PRADS:
Progressive Residential Affordability Development Solution

PRADS enables the private sector to collaborate with the government to create additional value within a development that can be used as a subsidy for affordable housing by increasing development density or negotiated outcomes of rezoning applications.

What is the PRADS Model

The PRADS model can create a significant supply of privately owned rental housing, rented at below-market rates for at least 30 years, without the need for government assistance. By using a Restrictive Covenant, this obligation remains on the title for the agreed period, after which it reverts to market and becomes unencumbered.

Advantages

  • Increases affordable housing without impacting a developer‘s feasibility.
  • Unlocks private sector capital by leveraging the subsidy across more affordable housing with the investor paying the balance.
  • Allows developers to sell the affordable housing to their investor database.
  • Enables developers to manage properties themselves or choose a qualified private-sector real estate agent or Community Housing Provider.
  • Applicable to any form of dwelling: apartment, townhouse or house and land.
  • Can assist qualified key workers to live close to employment.
  • Diversifies the funding base for affordable housing sector away from government funding.
  • The affordable housing obligation lasts for 30 years, or a negotiated term, after which it reverts to market.
  • The PRADS Register enables government to transparently monitor the obligations of all stakeholders.
  • Use of the PRADS Model and Register has the support of the Municipal Association of Victoria (MAV).

The PRADS Register

A key component of the PRADS Model is the Register which is accessed through a web-based portal. The Register will:

  • Provide a paperless platform allowing stakeholders to perform all functions online. 
  • Allows government to record agreed affordable housing outcomes, including the number of negotiated affordable homes, their tenure, and the % below market rent which the homes must not exceed.
  • Provides transparency and monitoring of the compliance process to give government confidence that all stakeholders are meeting the agreed obligations.
  • Using smart technology, it processes and verifies the eligibility criteria of tenants, specific to the LGA, and advises the respective government department if non-compliance is detected.
  • Give developers the ability to sell affordable housing to their investor database, as well as the choice to manage the properties themselves or choose a qualified real estate agent or a Community Housing Provider.
  • Allows Build To Rent (BTR) operators to manage their own affordable housing 
  • Comply with all federal, state and local government-approved cyber security protocols.
  • Integrate with existing property management software to provide a seamless transition to business-as-usual operations. 
  • Provides access to annual attestation by property manager noting:
    • Affordable lease in accordance with the Residential Tenancy Act and at the agreed level negotiated with local government.
    • Affordable rent is being paid at no more than the agreed percentage below market rent.
    • Copy of Audit conducted every three years. Valuation on market rent.
  • Allows the tenancy applicant to:
    • Receive a link enabling online rental applications.
    • Process the required financial statements and prompts the tenant for any missing information.
    • Verify eligibility at the time of submitting their application.
    • Upload information including bank and income statements, and Statutory Declarations, as required.