The National Disability Insurance Scheme provides support to people with a disability along with their families and carers. The scheme is funded by Australian Federal and State Governments to assist people to access better housing, health, education and community services.
In order for a property to become available to NDIS participants seeking SDA, the property needs to be enrolled and compliant according to SDA Rules, and the owner is required to be registered as an SDA provider.
The National Disability Insurance Agency (NDIA) will then connect NDIS participants with investors and developers who provide “high quality, fit-for-purpose and innovative dwellings.” This means that housing providers are not funded directly from the NDIS, but rather through the individual participants, who have their own approved accommodation budget and so negotiate a rent directly with the housing provider (it is also possible for NDIS participants and non-participants to share the same accommodation, with rents for each being separately negotiated).
The SDA payments that participants receive will be based on the size of the dwelling, its location and the accessibility it provides. These payments are also designed to cover the costs incurred in the bricks and mortar construction of the property, and offer a return on investment (ROI) at market rates of up to 18%pa, though a conservative range would be 10-12%pa.
There will be a variety of platforms available for providers to find tenants, and there is also the option for SDA properties to be made available in other markets as well.
For some participants in the NDIS, they will receive funding for SDA. SDA stands for 'Specialised Disability Accommodation' and is a system created under the NDIS for people with high support housing needs. SDA service providers hold the head lease and oversee the process of securing accommodation for the tenants. The SDA provider has an agreement in place with SIL providers (care services) and their role is to ensure the house has tenants and is maintained to high standard. They deal with all the related NDIS agencies and are the only entity who can handle SDA payments. They also ensure that RRC payments are managed from the tenants
Supported Independent Living (SIL) refers to the support or supervision to develop the skills of an individual to live as independently as possible. SIL provider’s role is to provide care services for the persons with a disability and have agreements in place with SDA providers.
This is a Reasonable Rental Contribution (RRC) paid by the tenant, capped at 25% of the base rate of the Disability Support Pension and 100% of any Commonwealth Rental Assistance scheme. This is the same for the participant no matter where they live; it is approximately $9,200 p/a per person.
With BUILD NEW HOMES, we work very closely with the builders for the designs and pricing of houses, and also various land developers to secure 'correct sized' land lots for these builders to build upon. The houses and the location are chosen and custom built for the waiting participants (disability tenants) needs under the guidance of the providers, who keep a finger on the pulse of market demand, courtesy of statistics provided by the NDIA. So in essence, the info gathered from NDIS ecosystem shows the areas in which are of high demand for accommodation, and thus builder will work with the provider to identify the areas and ensure the designs of homes proposed are compliant. From there land is sourced and build designs and inclusions are packaged up by the builders we work with, for the specific needs of waiting participants, in the areas which have pent up demand.
RRC is paid fortnightly and NDIS payment processed monthly.
There is no "rent guarantee" in the traditional sense that most investors understand, but it is as close to one as one can expect. Like all ongoing investment property ownership, there is always the risk of losing a tenant. However, once your property has been enrolled and had its first tenant(s), the NDIS has contingencies for vacancy payments (NDIS SDA portion only). The amounts covered are for up to 60 days for properties with 2 or 3 participant rooms, and for up to 90 days for properties with 4 or 5 participant rooms. The rent payable is based on the level of care (e.g. High Physical Care, Fully Accessible, Improved Liveability etc.), the number of participants in the home and if there is a live in carer or a rotating 24 hour care team. Also, it is important to work with a good provider who knows where the demand is for accomodation, with plenty of people who are ready to move in, aswell as the 'waiting list' of people. Remember, a property investor for a NDIS house is not looking for a long list of tenants to occupy the house, as it is likely that the tenants will live in the same house for a number of years, and continue to renew their lease with the provider.
Most likely, yes, but there are no guarantees. With careful planning and working with an efficient provider, and the vetting in advance of potential participants, one would hope that tenants will be ready to move in on completion of the new home. However there is no guarantee that this will always happen on day one, and one must assume a short period of time between house completion and transition to bring the participants into accommodation. This all depends on the area chosen and the number of participants in the waiting list.
A separate lease agreement is signed with each tenant, and these are either 1 or 2 years, most likely a 2 year lease agreement.
It is written into the lease that the agreed NDIS allowance is to continue to be paid to the property owner for a 2 month or 3 month period while other participants are sourced. Providers have an obligation to find another participants and in most cases have participants on a waiting list. It is a 2 month allowance for a 2 or 3 rooms for participants in the home, and 3 month allowance if its a 4 or 5 rooms for participants in the home.
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