28HFinancing mechanisms

28H Financing mechanisms

(1) A project may be financed under the HAFFF through: (a) one or more loans; or (b) one or more grants; or (c) any combination of any of the above. (2) The loans and grants must: (a) unless paragraph (b) applies—be made to the project proponent; or (b) if the project proponent is a local governing body—be provided by way of 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.

(3) 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 (including no interest) than offered by Commercial Financiers; (c) extended periods of capitalisation of interest beyond project 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. (4) 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.