Are you a property developer seeking to construct affordable housing in alignment with the Affordable Rental Housing State Environmental Planning Policy (ARHSEPP) or other regulatory mandates? Look no further, as Strathfield Partners is here to support and guide you through the process.
Why Choose Strathfield Partners?
With a strong legacy of managing rental properties dating back to 1997, Strathfield Partners boasts one of the most extensive housing portfolios in Australia, encompassing over 6000 properties. Our team is revered in the industry for our expertise as skilled property professionals, particularly renowned for our depth of experience in affordable housing management.
What we provide as an Affordable Housing Partner?
Strathfield Partners excels in collaborating with diverse organisations to develop and oversee affordable housing projects tailored for low-to-moderate income earners. Whether you are a property developer, a local or state government entity, or a private landlord, we provide:
- Property managers adept at handling Affordable Housing properties.
- Peace of mind knowing you’re partnering with one of the industry’s largest and most seasoned affordable housing managers.
- Expert guidance on fulfilling your affordable housing program obligations.
- Assistance in setting rents for your property program.
- Support to optimise rebates or incentives where applicable.
- Tenant selection based on eligibility criteria specific to your scheme.
- Aid in lodging and completing necessary reporting/compliance tasks.
- Leading property management services for both your affordable and private property portfolio.
What is the National Rental Affordability Scheme (NRAS)?
The National Rental Affordability Scheme (NRAS) was introduced by the Australian Government to address the shortage of affordable rental housing across the country. It provides a framework for developers, investors, and community housing providers to collaborate and expand the supply of affordable housing for low to moderate-income households.
While the scheme is set to wind down by 2026, it still presents valuable opportunities for developers. Below is an in-depth look at how NRAS works, its benefits, and considerations for developers who want to take advantage of it before it concludes.
- Attractive Financial Incentives
One of the most appealing aspects of NRAS is the annual financial incentive provided to developers or approved participants. This payment is made to compensate for renting properties at a rate at least 20% below market value. The incentive is split between:- A contribution from the Australian Government.
- An additional contribution from state or territory governments.
This financial support makes developing affordable housing a more viable and profitable endeavor.
- Encourages Large-Scale Investment
NRAS is designed to encourage large-scale investments in affordable housing projects. Developers have an opportunity to incorporate multiple properties into their portfolios, which helps broaden income streams while addressing critical housing shortages in local communities. - Partnerships with Community Housing Providers
Developers can collaborate with community housing providers (CHPs) under the scheme. These providers can manage the properties, ensuring that compliance is maintained with NRAS guidelines while the developers focus on delivering housing stock. CHPs offer expertise in tenant management and fulfilling the affordability requirements tied to the initial financial incentive. - Support for Social Impact Objectives
By participating in NRAS, developers contribute to a broader social mission. The scheme helps create affordable rental housing for households that might otherwise struggle in competitive property markets, such as essential workers and those on moderate incomes. This strengthens community ties and aligns with socially responsible business practices.
Important Considerations as the Scheme Winds Down
NRAS was implemented in 2008 as a 10-year program, later extended to include additional dwellings. However, it is now being phased out and will formally conclude in 2026. Developers considering participation need to act quickly and strategically. Some crucial points to keep in mind include:
- Reduced Entry Opportunities
Since no new allocations are being made under the program, developers must focus on existing NRAS properties or partnerships with approved participants to leverage the benefits during the remaining timeframe. - Long-Term Management Plan
After NRAS concludes, properties will lose associated financial incentives. Developers will need a strategy for managing these properties profitably while maintaining affordability for tenants or transitioning them to market rates. - Market Gaps Post-NRAS
The phasing out of NRAS creates a potentially significant gap in the affordable housing sector. Developers can stay proactive by exploring partnerships with state or local governments to fill this gap and contribute to solutions, such as new affordable housing models or private-public initiatives.
Although the NRAS will end by 2026, it remains an impactful tool for developers interested in addressing housing affordability challenges while gaining financial and strategic benefits. With partnerships, proper planning, and a long-term view, developers can make meaningful contributions to affordable housing and leverage the remaining opportunities effectively.
Connect with Us Today
Contact us today to learn more about how Strathfield Partners can elevate your affordable housing endeavours and streamline your housing projects effectively.