National Rental Affordability Scheme (NRAS) Policy

POLICY STATEMENT

1. Purpose

The purpose of this policy is to advise tenants and staff of their rights and responsibilities under the National Rental Affordability Scheme.

2. Definitions

NRAS Property – a property funded under the National Rental Affordability Scheme

3. Coverage

This policy applies to NRAS Properties managed by Southern Cross Housing.

4. Principals

The NRAS reporting year runs from 1st May to the 30th of April. Leases that have any number of days falling within an NRAS year, even minimal will be required to report on that lease with a TDA lodged in that specific NRAS year to fulfill occupancy obligations.

Tenants residing in NRAS properties will be offered a fixed term lease for a maximum duration of 12 months and given a termination notice to take effect on the date of lease expiration. Tenants who continue to meet NRAS eligibility will be offered subsequent leases on the same basis, until they no longer meet eligibility criteria or, until NRAS funding ceases for the property in which they reside (whichever occurs first).

Funding for NRAS properties owned by Southern Cross Housing is due to cease between October 2021 and June 2025. Funding for NRAS properties owned by BlueCHP is due to cease between January 2020 and January 2024.

Tenants residing in all NRAS properties managed by Southern Cross Housing will be notified of the cessation of NRAS funding, in the form approved by the Commonwealth Department of Social Services. Tenants will be given 90 days’ notice of the cessation.

If a tenant is unable to remain in an NRAS property after cessation of funding, they will be assisted to find alternative housing.

If management of an NRAS property is transferred to Southern Cross Housing from another agent, Southern Cross housing will provide the investor a copy of the NRAS Code of Conduct within 28 days.

Incentives

To be eligible to receive an NRAS incentive, SCH must meet various legislative requirements. Approved participants need to ensure for each NRAS dwelling:

a Statement of Compliance is lodged within the required timeframe.

market rent valuations are lodged within the required timeframe.

rent charged is at least 20 per cent below the market value rent at all times.

rent increases meet state and territory legislative requirements.

tenant demographic assessments are completed.

assessment of vacancy days has been completed.

compliance with state, territory and local government planning and building laws.

Southern Cross is responsible for providing BlueCHP with lease and TDA documentation to enable them to manage their NRAS reporting in the portal and be compliant with occupancy requirements.

5. Responsibilities

Housing Officers are responsible for identifying tenants residing in properties for which NRAS funding is ceasing and providing notice.

Access and Demand Housing Officers are responsible for assessing applicant and existing tenant income against the NRAS income eligibility limits, conducting rent reviews (from indexed rent changing annually -published in March), and assisting tenants who become ineligible for NRAS tenancy to apply for alternative housing.

NRAS Practice and Performance Officer or delegate is responsible for the submission of tenant demographic assessments and leases to the NRAS portal as a condition to eligibility for an incentive, submitting the annual statement of compliance for each incentivised dwelling and checking annually indexed market rents and rent review.

Tenants are responsible for updating SCH of changes to their household circumstances (within 14 days) for providing the income for all income earning household members in accordance with the regulations. The eligible tenant’s fact sheet is updated routinely by DSS and provides detailed information about tenant’s responsibilities regarding income and eligibility.