Name of the Organization : Department of Social Services
Type of Facility : National Rental Affordability Scheme
Country : Australia
National Rental Affordability Scheme:
The National Rental Affordability Scheme (NRAS or the Scheme) is a partnership between the Australian Government and the States and Territories to invest in affordable rental housing.
Related : Department of Social Services Australian Disability Parking Scheme : www.statusin.org/6994.html
The Scheme, which commenced in 2008, seeks to address the shortage of affordable rental housing by offering financial incentives to persons or entities such as the business sector and community organisations to build and rent dwellings to low and moderate income households at a rate that is at least 20 per cent below the market value rent.
NRAS aims to:
** increase the supply of new affordable rental housing
** reduce rental costs for low and moderate income households
** encourage large-scale investment and innovative delivery of affordable housing.
How does NRAS work?:
NRAS provides a substantial annual incentive, to persons or entities to build and rent new dwellings to low and moderate income households at a rate that is a least 20 per cent below the market value rent. The incentive is available to approved participants who successfully apply through an open call for applications. There have been four calls for applications so far.
Who benefits from the scheme?:
NRAS aims to increase the supply of affordable rental housing for low to moderate households across Australia. Eligible individuals and families are able to rent NRAS dwellings at a rate that is at least 20 per cent below market value rent.
Who can participate in NRAS?:
Potential participants in NRAS include financial institutions, medium to large-scale investors, private developers, not-for-profit organisations and community housing providers who may build, own, finance or manage NRAS dwellings.
Participants apply for allocations of incentives under an open call for applications. There are many approved participants across Australia as a result of four previous calls for applications.
Who can rent an NRAS dwelling?:
A condition that must continue to be fulfilled for an approved participant to receive the incentive is that dwellings must be rented to eligible tenants.
Income limits for eligible tenants are based on the gross income of each household and accommodate a range of low to moderate income earners.
Who manages the scheme?:
The Department of Social Services (DSS) (previously known as the Department of Families, Housing, Community Services and Indigenous Affairs) is responsible for the ongoing management of NRAS, in consultation with the Australian Taxation Office and the States and Territories.
Approved participants:
NRAS aims to encourage medium to large-scale investment in affordable housing (usually 100 or more houses). This means it is not generally available to small-scale, private, individual investors in the rental property market. However, such investors may become involved in NRAS by investing in or purchasing properties from approved participants or as part of a consortium arrangement.
Approved participants are usually property developers, not-for-profit organisations and community housing providers.
The Australian Government assesses applications for NRAS after an open call for applications in accordance with specified criteria, and makes offers of allocations of incentives on that basis. Successful approved participants are eligible to receive annual NRAS incentives if they meet the conditions of allocation each year for ten years from the initial date of allocation.
Tenant eligibility requirements:
** A condition that approved participants need to fulfil to be entitled to receive an incentive is that dwellings are rented to eligible tenants.
** Eligible tenants are persons in low and moderate income households as tested against household income thresholds which differ depending on the household composition.
** The Department requires all persons who are tenants of an approved rental dwelling to have their income included as a member of the one household, in accordance with the income limits.
** New NRAS dwellings will continue to become available for rent up to 30 June 2016 and will continue to be rented under the scheme for up to 10 years from the date of commencement. As there is considerable demand for these dwellings the Australian Government is unable to guarantee that any tenant will be able to rent a dwelling developed under the Scheme.
** Tenants are selected by the approved participant or their nominated tenancy managers. Queensland tenants must also register with the Queensland Government’s One Social Housing Register.
Contact details:
If you have any feedback, concerns and complaints about the administration or delivery of NRAS or actions of NRAS Approved Participants, please contact the NRAS Helpdesk.
Email: nras@dss.gov.au