National Rental Affordability Scheme - NRAS Round 5 NSW Program Requirements NRAS B Incentives

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National Rental Affordability Scheme
                      NRAS Round 5
           NSW Program Requirements
                   NRAS B Incentives

                            June 2013
This document is specific to NSW applications and must be read in
     conjunction with the national requirements released by the
Commonwealth Department of Families, Housing, Community Services
                       and Indigenous Affairs
Contents

1 Introduction......................................................................................................... 3
 1.1 NRAS Round 5 ................................................................................................ 3
 1.2 Overview of NRAS........................................................................................... 3
 1.3 NSW Administration of NRAS.......................................................................... 3
 1.4 What do these Program Requirements cover? ................................................ 4
2 NSW Funding for NRAS Round 5..................................................................... 4
3 NSW NRAS B for Round 5 ................................................................................ 4
 3.1 Introduction ...................................................................................................... 4
 3.2 What are the mandatory conditions? ............................................................... 4
 3.3 What selection criteria are applied?................................................................. 5
 3.4 What are the legal arrangements for successful NSW NRAS B proposals?.... 5
 3.5 What are the performance monitoring and reporting requirements?................ 5
 3.6 How should you prepare an Application? ........................................................ 5
4 What assistance is available? .......................................................................... 6
5 NSW Guide to the NRAS Application Criteria ................................................. 6
 5.1 How should you complete the Application for NSW projects? ......................... 6
 5.2 NRAS Round 5 Assessment Criteria - Subset 1 (b)......................................... 6
 5.3 NRAS Round 5 Assessment Criteria - Subset 1 (c)......................................... 7
 5.4 NRAS Round 5 Assessment Criteria - Subset 2 (d)......................................... 8
 5.5 NRAS Round 5 Assessment Criteria - Subset 2 (e)......................................... 9
 5.6 Resource checklist for preparing an Application ............................................ 10
APPENDIX A – Areas of Housing Need by Local Government Area.................. 13

Copies of this document are available from http://www.housing.nsw.gov.au/Centre+For+Affordable+Housing

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1     Introduction

1.1    NRAS Round 5
The Commonwealth Government opened a call for applications for National Rental
Affordability Scheme (NRAS) incentives on 7 May 2013 for affordable rental dwellings than
can be completed and available for rent between 1 July 2015 and 30 June 2016.

Applications close on 6 August 2013 and around 10,000 NRAS incentives will be available
for allocation nationally.

1.2    Overview of NRAS
The Commonwealth Government introduced the National Rental Affordability Scheme
(NRAS) to increase the supply of affordable rental dwellings nationally by 50,000. NRAS
aims to address the shortage of affordable rental housing by offering an incentive to build
and rent new dwellings at below market rates.

The NRAS incentive comprises a Commonwealth Government incentive valued at $7,763
(2013/14 NRAS Year) in the form of a tax offset or payment, and a minimum state or territory
government incentive in the form of cash and/or other in kind support valued at $2,587
(2013/14 NRAS Year).

The incentive is provided annually to each dwelling for ten years on the condition that the
dwelling is rented to eligible low and moderate income households for at least 20 per cent
below market rates for each of the ten years. The NRAS incentive payments are indexed
annually every May in accordance with the rental component of the Consumer Price Index
(CPI).

Incentives are allocated through a national competitive call for applications coordinated by
the Commonwealth Government Department of Families, Housing, Community Services and
Indigenous Affairs (FaHCSIA). All applications must be made through the FaHCSIA NRAS
website.

FaHCSIA are responsible for coordinating the application assessment process and state and
territory governments are responsible for assessing certain aspects of the application.

1.3    NSW Administration of NRAS
The NSW Government are responsible for assessing specific funding criteria in each NRAS
funding round including NSW identified funding priorities. This document provides guidance
on the NSW Government funding requirements for NRAS Round 5 incentives as part of the
state assessment process.

