An affordable rental scheme is coming to an end, so what happens to the Port Macquarie locals who have relied on it?

Port Macquarie’s Paula Swann, 78, says she won’t be able to afford her rent if it goes up next month – which is highly likely. The scheme that allowed her to pay below the market price for two years is coming to an end.

Neighbour Glenys Howard, 81, lived in the same affordable Port Macquarie apartment until four months ago. She jumped ship knowing the rental scheme was winding down and rent would be rising up.

Swann and Howard are concerned for all those who have been living in Highfields Circuit, a complex of one-bedroom apartments a stone’s throw from Port Macquarie Base Hospital. The building has been offered to low-income earners for years – but things are soon set to change.

In June the government scheme that allowed all of this will end – leaving Swann and those remaining in Highfields in limbo. 

What’s the scheme: The Highfields Circuit building has been managed under the  National Rental Affordability Scheme (NRAS). This scheme was introduced by the government in 2008 to increase the supply of affordable rental dwellings. 

• The scheme provides annual payments to assist landlords (approved participants) over a 10 year period who rent dwellings to eligible people at a reduced rate – at least 20 percent below market rent.

• This incentive for landlords is tax-free income.

• Over the incentive period, the affordable housing is managed by a registered community housing provider. 

• Rent collected goes to the owner of the unit. This can be either the developer or an investor who has bought the unit from them.

On the Mid North Coast, Port Macquarie has two NRAS approved participants: Australian Affordable Housing Securities Ltd and Community Housing Ltd.

Incentives end: With funding for the scheme cut in the 2014-15 budget, participants and dwellings have been gradually exiting the scheme, which is coming to an end completely in June.

• More than 2000 dwellings are set to exit the scheme by the end of June, including 92 in Port Macquarie, according to a 2025 federal report.

Local impact: Swann received a letter last year confirming the government payments made over a 10 year period to ensure her apartment remains affordable are coming to an end on April 28.

The result? A likely rent rise – or her lease not being renewed.

Pay up or ship out: Lately, there’s been plenty of movement in the complex, with long term residents moving out and new people moving in – this time paying market value.

Swann told the Mid North Coaster the vibe in the hallway is low, as people anxiously wait on a letter informing them of increased rent they can’t afford – or an eviction notice. 

• “The lady next door told me on Monday her rent has gone up to $440 a week,” Swann said. “I pay $319 a week and I know she was paying less than me, so it’s quite a jump.” 

No longer affordable: Swann currently pays $638 a fortnight. Her unit is the same as next door. As a pensioner, she says if her rent increases like some of her neighbours she won’t be able to afford it. 

In the meantime, Swann has organised a storage unit for the end of April in preparation for a move to Queensland, as well as register her name on affordable housing waitlists. 

• The median rental price in Port Macquarie is $660 per week, according to PropTrack.

Nowhere to go: Fellow renter Glenys Howards says affordable housing seems to be a thing of the past.

The retiree recently moved to a block of units managed by Uniting Church, who she says contacted her from a social housing waitlist where her application sat for 16 years.

• “The many people who have been part of the NRAS have found themselves in an unenviable situation, with nowhere to go,” Howard said.

Homes for the vulnerable: Affordable housing is typically run by non-government organisations.

• There are two types of affordable housing. The first sees tenants charged a rent 20-25 percent below the market rate for that area, and in the second rent is charged at 25-30 percent of household income before tax. Whoever builds the housing decides which of these rent structures is used.

Social housing refers to government-subsidised housing based on need for people on very-low incomes, as well as people experiencing homelessness or family violence. 

• Public housing and community housing fall under social housing; the former is operated by state and territory governments (in New South Wales, under Homes NSW) while the latter is operated by not-for-profit organisations.