Frequently Asked Questions

What is the NDIS?

The National Disability Insurance Scheme (NDIS) supports Australians living with disabilities, as well as their families and carers.
The NDIS is implemented by the National Disability Insurance Agency (NDIA), an independent statutory body.
For many individuals, the NDIS provides access to essential disability support for the first time. It can also include funding for Specialist Disability Accommodation (SDA) within a participant’s plan.

What is Specialist Disability Accommodation (SDA)?

SDA refers to housing specifically designed to support NDIS participants who require specialized living arrangements.
These accommodations are created to foster independence and community living, shifting away from traditional group homes to more innovative, smaller-scale, individualized housing options.

What does "Participant" mean?

A "participant" is someone with a disability who has been approved for the NDIS and is eligible to access funding under their individual plan for the supports they need.

Is investing in SDA properties different from regular property investments?

Yes, SDA investment differs significantly. It involves more complexity, upfront costs, and is better suited to experienced investors rather than first-timers. SDA properties are considered a long-term investment, typically spanning over 20 years.

What is the difference between an SDA Provider and a SIL Provider?

• SDA Provider: Registered with the NDIS to deliver specialized disability housing.

• SIL Provider: Registered with the NDIS to assist participants with daily living tasks, promoting skill development and independence.

Can SDA properties be purchased using a Self-Managed Superannuation Fund (SMSF)?

Yes, SDA properties can be purchased through an SMSF. However, specific contractual requirements must be met. Investors are encouraged to consult a financial advisor or accountant for guidance.

Is it easy to secure financing for an SDA property?

No, financing for SDA properties can be challenging. These homes must meet rigorous design standards, which significantly increases their valuation compared to standard properties. Specialized lenders familiar with SDA investments are often required.

Are SDA homes built to specific standards?

All SDA properties must adhere to the NDIS Specialist Disability Accommodation Design Standard. These standards ensure the homes meet accessibility and support needs, with additional upgrades to enhance participant comfort and functionality.

How long does it take to build an SDA home?

The construction of an SDA property typically takes 8–10 months, depending on industry conditions. The process includes land settlement, deposit payment, and building approval before construction begins.

What are the SDA design categories?

SDA design standards include the following categories to cater to varying participant needs:

1. Basic

2. Improved Liveability

3. Fully Accessible

4. Robust

5. High Physical Support

Is there a warranty for SDA properties?

• Structural Warranty: Covers major structural components for up to six years post-completion.

• Fixtures and Fittings: Warranties vary by manufacturer but generally range from 12 to 24 months. A 6-month maintenance period ensures any early defects are rectified.

Who is responsible for finding tenants for SDA properties?

Tenant placement is a specialized process known as "tenancy matching," which aligns the participant’s needs with the features of the property. This service is provided by registered SDA providers, ensuring a tailored approach.

What is the typical lease duration for an SDA property?

Lease terms usually range from 12 to 24 months. Participants often stay longer due to the customized nature of the accommodations and the stability provided.

Is a bond required for SDA tenants?

Yes, bonds are required under tenancy regulations. The bond amount is typically equivalent to four weeks’ rent if the weekly rent is $700 or less. For higher rents, the bond amount is negotiated between the landlord and tenant.

How long does the tenant-matching process take?

Matching a tenant to an SDA property can take approximately six months, as it depends on both the completion of the participant’s NDIS plan and the property’s readiness.

Can 100% occupancy be guaranteed for SDA properties?

No, similar to traditional rental properties, occupancy cannot be guaranteed. However, the NDIS provides up to 60 days of vacancy payments while a new tenant is being sourced.

What happens if an SDA property becomes vacant?

Participants may leave at the end of their tenancy. However, the stability of SDA accommodations often means participants prefer to stay long-term. During vacancy periods, the NDIS offers financial support for up to 60 days

What does "enrolment" mean in SDA?

Enrolment involves certifying and registering the property as Specialist Disability Accommodation with the NDIA. This includes design stage certification, local government occupancy approval, and final NDIA enrolment.

Can any real estate agent manage an SDA property?

No, SDA properties must be managed by a registered SDA service provider. These providers ensure compliance with NDIS regulations and oversee tenant placement and property management.

How are SDA rental payments structured?

SDA rental income comprises multiple components:

1. SDA payments from the NDIS, invoiced monthly in arrears.

2. Participant contributions from sources such as the Disability Support Pension (DSP), Pension Supplement (PS), and Commonwealth Rent Assistance (CRA).

Who handles property maintenance?

Participants are responsible for routine maintenance, while investors manage specialized systems such as smart assistive technology and solar infrastructure. Garden and lawn care can be negotiated with tenants.

Who pays for utilities?

• Investor Responsibility: Connecting the property to the NBN.

• Tenant Responsibility: Ongoing utility costs, including power, water, internet, and phone services. Solar systems often reduce electricity expenses.

Is SDA funding guaranteed for the future?

Yes, SDA funding is legislated under the NDIS Act 2013 and SDA Rules 2016, ensuring long-term government commitment. It benefits participants, providers, and the NDIS by improving support delivery and outcomes.

Is there a cap on the number of SDA participants?

No, there is no cap. However, only a small percentage of NDIS participants meet the eligibility requirements. Density restrictions prevent overdevelopment and encourage community integration.

These FAQs aim to clarify the key aspects of SDA properties and the NDIS, providing valuable insights for investors and participants alike.