This policy sets out how money is collected and reinvested by the South Australian Housing Trust (SAHT) when a homebuyer pays out their share in a shared equity home purchase program. This policy applies to shared equity funds provided by the Commonwealth Government and State Government (e.g. Commonwealth Housing Affordability Fund) and administered by the SA Housing Authority, on behalf of SAHT.

The policy does not apply to homes sold with HomeStart Finance shared equity finance (such as the Shared Equity Option).

Shared equity investment initiatives

Home purchase shared equity assistance allows eligible homebuyers to buy a home at a price less than the home’s market value by reducing the mortgage repayments that the buyer must pay. In the past, the funds to support this program were provided to either the Authority or a third party (local government) from the Commonwealth, and the Authority would arrange for the shared equity to be provided to the homebuyer and hold the equity share until repaid.

When the homebuyer sells the home, the shared equity component and a share in the home’s appreciation is paid to SAHT in line with the agreement the homebuyer signed when they bought the home.

Reinvesting funds

The funds returned to SAHT from the shared equity assistance programs are collected and held by SAHT for reinvestment in future shared equity assistance programs.

Reinvesting external grant derived funds

Where the funds have been given to a specific suburb or Local Government Area (LGA) through a grant, the funds are to be prioritised as follows.

  1. The first priority – provide a new shared equity assistance home ownership opportunity in the same project or suburb where the original property was located.
  2. The second priority – create or support the creation of affordable houses in the same LGA where the original property was located.
  3. Third priority – SAHT nominate another project providing affordable housing in the same SA Government Region.

With the aim of continuing to provide affordable housing throughout South Australia, the Authority must consult with the relevant Local Government to discuss reinvestment opportunities in their area.

This may include:

  • affordable rental and home ownership initiatives on local government or state-owned land
  • supported housing
  • community housing projects.

Where possible, Council contribution should be encouraged to support the reinvestment of funds in their area.

Before committing to any reinvestment of funds, the appropriate financial and budgetary approvals are to be obtained.

Reinvesting funds provided by SAHT

If SAHT originally provided the funding for the program, the repaid funds can be reinvested at the discretion of the Authority.

Before committing to any reinvestment of funds, the appropriate financial and budgetary approvals are to be obtained.

Risk Assessment

Funding and promoting shared equity home purchase programs allows the Authority to lead by example, encouraging industry to use shared equity as a way to deliver affordable housing in higher-cost markets, and to trial different ways of delivering shared equity to home buyers.

If these funds are not quarantined for reinvestment into new shared equity projects by the Authority, the capital created to date in shared equity as a model will be lost.

Monitoring and Evaluation

Performance planning, monitoring and review

Strategy and planning for the policy are linked to the Authority business planning and review cycles. Reporting against the objectives of the policy occurs as part of regular report to the Authority Executive team and the SAHT Board.

The delivery of outcomes under the policy are monitored, evaluated and reviewed at both a policy and project level.

Management and handling of the funds held for reinvestment into future shared equity projects will occur in accordance with the following key business rules.

  • Project Management
    • The Authority has an overall co-ordination and monitoring role in developing projects that focus on delivering affordable housing outcomes to the community. Projects may be managed by the Authority, not for profit, private sector, or joint ventures depending on the project.
    • The Affordable Housing and Market Solutions team is responsible for facilitating and developing opportunities to create new affordable housing supply. A supporting program to match new supply to eligible homebuyers is also managed within the team (HomeSeeker SA).
  • Quality Assurance
    • The Authority is held accountable by the Code of Conduct for Public Sector Employees and will immediately report any personal conflict of interest (whether real or perceived) or any potentially unethical /fraudulent behaviour. External parties must abide by the terms and conditions of the formal Agreement and/or contract.
  • Records management
    • The Finance and Investment division, in conjunction with the Conveyancing team in Portfolio Planning and Asset Management are to maintain records of funds provided by the finance institution, and funds returned to the Authority by homebuyers who have on-sold their shared equity property. Records held will be:
      • executed deeds
      • shared equity assistance home and addresses
      • property valuation
      • homebuyer details
      • declaration of priority of the Title
      • HomeStart Mortgage details
      • the amount of funds attributable to each resale
      • the source of any original subsidy
      • the accumulated total of funds.
    • Finance and Investment will provide an annual report on the accumulated total of funds for future investment opportunities to the Affordable Housing and Market Solutions team, and Portfolio Planning and Asset Management.
  • Risk Management
    • The policy is supported by HomeSeeker SA Management Protocols and Work Instructions which provide consistency in the delivery mechanisms for shared equity home purchase projects.

Related information

Controlling documents

  • Premier and Cabinet Circular 114, Government and Real Property Act October 2010
  • South Australian Housing Trust Act (1995) and Regulations (2010)
  • Our Housing Future 2020-2030 – South Australia’s Housing and Homelessness Strategy
  • SA Housing Authority Strategic Plan 2020-2025
  • SA Housing Authority Business Plans
  • Determination of criteria for the purposes of the concept of Affordable Housing – Government Gazette Notice

Supporting Documents

  • Shared Equity Procedure

Related policies and other documents

  • 15% Affordable Housing Policy
  • HomeSeeker SA Program Policy
  • HomeSeeker SA Management Guide
  • HomeSeeker SA Workplace Instructions

Date this policy applies from

29 April 2022

Version number


The online version of the policy is the approved and current version. There is no guarantee that any printed copies are current.