CLT & Growth Providers

[Anthony Rizzacasa (Perth WA)]

Hi, I have recently joined.

I currently work for WA's largest community housing organisation,
Access Housing, as the director of property development. In WA, we are
referred to as Growth Providers. The core structure of the business is
tenancy management with surpluses invested into a capital works
program for development (My Role)

I have been researching the viability of a CLT in WA and my financial
modelling is showing that if a CLT were to retain assets and rent them
out to provide a recurrent earn, then at best the CLT is break even
and sensitive to cost blowouts. I have concluded that a CLT is
commercially viable only when it acts as a facilitator of affordable
home ownership housing, retiring its stock at project completion and
earning income from DM fees (development management/project
management) and perhaps some income from any commercial assets
created.

Therefore I wonder if a CLT should be considered a separate entity
from a growth provider and function as a supplier of housing stock to
a growth provider or state body/agency? (community housing provider in
some states) as opposed to an offshoot of a growth provider with its
owner governance structures.

What has been other people's experience when analysing a business
plan?

Thank you

Anthony Rizzacasa
Development Manager
Access Housing

08 9430 0900

www.accesshousing.org.au