Rent Setting. Harvard Real Estate University Portfolio is treated as a Service Center under federal cost accounting guidelines. As such, HRE sets rents according to A21 guidelines (see below) and must charge all University tenants the same rent for similar space. (The government’s cost accounting standards are structured to ensure that there are no cross-subsidies that might lead to a grant paying a disproportionate amount for any service.) Per the University budget letter: Harvard Real Estate (HRE) manages residential, commercial, and University space for Harvard. Residential and commercial rents are set at market rates. Rent for University space is cost-based, as directed by Federal regulations (A21 guidelines), which require that internal rents be set at or below the break-even, fully loaded expense level for the space. Expenses include: Direct expenses, such as maintenance staff, building services & repairs, utilities, supplies, real estate taxes, insurance, etc. Indirect expenses such as allocated department overhead (managers and administrative staff, rent, IT & telecom, etc.) Interest expense for debt on acquisition, construction, or renewal of the building and building systems”. HRE reserves the right to determine the appropriate service level/standard for the building. Occupants that require specific service levels other than the building standard will be responsible for the resulting cost.
Rent Setting. Harvard Real Estate Campus Services University Portfolio is treated as a Service Center under federal cost accounting guidelines. As such, HRE sets rents according to A21 guidelines (see below), and must charge all University occupants the same rent for similar space. (The government’s cost accounting standards are structured to ensure that there are no cross-subsidies that might lead to a grant paying a disproportionate amount for any service.) Per the University budget letter: “Harvard Real Estate Campus Services (HRE) manages residential, commercial, and University space for Harvard. Residential and commercial rents are set at market rates. Rent for University space is cost- based, as directed by Federal regulations (A21 guidelines), which require that internal rents be set at or below the break-even, fully loaded expense level for the space. Expenses include: Direct expenses, such as maintenance staff, building services & repairs, utilities, supplies, real estate taxes, insurance, etc. Indirect expenses such as allocated department overhead (managers and administrative staff, rent, IT & telecom, etc.) Interest expense for debt on acquisition, construction, or renewal of the building and building systems”. HRE reserves the right to determine the appropriate service level/standard for the building. Occupants that require specific service levels other than the building standard will be responsible for the resulting cost.
Rent Setting. There will be a range of different tenure types available to residents, which are defined in Section 10.1. The Developer will adhere to the following approach when setting rent levels for each tenure: Tenure: Affordable Rented - Target Rented Units Formula for rent setting • Target Rents as set out in the Homes and Communities Agency guidance note, ‘The regulatory framework for social housing in England from April 2012, Annex A; Rent Standard Guidance’. • Calculation of Target Rents will be explained to tenants prior to re-housing. • Target Rents will be set exclusive of service charges. • Target Rents will be offered from day one of tenancies. Criteria applied to determine (market) rent increases • In line with HCA guidance, Target Rents are reviewed for increases in April of each year following applicable formula – on the current guidance rent increases are RPI plus 0.5%. Consultation over rent increases • Tenants will be notified of rent increases at least one month before they are applied. • The Developer will provide transparent information on any rent increases via consultation forums. Tenure : Intermediate - Shared ownership Formula for rent setting • Rents on Shared Ownership homes will be payment in respect of the unsold equity. • For First Development Site this will be calculated on the basis of the leaseholder buying a 40% share with rents payable at 2.75% on the unsold equity based on GLA affordability criteria. • For the remainder of the Development Area this will adhere to the Council’s affordability criteria on the basis of the leaseholder buy a share ranging from 25% to 40%, and rents on unsold equity ranging from 1% to 2.75%. Criteria applied to determine market rent increases • Rents on Shared Ownership unsold equity increase in April each year by RPI plus 0.5% (in line with Government formula). Consultation over rent increases • Leaseholders are notified of rent increases one month in advance to facilitate changes to payment methods. • The Developer will provide transparent increase information via consultation forums. Tenure : Intermediate - Shared equity Formula for rent setting • The Developer will not charge rent on the unsold equity in these properties. • The detailed provisions for the requirements for Leaseholder investment in Shared Equity are set out in Section 12.
Rent Setting. Housing providers are responsible for: ▪ Setting rents commensurate with the Community Housing Income and Asset Limits Policy (June 2013) ▪ Reviewing rents on an annual basis in line with the Community Housing Income and Asset Limits Policy (June 2013) ▪ Identifying where tenants of non-government incorporated associations are eligible for a Commonwealth Rent Assistance payment through Centrelink so the tenant is not financially disadvantage in any way. ▪ Ensuring live in carer are subject to rental charges as they are regarded as a member of a separate household to the tenant. This does not include circumstances where a paid staff member stays at the property on a sleep shift; and whose principal residence is elsewhere.
Rent Setting. Calculation of annual rent review □ Calculation of annual service charge review □ Giving formal notice to tenants of rent reviews □ Keeping records of rent and service charges □ Supply tenants with giro bank swipe cards □
Rent Setting. Harvard Real Estate University Portfolio is treated as a Service Center under federal cost accounting guidelines. As such, HRE sets rents according to A21 guidelines (see below), and must charge all University tenants the same rent for similar space. (The government’s cost accounting standards are structured to ensure that there are no cross-subsidies that might lead to a grant paying a disproportionate amount for any service.) Per the University budget letter: “Harvard Real Estate (HRE) manages residential, commercial, and University space for Harvard. Residential and commercial rents are set at market rates. Rent for University space is cost-based, as directed by Federal regulations (A21 guidelines), which require that internal rents be set at or below the break-even, fully loaded expense level for the space. Expenses include: Direct expenses, such as maintenance staff, building services & repairs, utilities, supplies, real estate taxes, insurance, etc. Indirect expenses such as allocated department overhead (managers and administrative staff, rent, IT & telecom, etc.) Interest expense for debt on acquisition, construction, or renewal of the building and building systems”.
