South Australian Consolidated Acts South Australian Consolidated ActsSchedule—Form of housing agreement
AN AGREEMENT made the
day of One Thousand nine hundred and between—
THE COMMONWEALTH OF AUSTRALIA of the first part,
THE STATE OF NEW SOUTH WALES of the second part,
THE STATE OF VICTORIA of the third part,
THE STATE OF QUEENSLAND of the fourth part,
THE STATE OF WESTERN AUSTRALIA of the fifth part,
THE STATE OF SOUTH AUSTRALIA of the sixth part,
THE STATE OF TASMANIA of the seventh part,
THE NORTHERN TERRITORY OF AUSTRALIA of the eighth part,
and
THE AUSTRALIAN CAPITAL TERRITORY of the ninth part.
WHEREAS:
(A) the Commonwealth and the States of
Australia have from time to time entered into agreements for the purpose of
the provision by the States with financial assistance from the Commonwealth of
housing;
(B) by an agreement between the
Commonwealth, the States of Australia and the Northern Territory of Australia
dated the twenty-fifth day of October 1984, being an agreement in the form
authorized to be executed on behalf of the Commonwealth by the
Housing Assistance Act 1984 of the Commonwealth Parliament and being the
last of the agreements referred to in Recital (A), provision was so made with
respect to the ten years commencing on the first day of July 1984;
(C) the Ministers of the respective
governments throughout Australia who are responsible for housing have agreed
upon the provision of rental housing assistance and home purchase assistance
during the ten years commencing on the first day of July 1989;
(D) the primary principle of this agreement
is to ensure that every person in Australia has access to secure adequate and
appropriate housing at a price within his or her capacity to pay by seeking
to:
• alleviate
housing-related poverty;
and
• ensure that
housing assistance is, as far as possible, delivered equitably to persons
resident in different forms of housing tenure.
In implementing this principle, assistance provided under the agreement will
also reflect the following detailed principles:
(a) Assistance
Generally
The primary consideration in delivering housing assistance under this
agreement shall be the needs of people.
In determining the eligibility of applicants for assistance under this
agreement:
• assistance
shall seek to provide access to housing for those unable to obtain or maintain
affordable finance for adequate and appropriate housing purchase from the
private sector or from other sources outside of the agreement;
• assistance
provided shall be available to all sections of the community irrespective of
age, sex, marital status, race, religion, disability or life situation.
Persons who need support to live in the community shall be eligible for
assistance. It is recognized, however, that such support is not a
responsibility under this agreement;
• priority in
granting assistance shall be determined by the need for assistance;
• any limits on
eligibility for assistance shall be based primarily on financial
circumstances. In determining this, the level of income, the value of relevant
assets and the income from them, the number of dependent children and costs
arising from disability or other special circumstances, shall be taken into
account;
and
• to ensure
consistency in the application of these eligibility principles, limits of
eligibility shall be reviewed at appropriate intervals of time.
In the delivery of housing assistance, as far as is possible, people should be
given an equal choice between the different forms of housing assistance
programmes under this agreement.
Housing assistant programmes developed under this agreement shall be designed
so that maximum social benefit is derived from previous investment in housing.
Assistance shall be provided in a co-ordinated and flexible manner to meet the
changing employment and other needs and circumstances of people receiving
assistance. To this end and where appropriate:
• housing
assistance provided under this agreement should be co-ordinated with housing
and accommodation assistance programmes outside this agreement;
• the provision
of assistance for people shall be co-ordinated between the specific purpose
programmes within the agreement and general housing assistance under the
agreement;
and
• assistance
shall facilitate the portability of waiting times for applicants for
assistance, and the transfer of tenants, between regions and forms of
assistance within a State, and, where practicable, between States.
(b) Rental Housing
The provision of rental housing is a key element of this agreement. People in
rental housing shall have security of tenure. Subject to fulfilment by the
tenant of the tenancy conditions, this principle of security of tenure shall
operate in a State in accordance with this Recital to ensure that:
• tenants are
not to be forced to leave their home because of actions inconsistent with this
agreement by a State. Where a tenant is required to move from one dwelling to
another by a State, a choice of dwellings and locations appropriate to the
tenant's needs is to be provided;
• a physical and
locational environment appropriate to the tenant's needs is provided;
and
• recognition is
accorded to the rights of applicants and tenants and other users of
assistance.
Programmes and funding arrangements under this agreement should seek to
develop the public housing sector as a viable and diversified form of housing
choice and refrain from discrimination.
Programmes and funding arrangements under this agreement shall be developed so
as to increase progressively the availability of rental housing to a level
commensurate with the need for it in the community.
Rental housing should reflect general community housing standards and should
be accessible to community and other services. Poor location of dwellings, an
inadequate range of choice of dwellings, and stigmatisation of the status of
rental housing tenants should be avoided to the maximum extent practicable.
Rental housing stock should, as far as possible, be designed to cater for the
needs and preferences of current and likely future applicants. The design,
style and siting of rental housing will, to the maximum extent practicable:
• reflect the
need for access to employment opportunities and services;
• reflect the
need for accessibility and suitability for habitation by people with
disabilities, Aboriginals, youth, the elderly or other identified groups;
and
• support the
energy conservation policies of the governments.
(c) Income Related
Assistance to Tenants
Assistance measures in the public rental sector should be co-ordinated with
assistance to private tenants and should recognize the income support nature
of the assistance and the inter-relationship of this assistance with
Commonwealth assistance to pensioners and other beneficiaries under the Social
Security Act 1947 .
