The Commercial Landlord Hardship Fund provides grants of up to $3,000 per month per retail or commercial lease to eligible small landlords who may experience hardship as a result of reducing rent for their tenant(s) under the Retail and Other Commercial Leases (COVID-19) Regulation 2021.
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To be eligible for a grant under the Commercial Landlord Hardship Fund applicants must:
(a) be a landowner or trustee with total taxable land holdings of less than $5 million (as at 31 December 2020, under the Land Tax Management Act 1956), including part holdings but excluding the value of a principal place of residence;
(b) have not claimed land tax relief for the relevant property for rent reductions between 1 July 2021 and 31 December 2021;
(c) have gross rental income as their primary source of income (gross rental income being more than 50% of total assessable income) for the 2019-20 financial year;
(d) be a landowner of the property for which an application is made;
(e) be the landowner of a New South Wales property subject to the Retail and Other Commercial Leases (COVID-19) Regulation 2021;
(f) be a landlord with a current lease agreement that provides rent relief to the tenant(s) from 13 July 2021 that will not be claimed as 2021 land tax relief; and
(g) attest that providing rent relief to the tenant(s) may cause financial hardship
Before applying to the Commercial Landlord Hardship Fund, landlords must complete the following process under the Commercial Tenancy Relief Scheme:
> Step 1 – Reach an agreement through either mediation or private negotiation with impacted tenants, that complies with the Retail and Other Commercial Leases (COVID-19) Regulation 2021
> Step 2 – Obtain tenant’s approval to disclose terms of agreement for the purpose of applying for the Commercial Landlord Hardship Fund grant
> Step 3 – Show evidence that the agreed amount has been applied to the month for which the grant is being claimed
Landlords may then apply for a grant of up to $3,000 per month per eligible property in proportion to their ownership share subject to:
• cessation of the Scheme as publicly announced;
• until all funds from the hardship fund have been exhausted, whichever is sooner
• monthly attestation (for the term of the rental abatement agreement) from the applicant that
– The rental abatement agreement remains in force; and
– All other scheme requirements continue to be met, in particular ongoing financial hardship of both the tenant and landowner.
The Commercial Landlord Hardship Fund will open for applications in October 2021.
If you have any queries please do not hesitate to contact us.