National Rental Affordability Scheme Round Five 2013 Application Guidelines

National Rental Affordability Scheme

Round Five

2013

Application Guidelines

National Rental Affordability Scheme Round Five 2013 Application Guidelines

Table of contents

Section 1 – Scope/Timing of Round

1.1 Scope of Round

1.2 Dates of Round

1.3 Organisations Eligible to Apply

1.4 Questions and Answers

Section 2 – Overview of the National Rental Affordability Scheme (NRAS)

2.1 What is the National Rental Affordability Scheme (NRAS)?

2.2 Purpose of the Round Five

Section 3 – The Application Process

3.1 Applicants

3.2 Important documents to read

3.3 The Application Form

3.4 How to download and submit Applications

3.5 State and territory government information

Section 4 – Responding to the Assessment Criteria

4.1 Set 6 (Criteria — subset 1)

4.2 Set 6 (Criteria — subset 2)

Section 5 – The Assessment Process

5.1 Mandatory conditions

5.2 The Assessment Criteria

5.3 Relevant state/territory support

5.4 Financial Viability

5.5 The Application Process

5.6 Stages in the Application and Assessment Processes

5.7 Rating scale

5.8 State and territory housing priorities

Section 6 – Terms and Conditions of Application

6.1 Application conditions

6.2 Consortia

6.3 Late Applications

6.4 Information disclosure

6.5 Fraud

6.6 Checks of Applicants

6.7 Applicant’s responsibilities

6.8 Liability issues

6.9 FaHCSIA’s rights

6.10 Disclaimer

6.11 Complaints mechanism

6.12 Review of decisions

Section 7 – Glossary of terms

Section 8 – Appendix

Attachment A – Criteria Set 6

Attachment B – Assessment Tool

Section 1 – Scope/Timing of Round

This document titled ‘National Rental Affordability Scheme Round Five 2013 Application Guidelines’ (‘Application Guidelines’) is specific to Round Five of the National Rental Affordability Scheme (‘NRAS’ or ‘the Scheme’).

1.1 Scope of Round

With the support of the state and territory governments, Round Five of the NRAS has the potential to reach the Australian Government’s target of stimulating the construction of 50,000 homes by 30June 2016 via the NRAS Incentives.

These Application Guidelines deal with Round Five.

The Opening Date for Round Five is 7 May 2013 and the Closing Date is 5.00pm AEST, 6August 2013. Successful Applicants, who have applied under Round Five, may be offered a Reserved Allocation for Rental Dwellings that are not yet available, where that offer will include a condition that the Rental Dwellings be available for rent in the 2015-16 financial year.

It is anticipated that the level of support of the state and territory governments will be approximately 10,000 Rental Dwellings.

Before starting an Application, Applicants should visit the website to check the number of Incentives available for each state or territory. There will also be a link to the state or territory government website which will identify the priority areas supported in that state or territory (see section 5.8 of these Application Guidelines for more information).

Schedule 1 to the National Rental Affordability Scheme Regulations 2008(‘Regulations’) sets out the Assessment Criteria that applies to the NRAS. Criteria Set 6 will be used to assess Applications received under Round Five (see attachment A these Application Guidelines). The Assessment Criteria for Applications are discussed in more detail in section 4 of these Application Guidelines.

1.2 Dates of Round

The Opening Date for Round Five is 7 May 2013. The Closing Date is 5.00pm AEST, 6August2013.

Applicants will be notified of the outcome after the Assessment Process has been completed.

1.3 Organisations Eligible to Apply

Applicants must meet all legislative requirements. One such legislative requirement is that Applicants must be either a person or entity to which Division 380 of the Income Tax Assessment Act 1997 applies, or an Endorsed Charitable Institution, which is an institution that has been endorsed by the Commissioner of Taxation as exempt from income tax under sections 50 to 105 of the IncomeTaxAssessmentAct1997.