(d) Implementation
States will be able to exercise maximum autonomy and flexibility in developing
the administrative arrangements necessary to achieve these principles;
(E) the Ministers referred to in Recital
(C) recognise the relationship between the principles and policies reflected
in this agreement and the need to co-ordinate these with those affecting home
purchasers and tenants including tenants in private housing and in emergency
and supported accommodation;
(F) it is proposed that in order to
implement the agreement of the Ministers, the Commonwealth will grant to the
States financial assistance under Section 96 of the Commonwealth of Australia
Constitution and like assistance to the Northern Territory of Australia and
the Australian Capital Territory and that the terms and conditions on which
the grant of financial assistance should be made are those set out in this
agreement;
(G) the Commonwealth and the States have
decided that the agreement referred to in Recital (B) shall, save as provided
for by subclause 1(3) of this agreement, cease to operate on and from the
first day of July, 1989;
and
(H) the Parliament of the Commonwealth has
authorized the execution by and on behalf of the Commonwealth of this
agreement and the provision of financial assistance to the States in
accordance with its provisions.
NOW IT IS HEREBY AGREED as follows:
PART I—OPERATION OF AGREEMENT
1. —
(1) This agreement
shall be deemed to have come into effect on 1 July, 1989, in respect of the
Commonwealth and of a State when it is signed on behalf of the Commonwealth,
and—
(a) where the laws of
a State require that its Parliament authorize the execution of or approves,
the agreement, when it has been signed on behalf of the State with the
authority of the Parliament of the State or, having been signed on behalf of
the State without the authority is approved by the Parliament of the State;
or
(b) where the laws of
the State do not require that its Parliament authorize the execution of, or
approve, the agreement, when it has been signed on behalf of the State.
(2) Notwithstanding
that in this agreement all the States are named as parties, this agreement
shall operate as an agreement between the Commonwealth and the party or
parties in respect of which it comes into force as fully and effectually as if
the party or parties in respect of which it comes into force were the only
party or parties so named other than the Commonwealth.
(3) Subject to
obligations arising under Part VIII of the agreement referred to in
Recital (B) and unperformed prior to the first day of July, 1989, that
agreement shall be deemed to have ceased to operate on and from that date.
PART II—PARTIES
2. —
(1) A reference in
this agreement to a State shall, except where the contrary intention appears
and according to the requirements of the context, be deemed to include a
reference to the Northern Territory of Australia and to the Australian Capital
Territory.
(2) In this agreement,
subject to this clause and except where the context otherwise indicates—
(a) "the Commonwealth"
means the Commonwealth of Australia;
(b) each State,
including the Northern Territory of Australia and the Australian Capital
Territory, named as a party in respect of which this agreement comes into
force is referred to as a "State" and, except where the context otherwise
indicates, "the States" means all of those States;
and
(c) "the Australian
Capital Territory" means the body politic established under the Crown by that
name by section 7 of the Australian Capital Territory (Self-Government)
Act 1988 .
PART III—INTERPRETATION
3. —
(1) In this
agreement—
"the Minister" means the Minister of State of the Commonwealth for the time
being responsible for the administration of this agreement for the
Commonwealth:
"State Minister" means the Minister of State of a State for the time being
responsible for the administration of this agreement for the relevant State.
(2) A reference in
this agreement to—
(a) a Minister
includes the Minister or other member of the Federal Executive Council;
or
(b) a State Minister
includes a Minister of the relevant State or other member of the State
Executive Council,
acting on behalf of, or for the time being acting for, the Minister or State
Minister referred to.
4. In this agreement
unless the contrary intention appears or the context otherwise requires—
"direct costs" means costs and fees generally accepted in the private sector
as related to the production or purchase of rental housing:
(a) including relevant
overheads and administration costs;
and
(b) excluding stamp
duties of the State:
"dwelling" means a dwelling-house or flat includes such fences, outbuildings
and other improvements and such connections for sewerage, drainage, water,
electricity, gas and other services as provided or are reasonably required to
be provided for the dwelling-house or flat:
"existing housing agreements" means both the agreements referred to in the
first Schedule to the form of agreement scheduled to the Housing Assistance
Act 1984 and the agreement dated the twelfth day of March, 1985, in the
form scheduled to that Act ("the 1984 Agreement"):
"Family Allowance Supplement" means the Family Allowance Supplement for which
Part IX of the Social Security Act 1947 provides:
"home purchases" means—
(a) a person including
a participant in a shared ownership scheme purchasing with assistance under
Part VIII housing including rental housing;
or
(b) a person who is a
rental purchaser:
"housing" means residential housing including dwellings and other forms of
residential accommodation:
"person" includes a body, co-operative, group or other organization whether
incorporated or not:
"previous housing arrangements" means the provisions in relation to
housing—
(a) that were made:
(i)
by the existing housing agreements;
(ii)
by the States Grants (Housing) Act 1971 , the
Housing Assistance Act 1973 , the Housing Assistance Act 1978 , the
States (Works and Housing) Assistance Act 1982 , the States (Works and
Housing) Assistance Act 1983 , the Housing Assistance Act 1984 ,
the States (Works and Housing) Assistance Act 1984 and 1985 , the
Housing Assistance Amendment Act 1987 and the
States (Works and Housing) Assistance Act 1988 ;
(iii)
under any arrangements entered into special
Employment-related Programs Act 1982 ;
and
(b) that are made by
legislation passed hereafter by the Commonwealth Parliament under which
financial assistance is made available to the State for housing, but on terms
and conditions specified in this agreement:
"rental housing" means housing for rental which has been provided under the
previous housing arrangements or is provided under this agreement and "rental
dwelling" means a dwelling that is included in rental housing:
"rental purchase" means a purchase under a terms contract of sale:
"rental purchaser" means a person purchasing under a terms contract of sale:
"shared ownership" means the ownership of a share in a dwelling:
"the Commonwealth Act" means the legislation of the Commonwealth Parliament by
which an agreement substantially in this form is authorized to be executed by
or on behalf of the Commonwealth:
"upgrading" means improvements, excluding repairs and other maintenance,
relating to a rental dwelling which is so identified in State housing
authority published accounts:
"year" means a period of twelve months commencing on the first day of July.
