Posted on Friday, December 2nd, 2022 in by Matt Garmony
Valuations of Specialist Disability Accommodation (SDA) & NDIS is a specialised area of property valuations. Specialist Disability Accommodation (SDA) is a range of residential housing designed for people with extreme functional impairment or very high support needs. SDA dwellings have accessible features to help residents live more independently and allow other supports to be delivered better or more safely. The licensed valuers at Garmony Property Consultants have the experience and expertise in preparing valuations of Specialist Disability Accommodation (SDA) & NDIS for a wide range of purposes including mortgage security valuations.
The National Disability Insurance Scheme (NDIS) is a Federal Government legislated Australia wide scheme to support people with permanent and significant disability and replaces the current disability support system in each State and Territory. The NDIS and SDA are legislated to provide the foundation for government’s long term and firm commitment to SDA funding under the NDIS.
Since 1 July 2016, the minimum requirements for the Specialist Disability Accommodation (SDA) design categories have been contained in the annual SDA Price Guide publication. The National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2016 (SDA Rules) and National Disability Insurance Scheme (Specialist Disability Accommodation Conditions) Rules 2018 (SDA Conditions) specify the eligibility criteria and process for enrolment of a dwelling, which includes reference to these minimum requirements.
The SDA Rules provide descriptions in relation to five Building Types. These include Apartments, Villas and Townhouses, Houses, Group homes and Legacy stock. The SDA prices (Rent) are based on five broad categories of SDA design which are set out in the SDA Rules. The five Design Categories are:
- Basic,
- Improved Liveability,
- Fully Accessible,
- Robust, and
- High Physical Support.
This NDIS Pricing Arrangements (Rental Income) for SDA provides more detail in relation to some of those descriptions. SDA Rental Income differs depending on the number of residents and number of bedrooms in a SDA home. An On-site Overnight Assistance (OOA) room is not a bedroom, but forms part of the pricing assessment. Other factors include locational factors, additional breakout rooms, fire sprinklers etc.
Demand for SDA compliant homes is expected to outweigh current supply for the short to medium term and therefore the Federal Government has provided incentives for private investors as the government cannot deliver the volume of NDIS accommodation on its own. Private investors are sought to construct SDA houses, to alleviate the government’s capital costs of to supply these homes to a waiting list of participants.
In return, for constructing these homes which meet the NDIS, SDA guidelines, the government has committed to funding the rental of these homes at 3 to 4 times above average market rental rate with CPI increases each year. However, the liveable standards for providing this accommodation are stringent, and comes at a higher cost of construction.
Our Licensed Valuers have a database of recent sales evidence of SDA / NDIS homes which have been analysed to determine their yield or return based on the potential income of this specialist property type. Our licensed valuers assess the Market Value of the SDA / NDIS homes based on various methods of valuation, factoring in the high rental income received for this specialist property type when compared to a conventional residential home.
For more information about Valuations of Specialist Disability Accommodation (SDA) & NDIS, please contact one of our SDA / NDIS specialist property valuers Simon Gill or Matt Garmony.
Click here for our NDIS/SDA Brochure Specialist Disability Accommodation (SDA) & NDIS.