Canberrans on moderate incomes now have greater access to interest-free loans to help cover the cost of security bonds in the private rental market under changes to the ACT Government’s Rental Bonds Housing Assistance Program.
ACT Minister for Disability Housing and Community Services Joy Burch said the changes would enable more people to enter the private rental market by increasing the household income thresholds. For a two-income family, or a sole parent, the pre-tax weekly threshold has increased from $1717 to $1908. For a single-income household with no dependents the threshold has increased from $1383 to $1431.
“The loans will cover most of the cost of a rental bond, freeing up funds to assist individuals and families with other expenses associated with moving house,” Ms Burch said.
“The Government recognises that for many Canberrans who are either already renting and wanting to move, or looking to enter the private rental market, the upfront costs can be quite prohibitive and through this program we can make that big step easier for them.”
Ms Burch said the changes are consistent with the strategic directions of the new National Affordable Housing Agreement (NAHA) between the Commonwealth and all States and Territories that commenced in January 2009.
“The NAHA requires a broader approach to providing housing assistance than simply striving to meet people’s needs through the public housing system. This includes offering support for people to access and maintain private rental accommodation.”
Reforms to the Rental Bonds Housing Assistance Program, administered by Housing ACT, include –
· Substantial increases in the income eligibility criteria
· New arrangements for sole parent applicants with dependent children, ensuring they are assessed in the same way as couples with the same number of children
· Increase in the loan limit from 80 per cent to 90 per cent of the required bond
· Expansion of the period for pre-approved bond loan applicants to find a suitable rental property from one month to three months
“My immediate concern is that every reasonable effort should be made to provide assistance to ACT residents in need of suitable housing.”
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