Homes Tasmania enters contractual arrangements with housing support providers through head leases for properties and grant deeds for funding to deliver housing services. Variations to head lease or grant deed agreements may be required to ensure housing programs meet expected outcomes and align with policy decisions.
Variations can be initiated by us or you to change the obligations of the agreement and must be mutually agreed by both parties.
Variations to a head lease or grant deed can be made:
- at the contract level, affecting an individual housing support provider
- at the housing program level, affecting all housing support providers contracted to deliver the program services.
Processes
Contract variations are implemented by executing a Deed of Variation, which does not change the standard terms of the contract.
If we propose a contract variation, we will liaise with you to ensure you understand the implications and we will facilitate support of the proposed change.
When negotiating changes to a Head Lease or a Grant Deed, a Term Sheet may be used to capture the details prior to the Deed of Variation being executed.
You should discuss your proposed changes with us first.
We will respond in writing within 20 business days to acknowledge receipt of an application to vary a contract, which may include a meeting invitation to discuss the details further.
Contract variations – Head Leases
Common variations made to a Head Lease includes:
- extending the contract term when the contract doesn’t include an extension option
- changing the target client group
- changing contract key performance indicators
- changing reporting requirements
- property changes
- correcting a significant error (if it alters the meaning in the contract).
The request to vary a Head Lease is made by completing and submitting a request form.
You must discuss any proposed changes with us prior to submitting the applications.
Complete the Application for a new property form if you are seeking to lease a new or additional property from us to deliver housing support services for specific client groups.
The application must include:
- an outline of the property requirements, such as the number of bedrooms, location, etc
- a description of the proposed use of the property and the target client group
- the client’s name if the property is for NDIS purposes
- details of the supports to be provided, including the funding source and amount
- if you have not previously held a head lease with Homes Tasmania, outline your tenancy management experience.
Complete the Application for a replacement of an existing property form if you are seeking to replace an existing property or change the use of a property, including returning a property to us. You should clearly state the nature of your request.
The application must include:
- the property address
- a description of the current use of the property and the target client group
- details of the supports being provided, including the funding source and amount
- relevant details outlining the reason and expected outcome for the request.
Properties must be vacant when handed back to us, with maintenance requirements completed as per the lease agreement.
Complete the Application to transfer a lease to a sitting tenant form if you are seeking to terminate the head lease and transfer the sub-lease with the client residing at the property to us or a community housing provider.
The application must:
- demonstrate that the sitting tenant has the capacity to manage the lease
- provide recent evidence the tenant can sustain a tenancy.
Sitting tenants must have an active application on the Housing Register.
Before a transfer, Homes Tasmania will inspect the property to ensure all maintenance obligations have been meet by the housing support provider, including the repair of any tenant damage. A new property report will then be drafted for the sitting tenant.
Complete the Application to transfer management of a property to another organisation form if you are seeking to terminate the head lease and transfer tenancy management to another organisation who would enter into a new head lease with us.
The application must include:
- current lease holder details
- proposed lease holder details
- confirmation that the proposed transfer has the support of sub-tenants residing at the property.
You must complete any maintenance prior to handover.
The new lessee takes on all Head Lease obligations, including maintenance, once contracts are executed.
Complete the Application to hand back a property form if you are seeking to terminate the head lease and return the property to us.
The application must confirmation that the property has been vacated prior to hand back.
Rent must be up to date with no arrears and you must complete any maintenance prior to the hand back.
All keys need to be returned to the closest Homes Tasmania office in your region.
Contract variations – Grant Deed
Common variations made to grant deeds include:
- adjusting the grant amount (ie increasing or decreasing funding)
- amending the expiry date, including extending the term when the grant deed doesn’t include the option of a further term
- amending the responsibilities or deliverables of the housing support provider to enhance service delivery
- amending the special terms and conditions
- amending the approved location(s) where service(s) are being provided
- amending key performance indicators
- amending reporting obligations
- correcting a significant error (if it alters the meaning in the Grant Deed).
The request to vary a Grant Deed is made by completing and submitting an Application for Grant Deed variation. The application must include:
- the proposed variation(s) to the Grant Deed
- the reasoning for the proposed variation(s)
- the expected benefits and outcomes (if applicable)
- a plan, budget and timeframes for achieving these benefits (if applicable).
You must discuss any proposed changes with us prior to submitting the application.
We will assess the proposed variations and collaborate with you to draft the Term Sheet, outlining the requested changes and outcomes from the assessment and further negotiations. The Term Sheet will capture the process and responses that lead to the final details to be included in the Deed of Variation.