SDA Funding
Quick Summary
The new 2026-27 SDA pricing schedule is not just a revenue input for property models. For operators seeking acquisition, construction or refinance capital, it is a test of whether each dwelling’s income assumptions can be evidenced through enrolment records, participant and vacancy controls, claims history and a credible debt-service buffer. Boards should make that evidence pack routine before asking a lender to underwrite expansion.
Start with the 2026-27 SDA pricing arrangements effective 24 September 2026 and recalculate expected annual income by dwelling, design category, building type and location. Do not carry forward a blended portfolio yield if the underlying mix has changed.
The lender question is not whether the schedule exists; it is whether the operator can reconcile the schedule to an enrolled home, an active participant arrangement and the actual claim record. Keep the model at dwelling level, then roll it up to portfolio debt service.
SDA vacancy payments are limited and evidence-led. Providers must notify the NDIA of a vacancy, actively manage the room, retain the relevant evidence and submit the claim in arrears only when the applicable period has lapsed. That timing can create a cash trough even where the long-run property economics remain sound.
Separate occupied income, eligible vacancy income and unproven pipeline income in board reporting. A lender should be able to see which dollars are contracted, which are claimable, and which depend on a new resident or an approval still in progress.
SDA providers should put compliance evidence beside the financial model. The SDA rules require registered providers and enrolled dwellings; the provider portal and myplace records should reconcile to the assets and receivables shown in management accounts.
For a new project, present a staged drawdown plan with contingency funding rather than relying on a fully occupied case from day one. For a refinance, explain every variance between scheduled income, invoiced income, collected cash and the lender’s covenant calculations.
