The third and largest funding round for the Housing Australia Future Fund Facility will open in January to help deliver more than 21,000 social and affordable homes.
The Albanese government will open the third – and largest – funding round of the Housing Australia Future Fund (HAFF) and National Housing Accord Facility (NHAF) in late January 2026.
Building on the first and second rounds of funding from last year, national housing agency Housing Australia said the new round will help unlock investment to deliver the remaining 21,350 social and affordable homes to achieve the government’s ambition of building 20,000 new social and 20,000 new affordable homes across Australia over five years from 2024.
Over the past 17 months, the fund has committed 279 contracts to support 18,650 homes. So far, 889 completed, and 9,501 are under construction.
The third round aims to support the government’s broader target of delivering 55,000 social and affordable homes by June 2029.
Round 3 will offer funding packages of various sizes to encourage partnerships led by community housing providers, state and territory governments, and other eligible recipients.
According to Housing Australia, funding will prioritise well-located, high-quality, value-for-money projects that can deliver homes quickly. This will include those across metropolitan, as well as a new regional and rural component, plus those in remote areas, for diverse tenant groups.
It includes $600 million in dedicated funding for First Nations housing organisations and a two-stage, on-demand application process designed to enable faster decisions. A First Nations Concierge service will also be established to guide providers through the application and delivery process.
There will be a 10 per cent First Nations tenancy target across all social housing delivered under HAFF Round 3, and the Housing Australia Investment Mandate will be updated to embed Closing the Gap priorities.
Round 3 will also introduce minimum portfolio sizes, expanded co-investment opportunities, and new delivery partnerships with industry, states, and territories.
Further details are expected to be released next month, with interested parties being urged to register their interest in applying ahead of the round.
Housing Australia CEO Scott Langford commented: “This next round is about accelerating delivery and deepening partnerships. We’ve seen momentum building in the first 2 rounds, and now we’re calling on partners to work together to provide all 40,000 homes by 2029. Together, we can create lasting impact on the housing system and provide homes for those who need them most.”
The federal Minister for Housing Clare O’Neil MP commented: “Australia’s housing crisis comes from a housing shortage so all governments have to build, and that’s exactly what the Albanese Labor Government is doing by supporting thousands of social and affordable homes in every corner of our country.
“After a decade of dithering under the Coalition and relentless opposition in the Parliament, the Housing Australia Future Fund is building. More homes. More speed. More scale.
“Labor is building more homes for Australians on the edge of the housing market… all while contributing to more housing supply across the board.”
The government is also now merging all social and affordable housing funding products administered by Housing Australia under a single Housing Australia Future Fund (HAFF) brand.
This aims to help make the available funding products easier to understand; improve co-ordination; and strengthen engagement with states, territories, industry, and the community housing sector.
Moving forward, the new funds will be:
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HAFF – Social and Affordable: which combines the Housing Australia Future Fund Facility, National Housing Infrastructure Facility – Social and Affordable Housing, and Affordable Housing Bond Aggregator.
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HAFF – Crisis and Transitional: formerly known as the National Housing Infrastructure Facility – Crisis and Transitional.
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Housing Australia Critical Infrastructure: formerly known as the National Housing Infrastructure Facility – Critical Infrastructure.
The government will publish regular delivery reports to highlight progress across this agenda.
The Property Council of Australia welcomed the announcement this week, with CEO Mike Zorbas stating it was “a significant step toward boosting housing supply for those who need it the most”.
“We’ve been stuck in reverse on social housing for a quarter of a century,” Zorbas said.
“Governments around the country have been selling off and underfunding social housing under the radar.
“The HAFF has yet to hit top gear, but this positive program needs everyone’s buy-in.”
He said that state and territory governments must now focus on delivering these “and many more homes” in order to hit national housing targets.
“Even when new homes and essential new property projects of every type are approved, there are far too many delays that delay delivery and make them more expensive,” Zorbas explained.
“Among the worst offenders are water and power utilities, and a small number of laggard councils, who have often been the cause of multi-year delays for approved industrial, commercial and residential projects.
“At the national level, we need to immediately reform ASIC guidelines to remove the distortion that blocks up to 7,000 new homes a year from being built.”
[Related: Australia to fall short by half a million homes behind 2029 target]
