What is SHARP?
SHARP is Habitat for Humanity Australia’s Subsidised Housing and Affordable Rental Program. Affordable housing not only provides the fundamental need of every family for safe and stable housing, but it also achieves considerable social benefits. Through the management of a portfolio of leasehold residential properties, Habitat improves the social infrastructure by creating safe, affordable and secure housing for those that really need a helping hand.
What is our goal for SHARP?
Habitat for Humanity Australia aims to become a landlord of choice for the vulnerable in our community who want a better future for their families through secure and affordable rental accommodation.
Increased security and affordability of housing provided through SHARP will reduce housing stress, support families to access better education and employment, and improve economic stability and overall quality of life.
How does the SHARP Program work?
Habitat for Humanity Australia require investors, developers of residential properties and ‘Build-to-Rent projects to lease apartments/units to Habitat at market rent for ideally up to five years. Those same lessors would then donate most of that rent back to Habitat. As per Australian Tax Ruling CR 2023/39 published on July 21, 2023, this donation is tax-deductible to the lessor. Capital Gains Tax concessions are also available. Habitat then sub-lets the homes to selected and qualified (sub) tenants on long-term leases and at no more than 50% of the market rent.
Who benefits and how?
Increase in rental properties
There is currently an imbalance between supply & demand for rental housing in Australia. However, there are also over 1,000,000 empty homes around the country. SHARP provides a feasible solution for some of these houses to become rental units.
Affordable & safe homes for families
SHARP proposes to provide rental units at no more than 50% of the market rent. The national weekly rental average has raised by 40% in the last 3 years, with single parents relying on government payments only able to afford 0.1% of rentals in the private market. Let’s change this.
Financial benefit for homeowners
We propose homeowners rent their empty units to Habitat for Humanity Australia to be sublet, and then donate the rental income back to Habitat for Humanity Australia. The ongoing donations would be tax deductible for the homeowner, and capital gains tax concessions would also be available to them.
Donations to support Habitat programs
Donations generated would make the program both sustainable long-term and scalable for Habitat for Humanity Australia. All tenants would go through a formal selection process and must qualify for the SHARP program. All homes would be rented on a long-term lease.
What Impact does the SHARP program make?
Through Shelter, we empower. Increased security and affordability of housing provided through SHARP will reduce housing stress, support families to access better education and employment, and improve economic stability and overall quality of life. Additionally, this is a worthy ESG initiative for the lessor corporation. ESG stands for environmental, social, and governance. ESG investing refers to how companies score on these responsibility metrics and standards for potential investments. Environmental criteria gauge how a company safeguards the environment
SHARP has Provided a Home for a Domestic Violence Survivor
The most important outcome of the SHARP program is to provide subsided rent for low-income families and domestic violence survivors to give a hand up in life. With the launch of the program, we successful provided a home to a young mother and her baby in Sydney. The young mother and her baby were escaping domestic violence have now been housed in a SHARP unit. The young mother is now living a beautiful safe home where she can raise her young daughter without the ongoing worry of rising rental fees that many others are facing. This unit has given the young mother stability and security during a very turbulent and frightening time of her life.
Why SHARP is beneficial for Developers?
SHARP Provides property developers with guaranteed full occupancy and tenancy guardrails.
- Externally vetted tenants
- Habitat partner with community organisation to ensure vetted tenants
- Zero occupancy risk
- Habitat enter the long-term lease agreements with property developers to guarantee rental income with no vacancy periods (e.g 5 years)
- Full maintenance coverage
- Habitat take care of the property maintenance and associated costs during the lease, including costs with finding and vetting sublessees
- Fully managed during lease
- Habitat fully manage the property for the duration of the lease term and return it in its original condition at the end of the lease
- Lower tenancy rent
- Although financial returns and comparable for developers, tenants pay lower rent and get a better outcome.
What are the benefits of Partnering with Habitat for Humanity Australia on the SHARP Program?
A partnership with Habitat for Humanity Australia will give you enduring social impact and other non-financial benefits.
Brand, social capital and impact
-Global affiliation with Habitat for Humanity that contributes to a strong ESG brand
– Creation of enduring positive social capital with communities and the public
-Direct impact to real lives and livelihoods
Relationships and expertise for future projects
- Favourable relationship development with state/federal government, policymakers and advocates
- Goodwill with councils and community
- Partnering with Habitat for Humanity Australia, a Community Housing Providers and a registered charity enables connecting with other significant groups within the Habitat network that open new avenues for acquiring lands, funding, development expertise and skills
Occupancy benefits
–Externally-vetted tenants
– Property returned in original condition
–One tenant for all affordable housing apartments
–Significantly Improving the lives of other members of our community
Habitat for Humanity Australia’s SHARP program represents a pivotal step towards addressing the critical need for affordable housing among vulnerable communities, particularly women and children facing hardship. By partnering with investors and developers, Habitat ensures secure and affordable rental accommodation, significantly reducing housing stress and fostering stability. Beyond providing homes, SHARP empowers families to access better education and employment opportunities, enhancing their overall quality of life. This innovative initiative not only creates lasting social impact but also exemplifies a meaningful commitment to corporate social responsibility and community welfare, marking Habitat as a leader in sustainable, inclusive housing solutions.
If you would like to empower your community through a partnership with Habitat for Humanity Australia’s SHAPR Program then please contact us today. To learn more about our rental program visit: https://habitat.org.au/what-we-do/australia/rental-program/