DEBT SET UNFAIR Social Housing, Debt and Homelessness

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DEBT SET UNFAIR Social Housing, Debt and Homelessness
DEBT
SET
UNFAIR
Social Housing, Debt and Homelessness
DEBT SET UNFAIR Social Housing, Debt and Homelessness
TABLE OF CONTENTS

   INTRODUCTION ________________________________________________________________________________            3

   DEBT SET UNFAIR- EXECUTIVE SUMMARY ________________________________________________________              3

   SUMMARY OF RECOMMENDATIONS _____________________________________________________________                 4

   INTRODUCTION ________________________________________________________________________________            5

   OVERVIEW OF THE CURRENT SYSTEM ___________________________________________________________               6
     Types of charges _______________________________________________________________________________       6
     Notification and repayment options ______________________________________________________________      6
     Difficulties in repayment of charges ______________________________________________________________    6
     Debt and future tenancy ________________________________________________________________________       7
     Requesting a review ____________________________________________________________________________       8

   HOW DEBT OCCURS ____________________________________________________________________________             8
     Domestic and Family violence and debt ___________________________________________________________ 8
     Centrelink breach and social housing debt ________________________________________________________ 10
     Supporting tenants in arrears ____________________________________________________________________ 11

   DEBT AND HOMELESSNESS _____________________________________________________________________ 12
     Debt and homelessness ________________________________________________________________________ 12

   HOW DEBT IS RESPONDED TO __________________________________________________________________ 13
     Waiver and write-off of debt _____________________________________________________________________ 13
     Repayment of debt ____________________________________________________________________________ 14
     Unsatisfactory former social housing tenants_______________________________________________________ 15
     Non-financial repayment of debt ________________________________________________________________      16
     Role of Community Housing Providers____________________________________________________________ 17

   Author: Chris Hartley,
   Senior Project Officer, Homelessness NSW
   October 2016.

2 | Debt Set Unfair: Social Housing, Debt and Homelessness
DEBT SET UNFAIR Social Housing, Debt and Homelessness
DEBT SET UNFAIR- EXECUTIVE SUMMARY

Debt Set Unfair (the Report) examines the           able to repay their debt to Housing NSW, they
current operation of the social housing debt        are forced to rely on the already overstretched
system and its impact on people experiencing        SHS sector for assistance before their housing
homelessness.                                       applications can be considered. Many people
                                                    experiencing homelessness spoke of the
The Report was developed from a series of           incredible financial pressure that repayments
consultations conducted by Homelessness             placed upon them and how this created a sense
NSW with people experiencing homelessness           of hopelessness and futility, with many choosing
and Specialist Homelessness Services (SHSs). In     to exit completely from the housing system.
total 35 people experiencing homelessness and
170 specialist homelessness services provided       The impacts of the current social housing debt
information which has been used to inform the       system were magnified for those experiencing
content of this report and its recommendations.     homelessness who identified as having been
                                                    listed as an ‘unsatisfactory former social housing
The Report finds that many people experiencing      tenants or occupant’ as a result of being
homelessness developed debt in situations           evicted for non-payment of rent. People with
where they were the victim of domestic and          this status are required to sustain a private
family violence or after having their income        tenancy for six months before their application
support payments restricted by Centrelink.          can be approved and listed on NSW Housing
It also highlights that FACS Housing does           Register. Homelessness NSW’s consultations
not currently sufficiently identify or support      found that due to the current high cost and
tenants who are in arrears and who are at risk of   demand with the private rental sector, it is
eviction.                                           practically impossible for people experiencing
                                                    homelessness to obtain private rental and that
The report also examines the links between the      this requirement essentially prevents people
FACS Housing negative classification system for     from escaping homelessness.
former tenants and homelessness. It finds that
a significant number of people experiencing         To address the impact of the social housing
homelessness have a social housing debt             debt system, the report makes a number of
with FACS Housing, with many classified as          recommendations for reform. These include
‘less than satisfactory former social housing       reforms to the Residential Tenancies Act 2010
tenants or occupant’ and who are therefore          (NSW) to provide greater protections for
required to completely repay their debt or make     survivors of domestic and family violence, the
continuous payments for six months before their     development of publicly available clear, written
applications can be listed on the NSW Housing       guidelines to assist potential applicants and
Register.                                           their advocates in seeking write off or waiver
                                                    of debts and the expansion of the operation of
The report highlights that these requirements       the Work and Development Scheme to former
have considerable impacts on the specialist         tenants with unresolved debts.
homelessness sector and on the lives of people
experiencing homelessness. As most people
experiencing homelessness are not immediately

                                                       Debt Set Unfair: Social Housing, Debt and Homelessness | 3
RECOMMENDATIONS
         In summary the report recommends:

         DEBT PREVENTION                         Deduction Scheme who have        9. That the ability to apply for
                                                 been breached by Centrelink.        write off or waiver of debts
         1. That the NSW Government                                                  be clearly listed as an option
            amend sections 54 and 100         4. That FACS Housing work              on FACS Housing’s current
            of the Residential Tenancies         with Homelessness NSW               forms relating to arrears and
            Act 2010 (NSW) to provide            and other peak agencies to          repayments and on the FACS
            greater protections for              develop strategies to identify      Housing and Service NSW
            survivors of domestic and            and assist clients regularly        website.
            family violence.                     falling into arrears.
                                                                                  10. That FACS Housing introduce
         2. That FACS Housing provide         5. That FACS Housing revise           a system to enable former
            better support to victims of         its current forms relating to      tenants with extenuating
            domestic/family violence by:         arrears and repayments to          circumstances to reduce
                                                 include specific details of        the amount of time in which
            • amending its domestic              the financial support options      repayments are required
              and family violence policy         available for tenants having       before an application is listed
              to contain information             difficulty with repayments.        on the Housing Register.
              on the rights of survivors
              of domestic and family          RESPONDING TO DEBT                  11. That FACS Housing remove
              violence in relation to                                               the requirement that
              tenancy charges, notice         6. That FACS Housing introduce        unsatisfactory former tenants
              and ability to appeal              a community education              must demonstrate an ability
              decisions of FACS                  campaign to ensure that            to sustain private tenancy
              Housing;                           social housing tenants’ and        for 6 months before their
                                                 advocates better understand        application can be approved
            • requiring Community                their rights in relation to        and listed on NSW Housing
              Housing Providers abide            responding to debt.                Register.
              by the FACS Housing
              domestic and family             7. That FACS Housing develop        12. That the NSW Government
              violence strategy;                 and make publicly available        expand the operation of
                                                 clear, written guidelines to       the Work and Development
            • providing greater training         assist potential applicants        Scheme to former tenants
              to FACS Housing staff              and their advocates in             with unresolved debts.
              on how best to support             seeking write off or waiver of
              and respond to survivors           debts.                           13. That FACS Housing enable
              of domestic and family                                                Community Housing
              violence who have fallen        8. That the guidelines for waiver     Provider’s more flexibility
              into arrears.                      of debt also be drafted in         to respond to debt among
                                                 a Plain-English format and         former social housing tenants
         3. That FACS Housing work               in community languages             seeking to re-enter the
            with Homelessness NSW                to ensure their accessibility      system.
            and other peak agencies to           for people experiencing
            develop a strategy to support        disadvantage;
            tenants using the Rent