5. In this agreement
unless the contrary intention appears—
(a) a reference to a
Part or to a clause is to a Part or to a clause of this agreement, as the case
may be;
(b) a reference to a
subclause is, unless otherwise indicated, to the relevant subclause of the
clause in which the reference appears;
(c) the Schedule
referred to is the Schedule to the agreement;
(d) words importing a
gender include every other gender;
(e) words in the
singular number include the plural and vice versa;
and
(f) a reference to a
date on or by which a thing is to be done shall, if that date falls on a
Saturday, Sunday, public holiday or bank holiday in the place in which the
thing is to be done, be read and construed as if the reference was the day
immediately preceding that day which is not a Saturday, Sunday, public holiday
or bank holiday in that place.
PART IV—OBJECTIVE OF AGREEMENT
6. The objective of
this agreement is the provision by the States, with financial assistance from
the Commonwealth, of housing assistance for rental housing and for home
purchase in accordance with, and in fulfilment of, the principles set out in
Recital (D).
PART V—FINANCIAL ASSISTANCE
7. —
(1) In order to assist
the States in the achievement of the objective of this agreement, the
Commonwealth will, upon the subject to the provisions of this agreement, out
of moneys appropriated by Parliament for the purpose, provide to the States
during the years of this agreement, financial assistance for housing purposes
(hereinafter in this agreement referred to as "financial assistance") by way
of interest free non-repayable grants ("grants").
(2) The years of this
agreement shall be the ten years commencing on the first day of July in the
years 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997 and 1998.
8. The Commonwealth
will provide financial assistance—
(a) in respect of the
first year of the agreement—
(i)
to the States, excluding the Australian Capital
Territory, totalling one thousand and ten million four hundred and four
thousand dollars ($1 010.404 million) consisting of—
(A) two hundred and thirty three million
one hundred and fifty four thousand dollars ($233.154 million) by way of
specific housing assistance under Part XII;
and
(B) seven hundred and seventy seven million
two hundred and fifty thousand dollars ($777 250 million) by way of
untied assistance;
and
(ii)
to the Australian Capital Territory, of seventeen million
seven hundred and seventy two thousand dollars ($17.772 million) by way of
specific housing assistance and untied assistance;
and
(b) in respect of each
of the second year, the third year and the fourth year of the agreement—
(i)
to the States, excluding the Australian Capital
Territory, being an amount equal to the first amount specified in subparagraph
8 (a) (i);
and
(ii)
to the Australian Capital Territory being an amount equal
to the amount specified in subparagraph 8 (a) (ii), by way of specific housing
assistance and untied assistance;
and
(c) in respect
of—
(i)
any of the second year, the third year or the fourth year
of the agreement for which the Minister determines additional financial
assistance;
and
(ii)
each of the remaining years of the agreement—an
amount determined by the Minister for each of those years,
in writing signed by the Minister.
9. The Commonwealth
may provide to the States out of moneys appropriated by the Commonwealth
Parliament for the purpose, financial assistance for home purchase assistance,
rental housing assistance and, in accordance with Part XII, specific housing
assistance.
10. In and for the
purpose of this agreement—
(a) the following
grants shall be known as "specific housing assistance grants"—
(i)
financial assistance under sub-subparagraph 8 (a) (i)(A);
(ii)
so much of financial assistance provided subparagraph 8
(a) (ii) as is authorized for expenditure under clause 30;
(iii)
so much of financial assistance provided under paragraph
8 (b) as is authorized for expenditure under clause 30;
and
(iv)
so much of other financial assistance authorized for
expenditure under clause 30;
and
(b) financial
assistance to be provided other than specific housing assistance grants shall
be known as "untied assistance".
11. Financial
assistance shall be allocated between the States in such manner as is provided
by the Commonwealth Act and it shall be a condition with respect to the
provision of untied assistance that a State will match the amount of that
financial assistance from its own resources in accordance with Part IV.
12. A State shall, as
agreed by the Minister and State Minister, include in material for use by
persons seeking or receiving housing assistance from the State funded under
this agreement, particulars to be provided by the Minister sufficient to
indicate that that housing assistance is provided in whole or in part with
financial assistance from the Commonwealth.
PART VI—STATE MATCHING FUNDS
13. —
(1) In relation to
untied assistance a State will provide from its own resources and apply funds
("matching funds") in accordance with this Part.
(2) Subject to the
subclause 13(3), the amount of matching funds to be provided in respect of a
year in accordance with this Part shall be an amount equal to the amount of
untied assistance provided to the State in respect of that year, determined as
follows:
(a) at least half
("grant matching funds") shall be grants paid by the State into the Rental
Capital Account;
(b) the balance shall
be met from the value of home loans provided under Part VIII through home
purchase assistance programs agreed between the Minister and State Minister;
and
(c) an amount
determined by the Minister under paragraph 36 (b) shall be deemed to remain
"untied assistance" for the purpose of this Part.
(3) In respect of the
first four years the level of grant matching funds otherwise to be applied to
the Rental Capital Account will be phased in as follows:
(a) in the first year
the State will match on a $3:$12 basis;
(b) in the second year
the State will match on a $4:$12 basis;
(c) in the third year
the State will match on a $5:$12 basis;
and
(d) in the fourth year
the State will match on a $1:$2 basis.
