A FEDERAL Government program aimed at assisting indigenous Australians to own their own home used up nearly $10 million in administration to provide $2.7 million for just 15 loans.

As well, not one of the 45 homes constructed at a cost of $25.5 million for the program in the Northern Territory has been sold to the indigenous community.

The $9.9 million cost of administering the Home Ownership on Indigenous Land program was high compared with the low level of loan activity, an investigation by the Australian National Audit Office found.

The 15 loans were all provided for homes on the Tiwi Islands in the NT, with all but one in the community of Nguiu.

The program is administered by the Department of Families, Housing, Community Services and Indigenous Affairs as well as Indigenous Business Australia, a federal government body.

The audit report, released today, says 45 homes constructed for the program had been transferred to the NT Government for use as social housing stock.

The report says that "in hindsight" the program's performance targets were "overly ambitious".

"Increasing the level of home ownership on indigenous land has proven to be a significant challenge," it said.

Despite the low number of loans, Indigenous Business Australia responded by saying the loans demonstrated that where conditions were right, indigenous people living in communities did want home ownership as a choice.

As at June 10, 2010 the four-year program had cost $42.7 million.

Originally published as $10m in admin costs for $2.7m in loans