The AHBA provides low cost and longer-term loans to registered CHPs to support the provision of more social and affordable housing. AHBA loans can be used for:

• acquire or construct new housing stock
• maintain existing housing stock
• assist with working capital requirements and/or general corporate requirements
• refinance existing debts.

NHFIC funds AHBA loans by issuing its own bonds into the wholesale capital market. The Australian Government has also provided a $1 billion line of credit facility through which NHFIC may advance initial loans to CHPs prior to issuing bonds.

The AHBA uses a ‘pass-through’ model to provide greater funding certainty and lower finance costs to CHPs to assist them to expand their operations and the supply of affordable housing.

Investors have the opportunity, through the purchase of social bonds issued by NHFIC, to begin to address the significant and prevailing funding gap in Australia’s community housing sector.