National Rental Affordability Scheme. Image zone. Policy & Strategy Housing & Community Building 17 September 2010
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1 National Rental Affordability Scheme Image zone Policy & Strategy Housing & Community Building 17 September 2010
2 Policy Attracting New Private Investment Focusing on New Affordable Rental Supply Recurrent payment, not capital New class of affordable housing First attempt at building a fourth housing sector
3 Policy The Broader Housing System Where does NRAS fit? NRAS Public Community Subsidised Full Subsidised Full home Housing Housing private rental private rental home ownership ownership CRA
4 What drives allocations? Central, Major and Principal Activity Centres Located in Regional Towns and Rural Centres 5M & Melbourne 2030 Municipal affordable housing strategies Close to public transport & local amenities Mix of tenures in larger developments
5 What are HCB s aims? Under NRAS, the Australian & Victorian Governments aim to: Increase new affordable rental housing supply Reduce rental costs Encourage investment/delivery of affordable housing by new private sector players Create more housing options Increased security of tenure
6 The NRAS Incentive Victorian Government Contribution $2,285 Australian Government Contribution $6,855 Total $9,140
7 To obtain the NRAS incentive Previously unoccupied Completion by 30 June 2012 Eligible Tenure Independent rental assessment Annual compliance
8 Eligibility Household Type Initial Income Limit Upper Income Limit 1 adult 42,386 52,983 2 adults 58,596 73,246 3 adults 74,808 93,510 4 adults 91, ,773 Sole parent w/ 1 child 58,638 73,298 Sole parent w/ 2 children 72,695 90,869 Sole parent w/ 3 children 86, ,440 Couple w/ 1 child 72,653 90,817 Couple w/ 2 children 86, ,388 Couple w/ 3 children 100, ,960
9 How do tenants apply for properties? Tenants have to apply directly to NRAS provider, RHA or private provider For NRAS dwellings owned by RHA, they process applications For NRAS dwellings owned by a private provider the application process is the same as private rental.
10 Who has been approved? Round 1 and 2 approvals Round 3 approvals to date Round 4 approvals to date ORGANISATION TOTAL INCENTIVES Port Phillip Housing Association 65
11 Approved National Rental Affordability Incentives - March 2010 SUNBURY (1) CRAIGIEBURN (39) MERNDA (47) ROXBURGH PARK (1) EPPING (59) KURUNJANG (3) MELTON WEST (3) MELTON (28) WESTMEADOWS (2) MELTON SOUTH (35) OAK PARK (11) RESERVOIR (5) CAROLINE SPRINGS (53) PRESTON (7) COBURG (255) AVONDALE HEIGHTS (100) DEER PARK (5) TRUGANINA (27) SUNSHINE (9) FOOTSCRAY (435) MOOROOLBARK (17) CROYDON (16) KINGSVILLE (7) HAWTHORN (10) RINGWOOD EAST (6) RINGWOOD (39) KILSYTH (5) TARNEIT (16) WYNDHAM VALE (52) HOPPERS CROSSING (18) MALVERN EAST (100) WANTIRNA SOUTH (3) WERRIBEE (15) POINT COOK (16) CLAYTON (600) SPRINGVALE (30) DANDENONG (91) NARRE WARREN (292) BERWICK (150) Supported NRAS Incentives Total Unit Delivery CARRUM DOWNS (2) PAKENHAM (19) 1 to 5 (8) 5 to 10 (7) 10 to 15 (2) 15 to 20 (7) 20 to 25 (0) 25 to 30 (3) 30 to 50 (5) 50 to 70 (3) 70 to 100 (1) 100 to 600 (7) SKYE (25) CRANBOURNE (3)
12 North & West Region Allocations Approximately 900 in total (i) 100 in Avondale Heights (VicUrban) (ii) 255 in Coburg (Hamton) (iii) 66 in Seddon (MA Student Accom)
13 Performance to date in Victoria 4366 approved to date 3134 incentives available 428 built and tenanted 3938 under way 1788 yet to commence 1260 in planning stages 890 under construction
14 Where are they being built? Regional Locations 25% (Geelong, Ballarat, Bendigo, Bairnsdale) Melbourne Metropolitan 75%
15 What organisations have been given NRAS incentives? Universities 16% Other 4% Housing Agencies 40% Private Sector 40%
16 State priorities for Round 4 Are now available at click on the National Rental Affordability Scheme link and go to Victorian principles The principles favour registered housing agencies receiving NRAS incentives as follows: Principle 4 Projects that involve a registered housing agency either as an owner or a tenancy manager Principle 5 Projects that offer a greater discount to market rent than the 20% stipulated by NRAS Principle 7 Proposals which provide housing for a range of income groups and tenures Questions? nras@dhs.vic.gov.au or speak to Alex Dordevic on
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