2023 - AMOEBA

Is NDIS SDA housing a good investment?

Investing in National Disability Insurance Scheme (NDIS) Specialist Disability Accommodation (SDA) housing can have both benefits and challenges. Here are some considerations:

Pros:

Stable Income: SDA properties are designed to provide accommodation for people with significant functional impairment or very high support needs. The rental income for SDA properties is typically funded by the NDIS, providing a stable and long-term income stream. High Demand: There is a growing demand for suitable accommodation for individuals with disabilities. As the NDIS continues to expand, the demand for SDA housing is likely to increase.

Government Backing: The NDIS is a government-funded initiative, providing a level of stability and reliability for property investors. The government’s commitment to supporting individuals with disabilities can be seen as a positive factor for investors in this space. Long-Term Agreements: NDIS SDA properties often involve long-term agreements with tenants, providing investors with security and predictability.

Cons:

Specialised Knowledge: Investing in NDIS SDA housing requires an understanding of the NDIS framework, regulations, and specific requirements for SDA properties. It may require a higher level of expertise compared to traditional property investments. Initial Costs: Developing or modifying a property to meet SDA standards can involve significant upfront costs. Investors need to consider these costs when evaluating the potential returns.

Regulatory Changes: The regulatory landscape for NDIS and SDA may evolve over time. Changes in government policies or NDIS guidelines can impact the attractiveness of SDA investments. Property Modification and Maintenance: SDA properties must meet certain accessibility and design standards. Ensuring the property remains in compliance may require ongoing modifications and maintenance, potentially increasing operational costs. Market Risk: While demand for SDA housing is currently high, the market may evolve, and regional variations can impact the performance of investments. Investors should assess the local market conditions with caution.

Before making an investment in NDIS SDA housing, it’s crucial to conduct thorough research, seek advice from experts in the field, and consider your risk tolerance and investment goals. Engaging with professionals who specialise in disability housing (SDA Assessor), understanding the NDIS framework, and staying informed about any policy changes are essential steps for success in this niche market. As with any investment, it’s advisable to consult with financial advisors, property experts, SDA assessors and legal professionals to make informed decisions based on your specific circumstances and objectives.

Disclaimer:

The information presented reflects the collective knowledge as of January 2023. We cannot verify or provide detailed information on events, publications, or developments that occurred after this date. The opinions expressed in this article should not be regarded as a replacement for professional advice. For the most accurate and up-to-date information, please consult official sources, relevant authorities, or experts in the specific field. The reader is encouraged to independently verify any information and exercise discretion when making decisions based on the content provided.

Would strata by-law restrict apartment conversion (Adaptable Housing) and why?

The restrictions on apartment conversions in a strata property would typically be governed by the strata by-laws and regulations that are established by the owners’ corporation or body corporate. Strata by-laws are a set of rules and regulations that govern the management, use, and maintenance of common property and lots within a strata-titled development.

Whether or not a strata by-law restricts apartment conversion would depend on the specific wording of the by-laws in place. Some common reasons why strata by-laws might restrict apartment conversions include:

Zoning and Planning Regulations : Strata by-laws may align with local zoning and planning regulations that dictate the permitted use of properties in a particular area. If the local regulations do not allow residential units to be converted into apartments, the strata by-laws may reflect and enforce these restrictions.

Building Codes and Fire Safety: Converting apartments within a strata property may involve structural changes or modifications to the building. Strata by-laws may include provisions to ensure compliance with building codes and fire safety standards, and conversion activities that compromise the integrity of the building or pose safety risks may be restricted.

Aesthetic and Architectural Harmony: Strata by-laws often include provisions to maintain a uniform and aesthetically pleasing appearance of the property. Converting individual apartments might alter the overall look of the building, and by-laws could restrict such conversions to preserve the architectural harmony of the development.

Parking and Infrastructure: Apartment conversions may impact parking availability and strain shared infrastructure. Strata by-laws may address these concerns by restricting certain types of conversions to ensure that there is adequate parking and that the existing infrastructure can support the changes.

When planning to convert or renovate an existing apartment within a strata-titled property, it’s crucial to consider and address potential strata restrictions upfront. Thoroughly examine the existing strata by-laws to understand any restrictions or guidelines related to renovations and conversions. Look for rules regarding structural changes, use of common property, and alterations to individual lots. If your renovation involves changes to common property or shared facilities, ensure that you have approval and that the alterations comply with strata regulations. Common property alterations often require onerous scrutiny and approval process.

