24Financing mechanisms

24 Financing mechanisms

(1) A project may be financed under the NHIF through: (a) one or more loans; or (c) one or more grants; or (d) any combination of any of the above. Loans (2) Housing Australia may provide, but is not limited to, the following loan concessions: (a) longer loan tenor than offered by Commercial Financiers; (b) lower interest rates than offered by Commercial Financiers; (c) extended periods of capitalisation of interest beyond construction completion; (d) deferral of loan repayments or other types of tailored loan repayment schedules; (e) lower or different fee structures than those offered by Commercial Financiers. (3) For a project proponent other than a State or Territory, Housing Australia must obtain security for any loan, at a level that is appropriate having regard to the risk to Housing Australia and the Commonwealth. Grants (5) Applications seeking grants and other forms of financing from the NHIF as part of a blended financing arrangement are to be preferred. Financing local governing bodies for social or affordable housing projects (6) If the project proponent for a social or affordable housing project is a local governing body, the project may be financed only through a grant of financial assistance to a State or Territory.

Note: A term or condition for the grant of financial assistance may be that the State or Territory make a loan or grant to the local governing body.