Apr 2020

Rent Increase Deferred

CEHL will not apply any rent increase, for all households with assessed and maximum rent, until 27 September 2020. 

This decision has been made in response to the Victorian Government announcement yesterday, (15 April, 2020) regarding Supporting Tenants and Landlords through Coronavirus.

Completing the normal Annual Rent Review process 

Completing the normal Annual Rent Review process

We urge households, that have not sent in their Household Information Forms yet, or lodged through the member portal, to do so, as soon as possible.

While all rent increases will be deferred, the Annual Rent Review and Household Information Form process will continue so:

  • households with reduced incomes can have their rent assessed immediately
  • the efforts already made by co-op members and CEHL staff won’t need to be repeated; and
  • we can have a complete understanding of the financial impact that the delayed rent increases will have for co-ops and CEHL

Financial impact on co-op and CEHL revenue

Rent is the primary source of revenue for the Program, which is shared between co-ops and CEHL to deliver maintenance, rates and Program services. 

Although it is likely that many households impacted by COVID-19 would have reduced rent this year, deferring rent increases for households, who can afford it, will mean that co-ops and CEHL will experience even lower revenue. This will impact on our ability to provide maintenance and services.

The Victorian Government has acknowledged that these measures will have financial impacts on landlords and, have offered tax concessions for private landlords to compensate that loss. These concessions are not available to CEHL, and no other compensation has been offered to the Community Housing Sector. 

CEHL will be seeking compensation from the Victorian Government for revenue loss. If compensation is received, CEHL will reimburse co-ops for lost revenue.