“Financing made available through the NHFIC loan is worth at least $13 million in savings over the 10-year term which can be deployed into new community housing.” - Charles Northcote CEO, BlueCHP Limited
Total loan of $70 million
NHFIC’s transformative financing hasenabled BlueCHP Limited (BlueCHP)to revise its debt profile to increase the supply of social and affordable housing.
BlueCHP is a not-for-profit CHP operating with a core function to source, purchase, develop and own dwellings. BlueCHP undertakes stand-alone development projects, third-party CHP developments and joint ventures, delivering more than 1,700 properties in the last 10 years.
The AHBA loan has enabled BlueCHP to refinance 630 social and affordable dwellings in its portfolio of properties. Such dwellings include a mixture of detached houses, attached houses and granny flats and group homes.
One of BlueCHP’s community housing projects includes Jordan Springs, a newly developed precinct located near Penrith, Sydney and 5km from the refurbished Nepean Hospital. Jordan Springs is an example of an affordable housing property that has been integrated into an existing community without any visible differences. The loan also includes working capital to fund construction of an additional 87 single dwellings in Jordan Springs.
It is estimated that NHFIC’s low cost financing will save BlueCHP at least $1.3 million each year for 10 years which can be used for new housing projects.
Affordable housing outcomes
The purpose of the loan is to increase affordable housing supply and it will achieve this through the following outcomes:
Existing dwellings: Refinancing more than 630 social and affordable dwellings.
Additional dwellings: Enable construction of 87 new single dwellings in Jordan Springs.
Anticipated interest savings: Around $13 million over the 10-year loan term.
Possible outcomes from interestsavings: With the potential cost savings it is anticipated that BlueCHP could develop an additional 40 dwellings (assuming $330k construction cost) over the term of the loan or fund community programs through their service providers.