All enquiries in relation to the administration of NRAS Round 5 in NSW should be directed to:
       Centre for Affordable Housing
       Housing NSW
       Department of Family and Community Services
       Phone: 02 8753 8181
       Email: nras@facs.nsw.gov.au

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1.4   What do these Program Requirements cover?
The Commonwealth Government has established national mandatory criteria and
assessment criteria for NRAS funding rounds. These requirements are set out in the
Commonwealth NRAS Policy Guidelines, Commonwealth NRAS Round Five - Application
Guidelines and Commonwealth Application Form - Round 5 available from the FaHCSIA
NRAS website and must be read in conjunction with the NSW Program Requirements.

This document provides additional information in relation to how the applications for NRAS
incentives will be assessed in NSW under NRAS Round 5. Under the state assessment
process, NSW will examine all criteria in each application. However, particular focus will be
placed on assessing the aspects that relate to meeting local housing needs (within an LGA),
accessibility of the location, sustainable social mix, affordability outcomes for eligible tenants
and use of universal design principles.

This document also sets out the available funding in NSW for NRAS Round 5 and required
legal arrangements.

 Section 5 – NSW Guide to the NRAS Application Process gives instructions to
 applicants for completing the NRAS Application Form – Round 5 for projects which are
 located in NSW. The Guide provides information and advice to ensure that applicants are
 well positioned to provide strong responses to a range of assessment criterion within the
 Application Form.

2     NSW Funding for NRAS Round 5
In NRAS Round 5 the NSW Government has identified funding for up to 3,500 incentives.
However, the number of incentives that are supported in NSW will be subject to the
availability of appropriate projects that meet the NRAS funding criteria and NSW funding
priorities, and the number of incentives that are made available to each jurisdiction.

The NSW Government contribution for the state component of the NRAS incentive will be
paid as annual grant for 10 years. In NSW this contribution is known as NRAS B.

3     NSW NRAS B for Round 5

3.1   Introduction
NSW NRAS B will provide an annual $2,587 (2013/14 NRAS year; indexed annually)
incentive in addition to the Commonwealth Government incentive of $7,763 (2013/14 NRAS
year; indexed annually) to organisations eligible to become an Approved Participant such as
developers, aged care providers or not for profit organisations.

Information on who can apply to be the Approved Participant in the Scheme can be found in
Section 5 of the Commonwealth NRAS Policy Guidelines.

3.2   What are the mandatory conditions?
In order to apply for NSW NRAS B, the proposal must meet the mandatory conditions set by
the Commonwealth Government in Section 8.1 of the Commonwealth NRAS Policy
Guidelines and Section 5.1 of the Commonwealth NRAS Application Guidelines – Round 5.
Each project will also be assessed against Criteria Set 6 in the National Rental Affordability

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Scheme Regulations 2008. The Commonwealth Government has also published an
Assessment Tool for Round 5 which sets out how applications will be assessed.

Sections 5.2, 5.3, 5.4 and 5.5 specify which assessment criterion within the Commonwealth
Criteria for Round 5 the State is responsible for assessing. These sections also detail
NSW’s requirements under the criteria and its preferences. While satisfaction of all of
NSW’s preferences will be highly regarded, proposals which do not meet all of the
preferences will still be considered.

3.3   What selection criteria are applied?
Applications must satisfy the national mandatory conditions and eligibility requirements. After
establishing their eligibility, applications must address the national and state selection criteria
in the application form.

3.4   What are the legal arrangements for successful NSW NRAS B proposals?
The Commonwealth Government National Rental Incentives are subject to the legislative
requirements for the Scheme as provided for in the National Rental Affordability Scheme Act
2008, the National Rental Affordability Scheme (Consequential Amendments) Act 2008 and
the National Rental Affordability Scheme Regulations 2008.

Coverage of the NSW Government NRAS payments is limited in the Commonwealth
legislation and regulation and for this reason NSW has developed a Deed of Agreement to
be jointly signed by the Department of Family and Community Services - Housing NSW and
the successful proponent. The Deed is consistent with the federal legislation and regulation
and has been vetted by the Australian Taxation Office, which has determined that NSW
Government NRAS payments are not subject to GST and are considered non assessable
non exempt income. Refer to the Australian Tax Office website for further explanation of
these terms.