1.4 Questions and Answers

Answers to frequently asked questions (FAQs) are available under the NRAS Website:

Answers to questions received during the Application Period will be posted on the NRAS Website as well.

If Applicants have other questions after visiting the NRAS Website, they should email FaHCSIA at: .

Applicants should correctly name the subject line of the email as follows:

NRAS Round Five Q and A – Applicant Legal Name – Question

FaHCSIA will only respond to questions that seek clarification of issues that allow Applicants to better understand the requirements of the Application Form, Dwellings Schedule, Financial Viability Tooland/or these Application Guidelines.

FaHCSIA is committed to providing applicants with information and clarification which suits their particular needs, in a way which is of assistance. For this reason, FaHCSIA provides details of the National Relay Service on the Application Form. These details are 1800 555 727 (speak and listen) or 1800 555 677 (TTY) or visit

Please note that callers to this phone number will receive information and clarification which is suited to their needs but otherwise substantially similar to information received by all Applicants, whether information is delivered via the NRAS Website or email. The Australian Government is committed to the NRAS maintaining the highest standards of equity and fairness to all Applicants.

Please note that questions will not be taken or responded to, for Round Five, after 12.00pm AEST, Friday, 2 August 2013.

Section 2 – Overview of the National Rental Affordability Scheme (NRAS)

2.1 What is the National Rental Affordability Scheme (NRAS)?

The NRAS is a long term commitment by the Australian Government in partnership with the state and territory governments to invest in affordable rental housing.

The NRAS commenced in 2008 and aims to address the shortage of affordable rental housing by offering financial incentives to the business sector and community organisations to build and rent Rental Dwellings to low and moderate income households at a rate that is at least 20 per cent below the prevailing market rates.

The NRAS aims to:

increase the supply of new affordable rental housing;
reduce rental costs for low and moderate income households; and
encourage large-scale investment and innovative delivery of affordable housing.

The Australian Government is committed to stimulating the construction of 50,000 homes by 30June 2016, providing affordable private rental properties for Australian families.

Under the NRAS, Successful Applicants will be eligible to receive an Incentive for the Incentive Period for each Approved Rental Dwelling, on the condition that they are rented to Eligible Tenants, who are essentially those who are low to moderate income earners (see regulation 4 and 19 of the Regulations for more information), at least 20 per cent below market rates and meet any other legislative requirements.

2.2 Purpose of Round Five

Round Five of the NRAS provides an opportunity for governments, the private sector and community organisations to work together to increase the supply of affordable private rental housing for families and individuals across Australia. These Application Guidelines cover Round Five.

Financial institutions, developers, not-for-profit organisations, such as community housing providers and community welfare organisations, and local councils have been identified as potential participants in building, owning, funding or managing housing under the NRAS.

Projects managed by a combination of the above partners, with each playing different roles, may apply. The precise roles, including the lead role of any NRAS Consortium, joint venture or non-entity joint venture, are likely to vary from Proposal to Proposal and, depending on local circumstances and relationships, may include financing, development, construction and property and tenancy management.

Small, private investors cannot participate directly in the NRAS. The NRAS does, however, allow these investors to be involved indirectly by, for example, investing in entities that participate directly in the NRAS, such as property investment funds. For more information on how the NRAS applies to small, private investors, please read the Frequently Asked Questions (FAQs) under the NRAS Website.

Section 3 – The Application Process

3.1 Applicants

Applications must identify the Applicant for the Allocation and/or Reserved Allocation. The Applicant (in some cases the Lead Agency of any NRAS Consortium or joint venture arrangement) is the legal entity that FaHCSIA will deal with and is the entity that will receive an offer for Allocation and/or Reserved Allocation. The Applicant will need to complete the Application Form (see section 6 of these Application Guidelinesfor more information).

Offers of an Allocation or Reserved Allocation are made to a single legal entity who must meet the requirements of an Organisation Eligible to Apply (see section 1.3 of these Application Guidelines).

