“The savings in interest expense have allowed Evolve to increase its development of support service programs for tenants.” - Phil Frost CFO, Evolve Housing
Total loan of $70 million
NHFIC finance is helping Evolve Housing to refinance and fund new developments,with interest savings being invested incommunity support programs.
Evolve Housing is a not-for-profit tier 1 community housing provider whose core focus is to relieve housing stress by increasing the quality and availability of its housing portfolio and building socially inclusive communities.
Evolve Housing also operates a profit-for- purpose property management service which reinvests profits back into social support programs for disadvantaged members of the community.
The AHBA loan will enable Evolve Housing to refinance existing projects and fund new ones. Over the 10-year term of the loan, it is estimated that NHFIC’s finance will save Evolve Housing around $9 million in interest and other costs.
The AHBA loan was used to refinance completed assets in Evolve Housing’s Harts Landing project, a partnership with developer Payce. Harts Landing is comprised of commercial tenancy and a mixture of private, social and affordable residences providing 124 affordable and 14 social housing apartments. The development has a socially inclusive tenant cohort including key workers (for example teachers, nurses, police officers), couples over 65, single women over 55 (some from low-income groups and with children), and tenants with disabilities.
The AHBA loan has also enabled Evolve Housing to accelerate delivery of its housing projects, including a 30-apartment project in Merewether Street, Newcastle.
Affordable housing outcomes
The purpose of the loan is to increase affordable housing supply. It will achieve this by the following outcomes:
Existing dwellings: Refinancing more than 670 social and affordable dwellings including the recent development, Harts Landing, at Penrith.
Additional dwellings: Enabling construction of 30 new dwellings in Newcastle.
Anticipated interest savings: Around $9 million over the 10-year loan term.
Possible outcomes from interestsavings: Interest savings injected into community programs such as youth under 25 years, finance, living and health skills, as well as employment services programs. Benefits also provide flexibility to acquire further development sites.