21Transfer to another person on application by approved participant

21 Transfer to another person on application by approved participant

(1) The Secretary may, on the application of the approved participant, transfer the allocation for a rental dwelling to another person. (2) The application must be in the approved form. (3) The Secretary must not transfer the allocation unless the Secretary is satisfied that the other person: (a) is not a disqualified person; and (b) has the capacity to properly manage the allocation; and (c) is a suitable person to hold the allocation; and (c) has agreed, in writing, to the transfer. (4) If the Secretary transfers the allocation: (a) the Secretary must give written notice of the transfer to: (i) the original approved participant; and (ii) the gaining approved participant; and (b) the notice must state the day on which the transfer has effect, which must be the day the original approved participant applied for the transfer or a later day; and (c) the Secretary may impose additional special conditions on the allocation, so long as the gaining approved participant agrees to the imposition of those conditions before the allocation is transferred; and (d) the Secretary may give to the gaining approved participant an incentive that otherwise would have been given to the original approved participant, so long as the Secretary does so: (i) at the request of the original approved participant or the gaining approved participant; and (ii) with the agreement of the original approved participant and the gaining approved participant.

Note 1: Paragraph (b) means the gaining approved participant, and not the original approved participant, will be entitled to the portion of the incentive that relates to the part of the NRAS year that includes, and is after, the day the transfer takes effect (see subsections 50(1) and 53(2)).

Note 2: Paragraph (d) relates to the portion of the incentive that relates to the part of the NRAS year that is before the day the transfer takes effect.

(5) If the Secretary acts under paragraph (4)(d) to give an incentive (the agreed incentive) to the gaining approved participant: (a) section 63 (about passing on incentives) applies to the gaining approved participant for the agreed incentive and an investor; and (b) the original approved participant: (i) despite subsection 50(1), is not entitled to receive the agreed incentive; and (ii) despite an arrangement to the contrary, is not required to pass on the agreed incentive to the investor.