Dedicated funding pathway for up to 1,000 social and affordable dwellings targets projects already near construction-ready status
Housing Australia has announced a new funding stream under Round 3 of the Housing Australia Future Fund (HAFF), designed to fast-track the delivery of well-located, low-density Class 1 social and affordable homes that are at or close to shovel-ready status.
The stream will be structured around fixed packages of 200 dwellings each — comprising 100 social homes and 100 affordable homes — with a completion deadline of 31 December 2027. Submissions will be open to community housing providers, state and territory governments, local councils, and housing enablers.
Housing Australia said the initiative would prioritise up to 1,000 homes through projects that are already in an advanced state of readiness, reflecting a broader shift in the fund's focus toward supporting market housing supply alongside social and affordable housing delivery.
Master Builders Australia welcomed the announcement, following concerns that many low-rise volume builders and tradies were missing out on opportunities under the current funding arrangements.
"Master Builders has consistently raised the potential limitations surrounding HAFF Round 3 and welcomes this commitment from Housing Australia, which has indicated it will prioritise up to 1,000 social and affordable homes through shovel-ready Class 1 projects," said Denita Wawn (pictured right), chief executive of Master Builders Australia.
"We now ask that this be rolled out as efficiently as possible, with transparency around delivery, to ensure these projects are completed, increase housing supply and assist Australians who need housing most. The legacy of the HAFF will ultimately be measured by how many homes are built."
Tom Forrest (pictured right), chief executive of Urban Taskforce Australia, also welcomed the new stream, noting that the subsidy component inherent in social and affordable housing funding could help underwrite project viability and stimulate broader market supply. He described the shift as one that now appears embedded in how Housing Australia operates.
The Housing Industry Association likewise expressed support for the measure, welcoming the focus on well-located, low-density homes that are ready to proceed to construction.
The new stream is seen as consistent with the Commonwealth's obligations under the National Housing Accord, at a time when new dwelling sales have been softening across parts of the country.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
