Housing Australia requires uplift in accountability delivery outcomes: Review

An independent review into the effectiveness of Housing Australia has made numerous recommendations to improve accountability for delivery of outcomes and help it fulfill its broader mandate.

The Capability Assessment of Housing Australia report, authored by consultant Ken Kanofski, identified strengths, capability gaps, and practical opportunities to improve Housing Australia's performance and effectiveness following a six-week examination.

Three years since the government overhauled its purpose and handed down an expanded mandate, the review found Housing Australia is "strongly committed to delivering the government's housing priorities", yet it also highlighted opportunities to better the organisation as its responsibilities continue to grow.

The next steps require the government body to move away from "transaction execution to active stewardship of delivery before moving to longer term 'in-life' operations."

The National Housing Finance and Investment Corporation (NHFIC), launched in 2018 and transitioned to Housing Australia in 2023, with an expanded mandate. It evolved from being a specialist financing provider to having a central role in delivering the government's housing agenda.

Some of its initiatives over the last 18 months include launching the 5% Deposit Scheme and laying the foundations for the 2024 legislated Help to Buy program.

Its most significant mandate is the concurrent management of the large-scale delivery of social and affordable housing programs, the Housing Australia Future Fund Facility (HAFF) and National Housing Accord Facility (NHAF).

Kanofski flagged the "significant pressure" Housing Australia has faced in managing these.

"Program targets are ambitious within the prescribed timeframe and pressures are expected due to planning, procurement, financing, construction capacity, costs and market conditions," he wrote in the report.

"However, the organisation remains accountable for actively overseeing delivery partners, identifying emerging risks, supporting timely interventions and providing Government with a reliable portfolio-wide view of delivery progress and confidence."

The review said Housing Australia needs a more robust organisation-wide delivery framework, including a single risk-adjusted forecast, integrated project schedules and consolidated risk reporting. Such measures would improve visibility of delays, cost pressures and delivery risks while enabling earlier intervention when projects fall behind schedule.

The report also found governance arrangements have not fully evolved with the agency's expanded responsibilities. While board and management oversight remains heavily focused on financial and transaction risks, greater emphasis is needed on program delivery, project management and portfolio stewardship.

Kanofski also highlighted challenges facing community housing providers (CHPs), noting varying levels of capability across the sector. The report recommended additional support, simplified processes and greater awareness of available capacity-building services to help projects reach financial close more efficiently.

Overall, the review concluded Housing Australia "is not yet aligned in its accountability for delivery."

Kanofski's recommendations include designing and delivering a monthly report outlining a whole-of-program view to management, setting up a Housing Delivery Unit to administer all housing programs and appointing a deputy chief executive to lead the unit.