Housing affordability subsidies to low and middle income households consistently represent an approximate annual expenditure in excess of $1.9 billion AUD to the Australian taxpayer. The National Rental Affordability Scheme (NRAS) is being phased out, presenting an opportunity to innovate for polices which are targeted to the amelioration of ‘housing stress’ for low-middle income households. Escalating energy and water expenses are increasing net housing costs for average Australian households at a rate in excess of the consumer price index. By metrics of ‘housing stress’- low and middle income households are most affected. Whilst escalating utility rates apply increasing pressure on households bottom line, conversely, investments made in operational efficiency improvements early in a buildings lifecycle improve the overall net present value proposition when looking at ongoing government housing affordability subsidies as a system. Developers and landlords have been reluctant to invest in ‘Green building’ principles for low-middle income rental developments due to a lack of incentive. In an era of globally compressing bond yields, the emergence alternate ‘low-carbon’ funding sources (ie. Green Bonds) present an opportunity to channel a burgeoning ‘Socially Responsible Investment’ (SRI) portfolio from institutional investors towards the affordable housing problem, whilst promoting a national effort towards a ‘green economy’ and carbon-reduction commitments made under the UN Framework Convention(s) on Climate Change. This opportunity is particularly relevant when backed by government. The success of the adoption of NRAS by the private (and later) institutional sector has demonstrated that there is a strong appetite for long term (10 year fixed income) government backed policies offering a reliable (and arguably generous) return on investment for those dwellings accepted into the NRAS pool. Data has been analysed for an average Brisbane apartment building, suitable to low-middle income households. At current utility escalation rates (not inclusive of connection fees), utility consumption costs borne by the tenant comprise approximately 8-15% (1 to 3-bedroom units respectively) of total housing costs over a 10 year period (2016-2026). An initial investment into green building principles (such as operationally efficient lighting, appliances) from the beginning of the period can reduce these costs by 1.7-3.8% respectively. The study found that these ‘green’ ‘low carbon’ improvements could be offset through the effective use of low interest debt- particularly via the issuance of a government backed ‘Green Bond’. This paper shall expand upon this analysis, testing a variety of scenarios with systems dynamics. The complex interconnection between the variety of stakeholders involved in the delivery and management of social/affordable housing developments in Australia will be explored. These main stakeholders include Government (Federal, Local and State), Developers, Investors (private and institutional) and Tenants.