12Maximum rent

12 Maximum rent

(1) No incentive is available for any period during which the rent charged for the dwelling is not at least 20% less than the market value rent for the dwelling.

Note: For market value rent, see section 36.

(2) However, the Secretary may in writing determine that subsection (1) does not apply in relation to a particular charge of rent if the Secretary is satisfied that: (a) the charge was not at least 20% less than the market value rent for the dwelling because of inadvertence or error on the part of one or more of the following: (i) the approved participant; (ii) an investor; (iii) an agent of the approved participant or an investor; and (b) the tenant concerned has been compensated for being overcharged; and (c) reasonable processes are in place to ensure that the tenant is charged rent that is at least 20% less than the market value rent for the dwelling; and (d) reasonable steps have been taken to ensure that inadvertence or error of the kind mentioned in paragraph (a) will not happen in relation to future charges of rent for the dwelling.

Note: A decision not to make a determination is reviewable by the Administrative Review Tribunal (see section 71).

(3) The approved participant may apply for a determination under subsection (2). The application must be in the approved form.