong City Council media release: 5 February 2024

Wollongong City Council has signed the deal on an innovative $5 million affordable housing scheme. The scheme will help address the impacts of housing insecurity for eligible renters living in Wollongong.

On Monday 5 February at the Council Meeting, following the completion of contract negotiations, Council formally entered into a funding agreement with Head Start Homes to deliver the much-needed services.

Head Start Homes is a tax exempt not-for profit community services organisation. The new program, funded by Council, will provide eligible renters with affordable housing and a potential pathway to home ownership for people on low to moderate incomes.

Wollongong City Lord Mayor Councillor Gordon Bradbery AM said he was pleased to see the program start supporting people and families living in the Wollongong Local Government Area find home security.

“We have a commitment to supporting the procurement of affordable homes. While affordable housing isn’t something we can directly deliver on our own, by partnering with not-for-profit organisations such as Head Start Homes, Council can help address this enormous challenge,” Cr Bradbery said.

“This latest injection of funds is just the next round of funding awarded by Council to support affordable housing solutions in our city. In 2022, we awarded Head Start Homes $1.3M and in 2019, we awarded the Illawarra Housing Trust $4.3M to deliver different services.

“We look forward to working with Head Start Homes to make a difference. This program will benefit the lives of some Wollongong residents who are facing financial hardship and cannot access safe housing by themselves. This is quite an innovative program and while there’s more work to be done in this space, it will be wonderful to see the long-term benefits of this partnership in action.”

The funding is provided through the Wollongong Affordable Housing Program, an initiative that came about through a Commonwealth grant to Wollongong City Council. The awarding of $5m to Head Start Homes is the third and final round of funding provided under this grant scheme.

How will the program work?

It works by renting out properties owned by Head Start Homes to eligible community members. The rentals are managed by participating community housing providers. Head Start Homes will also offer additional support through their enhanced empowerment services which include financial coaching, homebuyer education and ongoing social support.

At the end of their lease, participants may have a conditional option to buy their rental property from Head Start Homes, or another property on the market of their choice, should they receive pre-approval for a home loan.

The generated funds from any sale are then recycled by Head Start Homes for the purchase of another affordable rental home that will go on to provide another household in need the opportunity to participate in the program.

Head Start Homes Founder and Managing Director, Stephen Woodlands, said the program was based on the organisation’s vision for a safe and stable home for everyone with fair and practical pathways into home ownership.

“When you remove housing stress, people's lives can be transformed in so many ways. This innovative program will give struggling renters in the Wollongong local council area better housing and home ownership outcomes” he said.

“Having more safe, stable and affordable homes with fairer pathways into home ownership will also have profound positive flow-on effects for the local community whilst also helping to reduce intergenerational poverty for our clients and their children."

Mr Woodlands said the program would run for at least 20 years, with anticipated perpetual benefits due to its recycling nature.

"Our heartfelt thanks to Wollongong City Council and to our amazing volunteers, staff and supporters including our 100 plus supporter organisations,” he said.  "It’s envisioned that the Head Start Homes affordable housing scheme would run for up to at least 20 years, thanks to the recycling nature of the program."

How does this fit into the broader Wollongong Housing Strategy?

Cr Bradbery said that the scheme was just one of many actions within Council’s Wollongong Housing Strategy.

“Over a number of years and with extensive community feedback, we developed the Wollongong Housing Strategy. It’s a forward-thinking document that looks at what tangible actions we can take over the next 10 to 20 years to improve housing affordability and availability in the Wollongong LGA,” Cr Bradbery said.

“Here at Council, we have a very specific and important role when it comes to supporting the housing needs of our community. Our role as local government is through our planning controls, how we purposefully allocate funds from developers and through the conversations we have with stakeholders including other levels of government.”

At the Monday Meeting, Councillors also reviewed a report on what Council is doing to improve housing opportunities in Wollongong. The report gave an update on the Council projects and actions that are underway as well as Council’s feedback on a number of recent NSW Government policy reforms.

Read more in the Media Release: ‘Right house for the right location.’