EPISODE 324 - Victorian Govt NDIS Group Homes

In this episode, Debbie welcomes back Kevin Chen from Paramount Disability Homes for a conversation about the status of the Victorian Government NDIS Housing Crisis. 

This major crisis is unfolding in Victoria as state government subsidies for group home support workers which have already ended at the end of 2023, have leases for these properties set to expire on 31st December 2025. This impacts approximately 5,000 NDIS participants currently residing in 600 to 700 state government-owned group homes, many of which were grandfathered into the SDA system as 'Basic' level dwellings as early as 2016, lacking modern accessibility features (not meeting IL, FA, Robust, or HPS standards). These homes have operated since pre-NDIS times (before 2013), with residents often being in their 50s and 60s, having lived there for 20-30 years with the same support workers. 

A significant hurdle is inadequate funding. Undertaking plan reviews for 5,000 people to get funding uplifted is a massive operational challenge, with no clear process or guarantee of success. There's a risk participants could be rejected or have their SDA funding removed entirely, especially if they are elderly, leaving them with even fewer housing options. 

While there is an oversupply of new SDA properties in Melbourne's outer suburbs (northern, southeastern, and predominantly western), the affected participants, who have lived in inner and middle-ring areas for years, wish to remain in their current locations. Providers moving to outer areas risk losing many clients. Furthermore, support workers are reluctant to travel to these outer suburbs. The inner areas, where most group homes are situated, have a greater abundance of apartments than houses, limiting suitable housing options. 

This geographical gap between where the housing is and where the demand is, particularly for houses over apartments, is a major barrier to relocating the thousands of displaced residents, as the NDIS is not expected to universally uplift funding for basic-funded participants anytime soon.

For investors with empty SDAs around Melbourne, more specifically, by taking on tenants with lower initial funding, investors can secure occupancy while helping residents, with the long-term potential of significantly higher rental income once the participant's SDA funding is successful.

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Our team conducts thorough research on Specialist Disability Accommodation (SDA) and provides appropriate technical advice through premium and strategy-based solutions. We also use complex feasibility calculation spreadsheets to help investors understand the expected annual income of an SDA dwelling, the timeline stages of construction of their property, as well as revealing the hidden costs. By staying up-to-date with the latest SDA data and pricing payments information, we help clients make better-informed decisions and achieve their investment goals.

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