59Timing of Housing Australia’s financial contributions to purchase price

59  Timing of Housing Australia’s financial contributions to purchase price

 (1) For an arrangement relating to the construction of a new home, Housing Australia must pay the Commonwealth’s contribution:

 (a) for the agreed percentage of the purchase price of the land—at the time of settlement of the purchase of the land to which the arrangement relates; and

 (b) for the agreed percentage of each progress payment:

 (i) at the time that Housing Australia considers appropriate to assist the participating lender to facilitate the progress of construction, but also having regard to any associated risk to Commonwealth funds; and

 (ii) no later than the time when the progress payment is required under the construction contract.

Example: Housing Australia agrees to provide 40% of the purchase price under an arrangement relating to a house and land package. It pays 40% of the purchase price of the land at the settlement date, followed by 40% of the value of each progress payment in the course of the construction.

 (2) For any other arrangement, Housing Australia must pay the Commonwealth’s contribution to the purchase price at the time of settlement.