A New Approach to Youth Housing incorporating New Housing Products & New Supply
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A New Approach to Youth Housing
incorporating
New Housing Products & New Supply
Specialist Youth Community Housing Provider
Developed in partnership between:
• NSW Youth Specialist Homelessness Services (SHS) Sector
• Yfoundations, NSW Peak body representing homeless young people
• NSW State Government, Family & Community Services (FACS)
Why?
• Transitional Rent Reform – the last straw!
• Potential losses of youth housing
• Under-representation of young people in NSW social housing
• Sector, Peak & Government support
Key Moments • Yfoundations discussions with the sector about upcoming reform • Support for a new approach was strong, not unanimous
• Potential benefits for young people far outweighed the potential limiting
effect on housing growth for individual services • NSW Government application for 2013-14 NPAH funds resulted in 27 new
properties being procured for young people • Continuing NSW Government investment and property management
partnerships that add high quality stock to our housing portfolio
Liverpool & Parramatta blocks bought from the private market and upgraded for us by FACS
Quality Interiors
Current Status • Registered under the National Regulatory system in December 2014
• Began delivery of housing operations in February 2015
• 78 properties under management now, will be around 100 by Oct
• Includes partnerships to manage SHS properties on behalf of other agencies
• Housing products offered so far:
• Transitional Housing • Affordable Housing – New product for young people • Transitional Housing Plus – New Product
Affordable Housing
• Liverpool & Parramatta locations with rents set at 74.9% of the Market
• Finding the balance between the need to ensure the rent model is consistent with the NSW Affordable Housing Guidelines and remains affordable in a real sense for young people has been a significant challenge
• Expect to expand our affordable housing offering over time knowing that some markets will be more conducive to finding this balance than others
Transitional Housing Plus (THP)
• Our signature offering:
• Extended tenure
• Rent model unrelated to income
• Preparation for the private rental market
• Co-designed by Yfoundations, FACS & Youth SHS providers
Transitional Housing Plus (THP) – Key Elements
• Up to 5 years of tenure in locations chosen to maximise aspiration and opportunity – close to jobs, education facilities, transport and community
• Applicants must show a commitment to engage in education and/or work
• Applications assessed by a cross-sector panel in each location
• Young people leaving care and detention, indigenous young people and applicants aged 16-20 are prioritised for housing, but only once they’ve demonstrated a commitment to work and/or study
THP - Quasi Household/Market Rent Model designed to:
• Remove possible disincentive to work from an income-based rent model • Reinforce that young people need to seek and maintain work • Prepare young people for the reality of the private rental market • Capture CRA to ensure the company and youth housing are sustainable • Increase annually to approach the market in the 5th year • Be affordable on a statutory income in the 1st requiring work thereafter
Example: Rent Setting in Cairns for a Single Parent or Couple
Property Type 2 Bedroom Dwelling Is tenant a Single Young Person?* no Date Tenancy Starts 13-Jul-16 Market Rent Benchmark for Selected Property Type* $295.00
*If single young person, enter 50% of current median weekly rent for 2 Bedroom Dwelling in same LGA.
Year Tenancy Starts 2016 Difference between Benchmark and Standard Rent $ 86.90 Standard Rent to Compare Against Benchmark Rent $ 208.10 Is this a Lower Market Area? No, apply Standard Rent
Year Dates Covered Weekly Rent From To
Year 1 13-Jul-16 12-Jul-17 $208.10 Year 2 13-Jul-17 12-Jul-18 $225.48 Year 3 13-Jul-18 12-Jul-19 $242.86 Year 4 13-Jul-19 12-Jul-20 $268.93 Year 5 13-Jul-20 12-Jul-21 $295.00
Rent Setting in Cairns for a Single Young Person Sharing
Property Type 2 Bedroom Dwelling Is tenant a Single Young Person?* yes Date Tenancy Starts 13-Jul-16 Market Rent Benchmark for Selected Property Type* $147.50
*If single young person, enter 50% of current median weekly rent for 2 Bedroom Dwelling in same LGA.
Year Tenancy Starts 2016 Difference between Benchmark and Standard Rent $ 86.90 Standard Rent to Compare Against Benchmark Rent $ 208.10 Is this a Lower Market Area? No, apply Standard Rent
Year Dates Covered Weekly Rent From To
Year 1 13-Jul-16 12-Jul-17 $ 104.05 Year 2 13-Jul-17 12-Jul-18 $ 112.74 Year 3 13-Jul-18 12-Jul-19 $ 121.43 Year 4 13-Jul-19 12-Jul-20 $ 134.47 Year 5 13-Jul-20 12-Jul-21 $ 147.50
Rent Setting in Cairns for a Couple in a 1br
Property Type 1 Bedroom Dwelling Is tenant a Single Young Person?* No Date Tenancy Starts 13-Jul-16 Market Rent Benchmark for Selected Property Type* $ 250.00
*If single young person, enter 50% of current median weekly rent for 2 Bedroom Dwelling in same LGA.
