Subsidised Rent Clause Samples
The Subsidised Rent clause establishes that the tenant will pay a reduced rental amount, typically below the market rate, for the use of the premises. This clause may specify the duration of the subsidised period, the amount of the rent discount, and any conditions that must be met to qualify for the reduced rate, such as operating a certain type of business or meeting community objectives. Its core function is to make the premises more affordable for the tenant, often to support new businesses, non-profits, or specific activities, thereby encouraging occupancy and achieving broader social or economic goals.
Subsidised Rent. Subsidised Rent is scaled to increase over the tenure period, on an annual basis. The scaled rent levels will be set out at the beginning of the first tenancy period as five consecutive annual rent levels that must be paid if the fixed term tenancy continues to be renewed. Subsidised rent is initially set by property type and number of bedrooms. The rent is then scaled up over a five-year period so that it reaches a benchmark market rent for the property at the start of Year 5. Notification of each annual rent increase is issued to tenants with 60 days written notice, in accordance with the Residential Tenancies Act 2010.
Subsidised Rent. Subsidised Rent is calculated as a percentage of Market Rent. This is typically 75% however, this may be higher or lower depending on the program. Subsidised Rent will be capped at a percentage of the total household income, based on the income bands as detailed in the NSW Ministerial Guidelines for Affordable Housing, as follows: • 25% of Very Low Income • 27% of Low Income • 30-35% of Moderate Income Flexibility in pricing may be applied to moderate income households but, in all cases, the relevant circumstances of the applicant household and their capacity to pay will be guiding principles. For example, travel costs may be reduced by accessing housing closer to an applicant’s place of employment. Rental subsidy reviews are conducted in line with the lease renewal process, as detailed in the Rent Policy.