The Applicant is responsible for:

submitting the Application in the required format with correct and truthful information by the required Closing Date;
ensuring they will be able to meet mandatory conditions (see section 5.1 of these Application Guidelines) and Special Conditions of the Allocation, if an Allocation is made;
responding to any requests for further information during the Assessment Process, as required by the Decision Maker, within agreed deadlines;
ensuring they will be able to comply with the reporting and data collection requirements specified in the Regulations within specified timeframes; and
ensuring they understand the compliance and reporting obligations they will be subject to, if their Application is successful.

Applicants that are offered a Reserved Allocation are responsible for:

ensuring the availability of any agreed financial capital required for the development of Rental Dwellings for which an Allocation of Incentives has been reserved under the NRAS;
if the Applicant is an Endorsed Charitable Institution, electing to receive the Incentive as a refundable tax offset certificate or a payment;
ensuring that Rental Dwellings are available for rent by the required date; and
ensuring that any advertisement does not mislead, misrepresent the NRAS, exaggerate or overstate the tax or other financial advantages resulting from involvement in the NRAS, present the Australian Government as dealing directly with investors, or present the Australian Government as being in partnership with the Applicant, or other person or entity publishing details about the NRAS.

Applicants who accept an offer of Allocation (Approved Participants) are responsible for:

meeting the legislative requirements for the NRAS, including complying with mandatory conditions (see section 5.1 of these Application Guidelines), Special Conditions of the Allocation and all reporting requirements;
if the Applicant is an Endorsed Charitable Institution, electing to receive the Incentive as a tax offset certificate or a payment;
ensuring that Rental Dwellings are delivered in accordance with the requirements of the NRAS;
complying with relevant Commonwealth, state or territory legislative or regulatory requirements;
complying with any state or territory government funding requirements; and
ensuring accurate record-keeping about Approved Rental Dwellings and tenants over the duration of their participation in the NRAS.

3.2 Important documents to read

National Rental Affordability Scheme Legislation, Regulations and Policy Guidelines

Applicants should read current versions of the Act, the Regulations, the National Rental Affordability Scheme (Consequential Amendments) Act 2008 and the National Rental Affordability Scheme Policy Guidelines.

The above legislative instruments and guidelines provide detailed information about how the NRAS will operate, including information about types of Rental Dwellings that are acceptable under the NRAS, eligible tenants, the setting of market rents, tenancy and property management requirements and the statements of compliance that Approved Participants must provide in order to receive Incentives.

Schedule 1 to the Regulations sets out the Assessment Criteria that apply to the NRAS. CriteriaSet6 (see attachment A to these Application Guidelines) will be used to assess Applications received. The Assessment Criteria for Applications are discussed in more detail in section 4 of these Application Guidelines.

National Rental Affordability Scheme Round Five Application Guidelines

It is strongly recommended that all persons completing the Application Form have read these Application Guidelines.

3.3 The Application Form

Applicants must complete the correct Application Form in order to have their Application accepted and assessed. The Application Form is available on the NRAS Website under the Round Five heading.

Applications will be in the form of a Proposal. A Proposal may include one or more Projects. Each Project must nominate Locations and provide details about the Rental Dwellings, expected tenants, tenancy and property management arrangements, expected rent structure and Project status. Throughout the Proposal, Applicants should ensure that if they have more than one Project, each Project must be properly numbered and referenced.

If a Proposal contains Rental Dwellings in more than one state and/or territory, Applicants must submit a separate Application for each state and/or territory.

Applicants will need to complete:

the Application Form;
the Dwelling Schedule; and
the Financial Viability Tool, which must include the details for each Project.

Note: The final question of the Application Form is the Applicant’s opportunity to provide additional attachments that are relevant and highly pertinent to their Application, and documents attached might, for example, include a Proposal Management Plan and Proposal Risk Management Plan (see section 7 of these Application Guidelines), and/or registration or certification for property management.

