Representatives of the following churches were present at the adoption of the Statement:
Anglican Church of Australia
Antiochian Orthodox Church
Armenian Apostolic Church
Assyrian Church of the East
Churches of Christ in Australia
Coptic Orthodox Church
Religious Society of Friends
Roman Catholic Church
Salvation Army
Uniting Church in Australia

A Housing Strategy to End Homelessness

Australia's Housing Crisis

1987 was the International Year of Shelter for the Homeless (IYSH). During that year the Australian Government committed itself to gaining a better understanding of the nature and causes of homelessness, and implementing policies and programs which would effectively meet the needs of homeless persons. It was acknowledged there were 40,000 people in Australia who were homeless, and a further 60,000 at risk of homelessness. Ten years have now elapsed since IYSH and it is timely to consider our nations progress in addressing the problem of homelessness.

Unfortunately, despite significant initiatives to enhance crisis and supported accommodation services for homeless persons and increase rent assistance for low income renters, the blight of homelessness continues to exist in our affluent community. The Australian Institute of Health and Welfare estimates there were between 48,000 and 61,000 homeless persons in
1995. However, this is only the tip of the iceberg. There are 575000 private renters who are poor after paying their housing costs and are at risk of becoming homeless. Consequently, public housing waiting lists across the county grew by 48 per cent to approximately 250000.

In the ten years since IYSH, however, there has been a substantial reduction in expenditure on additional public housing. Commonwealth and State funds under the Commonwealth-State Housing Agreement have declined in real terms by approximately 25 per cent ($419 million) since 1992-93. This has meant that the number of net additions to public housing has been reduced from a high of over 15,000 in 1986-87 to a low of approximately 3,000 1996-97.

The Churches are concerned that the declining commitment of Commonwealth and State governments to public housing is resulting in more people remaining in housing related poverty and hence at risk of homelessness. Already over 70 per cent of low income private renters pay more than 30 per cent of their income on housing costs.

During 1996-97 rents increased significantly (8-12 percent), particularly in capital cities, as the property market began to rise.

Despite improvements in some programs for homeless persons, governments have not yet recognised the obvious link between homelessness and the supply of appropriate, secure and affordable rental housing. Their confidence in private market solutions does not match the daily experience of church welfare agencies who are called upon to provide assistance to the majority of homeless persons. These agencies are finding it increasingly difficult to assist low income individuals and families to secure affordable rental housing.

The Human Cost of Housing Poverty

We have not solved the problem of homelessness in Australia over the last decade. Housing problems persist and the Churches are concerned about the human cost of housing poverty. The experience of the Churches' welfare sector has brought us to the conclusion that:
§ inadequate, substandard significantly to
§ overcrowded and housing contributes poor health;
§ the stress of high rents and low security places great strain upon family relationships;
§ the transience which arises from lack of security in the private rental market contributes to poor educational outcomes for children;
§ the concentration of low income and disadvantaged persons in particular regions locks them into a cycle of poverty and limits their opportunities;
§ the failure to co-ordinate housing policy with labour market programs can seriously disadvantage workers' attempts to secure employment.

The human costs of homelessness and housing poverty will ultimately be reflected in social and economic costs to the whole community. The Churches call upon Commonwealth and State governments to implement policies which recognise the importance of an appropriate, secure and affordable place to live as the foundation of human dignity and social stability.

A National Affordable Housing Strategy

In November 1996 the heads of Protestant, Catholic, Orthodox, Jewish and Islamic faith communities in Melbourne, Sydney and Brisbane called on the Commonwealth and State governments to implement a National Affordable Housing Strategy. This call was made in the context of discussions between the governments on reforms to housing assistance arrangements.

The Churches are concerned that those discussions have broken down and there appears little will by either level of government to tackle Australia's difficult housing problems. The inevitable losers will be the homeless and those low income private renters who are living in poverty.

In 1998 Commonwealth and State governments will address the future of the Commonwealth-State Housing Agreement which expires on June 30, 1999. The Churches reiterate our call for a National Affordable Housing Strategy as the basis of a new Commonwealth-State agreement on housing policy. The Churches proposed National Affordable Housing Strategy is based on three assumptions:
§ Commonwealth and State governments must cooperate in the development and implementation of housing policy. There is a important continuing role for a Commonwealth-State Housing Agreement which includes specific targets for reducing the incidence of housing related poverty.
§ Housing assistance policy must include both rent assistance and affordable rental housing sup ply measures. Commonwealth and State governments must reach agreement on strategies to improve rent assistance programs so that low income renters have sufficient income after paying their rent to meet such basic needs as food, clothing and education and ensure access to appropriate and affordable rental housing.
§ An effective National Affordable Housing Strategy cannot be implemented without additional expenditure on housing assistance. Commonwealth and State Governments must be prepared to commit additional funds to housing assistance if the goal of reducing housing poverty is to be achieved.

Key Elements of the Strategy

The Churches believe that our proposed National Affordable Housing Strategy provides the most appropriate response to the 10th anniversary of the International Year of Shelter for the Homeless and basis of a new Commonwealth-State Housing Agreement. The three key elements of the strategy are:

(i) the restructure of the Rent Assistance Program to ensure that the after-housing income of all public and community housing tenants is above the poverty line, while the after-housing income of all private tenants is lifted to at least 90 per cent of the poverty line;
(ii) the continuation of capital funding for public and community housing to ensure the net addition of at least 8,500 units each year (thus maintaining social housing at the current level of 6 per cent of national housing stock) to provide access to appropriate, secure and affordable housing for the most disadvantaged;
(iii) implementation of a national mechanism which provides incentives for institutional and private investors to invest in affordable rental housing which is provided to low income households and which is appropriate to their needs.

Ecumenical Housing, a Commission of the Victorian Council of Churches, has spelt out the detail of these policies in National Housing Policy: Reform and Social Justice. They estimate these goals can be achieved with a modest 6.6 per cent increase on the $3,008 million of overall housing assistance expenditure in 1994-5.

The Churches now call upon Commonwealth and State governments to renew their discussions on housing reform and commit themselves to a new Commonwealth-State Housing Agreement from July 1, 1999. The new CSHA should implement a National Affordable Housing Strategy at an additional estimated cost of $400 million on anticipated expenditure in 1998-99.

Implementing policies to address the affordability, accessibility and supply of rental housing for low income households is the most constructive and effective way to confront the problem of homelessness and housing relating poverty.

The Commitment of the Churches

In the meantime, national church community service agencies and ecumenical housing organisations met in conference in September this year and agreed to:

(i) review the assets of the Churches which may be made available to the provision of affordable rental housing for low income Australians;
(ii) work co-operatively with Commonwealth and State governments to develop more effective mechanisms for implementing community housing joint venture projects;
(iii) work co-operatively with each other and governments to identify and implement the best structures for ensuring high standard community housing services are delivered by church agencies;
(i) investigate alternative sources of housing finance to enable church agencies to invest in community housing projects.

We believe this demonstrates our willingness to work collaboratively with Governments to tackle one of our nation's most pressing social problems. We ask the Prime Minister to meet representatives of the Churches to discuss these proposals prior to the next meeting of Commonwealth and State Housing Ministers.