Year Tenancy Starts 2016 Difference between Benchmark and Standard Rent $ 93.90 Standard Rent to Compare Against Benchmark Rent $ 156.10 Is this a Lower Market Area? No, apply Standard Rent
Year Dates Covered Weekly Rent From To
Year 1 13-Jul-16 12-Jul-17 $ 156.10 Year 2 13-Jul-17 12-Jul-18 $ 174.88 Year 3 13-Jul-18 12-Jul-19 $ 193.66 Year 4 13-Jul-19 12-Jul-20 $ 221.83 Year 5 13-Jul-20 12-Jul-21 $ 250.00
Example: Rent Setting in Brisbane - Single Parent or Couple
Property Type 2 Bedroom Dwelling Is tenant a Single Young Person?* no Date Tenancy Starts 13-Jul-16 Market Rent Benchmark for Selected Property Type* $390.00
*If single young person, enter 50% of current median weekly rent for 2 Bedroom Dwelling in same LGA.
Year Tenancy Starts 2016 Difference between Benchmark and Standard Rent $ 233.90 Standard Rent to Compare Against Benchmark Rent $ 156.10 Is this a Lower Market Area? No, apply Standard Rent
Year Dates Covered Weekly Rent From To
Year 1 13-Jul-16 12-Jul-17 $ 156.10 Year 2 13-Jul-17 12-Jul-18 $ 202.88 Year 3 13-Jul-18 12-Jul-19 $ 249.66 Year 4 13-Jul-19 12-Jul-20 $ 319.83 Year 5 13-Jul-20 12-Jul-21 $ 390.00
Example: Rent Setting in Brisbane for a Single Young Person
Property Type 2 Bedroom Dwelling Is tenant a Single Young Person?* yes Date Tenancy Starts 13-Jul-16 Market Rent Benchmark for Selected Property Type* $ 195.00
*If single young person, enter 50% of current median weekly rent for 2 Bedroom Dwelling in same LGA.
Year Tenancy Starts 2016 Difference between Benchmark and Standard Rent $ 90.95 Standard Rent to Compare Against Benchmark Rent $ 104.05 Is this a Lower Market Area? No, apply Standard Rent
Year Dates Covered Weekly Rent From To
Year 1 13-Jul-16 12-Jul-17 $ 104.05 Year 2 13-Jul-17 12-Jul-18 $ 122.24 Year 3 13-Jul-18 12-Jul-19 $ 140.43 Year 4 13-Jul-19 12-Jul-20 $ 167.72 Year 5 13-Jul-20 12-Jul-21 $ 195.00
Rent Setting in Brisbane for a Couple in a 1br
Property Type 1 Bedroom Dwelling Is tenant a Single Young Person?* No Date Tenancy Starts 13-Jul-16 Market Rent Benchmark for Selected Property Type* $ 320.00
*If single young person, enter 50% of current median weekly rent for 2 Bedroom Dwelling in same LGA.
Year Tenancy Starts 2016 Difference between Benchmark and Standard Rent $ 163.90 Standard Rent to Compare Against Benchmark Rent $ 156.10 Is this a Lower Market Area? No, apply Standard Rent
Year Dates Covered Weekly Rent From To
Year 1 13-Jul-16 12-Jul-17 $ 156.10 Year 2 13-Jul-17 12-Jul-18 $ 188.88 Year 3 13-Jul-18 12-Jul-19 $ 221.66 Year 4 13-Jul-19 12-Jul-20 $ 270.83 Year 5 13-Jul-20 12-Jul-21 $ 320.00
Standard vs Lower Market Rent Areas
Table 1. Year 1 rents per week – Standard (for tenancies starting in 2014, starting rent increases 2%/year each year)
Property 2014 2015 (+20%) 2016 (+20%) 2017 (+30%) 2018 (+30%)
1 Bedroom Dwelling $ 150.00 $ 153.00 $ 156.10 $ 159.20 $ 162.40 2 Bedroom Dwelling $ 200.00 $ 204.00 $ 208.10 $ 212.20 $ 216.50 3 Bedroom Dwelling $ 230.00 $ 234.60 $ 239.30 $ 244.10 $ 249.00
Table 2. Year 1 rents per week - Lower Market Areas (for tenancies starting 2014) (for tenancies starting in 2014, starting rent increases 2%/year each year)
Property 2014 2015 (+20%) 2016 (+20%) 2017 (+30%) 2018 (+30%)
1 Bedroom Dwelling $ 100.00 $ 102.00 $ 104.00 $ 106.10 $ 108.20 2 Bedroom Dwelling $ 150.00 $ 153.00 $ 156.10 $ 159.20 $ 162.40 3 Bedroom Dwelling $ 180.00 $ 183.60 $ 187.30 $ 191.00 $ 194.80
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