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Affordable Housing Investment Partnerships

Making available up to $2.1 billion in low interest loans and government guarantees to finance social and affordable housing.

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Affordable Housing Investment Partnerships (AHIP) makes low interest loans and government guarantees available to finance social and affordable housing for Victorians who need it most.

AHIP expands on the existing Building Financial Capacity of Housing Agencies (BFCHA) initiative, bringing the total finance available to $2.1 billion.

AHIP continues to provide finance for the development and acquisition of social housing and expands to also include projects that provide affordable housing.

This will be the first time that government low interest loans and government guarantees will be available in Victoria for affordable housing as well as social housing.

This expansion encourages the design and development of mixed-use housing projects that provide positive housing outcomes for Victorians most in need.

The expansion will also greatly enhance opportunities for institutional finance including superannuation funds and private sector partners to support mixed-tenure housing projects.

To accommodate the extension, changes to some finance parameters have been made to allow for this wider participation and collaboration across the housing sector.

Who can apply?

Community housing associations and providers

Low interest loans and government guarantees are open to community housing associations and providers that are registered, or in the process of being registered, to operate in Victoria by the Registrar of Housing Agencies.

Other not-for-profit housing providers and councils

Low interest loans and government guarantees for affordable housing components of mixed-tenure projects, and affordable housing projects are also open to not-for-profit organisations and councils.

Partnership with the private sector

The role of property developers, superannuation funds, banks and financial institutions

While low interest loans and government guarantees can only be directly offered to registered community housing organisations, not for profits and local councils, there are opportunities for private sector entities, including building developers, superannuation funds and banks to partner with these organisations to deliver a range of social and/or affordable housing solutions.

This includes mixed-tenure social, affordable and market housing projects that can provide positive housing outcomes for Victorians.

What is the difference between social and affordable housing?

Social housing is for people on low incomes who need housing, especially those who have recently experienced homelessness, family violence or have other special needs.

Further information on social housing classifications and eligibility is available on the Homes Victoria website.

Affordable housing is a continuum of housing outcomes that range from providing housing to those on very low incomes, up to affordable housing with rent discounts consistent with the Government’s Affordable Housing Rental Scheme.

Low interest loans

Low interest loans aim to reduce the cost of borrowing for eligible loan recipients compared with private sector financing.

Loans will be available for up to 30 years (plus the initial construction or acquisition period), with a fixed interest rate period up to the initial 15 years.

Interest rates will reflect the State’s cost of borrowings, plus a small state margin. There are no establishment or line fees.

What can the loans be used for?

Low interest loans are available for:

Loans are only available for social and affordable housing components of any housing project with the market housing components funded from other finance or equity contributions. Social and affordable housing components financed by these loans are required to be maintained as such, consistent with the terms and maturity of the low interest loans.

Loans for social housing only

For social housing only loans, applications are required to meet or exceed 20% of all dwellings allocated to social housing.

For these social housing dwellings, at least 75% of these are required to be allocated to Housing Register priority access applicants. For projects without funding under other Victorian Government social or affordable housing programs, a minimum percentage of priority access tenants must be negotiated and agreed with the Department of Treasury and Finance, including with consideration to the benefit provided by the AHIP loan or guarantee.

Social housing must be operated as such for the life of the loan or guarantee and for at least 20 years.

Loans for a mix of social and affordable housing

For social and affordable loans, applications are required to meet or exceed 20% of dwellings across a mixed tenure project allocated to social housing, with at least 75% of these allocated to Victorian Housing Register priority access applicants. For projects that do not include other Victorian Government funding, variations will be considered where this may result in a project not being financially viable.

Social and affordable housing must be operated as such for the life of the loan or guarantee and for at least 20 years, whichever is longer.

Loans for affordable housing only

Loans can be provided for projects that include a range of affordable housing dwellings but no social housing dwellings.

For these types of projects, applications are required to meet or exceed a minimum of 20% of the affordable housing dwellings allocated at a lower rate of rent which is broadly equivalent to social housing settings (e.g., 25% below the market rent or at no more than 30% of the middle of the low-income band, whichever is lower).

Variations may be considered depending on the circumstances of the proposal and where adequate rationale is provided.

Affordable housing must be operated as such for the life of the loan or guarantee and for at least 20 years, whichever is longer.

Loan covenant parameters

These loan covenants reflect those that applied under the BFCHA initiative.

Financial loan covenants include:

Minimum liquidity requirements may also be imposed, dependent on the application and outcomes of a credit assessment.

Variations may be considered depending on the circumstances of the proposal and where adequate rationale is provided. All applications and variations will be subject to the outcomes of a credit assessment.

Government guarantees

The Victorian Government can provide guarantees over private financing to reduce lending risk and help secure more competitive commercial terms with private banks and non-bank lenders. This could be for full or partial cover of the loan.

Guarantees are not provided for low interest loans issued by the Treasury Corporation of Victoria or financing provided by the National Housing Finance and Investment Corporation or as it may be known from time to time.

How do I get connected or make partnerships to utilise AHIP finance to create new social and affordable housing?

Please get in touch with the AHIP team via the form below to express your interest in these types of projects. This may be as:

The AHIP team can work with interested participants to help bring them together for meaningful projects.

Outcomes of the independent evaluation of AHIP

The Department of Treasury and Finance commissioned Sapere Research Group in April 2023 to evaluate the effectiveness of the BFCHA initiative, which has since expanded to AHIP.

The evaluation also considered opportunities to refine and improve AHIP to further support the supply of social and affordable housing and the value for money outcomes generated.

You can read the final report below.

Evaluation of the Building Financial Capacity in Housing Agencies initiative PDF 1.06 MB (opens in a new window)

Evaluation of the Building Financial Capacity in Housing Agencies initiative PPT 987.26 KB (opens in a new window)

Register your interest in AHIP

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The Department of Treasury and Finance (the Department) collects the information that you provide with this form. The information that you provide is used to respond to your enquiry. You can request access to, and corrections of, any personal information provided in this form. Requests for access or correction should be sent to dtfweb@dtf.vic.gov.au.

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If you do not provide all or part of the information requested, the Department may not be able to contact you regarding your enquiry. Please contact us if you wish to use an alternative mechanism to the online form.

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Contact us

If you have any questions, you are more than welcome to reach out to the AHIP team by emailing ahip@dtf.vic.gov.au.

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Housing & construction

Updated 26 August 2025

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