FaHCSIA will not consider marketing and promotional material.

The Applicant is solely responsible for ensuring they have completed the Application Form, the Dwelling Schedule, the Financial Viability Tool and providing all attachments, and that they accurately represent their Proposal, which will form the basis of the Application assessed under the Application Process.

Applicants should note that any Applications that do not comply with these Applications Guidelines may not be assessed.

3.4 How to download and submit Applications

Applicants should read the instructions for completing the Application Form, the Dwelling Schedule and the Financial Viability Tool, and answer all questions. The Application Form, the Dwelling Schedule and the Financial Viability Tool can be downloaded from the NRAS Website under the Round Five heading. Applicants should ensure that they have read section 1.4 of these Application Guidelines if they have any questions.

The Applicant should save each of the above documents before completing any questions.

In the Application Form:

The symbol below indicates where attachments are required. All attachments must be provided in the format specified. Each attachment cannot exceed 2MB and the Application Form, including its internal attachments, cannot exceed 20MB.

The symbol below indicates where additional attachments should be emailed to in accordance with the process described below.

Applicants should correctly name each attachment as follows:

Receipt Confirmation Number – Applicant Legal Name – Project Number – Attachment Title

(e.g. 2-5SFT6 – Jane Building – Project No.2 – Development Plan)

Once Applicants have correctly named each attachment, they should correctly name the subject line of the email, containing those attachments, as follows:

Receipt Confirmation Number – Applicant Legal Name – Subset Number – Email Title

(e.g. 2-5SFT6 – Jane Building – 1(d)(ii) – Additional Attachments NRAS Round Five)

Applicants should have the completed Application Form, Dwelling Schedule, Financial Viability Tool and any attachments ready to be submitted.

Note: Application Forms, Dwelling Schedules and Financial Viability Tools will not be accepted in PDF, handwritten, scanned or faxed format.

The Application Form has the capacity to attach documents internally within it. Applicants should attach the Dwelling Schedule within the Application Form. Applicants should provide additional attachments in the Application Form depending on the questions answered. Applicants should save the Application Form as a draft and check that the Application Form, including its internal attachments, does not exceed 20MB.

Applicants should submit the Application Form by clicking the ‘Submit Application’ button in Part 7 of the Application Form. Once the ‘Submit Application’ button is pressed, the Application Form will be automatically uploaded to FaHCSIA’s IT system. Applicants will receive an automated-email from FaHCSIA that includes a Receipt Confirmation Number, which will be used to reference subsequent emails and attachments, as set out below.

Applicants should attach to an email the completed Financial Viability Tool, any attachments and/or additional information. Applicants should then save the email as a draft and check that it, including its internal attachments, does not exceed 11MB, because FaHCSIA cannot accept emails greater than 11MB. Applicants should then send the email to FaHCSIA at: .

Note: Applicants may have to send in more than one email their Financial Viability Tool, any attachments and/or additional information.

3.5 State and territory government information

For information that specifically relates to state and territory government affordable housing priorities and the state and territory government component of the Incentive, Applicants should check the relevant state and territory government website(s) set out in the table below.

State/Territory Government

Website

Australian Capital Territory /
New South Wales /
Northern Territory /
Queensland /
South Australia /
Tasmania /
Victoria /
Western Australia /

Section 4 – Responding to the Assessment Criteria

Criteria Set 6 in the Regulations will be utilised for Round Five. Set 6 provides two subsets to Assessment Criteria, subsets 1 and 2, which will be used to assess Applications. The Assessment Criteria reflects the priorities and requirements and includes criteria and sub-criteria that must be responded to in Applications. Variations between individual Projects should also be specified.

Certain parts of the Application Form require attachments containing relevant information to support Proposals be provided. Failure by Applicants to respond to all questions and provide all attachments in the appropriate format may result in the Application being deemed non-compliant and not being assessed.