It’s important to carefully review the specific by-laws of the strata property in question to understand the restrictions or permissions related to apartment conversions. If there are uncertainties, seeking legal advice or consulting with the strata management and owners’ corporation can provide clarification on the matter. If you would like to clarify or discuss potential restrictions that may be applicable to your situation, please feel free to contact us via our contact page to schedule a complimentary, no-obligation consultation before proceeding with your conversion project.

Difference between National Construction Code (NCC) 2022 Part D4 and Disability Discrimination Act (DDA) in both scope and application?

The NCC 2022 Part D4 “Access for People with a Disability” and the Disability Discrimination Act (DDA) are both crucial frameworks aimed at ensuring accessibility for individuals with disabilities, yet they differ in scope and application.

National Construction Code (NCC) 2022 Part D4:

Scope: Part D4 of the NCC outlines specific technical requirements and standards for ensuring accessibility in the design and construction of buildings and facilities in Australia. It provides detailed guidelines for aspects like ramps, doorways, corridors, toilets, and parking spaces to ensure compliance with accessibility standards.

Application: The NCC is primarily concerned with physical infrastructure and sets standards for new construction, renovations, and alterations of buildings to ensure accessibility for people with disabilities. It aims to create a built environment that is inclusive and accessible by all.

Disability Discrimination Act (DDA):

Scope: The DDA is a federal legislation in Australia that aims to prevent discrimination against people with disabilities in various areas, including employment, education, provision of goods and services, access to premises, and more. It covers a broader scope beyond just physical accessibility, addressing issues related to discrimination and equal opportunities in various aspects of public life.

Application: The DDA applies across all sectors and requires organizations, businesses, and service providers to make reasonable adjustments to ensure people with disabilities have equal access and opportunities. It emphasizes non-discrimination and promotes inclusive practices in all areas of public life.

Key Differences:

Focus: NCC Part D4 specifically deals with physical accessibility standards in construction and design, while the DDA addresses a wider range of issues related to discrimination and equal access across various sectors.

Application: NCC Part D4 is focused on the construction industry and sets technical standards for physical accessibility in buildings, whereas the DDA applies to all sectors and promotes non-discrimination and equal access in society.

While NCC Part D4 provides technical guidelines for ensuring physical accessibility in the built environment, the DDA works to eliminate discrimination and ensure equal opportunities for people with disabilities in all aspects of life, beyond just physical access to buildings. In addition, warrants protection against discrimination for people with disabilities across different sectors; legal action can be taken if discrimination is identified.

What is SDA accommodation?

Specialist Disability Accommodation (SDA) under the National Disability Insurance Scheme (NDIS) in Australia refers to housing specifically designed to cater to the needs of people with very high support needs or profound functional impairment. SDA is one of the support services provided by the NDIS to ensure that individuals with significant disabilities have access to suitable accommodation that meets their specific requirements.

Key points regarding Specialist Disability Accommodation (SDA) under the NDIS include:

Purpose: SDA is intended to address the housing needs of individuals with complex and high-level disabilities who require specialised housing solutions to live more independently.

Eligibility: To be eligible for SDA, participants must meet specific eligibility criteria outlined by the NDIS. This typically involves a comprehensive assessment of the participant’s disability-related needs and the level of support required.

Design Categories: SDA is categorized into various design categories, each addressing specific disability-related needs. These categories include Improved Liveability, Fully Accessible, Robust, and High Physical Support. Each category corresponds to certain design features and accessibility standards.

The assessment of design compliance prior to enrollment is conducted by an Accredited SDA Assessor under the direction of the SDA Design Standards. The SDA Design Standard sets out detailed design requirements that shall be incorporated into “new built” Specialist Disability Accommodation which may seek enrolment with the NDIA.

Funding: The NDIS provides funding to eligible participants for the capital costs associated with the construction or modification of SDA. This funding is separate from other NDIS supports and is aimed at covering the costs of creating or adapting suitable living spaces.

Registration Process: To be eligible for SDA funding, a property must be registered and meet the necessary standards and criteria set by the NDIS. Providers of SDA must adhere to specific design and accessibility guidelines.

Market and Choice: The introduction of SDA aims to encourage a diverse market of housing options, giving individuals with disabilities more choice and control over their living arrangements.

Ongoing Support: While SDA funding covers the capital costs associated with housing, participants also receive funding for their day-to-day support needs, which may include assistance with daily activities, personal care, and community participation.

SDA is a crucial aspect of the NDIS, recognizing the importance of providing suitable housing options for individuals with severe disabilities. It aligns with the NDIS’s overall goal of empowering people with disabilities to lead more independent and fulfilling lives by addressing their unique support requirements.