Homes Tasmania provides properties under head lease arrangements to support the delivery of housing assistance, supported accommodation, disability services and other community services. Depending on the program, head lease arrangements may be entered into with community organisations or other Tasmanian Government agencies.
Under a head lease arrangement, Homes Tasmania retains ownership of the property while the organisation leases the premises to deliver an approved service. The head lease sets out the respective responsibilities of Homes Tasmania and the organisation for the management, maintenance and use of the property.
Head lease arrangements may include:
- residential head lease agreements
- non-residential head lease agreements
- non-residential licence agreements
- sub-lease agreements
- key worker accommodation.
Head lease rent setting
Homes Tasmania's Head Lease Rent Setting Policy establishes a consistent framework for determining rent under head lease arrangements.
The framework recognises that head lease arrangements support a range of programs operating under different service and funding models. Rent is determined according to:
- the purpose of the accommodation
- the funding model supporting the service and
- Homes Tasmania's ongoing responsibility for property ownership, maintenance, statutory compliance and long-term asset renewal.
Depending on the program, one of the following rent-setting models may apply:
- income-based rent
- affordable rent
- equity-based nil-rent
- funding-aligned nil-rent
- project-based cost-neutral.
For some programs, implementation of the framework is being undertaken in stages to reflect existing funding and governance arrangements. Until implementation occurs, existing contractual rent arrangements continue to apply.
Annual rent reviews
Where provided for under the head lease agreement, rent is reviewed annually in accordance with the applicable rent-setting model and the terms of the lease.
Homes Tasmania may also review rent where there are material changes to program funding, service delivery arrangements or head lease requirements, including as part of a broader contract or program review.
Organisations will be provided with written notice of any rent adjustment in accordance with the terms of their lease agreement.
More information
For further information about head lease arrangements or rent setting, please contact your Contract Manager or email commissioning@homes.tas.gov.au.