The Summer Foundation with the support of JBWere have developed this resource for investors. Released in December 2020, NDISP is having a look at some of the data and related information contained within it.
Number of Anticipated Participants Not Updated
We are not sure why the number of anticipated participants has not been updated from the original 28,000 from the start of the scheme. This was based on 6 % of NDIS participants yet both the number of total NDIS Participants and the percentage of participants being found eligible for SDA have both increased substantially.
Number of People with Real SDA Approvals are Still Very Low
It looks like only 3,000 or so individuals have real SDA in their plan (as opposed to the 12,000 or so that have legacy approval). Legacy dwellings with 11 or more residents lose their funding in 2021, with 6 or more in 2026.
A Lot of Funding is Still Going to Old School Providers and this will Change Once Participants Get Asked what They Want
A lot of people with disabilities and their loved ones still have low expectations. Once they are asked what they want or aware of what is available then the old school models will die out. This aligns with NDISP sees with old school providers and groups pushing their traditional all encompassing models. Terrible housing (even in new builds) and no choice and control. This is why forced separation of housing and support needs to come sooner rather than later.
The SDA Sector Remains Ripe for Investment
Although there has been a significant start to development of SDA, there is still a gross undersupply. NDISP also sees that so much of the supply is just not fit for purpose. We believe that a lot of the currently developed stock will either:
- be downgraded in category (eg HPS to FA or IL)
- be returned to the normal rental market.
So many builders and developers are building HPS or Robust properties that are too small, or just don’t work. Quality will reign as the market matures. One bedroom units and 4 people plus share houses are in real trouble.
Most Particpants who are Eligible for SDA are not even Aware of what SDA is
The report explains that many of those with SDA in their plans don’t even know they have it, it has been put in because they are living in legacy group homes whose funding runs out in 2021 or 2026. It also says that many more participants are still not aware what SDA even is, even those who are eligible. Prior to Corona NDISP used to run weekly information sessions on what SDA is and how to get SDA in your plan. We are currently revisiting this as it is evident more education is still required.
4700 Participants Who are Eligible for SDA Live with Their Parents
NDISP would have parents come to our information session looking for a place for their adult children or worried about what will happen. This group of participants will create a substantial pressure on SDA supply in future.
One and Two Participant Dwellings Fastest Growing
These types of dwellings has grown by 160% and 90% respectively. This aligns with what NDISP sees on the ground. We anticipate that single participant (as opposed to resident) will be the largest sector in the future.
It Costs $6,000 – $16,000 to Find Each Participant
Even though there are established SDA property platforms (Nest and Housing Hub), matching SDA participants to SDA property is not as simple as listing on a platform. It takes significant resources to get it right. NDISP employs Relationship Managers whose entire role is to make sure people are happy to call our places home.
Our large volume and reputation allows us to not charge investors any more than the 2 week let fee associated with residential properties.
Agreements with SIL’s is Third Line Forcing, as well as Removing Choice and Control
NDISP doesn’t enter into exlusive agreements with SIL’s or support providers period. It is against our ethos. Unfortunately we get approached to constantly and when we say no we then usually see a press release or announcement that the SIL has entered into an agreement with another SDA provider. The paper outlines the illegality of this under competition law, as well as the choice and control issues.
NDIA Commits to Choice in Housing
As a signatory to the UN Charter of Person Living with a Disability they really didn’t have a choice. One of the key tenants is that people with a disability have the right to choose where they live and who they live with.
Regardless, it is nice to see that the NDIA has committed to:
- Developing a Home and Living Policy
- Supporting Young People in Residential Aged Care to Live Elsewhere
Timely Approvals and Payments
The NDIA has committed to improve the speed of these items.
NDISP has owners waiting for payments from July 2020, primarily due to enrolment delays in being issued with dwelling numbers. This appears to have been improved as we received numbers for all enrolments up to November in December 2020. Still, none of those payments have flowed as yet. Although back pay is coming, this delays the further investment of existing owners into more SDA property.