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New CEHL Rent Model

The CEHL Board approved changes to the rent model at the Board meeting in November 2018. The changes to the rent model were recommended by the Rent Model Advisory Group made up of co-op members, an independent financial expert and an independent chairperson.

Background

Funding arrangements for social housing providers have changed significantly since the establishment of the original Common Equity Rental Housing Co-operative (CERC) Housing Program. In particular, changes to the amount and frequency of capital grants from government and the change from rent rebates to a rent model that incorporated Commonwealth Rent Assistance (CRA) mean that Housing Associations like CEHL no longer receive any operational subsidies from government.

The value of the capital investments by government over time means that CEHL does have an ongoing obligation to maximise affordable housing outcomes to eligible households. While CEHL will always seek to access subsidies that become available from time to time, it is important that the CEHL Co-op Housing Program can meet its affordable housing obligations and is viable without external subsidies.

In response to this, the CEHL Board undertook a review of the rent model in consultation with CEHL shareholders.

The review examined the current and possible alternative rent models, resulting in the recommendation of a new rent model that best balances and reflects the CEHL Program Principles.

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