(4) A State may, as
agreed by the Minister and State Minister, count as grant matching funds in a
year, amounts provided by it in the previous year in accordance with paragraph
13(2) (a) in excess of the level of matching funds required in
subclause 13(3) for that year, up to a limit of 10 per cent of the funds
so required to be provided in that previous year.
(5) A State will have
to pay no more in matching funds relating to the first $1 028.176 million
of financial assistance provided—
(a) in any of the
years referred to in subclause 13(3) than would have been paid had the
allocation and matching fund requirements to apply for the said fourth year
been applied in any of those years;
and
(b) in any year than
would have been required had the level of untied assistance been $792.931
million.
(6) Except as to the
first year, for which proposals shall be agreed by the Minister and State
Minister by the thirty first day of December, a State shall, by the thirty
first day of March preceding the second and each succeeding year of this
agreement, furnish of the Commonwealth, in a reasonable form to be determined
by the Minister after consultation with the State Minister, proposals for
agreement by the Minister for the provision of matching funds during that
year.
(7) Grant matching
funds shall be—
(a) paid into the
Rental Capital Account by regular monthly instalments or as otherwise agreed
between the Minister and State Minister;
and
(b) separately
identified in State budget documents or otherwise identified as agreed between
the Minister and State Minister.
(8) Matching funds
will not include—
(a) funds which have
been used to match financial assistance provided by the Commonwealth otherwise
than under this agreement;
(b) funds already paid
into the Rental Capital Account;
(c) proceeds from the
sale after the first day of July 1984 of rental housing and land acquired
under previous housing arrangements and this agreement;
(d) any funds
transferred from the Home Purchase Assistance Account to the Rental Capital
Account;
or
(e) surpluses
generated on rental housing operations.
14. Where a State in a
year expends a specific housing assistance grant in accordance with the
Commonwealth/State plan for that year, this expenditure shall not increase the
level of matching funds required to be provided by the State in that year.
PART VII—FINANCIAL ASSISTANCE ARRANGEMENTS
15. —
(1) Financial
assistance in respect of a year of this agreement shall be made available to a
State during that year by regular monthly instalments unless otherwise agreed
between the Minister and State Minister.
(2) If, following
consultation with a State Minister, the Minister is of the opinion that it is
appropriate to do so, the Minister may withhold a payment of financial
assistance to a State which fails to comply with subclause 13(6), or clause 38
until the State remedies that failure.
PART VIII—HOME PURCHASE ASSISTANCE
16. The Home Purchase
Assistance Account of each State, for the continuance of which clause 24 of
the 1984 Agreement provided, shall continue to operate. The Australian Capital
Territory shall open an Account by the name within the first year of this
agreement. Each of those Accounts and related Accounts are in this Part
referred to as "the Account" and elsewhere as "the Home Purchase Assistance
Account".
17. This Account shall
be—
(a) credited
with—
(i)
moneys received by the State in the course of home
purchase assistance program operations;
(ii)
payments referred to in paragraph 23(2) (f) ;
and
(iii)
any other funds, not being Commonwealth financial
assistance or State grant matching funds, which the State decides to apply to
home purchase assistance programs under this agreement;
and
(b) debited with
management costs and other outgoings, including repayments and payments under
paragraphs 20(1) (a) and 20(1) (b) , in respect of home purchase assistance
program operations.
18. The money in this
Account shall be made available for use for home purchase assistance in
accordance with this Part.
19. A State shall
develop and administer home purchase assistance programs, in accordance with
Recital (D), having regard to the following principles:
(a) the Account is to
act as a basis and support for future home purchase. To this end a State shall
ensure—
(i)
funds made available for use under clause 18 are to be
used in a way which at least maintains their real value;
and
(ii)
that funds paid into the Account in accordance with
paragraph 23(2) (f) are included in funds available for use in
subparagraph 19 (a) (i);
and
(iii)
that the amount of the funds available for use under
paragraph 19 (a) (i) are reduced by the payments made under
subparagraph 20(1) (j) ;
(b) the efficient use
of the Account. To this end—
(i)
a State shall maximise the use of funds from sources
outside the agreement for loans to home purchasers;
(ii)
subsidy assistance is to be restricted to those who
require it and for the period of their need and recovered except in cases of
individual hardship. Where subsidy assistance is provided, the capacity of
home purchasers to repay loans to the State is to be reviewed at least
triennially with repayments to be adjusted or other action to be taken where
necessary. In any year other than one in which there is a review, repayments
are to be indexed by the Consumer Price Index or other appropriate indicator;
and
(iii)
where a State wishes to provide subsidy assistance other
than in accordance with subparagraph (ii), it may do so from funds provided by
the State under subparagraph 17 (a) (iii);
(c) a State shall
maximise the effectiveness of assistance provided. To this end—
(i)
the amount of a loan shall take into account market
conditions, including house prices, incomes and the size of a deposit;
and
(ii)
loan repayments are to be related to the income of home
purchasers, and to be affordable to those home purchasers. To this end,
repayment ratios operating in the private market are to be taken into account.
A State may reschedule repayments by a home purchaser in the event of
individual hardship;
(d) a State shall
ensure maximum choice of assistance. To this end—
(i)
no class of persons, including single persons, shall be
excluded from consideration;
(ii)
home purchase schemes are to be accessible to existing
public tenants;
(iii)
where appropriate, shared ownership and rental purchase
schemes are to be offered;
and
(iv)
schemes developed under this principle shall be
consistent with the provisions in clause 27 of this agreement;
and
(e) home purchase
assistance under the agreement is to be related to other home purchase
assistance programs operated by the Commonwealth and States.