4 | Debt Set Unfair: Social Housing, Debt and Homelessness
INTRODUCTION

ABOUT HOMELESSNESS NSW               Participants in the consultations    REPORT STRUCTURE
                                     were asked whether they have
Homelessness NSW is a peak not       ever had a social housing debt,      The Report is divided into a
for profit organisation that works   how the debt occurred and how it     number of distinct sections.
with its members to prevent and      was repaid. They were also asked     Firstly, the report provides an
reduce homelessness across           to indicate where they were living   overview of the current New
NSW. Our members include             while re-paying this debt and the    South Wales Department of
small, locally based community       impact of debt repayment on          Community Services FACS
organisations, multiservice          them and their families.             Housing (FACS Housing) policies
agencies with a regional reach                                            and procedures in relation to
and large state-wide service         Consultations were conducted in      tenancy charges, arrears and the
providers.                           Sydney and in Newcastle. In total    classification of former social
                                     over 35 homeless and formerly        housing tenants.
Key services that we provide         homeless people were consulted
include policy development           in preparation for this report.      Secondly, the report examines
and advocacy in working to                                                the current circumstances under
end homelessness, public             Homelessness NSW                     which many people develop
education about the changing         also consulted Specialist            debt and in particular focuses
faces of homeless people and         Homelessness Services (SHS’s) on     on how domestic violence,
those at risk, information about     their experiences in supporting      systemic failures of notice and
the diverse mix of initiatives       clients who had accumulated          lack of coordination between
operating in NSW and elsewhere       social housing debt. Services        government agencies often
and advice and support for           were asked how frequently clients    leave tenants with no choice but
member organisations and others      presented with debt, the impact      to default on payments and to
about organisational change and      of this debt and their current       accumulate arrears.
improvement.                         responses to assist former social
                                     housing tenants. In total over 170   The report then identifies who
CONSULTATIONS                        responses were received from         are the former tenants impacted
                                     SHS providers from across New        by outstanding debt. It provides
In preparation for this Report,      South Wales.                         an overview of this debt and the
Homelessness NSW conducted                                                lack of options within the system
a series of consultations            The comments and information         to have debt reduced, waived
with people experiencing             received from both SHS providers     or repaid through non-financial
homelessness to understand           and people experiencing              methods such as a Work and
their experiences with social        homelessness have been used to       Development Order.
housing debt and how this            inform the content of this report
impacted upon their ability to       and its recommendations.
exit homelessness.

                                                             Debt Set Unfair: Social Housing, Debt and Homelessness | 5
OVERVIEW OF THE CURRENT SYSTEM

   TYPES OF CHARGES

   FACS Housing is able to apply                                  NOTIFICATION AND REPAYMENT OPTIONS
   tenancy related charges in
   accordance with the provisions of                              Under the Residential Tenancies Act 2010 (NSW) and the
   the Residential Tenancies Act 2010                             Housing Act 2001 (NSW), tenants have a legal obligation to
   (NSW).                                                         pay their tenancy charges as they become due.

   FACS Housing establishes separate                              As per the Accounts Management Policy, FACS Housing are
   accounts for each tenancy related                              required to notify tenants in writing of any tenancy charges it
   charges and payments.1 These                                   places on their accounts and if any changes to their tenancy
   include:                                                       charges have been made.2 The Policy also specifies that FACS
                                                                  Housing may also contact the tenant via phone or visit the
   Rent - FACS Housing charges                                    property of the tenant.
   market rent for all its properties.
   This is the maximum rent a public                              In addition, FACS Housing issues a statement to tenants
   housing tenant can be charged.                                 every three months. This statement outlines the charges, and
   Rent is charged to tenants on a                                payments made, on all of the tenant’s accounts.
   weekly basis.
                                                                  Tenants can pay their tenancy charges by any of the following
   Water usage- Tenants are required                              methods:
   to pay either a percentage water
   charge or an actual water charge.                              • Arranging an automatic payment from their Centrelink
   All other water related charges                                  payments (Rent Deduction Scheme)
   such as water connection charges,                              • Paying at a Post Office using a payment card
   sewerage and other charges, and
   providing water in common areas                                • BPAY
   are the responsibility of FACS                                 • Internet
   Housing. Water usage is charged
                                                                  • Direct Debit from an account
   on a weekly basis.

   Repairs – Tenants are required
   to pay the cost of repairing
   damage to their premises if they                     charges, such as bank fees for                        DIFFICULTIES IN REPAYMENT OF
   are responsible for causing the                      dishonoured payments. FACS                            CHARGES
   damage. FACS Housing will charge                     Housing will add charges to this
   the tenant ‘Tenant Repair Costs’                     account as they become due.                           As per the Accounts Management
   only if the tenant has accepted                                                                            Policy, it is the tenant’s
   liability or has sufficient evidence                 Combined former debt - Where a                        responsibility to notify FACS
   of the tenant’s responsibility for the               current tenant has had a previous                     Housing of financial difficulties in
   damage. The tenant has the right                     tenancy with FACS Housing, it will                    repaying charges. FACS Housing
   to accept or dispute liability for                   transfer all outstanding debts from                   can then negotiate with the tenant
   Tenant Repair Costs.                                 the tenant’s former accounts.                         for a ‘reasonable repayment
                                                                                                              arrangement’ or in certain
   Miscellaneous debts -                                                                                      circumstances consider a lesser
   Miscellaneous debts occur because                                                                          payment arrangement.3
   of various other tenancy related

   1
     For more information on the types of charges on a FACS Housing NSW policy see the Tenancy Charges Policy at http://www.housing.nsw.gov.au/forms,-policies-
   and-fact-sheets/policies/tenancy-charges-policy

   2
     For more information on the types of notifications provided see the Accounts Management Policy at http://www.housing.nsw.gov.au/forms,-policies-and-fact-
   sheets/policies/account-management-policy

6 | Debt Set Unfair: Social Housing, Debt and Homelessness
Where FACS Housing is unable to                          CATEGORY              DEBT RELATED             CLASSIFICATION OF FORMER TENANTS
negotiate a ‘reasonable repayment
                                                         Eligible for a        Have a current nil No restrictions on re-application or
arrangement’, it may seek either a                       statement of          or credit balance placement on the NSW Housing Register.
Specific Performance Order or an                         satisfactory          on all accounts
order to terminate the tenancy from                      tenancy               (rent, water,
the NSW Civil and Administrative                                               repairs and
Tribunal. In making this decision                                              former tenancies
the NSW Civil and Administrative                         Satisfactory          Owing the                Future applications for tenancy will not be
Tribunal will consider:                                  former social         provider less            made live on the NSW Housing Register,
                                                         housing               than $500 in rent,       unless debt repaid in full and if they also
                                                         tenants               repairs, water           have a satisfactory payment performance for
• the reasons for the arrears;
                                                                               usage or other           the 12 months prior to their assessment.
• any hardship to the tenant;                                                  charges.
                                                                                                        If the former tenant has not maintained
• the ability of the tenant to                                                                          repayment arrangements
  remedy the arrears and maintain                                                                       Requires regular repayments for three
  regular rental.                                                                                       months.

