Victoria should abandon the remaining 25 level crossings which are planned under the state’s level crossing removal program and should instead build more social homes, a leading community housing industry lobby group says.

In its submission for the upcoming Victorian budget on Tuesday, the Community Housing Industry Association (CHIA) has called on the Victorian Government to scrap the remaining 25 level crossing removals which have been earmarked for completion before 2030.

Instead, CHIA argues that the government should use the $5.4 billion which has been earmarked for the program to instead increase the size of the state’s Social Housing Growth Fund by $6 billion.

Commenced in 2016 following the election of the Labor Party in 2014, the Level Crossing Removal Project is an ambitious program which aims to remove 110 railway level crossings across Melbourne and Victoria by 2030.

Already, 85 crossings have been removed and the Lilydale in Melbourne’s east is free of level crossings.

By 2030, the state plans to remove an additional 25 level crossings – in relation to which $5.4 billion has been allocated.

This will deliver level crossing free lines on the Cranbourne, Pakenham, Sunbury, Werribee and Frankston lines.

However, CHIA argues that the Government should abandon these remaining 25 crossings and should instead reallocate the funding to increase the size of the Social Housing Growth Fund.

Established with an initial $5.3 billion in 2018, the Social Housing Growth Fund enables Homes Victoria to partner with the community housing sector to build more and better homes.

Under the program, financial support is provided to community housing organisations to construct and manage housing on non-government owned land, provide ongoing support for social housing tenants who live with mental illness and lease or purchase new homes from the private sector for use as social housing.

This includes homes for indigenous Australians and homes in regional areas.

In a statement, CHIA Vic chief executive Sarah Toohey acknowledged the benefits which level crossing removals have delivered.

But she said that now, it is time to reprioritise funding in order to address the state’s social housing crisis.

According to Toohey, increasing the size of the social housing fund could deliver an additional 20,000 homes over the next decade.

This would help to address crippling social housing waiting lists – which currently stand at 146,000.

“Over the past few years, rents have climbed making it even harder for people to find secure, affordable housing,” Toohey said.

“Statewide there are 146,000 families and individuals who need social housing but can’t get it.

“Despite Victoria’s tight budget, we’ve identified billions that could be redirected to fund the social housing our state urgently needs to ease the housing crisis.

“The Victorian government has already removed 85 level crossings across Melbourne as part of its Level Crossing Removal Project. This has made a profound impact by easing bottlenecks in the rail system and creating new public spaces. But the rest of the project offers diminishing returns given the most dangerous and congested crossings are already gone.

“It’s time to reprioritise this infrastructure spending to deliver more essential infrastructure that Victoria is desperately lacking: social housing.

“The funding that’s earmarked to remove 25 level crossings could instead build almost 20,000 urgently needed social homes.”

Toohey also called on the government to establish a clear, long-term goal and funding schedule for social housing.

“An upfront $6 billion investment into the Social Housing Growth Fund today will give the government and Victorians more bang for buck; it will allow time for interest to accrue, meaning thousands of extra homes can be built compared to unpredictable and sporadic funding rounds,” Toohey said.

“Setting a clear long-term goal and funding schedule is essential to provide the community housing sector and building industry with the confidence they need to plan a steady pipeline of new homes for Victorians who need housing that’s affordable and secure.”

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