Output Group 1.4: Home Ownership on Indigenous Land

IBA aims to provide incentives and affordable loans aimed at making home ownership a realistic choice for Indigenous people living on community-titled land. (FaHCSIA Portfolio Budget Statements 2008–09)

Overview

The Home Ownership on Indigenous Land (HOIL) Program provides Indigenous Australians living on community-titled land with the means to own their own home through a tailored home loan package.

IBA and FaHCSIA are jointly implementing the HOIL Program. IBA is primarily responsible for administering all elements of a lending program that provides affordable home loans to HOIL borrowers. FaHCSIA is responsible for administering a complementary assistance package, which includes the Good Renter’s Discount, Money Management education and Matched Savings Grants, to aid home loan affordability for borrowers.

FaHCSIA and the Attorney-General’s Department are responsible for negotiating the necessary land tenure reforms with state and territory governments. Secure land tenure is essential for enabling home ownership on community-titled land to be realised. The Council of Australian Governments National Partnership Agreement on Remote Indigenous Housing agreed to develop and implement land tenure arrangements to facilitate effective asset management, essential services and economic development opportunities.

Some jurisdictions have already made progress on land tenure reform. In the Northern Territory, township leases in some communities have been finalised, and in Queensland land tenure reform has been substantially completed. IBA was able to make nine loans for houses on community-titled land in 2008–09, all at Nguiu in the Northern Territory, where township leasing arrangements have facilitated home ownership.

Performance

IBA did not meet the performance indicators published in the 2008–09 FaHCSIA Portfolio Budget Statements (Table 16), largely because of delays in establishing land tenure reforms and land leasing frameworks and systems.

In 2008–09, IBA approved nine housing loans (all at Nguiu, in the Northern Territory) totalling $1.3 million. Another 13 applications from Nguiu residents were being processed at 30 June 2009.

IBA has now processed enquiries from over 120 families who are interested in home ownership on community-titled land.

Program progress varies between jurisdictions, with most activity in 2008–09 occurring in the Northern Territory and Queensland.

Northern Territory

In the Northern Territory, a township headlease was signed by the Australian Government in December 2008 over the communities of Angurugu and Umbakumba, on Groote Eylandt, and Milyakburra, on Bickerton Island. Following the establishment of a Stakeholder Consultative Forum by the Office of Township Leasing in March 2009, IBA staff visited Groote Eylandt to meet key stakeholders and provide information to progress implementation of the HOIL Program.

As part of the HOIL Program, IBA subleased four residential lots in Nguiu, on Bathurst Island, and has let a contract for the construction of four display homes for sale as house and land packages to eligible borrowers. Construction will commence in mid-August 2009, and all four homes are expected to be completed by the end of November 2009.

Queensland

In Queensland, community trustees (usually shire councils) have yet to put in place processes to manage leasing requests and facilitate home purchase requests on Indigenous land. In 2008–09, arrangements were finalised by the Queensland Government through its Department of Communities to coordinate a development and land use program.

IBA and two Queensland departments, the Department of Aboriginal and Torres Strait Islander Housing and the Department of Environment and Resource Management, are working together to coordinate joint community visits and to resolve implementation issues. In 2008–09, IBA staff visited Yarrabah, Hope Vale, Mapoon, the Northern Peninsula Area Region, Cherbourg, and Wujal Wujal to promote the HOIL Program and discuss home ownership opportunities.

Even though a number of communities are interested in advancing home ownership opportunities for their members, it is likely to be another 6–12 months before the necessary local conditions are sufficiently advanced to facilitate individuals being able to buy their own homes. Recognising this, IBA, World Vision Australia and Mapoon Aboriginal Shire Council are collaborating on the Mapoon Home Ownership Project. The project will develop processes and put in place systems and support services to facilitate the home purchase process. Any lessons learned from the project will be important in developing local processes for the rollout of HOIL in other Queensland communities.

Other jurisdictions

In New South Wales, IBA has promoted the HOIL Program to Indigenous communities at Walgett and Wilcannia.

Implementation of the HOIL Program in other jurisdictions will be progressed when land tenure reform and framework arrangements facilitate an effective rollout of the program.

Outlook

The 2009–10 FaHCSIA Portfolio Budget Statements targets shown in Table 17 will guide IBA’s performance in the next financial year.

Over the next four years, HOIL funding is expected to assist up to 355 families to purchase homes on community-titled land.

IBA will continue to work closely with Indigenous communities in the Northern Territory, Queensland and New South Wales to extend the reach of home ownership opportunities on community-titled land.