If a tenant is evicted on the
grounds of rent arrears then                             Less than             Moved out          Future applications will not be considered
they are likely to be classified as                      satisfactory          owing the          on the NSW Housing Register unless:
                                                         former social         provider more
an ‘unsatisfactory former social                                                                  • The debt is repaid in full or regular
                                                         housing               than $500 in rent,
housing tenant’.                                                                                    repayments have been made for 6
                                                         tenants or            repairs, water
                                                                                                    months. If payments stop at any stage the
                                                         occupant              usage or other
                                                                                                    application will be closed.
DEBT AND FUTURE TENANCY                                                        charges
                                                                                                  • The 6-month period starts from the
If a tenant leaves their property                                                                   date the application was submitted or
owing arrears and reapplies                                                                         the date the former tenancy debt was
                                                                                                    acknowledged (whichever occurs later).
for social housing in the future,
FACS Housing may restrict the
services available to the former                         Unsatisfactory        Applies if the           Must demonstrate that a private tenancy has
tenant, including placement on                           former social         tenant has               been sustained for at least 6 months before
the NSW Housing Register. FACS                           housing               been evicted             the application can be approved and listed
                                                         tenants               for breaches in          on NSW Housing Register.
Housing and community housing
                                                                               their tenancy
organisations participating in                                                 agreement,
Housing Pathways use this register                                             including for
to offer housing when a suitable                                               rental arrears.
property becomes available.

When a social housing tenancy/
occupancy is terminated, FACS                           It should be noted that                                 Register of ‘Less than satisfactory
Housing classifies the tenant into                      Homelessness NSW unsuccessfully                         former social housing tenants
one of the following categories: 4                      sought information from FACS                            or occupant’ and ‘Unsatisfactory
                                                        Housing on the current numbers                          former social housing tenants’.
                                                        of listings on the NSW Housing

3
  For evidence considered by FACS Housing in determining whether tenants are eligible for reduced payment arrangements, see the Social Housing Eligibility
and Allocations Policy Supplement at http://www.housingpathways.nsw.gov.au/additional-information/policies/social-housing-eligibility-and-allocations-policy-
supplement#specific
4
  Former tenants may be classified in each of the categories for a variety of reasons other than debt. For more information on former tenant classification, see the
Social Housing Eligibility and Allocations Policy Supplement as above

                                                                                         Debt Set Unfair: Social Housing, Debt and Homelessness | 7
REQUESTING A REVIEW

   Decisions made by FACS Housing                                CASE STUDY
   in relation to former tenant debts
   and former tenant classification,                             Due to her partner’s violent behaviour, Kim and her three
   the removal from the NSW Housing                              children were forced to leave their social housing property.
   Register and the reactivation of                              Fear of her partner prevented Kim from removed her
   closed applications are reviewable                            belongings and thereby ending her tenancy. She also incurred
   on request by a client.                                       $20,000 worth of debt as a result of her partner’s damage to
                                                                 the property.
   There are two levels of appeal:
                                                                 Due to the debt, she did not have other housing options. She
   • First tier – internal review by                             was in a refuge for about 7 months as she was not eligible to
     FACS Housing, and                                           be listed on the Housing Register. During this time, she self-
                                                                 medicated with prescription drugs, was very depressed and
   • Second tier – independent                                   crashed her car into a tree. She was transferred to a refuge
     review by the Housing Appeals                               closer to her children’s school, to assist them to attend school.
     Committee
                                                                 Kim and her children were homeless for approximately 12
   Internal reviews conducted by                                 months before a SHS was able to advocate for the debt to be
   FACS Housing are generally                                    reduced to $6000 and then with NGO brokerage support, this
   decided within 20 working days                                debt was further reduced to $4,000.
   from the date FACS Housing
   receives a client’s application for                           When the debt was $4,000, FACS Housing allowed an
   review. If a client believes the                              ‘Acknowledgement of Debt Repayment Plan’ to be signed by
   decision made by FACS in the                                  Kim. Kim applied and was granted financial assistance through
   first tier appeal is incorrect, then                          Start Safely to help her secure private rental.
   they can ask the Housing Appeals
   Committee to review the decision.5
                                                        failures of notice and lack of                       the debt, the client had to cycle
   HOW DOES DEBT                                        coordination between government                      through services and was further
   DEVELOP?                                             agencies has left tenants with no                    traumatised by the system”. SHS
                                                        choice but to default on payments                    provider
   This section examines the                            and to accumulate arrears.
   circumstances under which many of                                                                         Homelessness NSW does not
   the people consulted as part of the                  DOMESTIC AND FAMILY                                  believe it is appropriate for social
   report first developed debt.                         VIOLENCE AND DEBT                                    housing debt to be imposed in
                                                                                                             circumstances of domestic and/or
   Homelessness NSW notes that                          “A typical example of debt is with                   family violence. Among those who
   there are considerable issues in                     a client experiencing domestic and                   participated in this report, this was
   relation to the identification and                   family violence who has escaped to                   one of the most reported reason
   attribution of incorrect (or at least                safety. The perpetrator of violence                  for arrears and debt occurring.
   disputable) charges at the end                       causes the damage... the tenant                      Approximately one-third of those
   of a tenancy which needs to be                       returns to debt and/or becomes                       experiencing homelessness
   addressed by FACS Housing.                           homeless until the debt is paid”.                    consulted by Homelessness NSW
                                                        SHS provider                                         detailed stories where domestic
   Homelessness NSW’s consultations                                                                          and family violence was a factor in
   also found that many people have                     “I had a client with a large debt                    their accumulation of arrears.
   accrued debt in circumstances                        after she left a property that was
   where it should not have been                        in her name after experiencing                       People experiencing homelessness
   imposed in the first place. This                     domestic violence. We tried to                       and services reported debt
   includes instances of domestic or                    raise this with Housing workers but                  developing in domestic and
   family violence or when systemic                     we had no avail. While repaying                      family violence situations in a

