Lord Mayor Nuatali Nelmes describes it as a “landmark occasion”.

A Memorandum of Understanding (MoU) between the NSW Government and City of Newcastle is set to increase social housing in the LGA as well as support more than 100 local jobs.

Minister for Water, Property and Housing Melinda Pavey and Cr Nelmes formally endorsed the MoU this week, following council’s unanimous endorsement at its October meeting.

Their objective is to deliver improved outcomes in social and affordable housing for Novocastrians.

To help achieve this, City of Newcastle will work closely with the NSW Land and Housing Corporation (LAHC) to identify priority areas and fast track projects.

An important feature of the MoU will see council supporting LAHC’s redevelopment program through the provision of an annual payment equivalent to the rates paid by LAHC in the Newcastle LGA for the next three years.

The sum, to be matched by LAHC, will be reinvested into funding new social housing in the region during the same period.

“It’s [the MoU] the first of its kind, representing a commitment between the two levels of government to address the urgent need for affordable and social housing in our community,” Cr Nelmes said.

“We have a commitment from the NSW Government to match dollar-for-dollar, City of Newcastle’s contribution of approximately $2 million annually for three years.

“We’ll also explore opportunities to deliver a Make Room Project in Newcastle to provide short-term supported accommodation for people experiencing homelessness.

“I look forward to working with the NSW Government on this important partnership.”

Ms Pavey said the MoU built on the Housing Supply Strategy, which identified strong collaboration between the state government, community housing providers, developers and councils, as pivotal to meeting demand.

“Over the past two years, we have delivered 44 new social homes across City of Newcastle,” she stated.

“I’m pleased to advise, that over the next 24 months, we’re set to deliver 59 further dwellings in Shortland, Waratah West, Wallsend and Lambton.

“I am excited about the opportunity to work in partnership with council and deliver on our shared desire for more and better social and affordable housing in the City.

“These projects are expected to deliver more than $25 million in construction activity and create about 125 jobs, with a focus to use apprentices, tradespeople and supplies from Newcastle and the Lower Hunter in their construction.

“This mutual commitment to keeping money in Newcastle is a cornerstone of this partnership.

“It’ll inevitably lead to more jobs and investment in the region as well.”

Minister for Families, Communities and Disability Services Alister Henskens said the MoU built on the work the NSW Government was doing to increase housing options for vulnerable people.

“We are working hard to create a pipeline across the Hunter to support those most in need,” he explained.

“This is an excellent example of partnership between state and local government that will result in tangible outcomes and create stronger communities.”

Both the NSW Government and City of Newcastle have identified the need for new fit-for-purpose housing in Newcastle such as the recently completed 14-unit development at Richard Street, Adamstown.

The $3.98 million development will provide up to 22 residents a safe place to call home.

For more information on the MOU and social housing projects in the Newcastle and Hunter region, visit www.dpie.nsw.gov.au/land-and-housingcorporation/regional/newcastle-and-hunter-region

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