The National Disability Insurance Scheme Supporting participants to gain appropriate housing with quality support
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1 The National Disability Insurance Scheme Supporting participants to gain appropriate housing with quality support Bruce Bonyhady AM Chairman National Disability Insurance Agency Board 21 October
2 Background People with disabilities have very few housing options today because of: 1. The cost of support when living independently; and, 2. High incidence of poverty, which makes private housing unaffordable for most. The NDIS will provide support for people with disabilities to live independently of parents, as part of reasonable and necessary support and so solve the first and biggest barrier to living independently, today. The NDIA will be able to be a catalyst to overcoming the latter constraint, by acting as a catalyst, but the NDIS will not be able to provide enough new bricks and mortar on its own nor should it. 2
3 The potential demand for affordable housing is large There are around 410,000 people who will become NDIS participants. Of these 255,000 are aged 25 to 64. Of these between 154,000 to 193,000 participants are on low and very low incomes who may need housing assistance from some source (including those already with assistance). This includes: 6,200 people under 65 in residential aged care (600 aged under 50) and 7,700 in supervised psychiatric hostels; 17,000 people in specialist disability accommodation 3,000 in institutions and 14,000 in group homes; and, 57,000 living in social and public housing. Estimated unmet need for affordable housing of between 83,000 and 122,000 NDIS participants. 3
4 How the NDIA can increase housing options The NDIA can increase housing options through 1. A flexible approach to reasonable and necessary support arrangements 2. Using the cost of capital built into Scheme costs as a catalyst for major growth in affordable and accessible housing 3. Building on recent housing sector reforms, e.g. NRAS, social finance development 4. Influencing the National Disability Strategy and the housing sector, as part of being a catalyst for wider social change and inclusion 4
5 How reasonable and necessary will add to housing NDIS will fund reasonable and necessary supports based on individual needs part of insurance approach NDIS includes home modifications, as a way of facilitating greater independence and so will add in this way to the suitable housing stock Opportunity within support packages to innovate and create shared living arrangements However, this will not be sufficient to meet demand and the NDIS cannot take over the responsibility of the housing sector The NDIS should also not replace families, which also have a critical role to play, where they have the financial capacity to do so Therefore the NDIS should complement and work with the housing sector and families to provide person centred solutions for Scheme participants 5
6 NDIS can be a catalyst for new accessible housing NDIS funding include some funding for accommodation Productivity Commission costed NDIS funding based on a user cost of capital model. This was included in packages for people with very high supports needs (around 28,000 people - 6% of participants) and estimated to be 12% of their costs. While this was costed, as above, it was always notional and not allocated. This provides the NDIA with funding estimated at around $550m per annum in scheme costs for the user cost of capital at full scheme (in today s dollars) Funding is included during launch, gradually increasing to $700m per annum (2018/19 dollars) when there is full national rollout in 2019 This is a large amount but to achieve maximum impact it must act as a catalyst and be leveraged two to three times, as well as being available to be recycled, as new participants join. 6
7 Working with other systems The NDIS alone is not sufficient to meet the housing needs of all participants. Public and community housing will continue to be a major source of housing for NDIS participants an estimated 57,000 potential participants currently in public housing The National Rental Affordability Scheme (NRAS) will help - the last two NRAS rounds gave priority to accessible homes Commonwealth Rent Assistance helps low income individuals and couples and low and moderate income families with children with the costs of renting privately many have a family member with disability 7
8 Working with other systems-continued State and local governments will need to continue to contribute suitable land, which should be accessible and close to public transport and shops Families have previously offered to build or purchase houses for their children with disabilities but not done so because of lack of ongoing support funding. This will need to be unlocked. Community has contributed to housing for people with disabilities through philanthropy and fund raising. This will remain important and will need to be explained so that it is not assumed that the NDIS includes all housing needs. NDIA is a funder. It does not have assets to invest directly in housing and cannot borrow. It will therefore need to work with partners to implement new disability housing solutions 8
9 Potential NDIA Housing Principles 1. Choice and control: Participants choose whom they live with and who comes into their home as much as possible. Home ownership like control with full range of tenancy rights, rather than a workplace. Separation of housing ownership and support provision provides greatest choice and control. How far should the NDIA go in requiring this separation when funding housing? 2. Same opportunities as the broader community: Leaving home at the same age as peers. Age 25 as a benchmark? Ownership and rental. Those who can afford to participate in the private market should do so. Non-congregated, accessible, innovative housing that ensures people with disability are part of the community, not segregated 9
10 Potential NDIA Housing Principles 3. Accessible and meets participant needs Accessible for current and future tenants. What standards of accessibility should the NDIA require? How can the NDIS stimulate housing innovation? Located near education, work, family and friends. Poorly located housing will reduce participant s outcomes in community participation and drive up NDIA costs through additional transport costs. 4. Integrated and leverages other assistance: Complement other systems: NDIS funding should complement and enhance State efforts, as the States have primary responsibility for housing. Incentives for contributions. NDIS cannot solve housing alone, individuals and families can achieve greater security and stability by contributing to the cost of housing (e.g. shared equity). Maximum leverage is needed to meet very large unmet affordable housing needs, including through recycling funds to meet future needs. 10
11 Potential roles for the NDIA: Increasing stock Working with State Governments which have primary responsibility for affordable and public housing Promoting stock transfers from governments and disability service providers to community housing associations Partnerships with developers, community housing associations and banks; and philanthropy and social finance providers to increase access to finance. Working with developers to ensure that all dwellings in projects which attract NDIA funding are accessible and/or adaptable Structuring funding from the NDIS to build on the NRAS model 11
12 Potential roles for the NDIA: Working with participants Determining the role of the NDIA in supporting participants to access housing, particular those with low support needs or no disability-specific housing need. Promoting the benefits of mixed equity models with people with disability in achieving home ownership like control. Overcoming barriers to families contributing capital to mixed equity models, including determining a reasonable contribution. Examining the potential role of Special Disability Trusts. 12
13 Potential roles for the NDIA: An insurance perspective Determining the appropriate level of funding for accommodation in the scheme, including where there is a demonstrable insurance-based return of reduced future support costs. Balancing the approval and control of housing investments between the desires of current participants with very long term nature of housing investments (50 years). The role of home ownership and home ownership like control in providing greater security and increased economic participation How to test new housing models during Launch and best promote innovative, best-practice models and share this knowledge 13
14 Next Steps Housing is a major and ongoing policy issue, on which the NDIA has already begun meeting with key stakeholders A Discussion Paper on housing will be published next month, on which there will be community consultation and engagement over the coming months, before finalisation. Particular focus on potential role and principles. NDIA has potential to be a catalyst for major new investment in housing for people with disabilities. But success will depend on partnerships which achieve maximum leverage, as well as other goals consistent with control and choice and the aspirations and rights of people with disability. 14
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