Application for the Build-to-Rent Exclusion from Interest Limitation Rules

Te Tūāpapa Kura Kāinga - Ministry of Housing and Urban Development

This form is to be completed by applicants seeking to register build-to-rent land for exclusion from the interest limitation rules. Before a build-to-rent development can qualify for the exclusion, we need to assess and verify that it meets the definition of build-to-rent land under section YA 1 of the Income Tax Act 2007.

The application form will ask you to provide your contact and tax details, as well as basic information about the development you are applying to register. We also ask that you provide evidence to support your application so we can verify the information provided.

Guidance on completing the application form and meeting the build-to-rent land definition can be found on the Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development website here.

If you have any questions regarding the application process or the build-to-rent exclusion, please contact BTR@hud.govt.nz

How to upload files to this application form:

Before you begin your application, move all the files you need to upload into the same folder on your computer (have a read through the form and the guidance provided to find out what you’ll need to upload).

Where the form asks you to ‘Choose files’, you’ll need to upload all of the files for that part of the form in one action. E.g., If you have multiple Records of Title to upload, you’ll need to do them all at the same time

  • 1. Click on 'Choose Files'
  • 2. In the window that pops up, find the folder where you've saved all the files for your application.
  • 3. Click on a file then hold down the Ctrl key to select the other files you need for the part of the form you're completing.
  • 4. Click 'Open'
  • 5. The form will update and tell you how many files you've selected. If the number is not what you expected, you will need to repeat steps 1 to 4 (this will remove previously uploaded files, so please make sure you select all the relevant files for the part of the form you're completing).

We are continuing to make improvements to how the application form works.

Applicant Details

Contact Details

Please provide details for the key contact regarding this application:

Entity Details

Please provide details for entity applying for the build-to-rent exclusion:

Asset Details

Asset Overview

Please provide the following information:

Asset Details

Please enter the details of the individual build-to-rent units you are applying to register:

Note that adding a new entry will automatically duplicate the previous unit details. This is to help make things easier if you just need to change a few details between entries (like the unit number or valuation).


Title Information

To qualify as a build-to-rent development, there must be at least 20 dwellings in one or more buildings that comprise a single development, on a single project-based parcel or parcels of land.

The development must also be under a single ownership, which may be a joint venture or other corporate structure, such as a property syndicate, trust, or portfolio investment entity. Joint ownership may also qualify if the development is held in common rather than in separate parts.


Code of Compliance Certificate

Depending on whether the development is existing or new, there are different obligations and requirements for registration. Existing build-to-rent developments have until 1 July 2023 to meet the requirements for build-to-rent land and apply for registration. New build-to-rent developments completed after 1 July 2023 must meet the requirements and apply to HUD for registration as soon as the development is completed.


Apportioned Valuation

In some circumstances, Inland Revenue requires an apportioned valuation undertaken by a registered valuer. An apportionment of value is required if part of the development qualifies as build-to-rent and part of it does not, and those units are on a common title. This is to ensure that the exclusion from interest limitation rules is only applied to the appropriate portion of the development.



Continuous Use

There may be some instances where you have plans to dispose or change the use of the build-to-rent land or a unit in the future. While the land or unit may still qualify for the exclusion in the meantime, we need to know when that use changes.

Tenancy Details

10 Year Tenancy Term

Tenants must be offered a fixed-term tenancy of at least 10 years with the ability for tenants to give 56 days’ notice of termination. The offer of a 10-year tenancy should be genuine in that it is clearly explained to tenants that they are not committed to residing there for 10 years and may end the tenancy with 56 days’ notice.

Personalisation Policy

Build-to-rent providers must explicitly offer their tenants the ability to personalise their dwellings. You will need to provide evidence that all tenants have been provided personalisation policies. The policy must state the landlord’s position on keeping pets.

Letter of Offer

Please provide a copy of your letter of offer that will be provided to prospective tenants.

The letter of offer should set out the development’s policy on pets, as well as the type of personalisations, changes, or modifications you are happy for the tenants to make, and the process if they wish to do so. It should also set out the offer of a 10-year tenancy, the process for them to pursue this option, and their right to give 56 days’ notice to terminate a 10-year tenancy.

Statutory Declaration

A signed statutory declaration is required from the applicant and/or property manager which attests to various criteria having been met in relation to all existing and future tenants. You can find a sample declaration in the Guidance for Applicants document here.

Privacy Statement

This privacy statement outlines how we collect, use and disclose personal information in accordance with the Privacy Act 2020.

Through this application for the build-to-rent exclusion from interest limitation rules, we collect personal information from you, including information about your:

  • name
  • contact information; and
  • any other information that you provide.

    • We collect your personal information in order to manage applications relating to build-to-rent exclusion from the interest limitation rules. Besides our staff, we share this information with Inland Revenue Department for it to carry out its own assessment and verification of the application/applicant and if successful, apply the exclusion from the interest limitation rules.

    If you choose not to enter the mandatory information specified in this application, we will be unable to accept the application. We keep your information safe by storing it in secure files and only allowing certain staff access to it. You have the right to ask for a copy of any personal information we hold about you, and to ask for it to be corrected if you think it is wrong. If you would like to ask for a copy of your information, or to have it corrected, please contact us at  BTR@hud.govt.nz.

    Consent

    In submitting this form, I agree to my details and all other information I provide being used for the purposes of administering my application. I understand the information will only be accessed by necessary staff. I understand my data will be held securely and will not be distributed to third parties, other than Inland Revenue Department. I have a right to change or access my information. I understand that when this information is no longer required for this purpose, HUD will dispose of my data. I agree to the information being shared with Inland Revenue Department and agree to being contacted by either HUD or Inland Revenue Department in relation to this application.

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