This policy sets out how money is reinvested that the South Australian Housing Trust (SAHT) collects as a result of homebuyers paying out their equity share in shared equity assistance home purchase facilitated by SAHT. This policy only applies to where funds were derived from the Commonwealth Government Housing Affordability Fund.

Shared equity investment initiatives

The Affordable Homes Program, managed by Renewal SA, promotes shared equity assistance initiatives on behalf of SAHT. These initiatives allow eligible buyers to buy a home at a price less than the home’s market value by reducing the amount that the purchased needs to borrow from their finance institution.

When the buyer 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 buyer signed when they bought the home.

Reinvesting funds

The funds returned to SAHT from shared equity assistance initiatives are recaptured and quarantined by SAHT for reinvestment in future shared equity assistance initiatives.

The use of these funds are prioritised.

The first priority’s to provide a new shared equity assistance home ownership opportunity in the same project or suburb where the original property was located.

If this isn’t possible, the second priority’s to provide affordable housing outcomes in the surrounding area within the Local Government Area (LGA).

If this isn’t possible, SAHT nominates another project providing affordable housing in the same State Region.

Consulting with local government

SAHT consults with local government whenever possible to discuss opportunities to reinvest funds within their jurisdiction with the aim of continuing to provide affordable housing in their area.

This may include:

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

Reporting requirements

SAHT Conveyancing to maintain records of funds provided by HomeStart Finance. Records are to identify

  • shared equity assistance homes and addresses
  • property valuation
  • buyer details
  • declaration of priority
  • HomeStart Mortgage details
  • the amount of funds attributable to each resale
  • the source of any original subsidy
  • the accumulated total of funds.

A summary of current outstanding shared equity assistance initiatives is to be publicly available in the annual report.

HomeStart Finance services

HomeStart Finances ensures the equity component’s collected and returned to SAHT when it’s paid out by the buyer.  In addition, HomeStart Finance administers the repayable discount, shared appreciation calculations, and provides annual statements to buyers.

Risk statement

Inappropriately reinvested funds by SAHT will create a disincentive for investment by industry stakeholders - eg developers, local government, benevolent institutions, resulting in fewer affordable home ownership opportunities for low to moderate income South Australian’s in high cost markets.

Related information

Controlling documents

This policy is based on and complies with:

Supporting guidelines

  • Shared Value operation guidelines
  • Equity Assist operation guidelines

Related policies and other documents

  • 15% Affordable Housing policy Renewal SA
  • Affordable Homes Program policy Renewal SA
  • Share Value Service Level Agreement HomeStart Finance

Date this policy applies from

1 March 2018

Version number


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