National Rental Affordability Scheme
The National Rental Affordability Scheme is a joint initiative between the Commonwealth, States and Territories. The Australian Government component is administered by the Department of Families, Housing, Community Services and Indigenous Affairs.
The Victorian Government will participate in Round Five NRAS for dwellings constructed in Victoria and will support up to 2,000 incentives.
The State Contribution
For Round 5 the Victorian State contribution to NRAS will include consideration of an “in kind” contribution of Director of Housing owned land or property. The contribution will be equal in value to the cash contribution and will likely be provided as a capitalised ten year contribution up front.
The final decision on how many incentives the State will support will be based on the quality of applications received and the match between the applications and the State’s decisions regarding the redevelopment of or disposal of current Director of Housing owned land.
What are the assessment criteria?
Applicants should visit the Commonwealth (FaHCSIA) website. All applications must be submitted to FaHCSIA as outlined in the Application Guidelines.
Applicants must satisfy both Commonwealth and State criteria. The Commonwealth criteria are outlined on their website. Additionally the State of Victoria has decided that for Round 5 the State will apply the following priorities in assessing applications from Victorian applicants:
- Preference will be given to applicants who can demonstrate that the NRAS incentive received will result in the provision of affordable housing for a period beyond the 10 year NRAS subsidy period.
- Preference will be given to applicants whose NRAS property(ies) is located in an area where affordable housing of the type proposed is both needed and scarce. In assessing affordability the benchmark will be whether the proposed discounted rent is no more than 30% of the gross income of the tenant target group.
Proposals that do not meet these priorities will still be considered but will be ranked according to the priorities.