HomeFund was a scheme set up by the

New South Wales ) , nickname = , image_map = New South Wales in Australia.svg , map_caption = Location of New South Wales in AustraliaCoordinates: , subdivision_type = Country , subdivision_name = Australia , established_title = Before federation , es ...

state government A state government is the government that controls a subdivision of a country in a federal form of government, which shares political power with the federal or national government. A state government may have some level of political autonomy, or ...

and operated through co-operative housing societies that allowed people who would not otherwise be able to afford a home to take out loans that would allow them to purchase a home. The scheme was especially targeted at

public housing Public housing is a form of housing tenure in which the property is usually owned by a government authority, either central or local. Although the common goal of public housing is to provide affordable housing, the details, terminology, def ...

tenants. The scheme was originally set up by the Labor Party government of

Neville Wran Neville Kenneth Wran, (11 October 1926 – 20 April 2014) was an Australian politician who was the Premier of New South Wales from 1976 to 1986. He was the national president of the Australian Labor Party (ALP) from 1980 to 1986 and chairman of ...

in the mid-1980s. Problems started to emerge when the then-new

Coalition A coalition is a group formed when two or more people or groups temporarily work together to achieve a common goal. The term is most frequently used to denote a formation of power in political or economical spaces. Formation According to ''A Gui ...

government of

Nick Greiner Nicholas Frank Hugo Greiner (;) (born 27 April 1947) is an Australian politician who served as the 37th Premier of New South Wales from 1988 to 1992. Greiner was Leader of the New South Wales Division of the Liberal Party from 1983 to 1992 an ...

raised public housing rentsABC Radio National - The Law Report - Tuesday 27 April 1999
/ref> and started to market more aggressively toward

tenants, with some people receiving 30-year loans even though they were already aged into their 70s and 80s. Interest rates for the scheme rose to around 15.9%, which was somewhat consistent with what other home loan lenders were charging at the time but out of reach of most HomeFund borrowers, with in many cases repayments not even covering interest. As a result of this, the scheme was restructured in 1993 with the appointment of a HomeFund commissioner to deal with complaints and a program to either move loans to commercial lenders or cap interest rates.HOMEFUND RESTRUCTURING ACT 1993 - SCHEDULE 1
/ref>

References

{{reflist Government of New South Wales Housing in Australia