By CHARLENE GATT
A DAMNING Auditor-General’s report has blasted the State Government’s inaction over public housing across Victoria.
The audit, which examined how effectively the Department of Human Services planned for and maintained public housing assets, revealed the current operating model was unsustainable, with the Housing and Community Building division’s finances deteriorating since 1998-99.
The housing division is forecast to be in deficit over the 2012–13 financial year, with the deficit set to reach $115.1 million by 2015.
Despite this, the DHS has not implemented long-term strategies to address the deficit, instead using short-term approaches such as reducing acquisitions and preventative maintenance. It also found that the department lacked basic information, such as accurate property condition data, to inform strategic asset decisions.
The report found that a decrease in housing affordability and an ageing population had increased demand on public housing services, while public housing infrastructure required significant maintenance. At June 2011, there were 65,352 public housing properties, with 38 per cent located in the North West metropolitan region.
About 10,000 public housing properties – a total 14 per cent of their portfolio – are expected to close down in the next four years due to their state of disrepair, but there is no asset management program in place.
The report estimates it would cost $600 million to fix the properties.
Furthermore, 14,321 dwellings (24.9 per cent) had not been assessed for over three years, with 2400 of these not inspected for over five years – despite divisional policy to assess all properties at least every three years.
“The situation for public housing is critical,” the report read.
State Housing Minister Wendy Lovell said the Auditor-General’s report highlighted the systemic neglect and mismanagement of public housing under the former Labor Government.
“The fact that investment decisions have been made for so long on the basis of poor data is a major failing of portfolio management,” she said.
