Manage affordable rental housing

Properties developed with NSW Government assistance or through planning incentives outlined in the State Environmental Planning Policy (Housing) 2021 (Housing SEPP)^[1] must be managed by a registered community housing provider and in accordance with the NSW Affordable Housing Ministerial Guidelines PDF, 14062.98 KB.

Generally, this will include properties that have been developed from:

• leveraged finance from vested assets
• capital grants for social and affordable housing
• land and capital grants for affordable housing delivered through planning agreements
• affordable housing programs such as the Affordable Housing Innovations Fund/Community Housing Innovation Fund, Communities Plus and the Social and Affordable Housing Fund; and
• NRAS A - where the NSW Government has provided an upfront grant or contribution in kind. Note that properties receiving NRAS funding must also comply with Commonwealth NRAS Policy Guidelines, which will take precedence where there is any difference between the requirements of the two.
• other planning incentives such as contribution schemes, density bonuses etc.

The guidelines include overarching principles for delivering affordable housing in NSW, as well as policy requirements on income limits for eligibility (updated annually) and rent setting.

Rent may be set in one of two ways:

• At least 20% below market rent for an NRAS eligible household (NRAS dwellings must use this rent setting approach)
• 25 - 30% of household income as rent for very low, low or moderate income households.

New generation boarding houses developed under the Housing SEPP need to be managed by a community housing provider as affordable housing in perpetuity.

¹ Affordable rental housing which has been approved using planning incentives under the State Environmental Planning Policy (Housing) 2021 must be rented as affordable housing to very low, low or moderate households for at least 15 years and must be managed by a registered community housing provider.