Purpose
This policy provides guidance on how St Kilda Community Housing (SCH) sets rents and determines rental subsidies for its residential properties.
Scope
This policy applies to all properties managed or owned by SCH.
Policy Statement
SCH is committed to providing affordable long-term housing for low-income and disadvantaged individuals.
In setting rents, SCH will:
• Determine rents according to established affordability benchmarks.
• Clearly communicate the rent-setting and review process to residents and applicants in various formats.
• Comply with all contractual, legal, regulatory, and policy obligations regarding rental affordability.
• Ensure transparency and fairness in the rent-setting and review process.
• Support residents experiencing financial hardship to maintain their tenancies.
Rent Setting
When setting rent, SCH considers the following factors:
• Resident’s income (e.g., Jobseeker, Disability Support Pension, wages)
• Eligibility for Commonwealth Rent Assistance (CRA)
• Additional property costs
• The market rent of the property
Rent Calculation
For household income-based rent, SCH calculates rent as:
• For DFFH owned properties: 25% of gross resident income + Maximum Commonwealth Rent Assistance
• For SCH-owned properties: Up to 30% of gross resident income + Maximum Commonwealth Rent Assistance.
Gross resident income is defined according to the Income Assessment Guidelines set by the Department of Families, Fairness and Housing. Residents can request a current copy of these guidelines.
Rents must not exceed 74.99% of market rent as determined by SCH to comply with ATO requirements and must also stay within the Property Rent limit set by the Valuer General for DFFH properties.
Provision of Information About Household Income
Residents must provide reasonable evidence of total household income when requested:
• Before being offered a tenancy
• During annual rent reviews
If a resident does not provide this information within the required timeframe, SCH may increase the rent to the maximum allowable amount.
If a resident provides updated income information after a rent review, changes will take effect from the date the information is received. SCH may backdate adjustments in cases where financial hardship is determined.
Additional Property Costs
Certain SCH properties include utilities and facilities typically paid by residents, such as:
• Electricity
• Gas
• Water (usage charges only)
• Gardening
• Cleaning
These costs will be factored into the rent calculation but will not exceed the amount charged for comparable properties in similar locations.
Response to Changes in Household Circumstances Including Hardship.
Residents facing financial hardship may:
• Request a rent reassessment.
• Seek a different approach to rent.
• Request backdating of rent adjustments.
Changes will generally take effect from the date the resident contacts SCH and provides relevant details. SCH will consider hardship based on:
• Changes in health
• Disabilities
• Impact of family violence
• Cultural considerations
Residents must inform SCH promptly of income increases to avoid backdated rent increases.
Policy Updates
SCH reserves the right to update this policy as necessary, and any changes will apply to all tenancies from the date of change. Strategies will be implemented to mitigate impacts on residents.
Procedures
SCH will establish procedures to ensure compliance with this policy, including:
• Setting and reviewing affordable rent.
• Communicating rent determinations to residents and applicants.
• Identifying the rental approach for each vacancy or tenancy.
• Allowing residents to request rent reviews.
Related Policies
• Rent Management and Hardship Policy
Legislation and Standards
• Residential Tenancies Act 1997 (Vic)
• Victorian Housing Registrar Performance Standards
• Department of Families, Fairness and Housing Income Assessment Guidelines
Version control
Version No 6.2 Review frequency 3 years
Date September 2024 Next review June 2026