   6
     For a detailed discussion of this point see Victorian Government, Royal Commission into Family Violence, Summary and Recommendations of Final Report
   (2016) pg 123

8 | Debt Set Unfair: Social Housing, Debt and Homelessness
number of different ways. Firstly,
many indicated that they had
fallen into arrears as a result                                    CASE STUDY
of being forced to leave their
social housing property without                                    Sarah is a single mum with 5 children with a social debt of
giving the required notice. It is                                  $1900. Because of this debt she is unable to be re-housed with
well established that survivors of                                 FACS Housing and she was living in a property which does not
domestic and family violence often                                 have room for all of her children (with 2 of her children forced
need to quickly leave their property                               to reside elsewhere).
in order to keep themselves and                                    Sarah was recently forced to move into a cabin in a caravan
their family safe. 6 As one service                                park. However, this has affected the children’s schooling and
told Homelessness NSW in relation                                  the customer’s university. Sarah has started a payment plan
to notice “nine times out of ten it                                with FACS Housing so that she can rectify her debt and be
is the least of a woman’s worries                                  once again eligible for social housing.
when she needs to vacate because
of domestic violence”. However,
under section 96 and 97 of the
                                                         final Apprehended Violence Order                   Residential Tenancies Act 2010 –
Residential Tenancies Act 2010
                                                         (AVO) with an exclusion order                      Statutory Review recommended
(NSW), social housing tenants are
                                                         they are able to provide 14 days                   extension of section 100 of the
required to give 14 days’ notice for
                                                         notice without needing to pay the                  Residential Tenancies Act 2010
a fixed-term lease or 21 days for a
                                                         rent for the full notice period.8                  (NSW) to accept provisional or
continuous lease before leaving a
                                                         However many survivors do not                      interim AVO’s.10 While supportive
tenancy. If a tenant vacates without
                                                         apply for an AVO, often fearing                    of this extension, Homelessness
giving sufficient notice, FACS
                                                         that the violence will increase as                 NSW does not believe this
Housing will charge rent for the full
                                                         a result of doing so. As outlined                  adequately addresses situations
notice period.
                                                         in Women’s Legal Services NSW’s                    in which survivors of domestic
The need for greater flexibility                         submission to the statutory review                 and family violence do not seek
around notice for survivors of                           of the Residential Tenancies Act,                  an AVO. Homelessness NSW
domestic and family violence                             it can take up to a year before a                  recommends extending section
has recently been recognised                             final AVO is made by which time                    100 of the Residential Tenancies
by the report of the Victorian                           the social housing property is likely              Act 2010 (NSW) to facilitate the
Royal Commission into Family                             to have been abandoned by the                      ending of tenancy in instances
Violence which recommended                               victim.9 Alternatively, a tenant can               where a qualified professional has
the Residential Tenancies Act                            appeal the imposition of charge                    provided a statutory declaration
1997 (VIC) be amended to ensure                          for the full notice period to FACS                 detailing domestic and family
that survivors are not held legally                      Housing. However, the large                        violence.11 As noted in the
liable for debts that are properly                       number of consumers and services                   Women’ Legal Service NSW
attributable to perpetrators of                          reporting debt occurring as a result               submission to the Review of the
family violence.7                                        of leaving their tenants as a result               Residential Tenancies Act, under
                                                         of domestic violence and providing                 the Migration Regulations 1994,
Currently in NSW survivors of                            to FACS Housing insufficient notice                the Department of Immigration
domestic and family violence have                        highlights that this appeal is not                 and Citizenship is currently able
two options to avoid occurring                           accessible or suitable given the                   to make findings as to whether an
liability in the above situations.                       reality of domestic violence.                      applicant for permanent residency
Firstly, under section 100 of the                                                                           has experienced family violence
Residential Tenancies Act 2010                           In response to this issue, the New                 based on evidence, including
(NSW) if the tenant has obtained a                       South Wales Fair Trading in its                    statutory declarations from a list of

7
    Victorian Government, Royal Commission into Family Violence, Summary and Recommendations of Final Report (2016) pg 123
8
 Note that a tenant may also make an application to the NSW Civil and Administrative Tribunal to end their tenancy, however compensation may still be required in
these circumstances.
9
  See Women’ Legal Service NSW, Submission to Statutory Review of the Residential Tenancies Act, 29 January 2016 accessed at: http://www.fairtrading.nsw.gov.au/
mobile0c9a66/biz_res/ftweb/pdfs/About_us/Have_your_say/Residential_tenancy_laws_review/Womens_legal_services_nsw.pdf
10
     New South Wales Fair Trading, Residential Tenancies Act 2010 – Statutory Review (2016)
11
     See Women’ Legal Service NSW, Submission to Statutory Review of the Residential Tenancies Act,
12
     NSW Family and Community Services, Domestic and Family Violence NSW Department of Family and Community Services Housing NSW Policy Statement (2014)

