Housing ACT has failed to keep clear records and provide sufficient information in its buying and selling of properties. Photo: Claire Fenwicke.
Housing ACT’s buying and selling of public housing homes was marred by poor record keeping that failed to provide reasons for a transaction or who made a decision, an audit report found.
The report on the multi-million dollar Growing and Renewing Public Housing Program says Housing ACT’s management and administration of the sale and purchase of public housing homes in the general property market has not been fully effective.
It says a lack of clear and complete records has compromised the transparency and integrity of the decision-making around Housing ACT’s property dealings.
“When selling, redeveloping or buying public housing homes, Housing ACT has not systematically or consistently recorded the rationale for the decision or the identity of all the people responsible for making the decision,” the audit says.
Policy and procedural guidance for the sale and purchase of public housing homes has been inconsistent and poorly communicated, it says.
The Asset Assessment Panel responsible for making decisions about the retention, sale or redevelopment of public housing homes did not have all the information it needed about a property and its tenants.
The required full set of information about the home and tenants was not recorded for any of the 50 decisions reviewed for the purpose of the audit.
Of 17 decisions reviewed to sell or redevelop a tenanted public housing home, only four recorded information provided by the Client Services Branch about the tenancy.
The audit found this lack of consistent information was due to Housing ACT not having a digital business system capable of providing complete, integrated, up-to-date information about public housing homes and tenancies.
The panel also considered homes under a wide range of circumstances, for which different levels of information were available.
“Because of the poor documentation and record keeping associated with the Asset Assessment Panel and its decision-making processes and the inconsistent use of proforma documents and templates to support decision-making, it is not possible to identify whether the panel has systematically or consistently applied assessment criteria in its decision-making,” the audit says.
“In the records reviewed for the purpose of the audit, however, it is apparent the panel did not apply all the criteria specified in the Asset Assessment Framework and Terms of Reference to every decision.”
The valuation of properties for sale and purchase was also inconsistent.
Of 10 acquisitions of public housing homes made between July 2019 and March 2024, six had two comparable valuations recorded; three had one valuation recorded; and one had two valuations recorded that were partially comparable.
Housing ACT’s use of valuation reports to establish reserve prices for auction also caught the auditors’ attention.
Of 30 sales of public housing homes made between July 2019 and March 2024, one sale had one valuation recorded; 25 sales had two valuations recorded; and four sales had three.
“For some sales where three valuations were recorded it was not apparent why a third variation was obtained, and for some sales, where only two valuations were recorded, the variation between the valuations was of such magnitude that it appeared to warrant a third valuation,” the audit says.
The audit report also raises issues about probity, saying a program of this size with an $867 million budget warrants significant probity governance and management arrangements.
“However, Housing ACT did not undertake a probity risk assessment, develop a probity plan or engage an independent probity adviser or probity auditor,” it says.
On the positive side, the report finds Housing ACT’s processes for the procurement of construction services to build new public housing homes has been effective.
“Roles and responsibilities in procurement processes were clearly identified and conflicts of interest were effectively managed and the evaluation of quotes or tenders was conducted with reference to evaluation plans and established criteria,” it says.
The audit made seven recommendations, including improvements to record keeping, decision-making processes and implementing a probity plan.
In its response to the report, the Community Services Directorate (CSD) said it was committed to improving outcomes for clients and communities and providing more, better, fit-for-purpose public housing.
As at 31 December 2024, CSD had delivered 972 dwellings, comprising 764 dwellings constructed and 208 dwellings purchased under the renewal program.
Of those 764 dwellings, 98 per cent were designed to Class C adaptable or Liveable Gold Standard with an aim to achieve 90 per cent across all constructions by the end of the program in 2027.
The ACT Government said it would consider the findings and recommendations in detail and provide a response in accordance with Legislative Assembly procedure.
As of 31 December 2024 Housing ACT managed 11,845 HACT properties with more than 20,000 tenants.
