Auditor General's report on hopeless state of Public Housing in Victoria 2012

Public housing’s operating model is unsustainable. Costs are outstripping rental income and the division is forecast to be in deficit in 2012–13. Full report here.

Ed. Never have we had more developers and more draconian laws passed to interfere with citizens environments and rights to shelter. We are working harder and harder for less and less. Where once one wage would buy a home for a family, these days two people working full time are more likely to leave their home to the bank than to their children. Workers cottages with gardens are now the goals of socially aspiring professionals. Workers and the unemployed have fewer and fewer choices and more and more sleep rough. That public housing has been allowed to get into such a mess while the private sector runs the country is another piece of evidence - if you needed it - that Victoria is corrupt and a democracy in name only. This has been so since Kennett and did not improve with Labor and will not improve with the Liberals. We need many independents and a free (non-corporate) press to promote them.

The state and future of public housing

Public housing is facing major challenges, including growing demand due to reduced housing affordability, more tenants with complex needs, ageing infrastructure and high maintenance costs. Meeting these challenges to provide access to public housing now and into the future requires decisive direction and a sustainable operating model.
Conclusion

Public housing is operating unsustainably and without direction. The Department of Human Services’ (DHS) Housing and Community Building Division (the division) has been slow and short-sighted in responding to a changing operating environment. Despite DHS and the departments of Treasury and Finance and Premier and Cabinet awareness of the problem for at least six years, sustainable solutions are yet to materialise. New directions now being developed through the housing framework must innovate and unlock portfolio value to assure viable public housing in the future.
Findings

Public housing’s operating model is unsustainable. Costs are outstripping rental income and the division is forecast to be in deficit in 2012–13.
The division’s short-term strategies to address the financial position have deferred and compounded the problem.
The asset base is deteriorating, with an estimated 10 000 properties reaching obsolescence.
The division has not articulated long-term objectives or plans for public housing.
A housing framework is being developed but it is not yet clear how it will support public housing sustainability.

Recommendations

The Department of Human Services should:

develop and apply options to overcome the unsustainable operating model
assess its operational efficiency and role in public housing
develop a long-term plan for public housing with clear objectives.

Source: Victorian Auditor General:
"Access to Public Housing."