                                                                                         Debt Set Unfair: Social Housing, Debt and Homelessness | 9
CASE STUDY
   professionals. Homelessness NSW
                                                               Robert had been living in social housing for over 5 years.
   believes this same criterion should
                                                               He is currently on Newstart allowance and he had his rent
   apply to determinations under the
                                                               automatically deducted using the Rent Deduction Scheme.
   Residential Tenancies Act 2010
   (NSW)                                                       Robert was recently breached by Centrelink for failing to
                                                               attend a number of appointments ‘without a valid reason’.
   People experiencing homelessness
                                                               As his social housing rent was automatically deducted using
   and SHS providers also reported
                                                               the Rent Deduction Scheme and the lack of Centrelink
   high numbers of debt were
                                                               payments meant he fell into a cycle of debt which ultimately
   occurring in circumstances where
                                                               resulted in being evicted from his tenancy. Robert is now
   the perpetrator of domestic
                                                               homeless and sleeping rough.
   violence was a co-tenant continuing
   to remain in the property to cause
   damage or accumulate arrears.
                                                      strategy,12 the strategy does not                      best to support and respond
   Currently under section 54 of the
                                                      specify any of the rights of survivors                 to survivors of domestic/family
   Residential Tenancies Act 2010
                                                      of domestic and family violence                        violence with arrears.
   (NSW), co-tenants are liable for
                                                      in relation to tenancy charges,
   the actions and damage caused
                                                      notice or ability to appeal decisions
   by the other tenant. This section
                                                      made by FACS Housing. Nor                           CENTRELINK BREACH AND
   has considerable impact on those
                                                      does the policy currently apply to                  SOCIAL HOUSING DEBT
   experiencing domestic and family
                                                      Community Housing Providers.
   violence and on the development
                                                                                                          “My rent comes directly out of
   of debt. As one SHS informed                       RECOMMENDATION: That the                            my Centrelink payment. I am on
   Homelessness NSW “My current                       NSW Government amend sections                       unemployment benefits, so I have
   experience with social housing                     54 and 100 of the Residential                       to look for 10 jobs per week which
   and debt is that Land and Housing                  Tenancies Act 2010 (NSW) to                         is a lot. I worry that I will be sick and
   Corporation check the property                     provide greater protections for                     unable to look for that amount of
   in some cases 3 – 6 months after                   survivors of domestic and family                    jobs and so I will get breached. If
   the tenant has left. This becomes                  violence.                                           I get breached, then I will have a
   an issue in relation to domestic
                                                                                                          debt which would be impossible for
   violence as the perpetrator often                  RECOMMENDATION: That FACS
                                                                                                          me to repay”. Homeless participant
   vandalises the property even when                  Housing provide better support
   FACS Housing knows that the                        to survivors of domestic/family                     Many of those consulted by
   tenant no longer resides there.                    violence by:                                        Homelessness NSW accrued debt
   The tenant is then forced to be                                                                        and/or were evicted from social
   lumbered with the debt. I currently                • amending its domestic and                         housing after being breached by
   am assisting three clients with                      family violence policy to contain                 Centrelink. The vast majority of
   this scenario”. In order to prevent                  information on the rights of                      people in social housing are reliant
   debt being developed as a result                     survivors of domesticand family                   on Centrelink payments for income
   of the co-tenant/perpetrator,                        violence in relation to tenancy                   with many tenants having their rent
   Homelessness NSW recommends                          charges, notice and ability                       payments automatically deducted
   that section 54 of the Residential                   to appeal decisions of FACS                       from their Centrelink payments
   Tenancies Act 2010 (NSW) be                          Housing; requiring Community                      through the Rent Deduction
   amended to enable exception                          Housing Providers abide by the                    Scheme. The NSW Government is
   to liability in circumstances of                     FACS Housing domestic and                         considering making the currently
   domestic and family violence.                        family violence strategy;                         voluntary scheme mandatory. 13

   While FACS Housing currently has                   • providing greater training for                    While some of those consulted
   a domestic and family violence                       FACS Housing staff on how                         for this report indicated the Rent

   13
      See NSW Department of Family and Community Services’ Rent Reform to Stop Homelessness Churn (Media Release 31 March) accessed at http://www.facs.
   nsw.gov.au/about_us/media_releases/rent-reform-to-stop-homelessness-churn

10 | Debt Set Unfair: Social Housing, Debt and Homelessness
Deduction Scheme provided them        SUPPORTING TENANTS IN                    have been avoided if I had some
with some protection from falling     ARREARS                                  way of getting support rather than
into arrears, such protection is                                               being evicted”. One SHS provider
undermined when an individual         It was apparent from Homelessness        told Homelessness NSW, “many
is breached by Centrelink. The        NSW’s consultations, that                of the clients we support enter our
net effect of a Centrelink breach     not enough is being done to              service and homelessness because
for many housing tenants is they      proactively identify and support         of the failure of services to support
are unable to pay rent and are at     tenants who regularly fall into rental   people when they are vulnerable.
risk of losing their tenancy. Many    arrears. As detailed above, FACS         One of these service failings is in
others spoken to by Homelessness      Housing’s Account Management             relation to debt and eviction”.
NSW went to extreme measures          Policy indicates that it is the
                                                                               Homelessness NSW recommends
to ensure they could sustain          primary responsibility of the tenant
                                                                               that FACS Housing develop
their tenancy after a breach had      to notify FACS Housing of financial
occurred:“When I was breached,        difficulties in repaying charges. The    a more effective process of
I had no choice. Food and my          Account Management Policy does           identifying tenants who regularly
medication were luxuries that I       specify that FACS Housing may            fall into rental arrears, with a
could not afford. I barely ate for    refer tenants to financial and other     view to providing these tenants
a few weeks so that I could keep      support services to assist them in       appropriate referrals to financial
paying my rent. I would rather be     managing their arrears. Yet, none        counselling and support
hungry than back on the street’.      of the participants in Homelessness      agencies. Homelessness NSW
Another person experiencing           NSW’s consultations were provided        has worked with FACS Housing
homelessness told Homelessness        with or were aware of others who         around process for early referral
NSW ‘It is a vicious and              had been provided with such              to SHS’s, consideration could
unnecessary cycle, because you        support.                                 be given to extending this to
don’t get paid by one government                                               Centrelink and other agencies. In
agency then you can’t afford to pay   At each consultation with people         addition, FACS Housing should
another. Paul is robbing Peter!”.     experiencing homelessness,               amend its notifications of arrears
                                      numerous people told stories of          and ‘Acknowledgement and
Homelessness NSW is not aware         how their arrears had ultimately         Agreement to Repay Debt’ form
of any protocols in place between     led to their eviction from social        include specific details of financial
Centrelink and state housing          housing and facilitated their            support available to tenants who
authorities that enables Centrelink   fall into homelessness. This is          are have difficulties paying charges,
to communicate when a person has      illustrated by the following story       including financial counsellors
been breached and will therefore      shared with Homelessness NSW “I          and information on how tenants
be unable to pay rent via the Rent    went on holidays and while I was         can apply for waiver and work and
Deduction Scheme. Nor does            on holiday my partner gambled            development order (discussed
FACS Housing appear to have           away the rent money and then left        further below).
any specific support measures for     me to pick up the bill as my name
clients who have their Centrelink                                              RECOMMENDATION: That FACS
                                      was on the tenancy. I came back
payments breached and who will                                                 Housing work with Homelessness
                                      and had a massive debt that I could
therefor fall into rent arrears.                                               NSW and other peak agencies to
                                      not repay so I was evicted. After I
                                                                               develop strategies to identify and
                                      was evicted, I had to wait for two
RECOMMENDATION: That FACS                                                      assist clients regularly falling into
                                      years before I could get back on
Housing work with Homelessness                                                 arrears
                                      the waiting list as I couldn’t afford
NSW and other peak agencies
                                      to make regular payments and             RECOMMENDATION: That
to develop a strategy to support
                                      then I had to wait another six years     FACS Housing revise its current
tenants using the Rent Deduction
                                      before actually getting a place. I       forms relating to arrears and
Scheme who have been breached
                                      had never been homeless before           repayments include specific
by Centrelink.
                                      and it was pretty scary to fall so       details of the financial support
                                      far so quickly. I started off staying    and options available for tenants
                                      with friends until I had overstayed      having difficulty with repayments
                                      my welcome. I then lived out of my       (including the ability to apply for
                                      car and then survived from going         waiver).
                                      from service to service. This could