3.5   What are the performance monitoring and reporting requirements?
Projects funded through the National Rental Affordability Scheme are subject to reporting
measurements prescribed in the Commonwealth NRAS Policy Guidelines. Monitoring and
reporting requirements are the primary responsibility of the Commonwealth Government and
are undertaken in accordance with the Guidelines.

NSW may seek information from approved applicants from time to time to ensure that
adequate progress is being made on projects in its jurisdiction.

3.6   How should you prepare an Application?
Organisations that wish to submit an application for NSW NRAS B incentives are invited to
complete the Commonwealth NRAS Application Form available on the FaHCSIA NRAS
website. Information on how to complete and lodge the application form is available on the
FaHCSIA website.

Applications close on 6 August 2013.

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4     What assistance is available?
Organisations planning to submit applications for NRAS proposals in NSW may contact the
Centre for Affordable Housing on nras@facs.nsw.gov.au if they have any questions about
these program requirements or the Scheme.

General information on the NRAS and the assessment process is available by ringing the
FaHCSIA NRAS hotline on 1800 334 505 or by visiting http://www.fahcsia.gov.au/nras

NSW provides this document as a guide to applicants as to how to respond to State
assessed criteria, however it cannot provide specific individual information on the merits or
otherwise of proposed applications.

5     NSW Guide to the NRAS Application Criteria
This document provides guidance to applicants responding to NSW state-specific
assessment criteria.

5.1    How should you complete the Application for NSW projects?
The Commonwealth NRAS Application Guidelines – Round 5 and Commonwealth NRAS
Policy Guidelines provide details to applicants with regards to the implementation and
administration of the Scheme.

The NSW NRAS B Round 5 Program Requirements (this document) need to be considered
alongside the Commonwealth NRAS Application Guidelines and Commonwealth NRAS
Policy Guidelines.

The NSW Program Requirements provide information on NSW state-specific priorities.
These priorities principally relate to Assessment Criteria Set 6 (Subset 1 (b) and (c)), and
(Subset 2 (d) and (e)) of the Commonwealth NRAS Application Guidelines – Round 5.

The NSW Program Requirements are only to be applied to projects which are being
proposed in NSW.

Disclaimer:
The information found within this document is to be used as a guide for applicants who wish
to apply for the NRAS B Round 5 incentives. The document advises applicants on a range
of resources which may be used to assist in the application process for funding under the
Scheme, but by no means form the only sources to be used.

The information below is provided to applicants of NRAS Round 5 to assist in the writing of
applications which demonstrate the viability and strengths of their affordable housing
project/s.

5.2    NRAS Round 5 Assessment Criteria - Subset 1 (b)

Is there a demonstrated need for the Proposal?

Applicants must demonstrate the need for housing in the proposed location/s. For the
purpose of this criterion, need is determined according to location, dwelling type, targeted
tenant groups and suitability of the dwellings to targeted groups.

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Applicants must describe how the project/s will meet the identified need.

Applicants must demonstrate that each project satisfies local need through the type of
dwelling, configuration and size of the dwellings. In most areas of NSW the highest need is
for 1 and 2 bedroom dwellings. However, in some areas larger dwellings may be needed
dependant on local client demand, for example housing for Aboriginal families.

Targeted tenant groups can include older people, people with disabilities, indigenous
households, people exiting social housing and other vulnerable clients.

If the application consists of more than one project and/or location, applicants must provide
separate evidence for each location.

In the application form:

• Indicate the Local Government Area (LGA).
• Indicate the housing need category according to the NSW ranking housing need of LGA
  (as provided in Appendix A).
• Identify the household types which are experiencing housing stress in the LGA.
• Identify the targeted need group/s (if targeted in your project) and which household
  income ranges will be housed in these dwellings.
• Indicate how the configuration and dwelling types meet the local need and/or targeted
  need group.

Projects which fall within moderate and higher housing need areas will be considered with
preference given to projects which are located in identified high and moderate-high housing
need LGAs. Projects in lower housing need areas will only be considered where applicants
can provide evidence which demonstrates the specific need in the area for the type of
dwellings and households proposed and that the application directly addresses this need.

