CCC is considering underwriting rents on private properties leased by Community Housing Providers to be on-leased to homeless people in Christchurch. The main target group is youth (often with drug dependency issues) and ex-prisoners, i.e. people who can't reasonably be taken on private landlords.
The taxpayer gets to contribute to this through funding the income-related rent subsidy paid to the housing provider to cover the difference between what the tenant can afford and the 'market rent'. However it seems that the 'market rent' is decided by MSD (does anyone know how they do this). Lucky Christchurch ratepayers may get the chance to further top up the difference between MSD's 'market rent' and the market's 'market rent' from Council funds.
What owners would consider leasing to a community housing provider in this way? Would the certainty of the underwrite outweigh the risks of tenancy? Are there likely to be fish-hooks, e.g. must meet what we think should be in the property WOF?
The taxpayer gets to contribute to this through funding the income-related rent subsidy paid to the housing provider to cover the difference between what the tenant can afford and the 'market rent'. However it seems that the 'market rent' is decided by MSD (does anyone know how they do this). Lucky Christchurch ratepayers may get the chance to further top up the difference between MSD's 'market rent' and the market's 'market rent' from Council funds.
What owners would consider leasing to a community housing provider in this way? Would the certainty of the underwrite outweigh the risks of tenancy? Are there likely to be fish-hooks, e.g. must meet what we think should be in the property WOF?
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