2022-02-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                               14 FEBRUARY 2022


10.   Partnership structure
As part of the Housing Needs Analysis, the opportunity to partner to deliver social and affordable
housing outcomes was considered important and necessary to ensure the delivery of social
housing outcomes. Coast2Bay Housing is a registered community housing provider. Much of the
state funding currently available under the Housing Investment Growth funding for social and
community housing outcomes requires the involvement or partnering with a community housing
provider.
It is therefore proposed that Council indicate its intention to collaborate with a community housing
provider through entering into a memorandum of understanding (MOU).
A MOU is a non-legally binding agreement between parties that signals a willingness to work
towards a common goal and can be extinguished at any time. An MOU can be a precursor to
downstream negotiations or contracts in specific properties but does not provide exclusivity to the
parties. Downstream contracts or leases such as head or ground/land leases would still be required
to be considered and adopted/agreed to by Council.
An MOU is proposed between Noosa Council and Coast2Bay Housing Group which solidifies an
agreement to collaborate with Coast2Bay to provide social housing on suitable Council owned land
or other opportunities that arise and, apply for State/Federal funding when available. Council has
had a long-standing professional relationship with Coast2Bay Housing Group and the MOU will
ensure the best social and affordable housing outcomes occur to meet the needs of our community.
Coast2Bay is a well-respected not-for-profit community housing provider with a successful history
in Noosa Shire. They manage 491 dwelling through National Rental Affordability Scheme (NRAS)
on the Sunshine Coast and are a tier one community housing provider. Coast2Bay are fully
registered to apply and receive funding from the Department of Housing and Public Works and
other State and Federal departments.
Entering an MOU with Coast2Bay is the first step and signals Council intention to work directly with
Coast2Bay as a community organisation. Leasing of Council/community land must comply with the
contracting provisions of the Local Government Regulation 2021. The Local Government
Regulation 2012, Division 4 Section 236 allows Council to deal directly with a not-for-profit
community organisation. Prior to any further consideration of disposal of land or leasing of land
to a community organisation such as Coast2Bay a further report and consideration would come to
Council. The MOU simply signifies Councils intent to collaborate on these opportunities.
Noting a letter of support was provided to Coast2Bay Housing Group to allow an application for
funding to occur to the State. The funding available was part of the QLD Housing Investment
Growth Initiative - QuickStarts program. Quickstarts is a $1.59 billion capital grants funding
program for accelerated construction of social housing. There is a 4-year target of 137 houses for
the Sunshine Coast. Application closed on 21 January 2022.
Any potential future lease agreement with Coast2Bay would be reported for a Council resolution.

11.   Utilising Council land - options
Two options for Council utilisation of its land for affordable housing outcomes are via :
•    Head lease, or
•    Ground/lands lease
Head lease
Briefly, a head lease is when Council owns the asset and leases the building to a community
housing provider, who in turn subleases the asset as social or affordable. The property remains as
a Council asset. It means that Council would design, construct and maintain the property. A Head
lease arrangement is a significant intervention for Council into housing and carries some risk and
financial liability.




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