Public housing debt

About public housing debts

• Will a public housing debt impact an offer of social housing?

  No.

  The Department can’t force your client to pay a housing debt, or enter a payment plan, in exchange for an offer of housing. Page 14 of the Public Housing Allocations Operational Guideline states ‘Importantly, no offer of public housing is to be made which directly or indirectly suggests that the offer is conditional to the applicant entering into a debt repayment agreement, or immediately resolving the debt’.

  The Department should ensure your client has an opportunity to have a debt reviewed prior to an offer of housing.

  If the Department states an offer of housing is conditional on entering a payment plan, you can:

  1. Write to the Department, refer to the above policy, and state your client can’t be refused an offer based on refusal to enter a payment plan. Request the Department review the alleged debt based on your client’s circumstances and the Allocations Guidelines.
  2. Your client can appeal the Department’s decision regarding the debt. See below, What if my client disagrees with the Department’s review of their debt?
  3. If unresolved, refer to Justice Connect Homeless Law for assistance requesting the debt is waived.
• When will the Department agree to waive a public housing debt?

  Public housing maintenance debt

  The Department may waive (cancel) a maintenance debt where the Department is responsible, or it arose in circumstances outside your client’s control. For example, the Department is responsible for fair wear and tear at the property, like replacing old carpet, cracks in walls caused by movement, worn or faded bench tops.

  Examples of circumstances outside your client’s control include:

  • Damage or cleaning costs due to family violence e.g. where a client is required to flee their property to escape family violence and is unable to clean a property or remove goods
  • Damage caused by police intervention when they are called to attend a property
  • Third party criminal damage
  • Damage caused in the context of a mental health episode

   

  The Department will not pursue a maintenance debt where the VCAT order was made more than 15 years ago, or where a person has been declared bankrupt. See the Department’s Property Damage Guidelines and Allocations Guidelines for more information.

  Public housing rent arrears debt

  Generally, a rent arrears debt will only be waived or reduced where the rent was not assessed correctly. For example, if your client was incorrectly charged market rent for a period.

  Homeless Law often has rent arrears debts retrospectively reduced because a client spent time in prison and the Department was not aware. The rent is reduced to $15 per week for at least 6 months in prison in these circumstances. For more information see the Department’s Temporary Absence policy.

• What if my client has a bond loan debt?

  A bond loan is a bond paid by the Department for a renter in a private rental property. If the bond is paid to the private rental provider when the tenancy ends the renter will owe a bond loan debt to the Department.

  A bond loan can’t be refused due to a previous bond loan debt. The Department may encourage your client to enter a payment plan for the old debt but can’t force them to do so.

  Your client will be exempt from repaying a bond loan debt in the following circumstances:

  • The debt is the result of actions that your client couldn’t reasonably prevent due to their individual circumstances e.g. the damage was caused in the context of family violence.
  • The debt arises from third party criminal damage that was outside your client’s control.
  • The debt is due to damage or cleaning costs incurred due to a natural disaster.
  • The debt arose because your client was forced to leave the property due to a serious medical condition.
  • The debt is the result of your client being unable to give the required notice after receiving an offer of social housing.
  • Your client has been declared bankrupt.
  • The bond loan was provided prior to 1 July 2001.

   

  Verbal confirmation provided by a family violence support worker is sufficient to support an exemption due to family violence.

  For more detail, please see the Department’s RentAssist Bond Loan Operational Guidelines.

• What if my client disagrees with the Department’s decision?

  Your client can appeal the Department’s decision not to waive a debt or refusal to provide a bond loan. Guidance on the process and the appeal form is available on the Department’s website.

  Where a VCAT order has been made regarding the debt the client can apply to have the matter reheard. Certain criteria apply. See VCAT Hearings: A Guide  for more information. However, in Homeless Law’s experience this is generally not necessary as matters can be resolved through negotiation with the Department based on their policies.