                                                             Debt Set Unfair: Social Housing, Debt and Homelessness | 11
DEBT AND
   HOMELESSNESS                                      CASE STUDY

                                                     Phil is a 52-year-old man who is currently sleeping rough and
   INTRODUCTION
                                                     couch surfing in the inner Sydney city area.
   As detailed in FACS Housing’s                     Phil was previously housed in a Community Housing unit
   Social Housing Eligibility and                    where he lived for 10 years until he was evicted because of
   Allocations Policy Supplement,                    rental arrears. Upon eviction, Phil owed roughly $1000 in
   upon exiting social housing, all                  arrears and maintenance amount to $4000.
   tenants are given a classification
                                                     Phil has been advised that in order to reapply for social
   that impacts their future placement
                                                     housing he would be required to set up a repayment plan to
   on the NSW Housing Register.
                                                     reduce his debt. He is willing to acknowledge the debt for
   If a tenant leaves their property                 the rent arrears but believes the maintenance costs are unfair,
   owing arrears then they are likely                grossly high and forced upon him.
   to be classified as ‘satisfactory’, or            As he is now living on the streets, temptation to use illicit
   receive a negative classification                 substances is at an all-time high, and being homelessness is
   of a ‘less than satisfactory’ or                  having a considerable negative impact on both his physical
   ‘unsatisfactory’ former tenant.                   and mental health.

   Homelessness NSW’s consultations
   revealed that a considerable
   number of people experiencing            required to assist clients with social         of us have had a housing debt at
   homelessness had negative                housing debt with fewer than 2 per             some time or another. It is just a
   classifications and were unable to       cent (n=3) detailing that they never           fact of life when you are homeless”.
   re-enter to social housing system.       supported a client in this situation.
                                                                                           As part of its consultations with
   FREQUENCY OF DEBT AMONG                  This data was supported by                     SHS providers, Homelessness NSW
   PEOPLE EXPERIENCING                      the lived experiences of those                 also asked services to report on
   HOMELESSNESS                             experiencing homelessness who                  the highest levels of social housing
                                            participated in Homelessness                   debt they had supported clients
   Given the transient nature of            NSW’s consultations. At each                   with. Services reported exceedingly
   homelessness, it is not possible         consultation conducted by                      high levels of social housing debt
   provide a specific figure of the         Homelessness NSW, numerous                     was owed, with many debts shared
   number of people experiencing            people shared stories of social                over $30,000, with the highest debt
   homelessness in New South Wales          housing debt as causing and                    shared of $150,000.In circumstances
   who have debt with FACS Housing.         exacerbating their homelessness.               of such high debt, the debt
   As detailed above, Homelessness          As one person confirmed “Most                  essentially remains with the tenant
   NSW unsuccessfully sought to
   obtain data from FACS Housing
   on the numbers of former tenants
   who currently have negative                    HOW OFTEN DO YOU HAVE CLIENTS WITH
   classifications.
                                                  SOCIAL HOUSING DEBT?
   Despite the challenges of
   accurately estimating numbers
   167 of the 170 specialist
   homelessness services consulted
   by Homelessness NSW were
   currently supporting clients with             0                                                    100
                                                           20        40           60           80             120      140
   social housing debt. Over 70 per
   cent (n=143) of these services                                    Frequently        Occasionally   Never
   indicated that they frequently were

12 | Debt Set Unfair: Social Housing, Debt and Homelessness
HOW DEBT IS RESPONDED TO

The considerable number of              were not even aware of a process          groups working with vulnerable
people experiencing homelessness                                                  groups to develop guidelines for
with debt and the negative              to apply to FACS Housing to have          the writing-off of debt among
classification system places            debt waived, “I have never applied        former social housing tenants.
considerable pressure upon              to FACS for a waiver as I have never      These guidelines should be made
the SHS sector and on the               been told such an option existed.         publicly available and the ability to
lives of people experiencing            I have worked with FACS many              apply for a write-off be listed on the
homelessness.                           times on reducing the debt but            ‘Acknowledgement of Debt’ form
                                        never for completely wiping of the        and on the Service NSW website.
This section will explore the impact    debt”. From Homelessness NSW’s
of the negative classification          consultations it is also apparent         RECOMMENDATION: That FACS
system on former tenants currently      that the treatment of an application      Housing introduce a community
experiencing homelessness and           for wavier is dependent upon a            education campaign to ensure
services working with them. It will     service’s relationship with their local   that social housing tenants and
also explore options such as the        FACS Housing representative. One          advocates better understand their
Work and Development Order              service told us “we have a great          rights in relation to debt.
scheme as ways of ensuring the          relationship with local housing staff-
system is more equitable for            it is pretty rare that we are unable      RECOMMENDATION: That
vulnerable groups such as those         to get debt completely wiped”.            FACS Housing develop and make
experiencing homelessness.              Many other SHS’s reported that            publicly available clear, written
                                        the criteria used by FACS Housing         guidelines to assist potential
WAIVER AND WRITE-OFF OF                 for write-off and waiver are unclear      applicants and their advocates
DEBT                                    with services receiving inconsistent      in seeking write off or waiver of
                                        treatment of similar applications.        debts. These guidelines should
Homelessness NSW believes that                                                    be developed in consultation with
those experiencing homelessness         The hidden nature and inconsistent        peak agencies and other groups
should be eligible to have their        treatment of applications for             working with disadvantaged
debt waived or written off by           waivers for former tenants can            communities.
FACS Housing. Under current             be contrasted by the NSW
practice, FACS Housing will             Government’s response to the              RECOMMENDATION: That
consider an application for waiver      issue of penalty notices under            the guidelines for waiver of
or reduction in the amount of           the Fines Act 1996 (NSW). In              debt also be drafted in a
debt owed if the former tenant is       2011, the NSW Government in               Plain-English format and in
able to demonstrate extenuating         consultation with services working        community languages to ensure
circumstances. However, the ability     with disadvantaged communities,           their accessibility for people
to apply for waiver is not publicised   developed the ‘Guidelines for             experiencing disadvantage.
by FACS Housing and no clear            Writing Off Fines’ which provides
criteria exists to demonstrate          guidance to decision makers,              RECOMMENDATION: That the
what evidence will be considered        services and fine defaulters on the       ability to apply for write off or
in making this determination.           circumstances under which the             waiver of debts be clearly listed
Unsurprisingly none of the people       State Debt Recovery Office will           as an option on FACS Housing’s
experiencing homelessness               make the determination to write-off       current forms relating to arrears
consulted by Homelessness NSW           a penalty notice. Importantly these       and repayments and on the
were aware of the possibility of        guidelines are publicly available.        FACS Housing and Service NSW
appealing for waiver.                                                             websites.
                                        Homelessness NSW believes FACS
Tellingly, we received numerous         Housing should similarly work
responses from SHS providers who        with relevant peak agencies and

