Four Western Australian housing providers have gained approval to build more than 400 new affordable rental homes for low and middle income families under the first round of the National Affordable Rental Scheme.
Four Western Australian housing providers have gained approval to build more than 400 new affordable rental homes for low and middle income families under the first round of the National Affordable Rental Scheme.
Questus Funds Management Limited was granted the lion's share in WA with 176 homes approved, with the Affordable Housing Systems Group Unit Trust being having 165 new rental homes accepted.
Amana Living Incorporated and Foundation Housing Ltd were offered 22 and 38 homes respectively under the first round of the federal government scheme, which is poised to deliver 3,900 new affordable rental homes for low and middle income families after the first round..
Federal Housing Minister Tanya Plibersek said round two of the scheme, which closed on March 27, was very strong, and that all applicants from round one had been advised of the outcomes of the assessment process.
"I am encouraged by an increased level of interest from the corporate sector in participating in this innovative program which provides annual incentives of $8,000 per home for a 10-year period," she said.
"I strongly encourage potential investors to consider the opportunities offered through affordable housing supported by the NRAS."
The NRAS is an initiative to stimulate the supply of up to 100,000 new affordable rental dwellings, which is double the federal government's pre-election policy of 50,000 new affordable rental properties.
Under the scheme, successful applicants will be eligible to receive a National Rental Incentive for each approved dwelling, on the condition that they are rented to eligible low and moderate income households at 20 per cent below market rates.
Applicants must address five assessment criteria in order to qualify for the National Rental Incentives, including a demonstrated need for the proposal, priority areas of interest, a delivery of accessibility and sustainability outcomes that the proposal is from a consortium or organisation that has demonstrated capacity and experience, and is financially viable.
"This is an excellent outcome for households on low to moderate incomes, including key workers, who meet the eligibility requirements to rent these affordable rental homes," Ms Plibersek said.
Under the scheme, states and territories, including WA, have agreed to provide $2,000 per home either through cash payments or in kind, such as via the provision of cut price land or concessions on stamp duty.
For example, the initiative would mean that rent on a new average three-bedroom unit would decrease for $350 a week to about $280 a week.
Prime Minister Kevin Rudd earlier this month announced that if the previous target of 50,000 homes is reached by 2011-12, the program will expand if market demand by both renters and investors is strong to allow for the construction of 100,000 properties from 2012 onwards.
Industry forecasts suggest that the deficiency of housing stock will not be eliminated by 2011-12.