Key resources:
o ‘Local Government Areas by Housing Need’ (Appendix A).
o Local Government Housing Kit and Database.
o ABS Census 2011 Community Profiles
o

5.3   NRAS Round 5 Assessment Criteria - Subset 1 (c)

Does NSW support your proposal?

The application needs to demonstrate how the project meets the following NSW priority
areas:

i)     NSW 2021 Plan Goal 5 Target to Improve Housing Affordability and Availability

NSW 2021 Goal aims to place downward pressure on the cost of living and sets a target to
improve housing affordability and availability, with a specific target to facilitate the delivery of
25,000 new dwellings in Sydney per year.

Preference will be given for projects that support the target to deliver 25,000 new dwellings
in the Sydney Greater Metropolitan Region per year.

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ii)     Provide value for money and maximum leverage of government resources

The application needs to demonstrate that the project will improve access to affordable
housing for target groups in the proposed location by indicating that the discount to market
rent is affordable to targeted groups and family types (i.e. the 20% discounted market rent
would be less than 30% of gross household income).

Preference will be given to projects:
       • that provide affordable outcomes to very low and low income households in other
          wise unaffordable locations.
       • which provide value for money by providing a discounted market rent which
          makes the dwellings more affordable to a broader range of household income
          groups and household sizes.
       • which can be leveraged to build more affordable housing dwellings or delivers
          affordable housing outcomes in excess of the 10 years of the Scheme.

iii)    Management by a registered community housing provider

NSW will give preference to applications where a registered community housing provider will
manage the proposed dwellings. It will also give preference to properties that will be
managed in accordance with the NSW Affordable Housing Guidelines. The NSW Affordable
Housing Guidelines specify housing affordability outcomes for very low, low and moderate
income households and are designed to be used as a best practice guide for managing
affordable housing stock in NSW.

Proposals which do not involve management by a registered community housing provider or
management in accordance with the NSW Affordable Housing Guidelines will still be
assessed and will be considered under assessment of Criterion 1 (d) (iii) by FaHCSIA.

Key resources:
o An up-to-date list of NSW registered community housing providers can be found on the
  Registrar of Community Housing website.
o The NSW Affordable Housing Guidelines.
o NSW 2021 A Plan to make NSW Number One
o NSW Rent and Sales Report data (released on a quarterly basis).

5.4    NRAS Round 5 Assessment Criteria - Subset 2 (d)

How does your Proposal maximise affordable housing outcomes for tenants,
including building and design features that reduce the overall costs for tenants?

This question addresses overall affordability outcomes for tenants, i.e. that tenants will also
enjoy reduced energy and water costs living in the development.

Preference will be given to projects that are designed to provide energy and water
efficiencies over that required under the NSW Basix Scheme for the dwelling type, or other
equivalent approved NSW energy

Note: the Dwelling Schedule only allows the applicant to select from a scoring system that is
incompatible with BASIX. In order to conform with the requirements for NSW applications,

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applicants must attach the BASIX score sheet to their application. Applicants are to
complete the Dwelling Schedule utilising the NatHERS system and then provide the NSW
BASIX Certification as a separate attachment.

Key resources:
• BASIX

5.5   NRAS Round 5 Assessment Criteria - Subset 2 (e)

Does your Proposal deliver accessibility and sustainability outcomes, including the
following:
(i) Proximity of dwellings to services and amenities, for example to transport,
schools, shops, health services and employment opportunities.
(ii) Types of dwellings and proposed household compositions to facilitate a balanced
social mix.
(iii) Universal design principles or other measures that make properties more
accessible to people who are older Australians or people living with a disability.

Note: You must complete the NRAS Round 5 Dwelling Schedule to respond to this criterion.

i) Proximity of dwellings to services and amenities, for example to transport,
schools, shops, health services and employment opportunities.

Applicants must provide evidence for each project in terms of its proximity to transport,
schools, shops, health services and employment opportunities, which are relevant to the
types of tenants targeted within the project. A walking distance of about 800m (10min) is
considered reasonable proximity.