                                                               Debt Set Unfair: Social Housing, Debt and Homelessness | 13
REPAYMENT OF DEBT                                                CASE STUDY
   “Clients experiencing                                            Laura accured $3000 rental arrears during an admission to
   homelessness often have a myriad                                 a mental health impatient unit. When Laura was discharged
   of other disadvantage factors they                               from hospital, she had been evicted from the property
   are dealing with and expecting                                   resulting in the client becoming homeless. In order to once
   them to comply for 6 months                                      again be eligible for housing, Laura had to enter into a regular
   without default is not reasonable.                               payment plan with FACS Housing and to reduce the debt
   It also forces them to remain                                    under $500. Laura was making regular repayments of $20 per
   homeless for 6 months before they                                fortnight, but her lack of stable housing and moving from crisis
   can reapply”. SHS service                                        service to crisis service had a detrimental effect on her mental
                                                                    health. To cope financially Laura commenced unsafe sex work
   Homelessness NSW believes that                                   and relapsed into drug use.
   the current system in relation
   to former tenants is essentially
   preventing people from exiting
   homelessness. If a former tenant                       understand what $20 can mean                            Living on the streets can be bad
   is not immediately able to repay                       for someone on the street. I have                       but there are no hassles from
   their debt then they are likely to                     to pay $20 per week to pay off a                        Housing”.
   be required to make repayments                         debt. For them it is nothing. For me
   for 6 months before being placed                       it is a choice of whether to eat or                     The large number of people in
   back on the NSW Housing Register.                      not”. Another person experiencing                       homelessness services unable to
   From Homelessness NSW’s                                homelessness consulted by                               exit because of social housing
   consultations it is apparent while                     Homelessness NSW spoke of not                           debt is placing considerable
   unable to access social housing,                       taking medication so he could                           pressure on an already overfull and
   the only outcome possible for a                        afford repayments “After Housing                        under resourced sector.14 Services
   large number of former tenants                         stuffed up I organised to pay $25                       consulted by Homelessness NSW
   is homelessness. As one SHS                            per week. I have a chronic back                         spoke of considerable impacts
   provider told Homelessness NSW,                        and neck injury and I could have                        upon the resourcing and capacity
   “If people are unable to re-access                     used that money for pain relief but                     of specialist homelessness services
   social housing, then there are often                   couldn’t”. Others felt ‘defeated by                     to respond to debt. As one service
   no options left for them. Generally,                   the system’ as a result of the debt                     explained, ‘SHS’s get drawn into
   they are not a preferred candidate                     and gave up on seeking housing                          assisting clients resolve their
   in an overcrowded private rental                       all together. As one person told                        housing debts- it is a waste of time
   market and often they end up in                        Homelessness NSW “Lots of                               and resources’. As indicated in
   unsafe situations whilst waiting to                    people don’t pay. They just leave                       the table below, 85 of the services
   re-access housing”. One person                         the system and don’t come back.                         consulted by Homelessness NSW
   experiencing homelessness told
   Homelessness NSW “I am sleeping
   on a friend’s couch at the moment.
   I can’t get a rental property so my
                                                                HOW DO YOU SUPPORT CLIENTS WITH DEBT?
   only option is to wait until I can get
   back on the Housing Register”.

   Many people experiencing
   homelessness consulted by
   Homelessness NSW were
   attempting to re-enter the system                            0        10          20         30       40       50           60         70          80         90
   but struggling with the financial
   pressure repayments placed on                                              Assist with payment plan   Ask FACS for waiver        Repay debt on their behalf
   them “Government does not

   14
      Information from the latest Australian Institute of Health and Welfare’s (AIHW) Specialist Homelessness Services 2014-15 Annual Report indicates that 329
   requests for assistance were unable to be met by specialist homelessness services every day

14 | Debt Set Unfair: Social Housing, Debt and Homelessness
CASE STUDY

                                                                 John had a debt to Housing NSW of approximately $2000.
assisted clients to develop payment
                                                                 The debt is for rent arrears that accrued after John’s property
plans to repay their social housing
                                                                 was destroyed by flooding.
debt, 65 advocated for client’s debt
to be waived by FACS Housing and                                 He was no longer able to stay at the property and approached
20 used their own services funding                               FACS Housing for repairs without success. John then decided
to repay the debt.                                               to stop paying rent, but did not end his tenancy properly. John
                                                                 was evicted but not before he accrued significant rent arrears.
The pressure placed on people
                                                                 Three years later, John approached FACS Housing for
experiencing homelessness
                                                                 assistance with Temporary Accommodation and to lodge
and SHS providers is further
                                                                 an Application for Housing Assistance. At this time, he
compounded by the requirement
                                                                 discovered his Housing debt and his status as a former tenant.
that if re-payments by former
tenants stop at any stage their                                  John’s Housing application was suspended and has been
housing application will be closed.                              for 12 months at time of writing, pending an appeal. In the
As one SHS asked ‘Homelessness                                   meantime, John has been staying in a boarding house where
NSW ‘simply, if they don’t have                                  he is unable to have his children stay as much as he would like.
stability in their life, how can they                            Their mother is willing to give more access, but the boarding
maintain a stable repayment                                      house is not an appropriate environment for young children.
“plan”?’.

Homelessness NSW believes that
these considerable impacts can                         UNSATISFACTORY FORMER                                  weekend, found that in Greater
be reduced by implementing a                           SOCIAL HOUSING TENANTS                                 Sydney less than 0.5 per cent
system by which a former tenant                                                                               of offerings were considered
can apply for a reduction in the                       “Where would I ever get private                        appropriate and affordable for
amount of time repayments are                          rental in Sydney? Seriously?!”                         those on government income
required before an application is                      Homeless participant.                                  support payments.15 Numerous
listed on the Housing Register.                                                                               people experiencing homelessness
Such a system could be open                            The impacts of the current                             also spoke of the impracticality
to applications from people                            social housing debt system are                         of expecting people to sustain
currently or at risk of experiencing                   magnified for people experiencing                      private tenancies for 6 months and
homelessness or who have other                         homelessness identified as having                      the belief that this requirement
extenuating circumstances such as                      been listed as an ‘unsatisfactory                      was in place to reduce the number
domestic violence.                                     former social housing tenants                          of people on the NSW Housing
                                                       or occupant’ as a result of being                      Register. In light of the current
RECOMMENDATION: That FACS                              evicted for non-payment of rent.                       housing affordability crisis, the
Housing introduce a system                             Under the current system, those                        conditions currently attached to
to enable former tenants with                          with this status must demonstrate                      the ‘unsatisfactory former social
extenuating circumstances to                           an ability to sustain private                          housing tenants or occupant’
reduce the amount of time in                           tenancy for 6 months before their                      essentially prevent people from
which repayments are required                          application can be approved and                        escaping homelessness. As
before an application is listed on                     listed on NSW Housing Register.                        detailed by one SHS provider “the
the Housing Register                                   Homelessness NSW believes                              main reason to apply for public
                                                       this requirement is completely                         housing is because people on low
                                                       inappropriate under current                            income cannot afford the private
                                                       housing conditions. Anglicare’s                        market”.
                                                       2016 Rental Affordability Snapshot,
                                                       that looked at almost 15,000 rental
                                                       listings advertised across one

