Funding for new affordable rental homes announced

Minister for Housing and Homelessness Mark Butler today met with tenants benefiting from more affordable rentals under the National Rental Affordability Scheme to officially open a new dedicated round of funding for ‘shovel-ready’ NRAS projects.

“We know that housing affordability is a concern for many Australian families and we’re investing heavily to address that concern,” Mr Butler said.

“This new round opening today will provide incentives for up to 1000 shovel-ready homes across Australia to be substantially completed by June 2014.”

NRAS offers annual financial incentives, currently valued at $9,981 per annum per dwelling, for 10 years to build and rent new homes or apartments for low to moderate income tenants, at 20 per cent below the market value rent.

The ‘shovel ready’ round is intended to support projects that are ready to go, including those with secured finance, land and development approvals.

“We want to move as quickly as possible to build new homes in areas that are most in need, and to give the business and community sector more certainty for the future.”

Mr Butler said this announcement will not only create a continuous supply of new and more affordable homes but will assist Community Housing providers, through the guaranteed income stream that NRAS provides, and help builders and developers through increased investment in new construction.

“This scheme is a critical part of the Australian Government’s efforts to help Australians struggling in the housing market, and we remain firmly committed to delivering 50,000 more affordable rental homes by 30 June 2016.”

“NRAS is part of the Gillard Government’s $26 billion investment to help people with home ownership and more affordable rental housing.”

Applications for incentives for ‘shovel-ready’ projects will close on 22 May 2013, with projects to be substantially completed by June 2014 and available for rent no later than December 2014.

For information on the ‘shovel ready’ round, including application details, eligibility, preferred locations, the number of incentives available in each state and territory and helpful facts, go to: www.fahcsia.gov.au/nras