Close proximity to regular public transport services is preferred as it provides tenants with
access to local shops, employment, schools and health facilities. This is particularly
important for tenants with limited access to private transport modes.

In the application form, indicate the frequency of services and destinations for local bus and
train routes. Information on local bus or transport services for projects in regional areas
should be included in the application. Applicants must complete the Dwelling Schedule of
the application form indicating the distance to transport services, health facilities, schools,
shopping facilities and employment opportunities.

Applicants are encouraged to include maps as evidence of proximity, highlighting each
project and its relevant distance to local services and amenities that are appropriate for the
targeted tenancy group.

Note: for projects which do not deliver a high level of location accessibility, applicants
should include strategies or services which may be provided to overcome such proximity
constraints or provide additional opportunities for tenants to access services.

ii) Types of dwellings and proposed household compositions to facilitate a balanced
social mix

Applicants must provide evidence that the dwellings will be delivered in such a way as to
facilitate sustainable housing outcomes and a balanced social mix in both the development
as well as the local area. To achieve a balanced social mix, applicants are encouraged to

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target a mix of household incomes and sizes. Ideally a mix in household incomes may be
achieved by targeting a range of household incomes, from very low to moderate, in the one
project. Alternatively, the project itself may not provide a mix in household incomes, but by
its development may contribute to an income mix within the broader community.

Clearly indicate whether a range of household incomes and special need groups will be
housed in the dwellings.

Preference will be given to applications and projects which rent their approved dwellings to
a mix of household incomes and provide a mix of housing types and sizes.

iii) Universal design principles or other measures that make properties more
accessible to people who are older Australians or people living with a disability

Preference will be given to projects that include universal or accessible design principles or
modifications that enable older persons or people with a disability to be housed, such as
conformance of building design to the Liveable Housing Design Guidelines at the gold level
or above or by providing dwellings that are accessible for persons with limited mobility.

Key resources
o     Google Earth (including distance measurement tools), Google Maps and other mapping
      services such as Where Is.
o     Service and timetable information from City Rail, Sydney Buses, Country Link and
      private bus companies' websites.
o     Refer to the income eligibility limits for NRAS.
o     Local Government Housing Kit and Database.
o     Liveable Housing Design Guidelines

5.6     Resource checklist for preparing an Application
A resource checklist is provided on the following pages to refer applicants to a range of
resources relating to Commonwealth NRAS Application Form – Round 5. Please note the
list is not exhaustive and other forms of data other than the resources detailed may
accompany the NRAS application.

□     Local Government Areas by Housing Need

The ‘Local Government Areas by Housing Need’ table categorises regions across the NSW
according to high, moderate-high, moderate, low moderate and low housing need.

Applicants will find the ‘Local Government Areas by Housing Need’ table in Appendix A.

□     The Local Government Housing Kit Database

The Local Government Housing Kit Database provides a number of useful tables containing
population, demographic and housing data for Local Government Areas across NSW.

The database allows users to compare the selected LGA against one or more locations
across NSW. This feature of the database provides the applicant with opportunities to
compare and contrast the demand and need for the project(s), as well as demonstrating
how the location of the project is best suited for the type of dwellings being proposed.

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Tables and Descriptions for NRAS Applications
 M2 - Number of lower                  Provides evidence of the proportion of lower income
 income households in                  households renters (very low, low and moderate) in
 housing stress                        housing stress (paying more than 30% of income on rent).
 M5 - Rental affordability for         Indicates the demand for affordable housing by
 Commonwealth Rent                     measuring the number of recipients of CRA (government
 Assistance recipients                 assistance for people on lower incomes to meet rental
                                       need) in housing stress (paying more than 30% of income
                                       on rent).
Table 1. Relevant tables applying to NRAS application Criterion 1, (Subset 1).
Source: Local Government Housing Kit Database

Applicants will find the Local Government Housing Kit – Database by visiting
http://www.housing.nsw.gov.au/Centre+For+Affordable+Housing/NSW+Local+Government
+Housing+Kit/

□   Rent and Sales Reports

Housing NSW publishes quarterly Rent and Sales Reports for regions across NSW. Each
quarterly report indicates median market rent price for property type by bedroom number
which provides a guide to the rents charged in different regions across NSW.

