The keys to the first home funded with the support of social enterprise, Homes for Homes, have been handed over to a young family in housing stress.

The move represents a huge milestone in the sector especially organisations who help solve the lack of social and affordable housing in Australia, the gap of which is projected to grow to one million by 2036.

Homes for Homes is an independent, not-for-profit organisation established by Australia’s social enterprise, The Big Issue. It raises funds through donors, both individuals and property developers, agreeing to include a caveat on their property title, which enables a tax deductible donation of 0.1% of the sale price to be donated to Homes for Homes. This funding is granted to experienced housing providers to increase supply of social and affordable housing.

Last year, Homes for Homes awarded $500,000 to fund a range of social and affordable housing projects, including a home built by Habitat for Humanity as part of its Yea development in regional Victoria.

Victorian couple, Jema and Romel, will move from a housing commission unit into the new home with their young daughter. They will service the interest free mortgage, based on 95 per cent of the market value of the completed home, and have also contributed 500 hours of time to help build their home.

It coincides with the opening of applications for a second round of funding to housing providers by Homes for Homes and will be followed by the completion of another property next month, developed by Havelock Housing, as part of its ‘Homes for Heart’ program to provide safe and secure long term accommodation for older women in Canberra.

Homes for Homes’ Chief Operating Officer, Sally Hines said the success of these projects shows how quickly its funding can make a difference in the community.

“These homes are tangible evidence that we are creating a long-term generational solution that is on track to generate $1 billion over the next 30 years, which works because of the wonderful support we are getting from developers like Mirvac, Grocon and Capital Airport Group, community, business, and the Federal Government,” she said.

Assistant Minister for Community Housing, Homelessness and Community Services, Luke Howarth said that the Australian Government understands that housing is fundamental to the welfare of all Australians and is doing its share of the heavy lifting by providing more than $6 billion for housing support and homelessness services each year.

“It is important that we direct funds to innovative programs that will improve outcomes for those most in need. That is why we are investing $6 million in Homes for Homes,” Howarth said.