20. —
(1) Subject to
subclause 20(2), a State may use moneys in the Account in accordance with the
principles set out in Recital (D) and clause 19 for—
(a) making repayments
of principal and payments of interest falling due in the then current year in
respect of loan assistance by the Commonwealth to the State under previous
housing arrangements which has been allocated for home purchase assistance
under those arrangements;
(b) making repayments
of principal and payments of interest in respect of any State funds borrowed
for the purpose of this Part allocated for home purchase assistance;
(c) meeting
expenditure by the State in providing and administering home purchase
assistance;
(d) facilitating
borrowings of private bodies for home purchase assistance under this
agreement, including participation in joint ventures and mortgage funds such
as secondary mortgage market trusts;
(e) making loans and
grants to:
(i)
terminating building societies or co-operative housing
societies;
(ii)
a lending authority of the State approved by the State
Minister;
(iii)
registered co-operative organisations including permanent
building societies approved by the State Minister;
(iv)
such other class or classes of bodies or organisations as
are from time to time agreed upon between the Minister and State Minister;
and
(v)
a class or classes of home purchasers,
for the provision of home purchase assistance;
(f) financing the
construction and purchase of dwellings, including the purchase of dwellings
from the home purchasers, and financing purchases by home purchasers who are
borrowers;
(g) purchasing
housing, including private housing, for sale to rental purchasers and
financing such sales;
(h) the acquisition by
the State of replacement housing of a value equal to the amount for which the
State sells rental housing to home purchasers;
(i) urban renewal,
housing advisory services and research and policy development in relation to
matters not funded by the Australian Housing Research Council;
(j) making payments
into the Rental Capital Account;
(k) making loans to
participants in shared ownership schemes;
(l) such other
purposes as are from time to time agreed upon by the Minister and State
Minister.
(2) Moneys paid into
the Account under paragraph 23(2) (f) are to be used only for home purchase
assistance programs approved by the Minister for public tenants and persons
eligible for rental housing, with preference to be given to shared ownership
schemes.
PART IX—RENTAL HOUSING ASSISTANCE
21. A State will
establish a Rental Capital Account (in this Part referred to as "the Account"
and elsewhere as "the Rental Capital Account") which shall be operated by the
State in accordance with this Part. All moneys in the Account are to be fully
expended or committed in the year in which they are credited to the Account.
22. A State will pay
into the Account—
(a) in each year of
this agreement—
(i)
all untied assistance paid by the Commonwealth to the
State under this agreement during that year;
(ii)
an amount of specific housing assistance grants as agreed
by the Minister and State Minister;
(iii)
grant matching funds;
(iv)
such part of the cash surplus of revenue over outgoings
arising from rental operations as it not applied to rental operations in
accordance with clause 24;
(v)
net proceeds from the sale after the first day of July
1989 of rental housing and land acquired under previous housing arrangements
and the agreement referred to in Recital (b) or from the Account under this
agreement;
(vi)
State moneys which the State wishes to, and may
consistently with this agreement, apply under clause 23 to activities referred
to in this Part;
and
(vii)
any other funds as agreed between the Minister and State
Minister;
and
(b) additionally, in
the first year of the agreement, such part of financial assistance and State
matching funds provided under previous housing arrangements applied by the
State to rental housing assistance as is unexpected at 1 July 1989.
23. —
(1) A State may use,
in accordance with the principles set out in Recital (D) and the
Commonwealth/State plan, moneys in the Account—
(a) to meet the direct
costs associated with the construction of rental housing;
(b) to meet the costs
of, and associated with, the acquisition, planning and development of land for
rental housing development;
(c) to make payments
for, or provide bridging finance for, the provision of open space,
landscaping, community facilities and for costs associated with land
development, including contributions to headworks and reticulation of
services, directly related to rental housing;
(d) to make payments
for the upgrading of rental housing;
(e) to meet the direct
costs associated with the purchase of housing for rental housing;
(f) to engage in urban
renewal activities related to rental housing;
(g) to allocate funds
to local government bodies for the construction or purchase of rental housing,
where a State Minister considers it would be more appropriate for rental
housing to be provided by those bodies;
(h) to participate in
joint ventures, co-operative enterprises or similar arrangements, other than
those of an ongoing or recurrent nature, for the provision of rental housing
integrated with private housing to achieve a desirable socio-economic mixture;
(i) to meet the direct
costs of construction or purchase of dwellings for rental to participants in
shared ownership schemes, with both the schemes and the costs to be agreed by
the Minister and State Minister, where it is not practicable to fund the
construction or purchase for this purpose from funding sources outside this
agreement;
and
(j) to pay principal
and interest falling due in a year on Commonwealth loans provided to the State
under previous housing arrangements, the amount of the payments being phased
in over three years with 50 per cent available in the first year, 75 per cent
in the second year and 100 per cent in the third year or as agreed by the
Minister and State Minister, having regard to the cash surplus on rental
operations.
(2) The Minister shall
determine for a State in a year part of the Account as a general allowance,
that part being an amount equal to 20 per cent, or as agreed between the
Minister and State Minister, 25 per cent, of—
(a) for the first
three years of this agreement, the total of untied assistance and grant
matching funds—
(i)
that would be paid into the Account in the fourth year of
the agreement if the total of untied assistance to all the States for that
year remained at the total for the first year of this agreement;
or
(ii)
that is paid into the Account in each of those years,
as the State Minister determines;
and
(b) for the fourth
year and succeeding years of this agreement, the total of untied assistance
and grant matching funds paid into the Account in each of those years,
to be used by the State—
(c) to provide funds
to such non-profit, charitable bodies, rental housing co-operatives, voluntary
bodies, local government bodies and other housing management bodies or groups
as are approved by the State Minister;
(d) where agreed by
the Minister and State Minister—
(i)
to lease;
(ii)
to subsidise leasing of;
and
(iii)
to subsidise other arrangements not of a capital nature
in relation to,
rental housing;
(e) to provide rental
subsidies for renting private housing for those who are unable to obtain or
maintain affordable finance for adequate and appropriate housing purchase from
the private sector or from other sources outside of the agreement;
(f) for payment into
the Home Purchase Assistance Account, up to the level of 15 per cent of the
amounts referred to in paragraphs 23(2) (a) and 23(2) (b) ;
(g) to meet the costs
associated with—
(i)
the consulting referred to in subclause 28(5);
and
(ii)
the provision of information in accord with subclause
38(6);
or
(h) for any other
purposes agreed upon between the Minister and State Minister.
