Affordable and diverse housing fund

Grants team

Before applying please contact the team to arrange a call back to discuss your project.

: 02 9265 9333
: [email protected]

Applications are open

Requests for this grant are received all year round until funds are exhausted.

Contact us to enquire about the current status of funding available or for help with any other details.

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About this program

The affordable and diverse housing fund promotes the development of affordable and diverse rental housing in our local government area by community housing providers, not-for-profit and for-profit organisations.

The fund is part of the City of Sydney’s commitment to overcome financial barriers to affordable and diverse housing development.

Proposals are assessed against:
- amount, nature and location of subsidised housing and any other uses being delivered
- proportion of the total project cost requested as City of Sydney funding (including cash, value-in-kind and land)
- proportion of total project cost funded by the applicant and other sources
- property development experience, expertise and capability of the applicant/deliverer
- experience in the operation and management of the type of housing by the applicant/manager in compliance with relevant regulations
- financial capacity of the applicant
- evidence of diversity, inclusion and equity in the planning and delivery of the project.
Our funding will prioritise applications that:
- maximise the quantum of subsidised housing within the City of Sydney local area
- leverage additional funds from sources external to the City of Sydney and its programs, including private debt finance, charitable donations and grants from state and federal government
- encourage a broad range of community housing providers to invest in and operate diverse housing within the local area
- deliver positive outcomes for our diverse communities through subsidised housing within the City of Sydney local area
- ensure the continued use of funded projects as subsidised housing
- facilitate the ongoing management in accordance with the applicable regulatory requirements, such as NSW affordable housing guidelines
- achieve timely delivery utilising appropriately experienced and capable principals and contractors.
We encourage applications from organisations that support Aboriginal and Torres and Strait Islander communities and culture, including Aboriginal community-controlled organisations and networks.

Funding available

The fund’s priority is to leverage private finance for affordable rental housing.

Funds can be used for:

acquiring land owned by third parties
acquiring land owned by the City of Sydney
design and construction
associated development costs.

It’s expected that the total amount of funding for any individual project will not exceed $3 million in value.

To be eligible an applicant must operate within the City of Sydney’s local government area or be able to demonstrate significant benefits for the area’s residents, workers and/or visitors.

These organisations can apply:
- not-for-profit organisations
- for-profit organisations
- providers of community housing
- organisations that are part of a consortium that includes a community housing provider.
- unincorporated community groups
- individuals
- consent authority fees and charges
- projects that are already in receipt of other subsidies or benefits provided by the City of Sydney
- projects that directly contravene the eligibility and ethics framework or existing city policies.
For funds that are used for the development of new subsidised housing developments:
- Funds must only be used for capital expenditures on net new subsidised affordable housing developments.
- Our financial contribution will generally not exceed 30% of the total cost of the subsidised housing.
- Funds will not be released until a construction certificate is issued for the development.
- We may seek to secure the use provided through a mechanism/instrument such as a registered positive covenant, on the land used for the project.
- Funds may need to be repaid if the project completion date is not met, the project is terminated, the recipient becomes insolvent, or the project description changes materially.
- The recipient must operate the facility in line with federal, state and local government regulatory requirements.
- Unless otherwise approved by the City of Sydney, housing delivered through the fund is to be rented to a range of low to moderate income earners at no more than 30% of gross household income, in line with NSW affordable housing guidelines.
- The facility must generally be commenced within 3 years of funding approval.

More information

The project can include a proportion of ‘market’ housing for sale on completion and/or a commercial component for lease, or sale, on completion if it forms a part of the project’s financing strategy or is needed to satisfy planning controls.

‘Subsidised’ housing means all forms of short and long term rental accommodation offered at below market rates, including affordable housing, social housing, assisted living, aged and respite care, crisis housing and boarding houses.