NSW Budget Builds on Housing Reform, Opportunity to Unlock a Unified Housing Pipeline

Faith Housing Australia

Key Facts:

Practical steps to strengthen housing delivery through partnership with Community Housing Providers:

1. Create a dedicated capital allocation stream linked to Direct Dealing, providing a clearer pathway for partner-originated projects to access government investment

2. Formalise acquisition and take-out models that enable Community Housing Providers to bring forward projects with greater certainty

3. Publish a coordinated, multi-year pipeline that brings together government projects, Community Housing Providers, faith-owned land and other delivery partners.

4. Establish a CHIF-style grants program for Tier 3 Community Housing Providers and regional projects, leveraging CHP land, community partnerships and local delivery capability to unlock smaller-scale social and affordable housing opportunities

Faith Housing Australia has welcomed housing measures in the 2026–27 NSW Budget, including the expansion of the Pre-Sale Finance Guarantee and new investment in Modern Methods of Construction, describing them as practical initiatives that can help accelerate housing delivery across NSW.

CEO Amanda Bailey said the measures build on the NSW Government’s broader housing reform agenda, including the record $6.6 billion Building Homes for NSW package, planning reforms, and the introduction of the Homes NSW Direct Dealing framework.

“The NSW Government has made a substantial commitment to increasing housing supply and today’s Budget continues that focus,” Ms Bailey said.

“The expansion of the Pre-Sale Finance Guarantee is particularly welcome because it addresses one of the key barriers to housing delivery by helping projects secure finance and proceed sooner.”

Ms Bailey said the next opportunity for NSW is to maximise the impact of its existing investment by leveraging stronger partnerships with not-for-profit Community Housing Providers.

“Homes NSW has already taken important steps through the Direct Dealing framework, creating a pathway for Community Housing Providers to bring forward proposals and partner with government.

“These are important reforms. However, much of the State’s housing investment remains embedded within government-led delivery pipelines.

“The opportunity now is to create a more coordinated and predictable co-delivery model that enables government investment to be combined with the land, capital and delivery capability that already exists within the not-for-profit, faith-based and community housing sector.

“Faith-based Community Housing Providers are proven partners delivering social and affordable housing and consistently achieving strong tenant outcomes. The opportunity now is to further leverage their capacity as development partners.

“The expanded Pre-Sale Finance Guarantee is a positive example of government helping projects overcome delivery barriers. Combined with clear co-investment and partnership pathways, it has the potential to unlock even more social and affordable housing supply.

“Community Housing Providers can only invest and scale when there is certainty about future partnership opportunities. A project-by-project approach will not unlock the level of housing delivery NSW needs.

“By creating a unified NSW housing pipeline for social and affordable housing, government can combine its investment with the land, capital and delivery capability of Faith-based Community Housing Providers to deliver more social and affordable homes and achieve better housing outcomes for the people of NSW.

“NSW has the largest social housing challenge in the country. The strongest housing outcomes will come from a long-term partnership approach that brings together government, Community Housing Providers, faith-owned land, local government and communities to deliver more homes than any one part of the system can achieve alone.”

/Public Release.