(3) Any part of the
general allowance determined by the Minister under subclause 23(2) for a
State for a year which will not be fully expended or committed in that year
for the purposes of that subclause shall be expended or committed in that year
for the purposes of subclause 23(1).
(4) Where in any year
the general allowance determined by the Minister under subclause 23(2) is
not fully expended or committed in the year for which it was determined, the
amount of the general allowance for the succeeding year shall be increased by
the amount of the general allowance not so expended or committed in the
previous year up to a maximum of one half of the general allowance for that
year. If the amount by which the general allowance for the succeeding year is
so increased is not fully expended or committed by the State in that year,
entitlement to it shall lapse.
24. Any cash surplus
of revenue over outgoings arising from rental operations in a year to be
applied to those operations or to the Rental Capital Account.
25. The conditions of
eligibility of persons for rental housing assistance shall be determined by
the State in accordance with the principles set out in Recital (D) and so that
priority in granting assistance is determined by the need for assistance. No
class of persons including the classes of single persons and of young persons
shall be excluded from consideration.
26. —
(1) In determining
rents for rental housing in accordance with the principles set out in Recital
(D), a State shall fix rents having regard primarily to the costs to the State
of providing that housing and to the capacity of tenants to afford to pay. To
this end—
(a) where a State
considers that a tenant has sufficient capacity to pay, the rent shall be not
less than either that which would result from the application of the
principles set out in the Schedule or market rent;
and
(b) in other cases,
the rent shall be set in accord with the tenant's capacity to pay and to
assist in the alleviation of poverty or hardship.
(2) In determining
capacity to pay rent, a State shall:
(a) have regard to the
level of income, including income from assets of the tenant and other
household members;
(b) take into account
the number of dependent children in the tenant's household;
(c) ensure that
tenants with similar capacity to pay, pay similar rents;
(d) ensure that work
disincentives are minimised;
and
(e) have regard, as
agreed between the Minister and State Minister, to the receipt by any member
of the tenant's household of Family Allowance Supplement.
(3) Rents are to be
reviewed at least annually.
(4) Subclauses 26(2)
and 26(3) and paragraph 26(1) (b) are to come into effect from 1 July 1990 and
paragraph 26(1) (a) from the same date or progressively over a period of three
years from that date if the State Minister so determines, unless the Minister
and State Minister agree upon another period to take into account the level of
rents prevailing in the private rental market.
27. —
(1) A State may sell
rental housing, including that the subject of shared ownership or rental
purchase, but such sales, if any, shall be in accordance with the principles
set out in Recital (D) and subject to the following conditions:
(a) all sales shall be
made—
(i)
in the case of the sale occurring within 5 years after
the date of purchase or construction of the house, at a price at least equal
to the replacement cost at the time of sale of the whole or the share of the
dwelling sold;
and
(ii)
in any other case, at a price equivalent to the market
value or replacement cost at the time of the sale of the whole or the share of
the dwelling sold,
provided however that—
(iii)
the vendor may allow a credit to the tenant in respect of
the value of improvements made by the tenant;
and
(iv)
the State may, if the Minister and State Minister agree,
sell rental housing to a body, co-operative, group or other organisation which
makes available rental housing under this agreement, at a price that is less
than the value or cost stipulated in subparagraphs 27(1) (a) (i) or 27(1) (a)
(ii);
(b) in all sales of
rental housing, the vendor is, at or prior to the date of the sale, to have
received an amount calculated in accordance with paragraph 27(1) (a) ;
(c) in the case of a
rental purchase, home purchase assistance funds may be used to enable the
vendor to receive an amount referred to in paragraph 27(1) (b) ;
and
(d) net proceeds from
sales of rental housing shall be used to construct or purchase replacement
housing and associated land which is to be included in rental housing for the
purpose of this agreement.
(2) A State shall
ensure that if any body, co-operative, group or other organisation which
acquires rental housing with rental housing assistance funds or acquires at
other than market value or replacement cost rental housing from the State,
sells, otherwise disposes of, or uses that housing for a purpose other than
rental housing as provided for under this Part—
(a) within five years
of the date of purchase or construction of the housing by the State, it shall
repay to the State an amount equal to what would be the net proceeds from a
sale at replacement cost of the housing;
and
(b) thereafter, it
shall repay to the State an amount equal to what would be the net proceeds
from the sale, at market value or replacement cost, of that housing.
PART X—COMMONWEALTH/STATE HOUSING ASSISTANCE PLANS
28. —
(1) There shall be a
Commonwealth/State plan in accordance with Recital (d) , agreed by the
Minister and State Minister, in respect of a State for each year of this
agreement, excluding the first year, setting out the provision of housing
assistance under this agreement. The plan shall have regard to the period and
level of funding provided under Parts V and VI of this agreement. In each year
the plan shall be agreed by the Minister and State Minister prior to the
commencement of the year to which the plan refers.
