In March 2001, the new direction became clear with the release of the Social Housing Innovations Project (SHIP) report written by Hal Bisset from Ecumenical Housing at the request of Minister Pike. In the SHIP report, Bisset called for a transfer of 18,200 public housing units to (private and incorporated) Housing Associations along with the allocation of additional government funds to kick-start these organisations.
With Minister Pike at its helm, the Department of Human Services Office of Housing channelled $94.5million into "social housing projects" within the first term of the Bracks Labor Government.
Since its re-election in 2002, the Bracks Government has committed an additional $70million over four years to the establishment of these Housing Associations (announced in the May 2003 State Budget).

On December 29th 2003, the current Minister for Housing, Candy Broad, released the State Government's "Strategy for Growth in Housing for Low Income Victorians: Development of Housing Associations" and is seeking comment from the community. This strategy is in fact the implementation of the SHIP report. In summary, the strategy outlines:

· as a starting point - the establishment of four housing associations to receive $70 million over four years from the DHS Office of Housing. These funds come out of the grants allocated to public housing from the Commonwealth State Housing Agreement;

· the "modest" transfer of existing public housing stock to the four housing associations;

· the automatic transfer to housing associations of new housing achieved through the redevelopment of "run-down public housing estates" (currently being undertaken through the Neighbourhood Renewal program)

· increasing rents for Housing Association tenants to ensure that Rent Assistance paid through Centrelink can be claimed by tenants;

· Charging rents according to the size, location and quality of amenity of properties leading to higher rents for more bedrooms, newer housing and in well-serviced suburbs and regions.

The document also raises questions of eligibility and selection criteria, allocations policy, central registries for applications and tenant's increased choices. In reality, however, tenants "choices" will be limited by their ability to pay the rent to be charged by the Housing Association managers.

For public housing tenants and for the many thousands on the public housing waiting lists, the changes to the public housing system will have a huge impact.

Northern housing workers have strongly questioned State Government plans to reduce
public housing waiting lists by establishing Affordable Housing Associations.
They say the plan will have the opposite effect, causing rents to rise and forcing tenants
out of their homes.

The government has released a consultation paper on its Housing Association Strategy, which sets aside a one-off payment of $70 million to establish the four associations.
The associations will then be expected to meet ongoing operating costs from rents.

A worker at Housing for the Aged Action Group, Geoff Fiedler, said the plan for partnerships between private financiers and associations would be "an absolute disaster" for tenants.
"It's about running a profitable company, it's not about providing services to people,"
Mr Fiedler said.
He said that if interest rates went up, landlords would increase their rents, forcing hardship on tenants.

North Central Metro Primary Care Partnership chairman Nick Matteo said the government
was reneging on its responsibilities. "The amount of money you need to maintain stock is enormous, and it will lead the associations to cannibalise stock as the government is doing now."

Elizabeth Coldicutt, who turns 80 in April, said she was deeply concerned she would have to leave her Holmes St, Westgarth flat if the tower block containing it was to be transferred to an Affordable Housing Association.
Mrs Coldicutt said the Holmes St flats would be seen as highly desirable by the associations as they were close to the city, public transport and would easily be rented out because of the "beautiful views" along Merri Creek.

Her concerns were echoed by Housing for the Aged Action Group committee member Molly Hadfield, 81, of Miller St, Preston.
"I am all for public housing, I don't like the idea of privatising it," she said. "After the war I saw how important it was and what it meant to people,
the joy, the security I saw it give people. We must keep it."