Review of the National Housing Infrastructure Facility (NHIF)

On 13 January 2025, the Minister for Housing formally commissioned Housing Australia to undertake a comprehensive review of the National Housing Infrastructure Facility (NHIF). The purpose of the review was to assess the performance and impact of the NHIF to date, with a particular focus on:

• The NHIF’s formation, structure, and objectives
  
• Uptake statistics, including:
  
  • State and territory breakdowns by metro, regional & remote classifications
    
  • Total number of approved and active projects
    
  • Quantity and type of dwellings supported (detached, multi-density; social, affordable, market, specialist)
    
  • Distribution of funds by type (grants, concessional loans) and additional financing sources
    
  • Types of proponents and partnerships (e.g. community housing providers, consortia)
    
  • Intended tenant cohorts (e.g. women over 55, Aboriginal and Torres Strait Islander people)
    
• Types of critical infrastructure supported (e.g. utilities, transport, water, site remediation, etc.)
  
• Comparative analysis of NHIF-funded social and affordable housing projects versus infrastructure projects
  
• Market conditions influencing demand for NHIF finance, particularly within the concessional finance space
  
• Case studies and stakeholder feedback
  

Overview and Mandate

Established in 2018 by the Australian Government as a $1 billion facility, the NHIF was designed to provide finance for essential infrastructure that enables new housing—particularly affordable housing. In 2022, its scope was expanded to allow more flexible use of the remaining $575 million, enabling direct funding for social and affordable housing projects.

In 2024, the facility was further bolstered with a $1 billion injection—$700 million allocated for grants and $300 million for concessional loans—targeted at crisis and transitional accommodation for women and children fleeing domestic violence, and for youth experiencing or at risk of homelessness.

Housing Australia administers the NHIF in line with the Housing Australia Investment Mandate Direction 2018, a legislative instrument issued under the Act. Section 7 of the Investment Mandate outlines the obligations for administering the NHIF, primarily under Part 4 of the Act.

As required by section 57B of the Act, this is the first of what will become an annual review. It offers an evidence-based overview of outcomes achieved through NHIF-supported projects and provides insight into the facility’s development trajectory.

Key Findings

Funding Impact Across the Housing Continuum

NHIF funding has played a significant role in Australia’s housing development pipeline by supplementing existing funding sources across various project stages. Since the expansion of the NHIF’s mandate in November 2022, there has been a substantial uplift in project approvals.

As at 31 December 2024, $640 million in NHIF funds had been committed through grants and concessional loans, facilitating the development of over 8,000 new homes across social, affordable, and market segments, according to applicant forecasts. A further $182 million had been approved and was in the pre-contract stage, while $115 million was linked to projects that have since been withdrawn due to challenges such as cost escalations, lack of co-funding, or planning approval issues. These withdrawn funds remain available within the facility.

Since the 2022 mandate expansion, over $340 million—or 72% of approved funding—has been allocated to social and affordable housing projects. These are expected to deliver approximately 1,200 homes.

Geographic Distribution

NHIF funding has reached nearly every Australian jurisdiction, with approved projects in all states and territories except Western Australia and the ACT (as of December 2024). However, one WA project has been approved and is progressing toward contractual close.

Regional and remote Australia has received approximately $50 million in NHIF funding—representing 8% of the total committed. Investment has been concentrated in the eastern states, with:

• $226 million (35%) directed to Queensland
  
• $206 million (32%) to New South Wales
  
• $178 million (28%) to Victoria
  

Housing Australia continues to seek equitable distribution of funding through targeted engagement, location-specific staff deployment, and outreach forums.

Complementary Financing and Partnerships

NHIF plays a critical role as a funding partner alongside state and territory governments, banks, and institutional investors. Of the 16 projects with committed NHIF funding:

• 14 have secured state/territory grants
  
• 10 have received land contributions or availability payments from governments
  
• 2 involve commercial bank loans
  
• 3 are supported by institutional capital
  

These partnerships are forecast to unlock around 4,700 additional homes, according to proponents.

Additionally, about 20% of NHIF-funded projects have leveraged senior debt through Housing Australia’s Affordable Housing Bond Aggregator (AHBA), further expanding financial capacity.

Support for Target Tenant Cohorts

More than 2,400 homes in NHIF-supported projects are earmarked for high-need tenant groups, including:

• Women & children escaping domestic violence
  
• Older women at risk of homelessness
  
• First Nations people
  
• Essential service workers
  

Innovation in Delivery

The Investment Mandate allows flexibility for creative project structuring and delivery. NHIF has funded projects featuring public-private partnerships, novel financing strategies, and efficient construction methods.

In August 2024, NHIF funds were allocated for modular housing projects, offering time savings of up to 50% over traditional construction methods—highlighting the NHIF’s commitment to productivity-enhancing solutions.

Infrastructure Challenges and Long-Term Value

Funding for infrastructure that enables housing (e.g. roads, utilities, telecommunications) plays a foundational role in unlocking new housing sites. However, the complexity of planning, environmental approvals, and civil works can significantly extend delivery timelines. As a result, quantifying the exact number of homes eventually delivered can be difficult.

Many infrastructure projects are part of multi-stage developments, where housing output is dependent on market conditions and developer staging decisions. Despite these challenges, NHIF’s support for housing-enabling infrastructure remains vital in unlocking long-term housing supply.

Conclusion

Since its inception in 2018, the National Housing Infrastructure Facility has proven to be a critical lever in addressing Australia’s housing needs. Through strategic deployment of concessional finance and grants, NHIF has facilitated the development of thousands of homes and brought essential infrastructure to life across a wide geographic footprint.

Its flexibility, partnerships with public and private entities, and responsiveness to evolving housing needs—including targeted support for vulnerable Australians—highlight the facility’s ongoing relevance.

As Housing Australia continues to refine its approach and stakeholders gain greater access to the expanded funding announced in 2024, the NHIF is expected to play an increasingly central role in shaping Australia’s housing future.

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