The Central Highlands (Qld) Housing Company Limited will wind up operations voluntarily following a resolution at today’s general council meeting.
Since November 2020, the company’s board has discussed and explored options for the future of the not-for-profit organisation, which was established in 2012.
‘The CHHC was established to provide a local response to affordable housing needs in the region,’ board chairman Mayor Kerry Hayes said.
‘However, the company has not been able to achieve the volume of housing stock needed to ensure the ongoing viability of the company as an independent organisation.
‘Board directors also have a legal obligation to ensure the solvency of the company – in other words, to maintain its financial health and ability to manage operations into the future. Under the current model, the board cannot meet this requirement.’
Mayor Hayes said the board had carefully considered a number of options, including expanding the company’s portfolio and volume of stock.
‘However, this would require significant capital that CHHC does not have,’ he said.
‘Council has provided considerable donations to the company, but there are other more cost-efficient mechanisms available to council to support affordable housing outcomes within the region. These include strategic advocacy, land-use planning and the provision of land.’
On 30 May 2022, the CHHC board decided to progress with voluntary liquidation. This was officially endorsed at today’s council meeting as council is the company’s sole permanent member.
The assets held by CHHC, including donated funds by council, will be distributed to an organisation with similar objectives in accordance with the company’s constitution.
‘The board recently changed its constitution to ensure that local organisations with like-minded outcomes are preferred,’ Mayor Hayes said.
The recipient organisation will be decided by the appointed liquidator.