Your partner in
Affordable Rental Housing
As a leader in the community housing sector, Housing Trust offers expertise to help you integrate Affordable Rental Housing into your development.
Housing Trust also leases existing properties from the private rental market. This may potentially unlock tax incentives for landlords of all residential property types.
Find out more about new opportunities with
Affordable Rental Housing
Planning Incentives for Affordable Rental Housing in NSW and Local Government
Affordable rental housing is typically managed by not-for-profit community housing providers like Housing Trust. As a federally accredited tier 1 community housing provider, Housing Trust guarantees a quality partnership. Based in the Illawarra and Shoalhaven we have been serving the local community for more than 40 years.
Tax Incentives
Obtaining a tax deduction for leasing a property at below the market rent, or obtaining the affordable housing capital gains tax discount.
Any gift of money or property to the Housing Trust is tax deductible to the individual, trust or company providing the gifts. Where the gift is by way of a reduction in the market rent of a property the tax deduction amount is equal to the discount. If you lease your property below the market rate and it is also exclusively managed through a registered community housing provider such as the Housing Trust for at least three years, then you may be eligible to claim an additional affordable housing capital gains tax discount up to 10%, this is in addition to the general capital gains tax discount of 50%.
Your accountant can provide more clarification on these tax rulings for your individual situation.
Key Workers and Eligibility
To be eligible for Affordable Rental Housing households must meet income limits set by the NSW Government based on their size and other factors like residency status and asset ownership.
The term ‘Key Worker’ is commonly used in reference to eligibility for Affordable Rental Housing. There is no official definition of a key worker however typically, it refers to workers performing essential roles for the community, particularly nurses, teachers, aged care, transport and retail workers. In general the people working in services critical to both the local community and economy.
Most of the Affordable Rental Housing planning incentives require use of the NSW Affordable Housing Ministerial Guidelines. and tenancy management by a registered tier 1 or 2 Community Housing Provider. The guidelines include income eligibility limits rather than job descriptions.
The income limits shown below represent the maximum a household can earn to remain eligible for Affordable Rental Housing in regional NSW. These limits vary based on household size:
| Number of adults over 18 | Number of children under 18 | Upper income limit |
|---|---|---|
| 1 | 0 | $70,100 |
| 1 | 1 | $91,100 |
| 1 | 2 | $112,110 |
| 2 | 0 | $105,200 |
| 2 | 1 | $126,200 |
| 2 | 2 | $147,200 |
Managing Affordable Rental Housing Tenancy
Managing Affordable Rental Housing properties involves additional responsibilities around assessing eligibility, setting rent, letting properties to eligible households and meeting the requirements of the Affordable Rental Housing Ministerial Guidelines. All tenancies are managed in line with the Residential Tenancies Act 2010.
What is Affordable Rental Housing?
Affordable Rental Housing is priced so residents can afford other essential costs like food, clothing, transportation, medical care, and education after paying rent. It aims to support low to moderate-income households, including those going through major life changes impacting their finances, to secure quality rental housing while avoiding rental stress.
As a community housing provider, Housing Trust has access to the Community Housing Leasehold Program (CHLP). By leasing your investment property through Housing Trust, you can access unique tax benefits, guaranteed rent with no arrears and zero management fees.
This program allows Housing Trust to pay you market rent for your property, whilst we sub-lease the property to boost the social housing supply.