Applicants will find the Housing NSW Rent and Sales Report by visiting
http://www.housing.nsw.gov.au/About+Us/Reports+Plans+and+Papers/Rent+and+Sales+R
eports/.

□   Local Government Housing Strategies

Some local councils may have developed local housing strategies which guide the
development of housing, as well as managing population growth and infrastructure. These
housing strategies may contain data and information to assist applicants in demonstrating
the need for affordable housing in the selected location(s).

Applicants should visit the website for each local council where their projects are proposed
to find out whether they hold a housing strategy.

□   Register of Community Housing Providers

The Registrar of Community Housing is responsible for the registration and regulation of
community housing providers in NSW under the Housing Act 2001.

The Registrar of Community Housing maintains a Provider Register which contains details
on all registered Community Housing Providers in NSW and is searchable.

Applicants can access the Provider Register by visiting:
http://www.rch.nsw.gov.au/Provider+Register/.

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□   NSW Affordable Housing Guidelines

The NSW Affordable Housing Guidelines provide principles to guide the management and
operation of affordable housing as well as policy guidelines on key issues. Applicants
should refer to the guidelines for best practice management of affordable housing dwellings.

Applicants will find the operating guidelines by visiting
http://www.housing.nsw.gov.au/NR/rdonlyres/6A758B23-C2B4-4D5F-855C-
6A82A3AB71F8/0/AffordableHousingGuidelines.pdf.

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APPENDIX A – Areas of Housing Need by Local Government Area

 High Need                   Moderate High Need                 Moderate Need
 AUBURN                      ASHFIELD                           ARMIDALE DUMARESQ
 BANKSTOWN                   BATHURST REGIONAL                  BEGA VALLEY
 BLACKTOWN                   BAULKHAM HILLS                     BOOROWA
 CAMPBELLTOWN                BLUE MOUNTAINS                     BROKEN HILL
 CANTERBURY                  BOTANY BAY                         BYRON
 FAIRFIELD                   BURWOOD                            CAMDEN
 GOSFORD                     CANADA BAY                         CLARENCE VALLEY
 HOLROYD                     CESSNOCK                           GILGANDRA
 HORNSBY                     COFFS HARBOUR                      GOULBURN MULWAREE
 LAKE MACQUARIE              DUNGOG                             GREATER TAREE
 LIVERPOOL                   EUROBODALLA                        HARDEN
 MARRICKVILLE                GLOUCESTER                         HAWKESBURY
 MID‐WESTERN REGIONAL        GREAT LAKES                        HUNTERS HILL
 NEWCASTLE                   GUNNEDAH                           JUNEE
 NORTH SYDNEY                HURSTVILLE                         KEMPSEY
 ORANGE                      KOGARAH                            KIAMA
 PARRAMATTA                  KU‐RING‐GAI                        LISMORE
 PENRITH                     LANE COVE                          LITHGOW
 RANDWICK                    LEICHHARDT                         NAMBUCCA
 ROCKDALE                    MAITLAND                           NARROMINE
 RYDE                        MANLY                              PALERANG
 SUTHERLAND SHIRE            MOREE PLAINS                       QUEANBEYAN
 SYDNEY                      MOSMAN                             TAMWORTH REGIONAL
 WARRINGAH                   MUSWELLBROOK                       UPPER HUNTER SHIRE
 WAVERLEY                    NARRABRI                           WARRUMBUNGLE SHIRE
 WILLOUGHBY                  PITTWATER                          WELLINGTON
 WOLLONGONG                  PORT MACQUARIE‐HASTINGS            WOLLONDILLY
 WYONG                       PORT STEPHENS                      YASS VALLEY
                             SHELLHARBOUR                       YOUNG
                             SHOALHAVEN
                             SINGLETON
                             STRATHFIELD
                             TWEED
                             WINGECARRIBEE
                             WOOLLAHRA

Source: Housing NSW Analysis using Census 2011 data and Rent and Sales Report data

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