(2) Within the
framework of the funds available under Parts V and VI, and the operation of
other Commonwealth and State housing programs, each plan shall include:
(a) an assessment of
housing need;
(b) an assessment both
of the resources available to provide programs of assistance and of the
assistance resulting from those programs. In assessing the resources, regard
shall be had to the effect of sales of rental housing under this agreement;
(c) allocation
priorities and targets;
(d) program delivery
priorities and targets including priorities and targets relating to the
provision of information under Part XV of this agreement;
and
(e) other matters as
agreed between the Minister and a State Minister.
(3) A State shall
draft for submission to the Joint Officers' Group the Commonwealth/State plan
on the basis of the broad content and framework of the plan agreed by the
Joint Officers' Group. This Group shall then consider and recommend the
Commonwealth/State plan to the Minister through the State Minister for their
mutual agreement.
(4) A Joint Officers'
Group shall be established in respect of a State, and shall comprise members
drawn from:
(a) the Commonwealth;
and
(b) the State as
nominated through the agency of the State determined under clause 33.
(5) The Joint
Officers' Group shall be responsible for:
(a) consulting with
organisations relevant to the delivery of public housing assistance;
(b) developing and
agreeing on the broad content and framework of the Commonwealth/State plan,
taking into account Commonwealth and State priorities for rental housing
assistance in that year;
and
(c) considering the
Commonwealth/State plan submitted to it by the State and recommending the plan
to the Minister and State Minister.
PART XI—USER RIGHTS AND PARTICIPATION
29. In implementation
of the principles set out in Recital (d) a State shall ensure that, by way of
user rights and participation:
(a) applicants for,
and recipients of, housing assistance have access to—
(i)
information about available housing assistance and its
current policies on that assistance, tenancy conditions and appeal mechanisms.
In providing this information, a State shall have particular regard to the
special needs of people with limited abilities in relation to literacy,
comprehension or command of English;
and
(ii)
an independent appeal mechanism, agreed by the Minister
and State Minister, from decisions as to the provision by the State of housing
assistance funded under this agreement, which is to be in force by
31 August 1990;
and
(b) persons in receipt
of rental housing assistance have maximum opportunity to participate in the
management of their dwellings and estates and in the development of public
housing policies.
PART XII—SPECIFIC HOUSING ASSISTANCE
30. The Minister may
in writing authorise, subject to guidelines made consistently with this
agreement and agreed between the Minister and a State Minister relating to the
following programs including guidelines as to the provision of any funds by a
State in relation to each program, grants to a State for expenditure on:
(a) rental housing
assistance for pensioners;
(b) rental housing
assistance for Aboriginals;
(c) mortgage and rent
relief;
(d) crisis
accommodation;
(e) local government
and community housing;
and
(f) any other program
determined by the Minister following consultation with a State.
31. —
(1) Rental housing
provided with grants for specific housing assistance may be sold by a State
subject to and in accordance with the provisions of clause 27.
(2) Unless otherwise
agreed by the Minister, the net proceeds of sale of rental housing provided
for a specific purpose or program with grants under this Part shall only be
applied to provide rental housing for the same purpose or program.
(3) This clause shall
apply to rental housing that has been provided from grants made by the
Commonwealth to a State under Part III of the Housing Assistance
Act 1978 or under Part XI of both the agreement made 23 December 1981,
the execution of which was authorised by the Housing Assistance Act 1981
, and the 1984 Agreement respectively or under this Part of this agreement.
PART XIII—OBSERVANCE OF AGREEMENT
32. The Commonwealth
shall provide for, or secure the performance by it and its authorities of, the
obligations of the Commonwealth under this agreement and each of the States
shall provide for, or secure the performance by the State and its authorities
of, the obligations of the State under this agreement.
33. A State shall
determine an agency or agencies (including bodies or organisations that are
not authorities of the State) or the performance of this agreement on behalf
of the State and acts and things that are done by or with respect to the
agency or agencies so determined shall, for the purposes of this agreement, be
deemed to have been done by or with respect to the State.
34. If the Minister in
writing informs the State Minister that the Minister is satisfied the State
has failed to ensure that an amount of financial assistance provided to the
State has been applied for the purposes and in the manner provided for by this
agreement with respect to that financial assistance, the State will repay that
amount or such part of that amount as the Minister thinks reasonable to the
Commonwealth.
35. If a State fails
for any reasons to meet the requirements for the provision by it of matching
funds in accordance with Part VI or Part XII with respect to any financial
assistance that has been provided to it, the State will upon request directed
to the State Minister by the Minister in writing, repay to the Commonwealth
the amount of that financial assistance or so much of that amount as is
specified in the request.
36. If the Minister
and a State Minister cannot agree, in a year in which it is to be agreed, on
allocation or program delivery priorities and targets to be included in a
Commonwealth/State plan for the subsequent year, or if a State fails to apply
priorities or achieve targets included in a Commonwealth/State plan in respect
of a year, otherwise than because of matters beyond its control, the Minister
may, following consultation with the State Minister—
(a) determine for the
subsequent year, an amount of untied assistance which is to be expended in
that year on priorities and targets determined by the Minister;
or
(b) determine for the
subsequent year, an amount which otherwise would be untied assistance to
become part of the specific housing assistance for that State for that year.
PART XIV—TRIENNIAL EVALUATION
37. In accordance with
the arrangements to be agreed between the Minister and State Ministers, the
operation of the agreement is to be evaluated triennially.
PART XV—SUPPLY OF INFORMATION
38. —
(1) A State shall, not
later than the thirtieth day of November preceding the beginning of a year of
this agreement, provide the Minister in a reasonable form, determined by the
Minister after consultation with the State Minister—
(a) estimates of the
financial resources and program outputs in respect of rental housing and home
purchase assistance programs for the year;
(b) revised estimates
of those financial resources and program outputs for the then current year;
and
(c) final figures for
those financial resources and program outputs for the previous year.
