This exposure draft Bill gives effect to the Government’s 2017/18 Budget commitment to establish the National Housing Finance and Investment Corporation (NHFIC) to improve housing outcomes for Australians.
Key aspects of the Bill are:
- The NHFIC will be established as a corporate Commonwealth entity, governed by an independent, skills-based part-time Board.
- The NHFIC, which will be a financial intermediary, will have broad functions which will enable it to administer the programs announced by the Government:
- a $1 billion National Housing Infrastructure Facility (NHIF) which will help to finance critical infrastructure to increase the stock of housing, particularly affordable housing; and
- an affordable housing bond aggregator which will improve the efficiency of financing for community housing providers, enabling them to improve housing outcomes for their clients.
- The Government will issue an Investment Mandate to sit alongside the Bill that will outline its expectations about the performance of the NHFIC’s functions, including decision-making criteria and risk and return on investments.
- Liabilities of the NHFIC will be guaranteed by the Commonwealth.
- The Bill outlines the functions and powers of the NHFIC and its Board and Chief Executive Officer and provides the capacity for the Board to establish committees to assist it.
- The operation of the Bill will be reviewed three years after its commencement.