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Shared equity assistance reinvestment policy
- Shared equity investment initiatives
- Reinvesting funds
- Consulting with local government
- Reporting requirements
- HomeStart Finance services
- Risk statement
This policy sets out how money is reinvested that the South Australian Housing Trust (SAHT) collects as a result of homebuyers paying out their equity share in shared equity assistance home purchase facilitated by SAHT. This policy only applies to where funds were derived from the Commonwealth Government Housing Affordability Fund.
equity investment initiatives
The Affordable Homes Program, managed by Renewal SA, promotes shared equity assistance initiatives on behalf of SAHT. These initiatives allow eligible buyers to buy a home at a price less than the home’s market value by reducing the amount that the purchased needs to borrow from their finance institution.
When the buyer sells the home, the shared equity component and a share in the home’s appreciation is paid to SAHT in line with the agreement the buyer signed when they bought the home.
The funds returned to SAHT from shared equity assistance initiatives are recaptured and quarantined by SAHT for reinvestment in future shared equity assistance initiatives.
The use of these funds are prioritised.
The first priority’s to provide a new shared equity assistance home ownership opportunity in the same project or suburb where the original property was located.
If this isn’t possible, the second priority’s to provide affordable housing outcomes in the surrounding area within the Local Government Area (LGA).
If this isn’t possible, SAHT nominates another project providing affordable housing in the same State Region.
Consulting with local government
SAHT consults with local government whenever possible to discuss opportunities to reinvest funds within their jurisdiction with the aim of continuing to provide affordable housing in their area.
This may include:
- affordable rental and home ownership initiatives on council or state owned land
- supported housing
- community housing projects.
SAHT Conveyancing to maintain records of funds provided by HomeStart Finance. Records are to identify
- shared equity assistance homes and addresses
- property valuation
- buyer details
- declaration of priority
- HomeStart Mortgage details
- the amount of funds attributable to each resale
- the source of any original subsidy
- the accumulated total of funds.
A summary of current outstanding shared equity assistance initiatives is to be publically available in the annual report.
HomeStart Finance services
HomeStart Finances ensures the equity component’s collected and returned to SAHT when it’s paid out by the buyer. In addition, HomeStart Finance administers the repayable discount, shared appreciation calculations, and provides annual statements to buyers.
Inappropriately reinvested funds by SAHT will create a disincentive for investment by industry stakeholders - eg developers, local government, benevolent institutions, resulting in fewer affordable home ownership opportunities for low to moderate income South Australian’s in high cost markets.
This policy is based on and complies with:
- Shared Value operation guidelines
- Equity Assist operation guidelines
Related policies and other documents
- 15% Affordable Housing policy Renewal SA
- Affordable Homes Program policy Renewal SA
- Share Value Service Level Agreement HomeStart Finance
Date this policy applies from
1 March 2018
The online version of the policy is the approved and current version. There is no guarantee that any printed copies are current.