(2) A State shall
furnish in respect of each year to the Commonwealth by the thirtieth day of
November occurring after that year and in a reasonable form to be determined
by the Minister after consultation with the State Minister—
(a) statements in
respect of the operation of—
(i)
the Rental Capital Account;
and
(ii)
the Home Purchase Assistance Account;
(b) statements which
set out particulars of the expenditure during the year by the State of—
(i)
amounts on home purchase assistance programs, being
matching funds under paragraph 13(2) (b) ;
and
(ii)
grants for specific housing assistance;
and
(c) statements which
set out—
(i)
the manner in which the State has fixed rents in
accordance with clause 26;
and
(ii)
any cash surplus or deficit or revenue over outgoings
arising from rental operations.
(3) A State shall
publish an audited statement on the operation in each year of the Rental
Capital Account no later than nine months after the conclusion of a year.
(4) The information to
be included in a statement pursuant to subclause 38(3) will be no less than
that to be furnished to the Minister on the operation of the Rental Capital
Account, pursuant to subclause 38(2).
(5) A statement
furnished pursuant to subclause 38(2) is to be certified as to its correctness
by a person appointed by the State Minister for that purpose.
(6) A State shall
provide in writing to the Commonwealth in respect of each year of this
agreement by the thirtieth day of November occurring after that year such
program and non-identifying client information as is reasonably requested by
the Commonwealth to monitor achievement of the objectives of this agreement
and allocation and program delivery priorities and targets identified in the
Commonwealth/State plan.
(7) The Commonwealth
and the State shall provide each other with information as agreed for program
development and planning purposes.
PART XVI—VARIATION OF AGREEMENT
39. —
(1) The provisions of
this agreement other than the principles set out in Recital (D), Part IV,
Part VI, Part X and Part XI may be varied as between the Commonwealth and a
State by agreement in writing between the Minister and State Minister, but
only after consultation between the Minister and other State Ministers.
(2) A copy of an
agreement or copies of the documents which constitute an agreement under
subclause 39(1) shall be tabled in the Parliament of the Commonwealth and,
where necessary, of the State within 15 sittings days of respective
Parliaments from the date upon which the agreement is made.
(3) An agreement under
subclause 39(1) shall not affect the operation of this agreement as between
the Commonwealth and the States other than a State with which the agreement
has been made.
PART XVII—REPRESENTATION AND COMMUNICATIONS
40. —
(1) The Commonwealth
shall, subject to subclause 40(2), be represented for the purposes of this
agreement by the Department of Community Services and Health and the Minister
shall notify State Ministers of the address of that Department and of any
change at any time of that address.
(2) In the event that
the administration of this agreement for the Commonwealth is allocated to a
Minister other than a Minister responsible for administering any part of the
Department of Community Services and Health, the Commonwealth shall be
represented by the Department administered by that other Minister and that
Minister shall notify State Ministers of the address of that Department.
41. Each State shall
be represented for the purposes of this agreement by the Department
administered by the State Minister or such other agency of the State as the
State Minister shall nominate ("Agency") and the State Minister shall notify
the Minister of the address of that Department or Agency and of any change at
any time of the Department or Agency or of the address.
42. —
(1) A notice or other
communication under or in connection with this agreement shall be duly given
if it is in writing signed by or on behalf of, or attributed to, the Head of
the Department or Agency by which it is given and addressed to or delivered at
the address of the Department or Agency to which it is directed.
(2) For the purpose of
this clause writing includes a teleprinter message and the address for such a
message shall be the teleprinter address of the receiving Department or
Agency.
(3) A notice or other
communications shall be given under this clause when it is received in the
appropriate form by the Department or Agency to which it is directed.
THE SCHEDULE
Clause 26
COST RENT PRINCIPLES
The following principles are to be used to determine real cost rents for
rental housing. The principles are not to be applied to the costs of
individual dwellings but rather to the total cost pool of the rental stock. In
allocating the total cost pool to individual tenancies, a State will have
regard to variation in housing standards and locations within the constraints
of available administrative arrangements for assessing these variations.
1. Recovery of operating expenses
The costs to be recovered in this respect are ordinarily listed in the rental
accounts of State housing authorities as yearly expenditure items. These
include:
(a) administration;
(b) rates;
(c) insurance;
(d) specific operating
expenses associated with particular types of units;
(e) annual
maintenance;
(f) yearly allowance
for rent arrears and debts written off;
(g) yearly allowance
for vacancies;
(h) leasing expenses
related to land and dwellings;
(i) operating expenses
of community facilities;
and
(j) any other
operating costs agreed between the Minister and a State Minister.
The costs to be recovered by the State include:
(a) interest payable
by a State on loan funds invested by it in rental housing;
and
(b) a notional amount
of interest on all Commonwealth and State grants invested in rental housing
from and including 1989–90. That notional amount of interest is to be
calculated at a rate taken as equivalent to the assessed secondary market
yields published by the Reserve Bank of Australia in periodical Statistical
Bulletins for the last business day of June preceding the commencement of the
year in which the grants are paid into the Rental Capital Account.
An amount with respect to depreciation is to be included in costs to be
recovered. To this end:
(a) the depreciation
rate is to reflect a life between 40–75 years of the capital
improvements on the land;
(b) the value of
capital improvement will be based on the estimated current capital improved
value; and
(c) the minimum annual
depreciation rate will be not less than the rate resulting from a term of 75
years.
IN WITNESS WHEREOF etc.