Developer fears people will become homeless if a new housing scheme is not introduced

Every resident in this apartment building north of Brisbane could be homeless in three years when a subsidised housing scheme comes to an end — unless an alternative solution is found.

Residents of the Anglesey apartment complex could be left without a home when the NRAS scheme finishes.

A developer fears thousands of low-income earners will become homeless if the Federal Government does not reintroduce a national affordable housing scheme.

The National Rental Affordability Scheme was introduced in 2008 to assist the housing affordability crisis — it was closed to new entrants six years later by the Abbott government.

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Under the scheme developers and investors were offered incentives by the government if they set their rental price at least 20 per cent below market rate for 10 years.

Traders in Purple director Charles Daoud said with no scheme to replace it these affordable properties would return to the private market.

Traders in Purple built Anglesey, a build to rent residential project, in 2012 at Scarborough.

It provided 72 rental units, at 25 per cent less rent then the market rate.

This means a studio apartment in Anglesey which has a rental value of $230 a week is rented out to a NRAS-approved tenant for just $172.50 a week. A two-bedroom apartment which has a rental market value of $420 per week is currently rented to tenants for $315 per week

This will expire in July 2022.

Mr Daoud said if a new scheme was not introduced many of these residents would become homeless.

Residents of the Anglesey apartment complex could be left without a home when the NRAS scheme finishes.

“We recently conducted a survey to find out their thoughts on the property and what they might do once NRAS expires. All tenants expressed an interest in remaining at Anglesey beyond the expiry of NRAS and noted the strong sense of community spirit within the building,” he said.

“Without this type of housing, some people would be forced to live in their car, on the street or in isolated circumstances, without help from neighbours.

“Traders In Purple is calling on the Federal Government for an immediate extension to the NRAS scheme for a further five years to allow a suitable replacement scheme to be conceived.”

A Department of Social Services spokesman said while the scheme had been closed to new entrants it would continue to operate until June 2026 with properties progressively exiting as their 10 year contracts end.

“This was always the intention of NRAS and part of the original design in 2008,” the spokesman said.

“Once the incentives expire ongoing tenancy arrangements are a matter to be discussed between tenants and the investors that own the properties.”

The spokesman said 18,482 of the 34,501 active allocations (as at 30 June 2019) were held by approved participants who were endorsed charities. He said they were likely to continue to offer affordable housing solutions.

Other schemes are available including the Commonwealth Rent Assistance.

“This makes private and community housing rent more affordable for people on eligible income support, family assistance or veterans’ payments,” the spokesman said.