15
   Anglicare Australia, Rental Affordability Snapshot 2016 (April 2016) accessed at http://www.anglicare.asn.au/docs/default-source/default-document-library/
rental-affordability-snapshot-2016.pdf?sfvrsn=7

                                                                                      Debt Set Unfair: Social Housing, Debt and Homelessness | 15
RECOMMENDATION: That FACS                                     CASE STUDY
   Housing remove the requirement
   that unsatisfactory former tenants                            Peter had over $17,000 in penalty notices which had been
   must demonstrate an ability to                                accrued during the 10 years he experienced homelessness.
   sustain private tenancy for 6                                 In addition to being homeless, Peter has struggled for many
   months before their application                               years with a drug addiction and mental illness.
   can be approved and listed on                                 In 2015, Peter made an application to be on the Housing
   NSW Housing Register.                                         Register and decided to address his outstanding fines. He
                                                                 successfully made an application for a WDO and he was able
   NON-FINANCIAL REPAYMENT
                                                                 to gradually repay his debt through attendance in a drug and
   OF DEBT
                                                                 alcohol treatment program. Peter is now addiction free and
                                                                 has continued to stay in the program even though he has
   “Having a non-financial way of
                                                                 repaid his debt.
   repaying the debt would be ideal.
   A lot of the time, the money the                              Peter now acts to mentor and support new members of the
   clients receive from Centrelink is                            support group. He credits the WDO scheme as giving him the
   barely enough to pay rent let alone                           encouragement to enter treatment programs.
   afford other bills, food, medication
   and so forth. Implementing an
   alternate pathway such as Work
   and Development order would be                       perpetual state of homelessness as                • 95% of approved organisations
   worth a trial. The current policy and                they were unable to afford to repay                 said the scheme had helped
   procedures in place clearly are not                  debt to enable them to be placed                    reduce the level of stress and
   achieving the intended goal” SHS                     upon the NSW Housing Register.                      anxiety their clients felt about
   provider.                                                                                                their fines debt; and
                                                        The Work and Development Order
                                                                                                          • 87% of approved organisations
   “Yes, a lot of people spin right                     (WDO) Scheme operates in NSW
                                                                                                            said the scheme had enabled
   out when they get a letter from                      to allows vulnerable people to
                                                                                                            clients to address the factors
   Housing telling them that they have                  clear up to $1000 a month from
                                                                                                            that made it hard for them to
   a debt. I think it would take a lot                  their fines by participating in
                                                                                                            pay or manage their debts in
   of stress off people if they knew                    medical, mental health or drug
                                                                                                            the first place.16
   that they could re-pay by a WDO”                     and alcohol treatment, counselling
   Homeless participant                                 (including case management),                      The Review also found that
                                                        financial counselling, vocational,                WDO’s provided an effective
   It was apparent from Homelessness                    educational or life skills courses, or            incentive for clients who might
   NSW’s consultations that both                        voluntary work. Fines are cleared                 otherwise be reluctant to engage
   services and people experiencing                     at different rates depending on                   (or stay engaged) in counselling
   homelessness would benefit from                      the activity. The rates range from                or treatment and the participants
   the implementation of non-financial                  $30-$50 per hour. In order to be                  overwhelmingly felt the program
   methods to re-pay outstanding                        eligible for a WDO, they must be                  allowed them to regain control
   debt with FACS Housing. During                       able to demonstrate that they are                 of their lives and improved their
   Homelessness NSW’s consultations                     homeless, have a mental illness,                  feelings of self-worth and self-
   many services and people                             intellectual disability, cognitive                efficacy.17
   experiencing homelessness                            impairment, serious addiction to
   contrasted the current debt system                   drugs or alcohol, or are in acute                 The review’s positive findings of the
   to the operation of the Work and                     financial hardship.                               operation of WDO’s was shared by
   Development Order systems that                                                                         services and people experiencing
   successfully operate in relation                     A 2015 review of the Work and                     homelessness that Homelessness
   to penalty notices. As detailed                      Development Order Scheme                          NSW consulted. One SHS provider
   above, many of those consulted by                    prepared for the NSW Department                   told Homelessness NSW, WDO’s
   Homelessness NSW were stuck in a                     of Justice found:                                 ‘give a feasible option to clients

   16
      INCA Consulting, Evaluation of the Work and Development Order Scheme: Qualitative Component, May 2015) Accessed at http://www.legalaid.nsw.gov.
   au/__data/assets/pdf_file/0018/25218/WDO-Final-Evaluation-Report-May-2015.pdf
   17
        Evaluation of the Work and Development Order Scheme: Qualitative Component

16 | Debt Set Unfair: Social Housing, Debt and Homelessness
experiencing financial hardship. It    alternative, non-monetary ways          CONCLUSION
gives relief from financial hardship   of “repaying” their rental arrears,
                                                                               This report has outlined a variety
and removes their negative             including by enrolling in study,
                                                                               of options available to address
classification at the same time,       volunteering in the community,
                                                                               the considerable impact of social
so they can move towards stable        or undertaking treatment to
                                                                               housing debt on vulnerable former
accommodation. It has the added        address their underlying issues.
                                                                               tenants.
benefit of often re-engaging           Homelessness NSW believes the
clients with services’. One person     NSW Government should similarly
                                                                               The introduction of measures such
experiencing homelessness said         expand the operation of the WDO
                                                                               as the extension of the Work and
being on a WDO ‘lets you give          scheme to include those with social
                                                                               Development Order system and
something back to the community        housing debt. Homelessness NSW
                                                                               reforms to the internal processes of
and you don’t always feel like a       further recommends that similar
                                                                               FACS Housing will greatly reduce
drain on the system’.                  criteria for participation, repayment
                                                                               the financial pressure faced by
                                       rates and approved activities be
                                                                               tenants in arrears.
Homelessness NSW notes that            adopted in relation to those with
the Community Housing Provider,        social housing debt.                    There may be other options for
Bridge Housing in May 2016,
                                                                               reforming the Social Housing debt
launched the ‘Hand-Up’ program.        RECOMMENDATION: That
                                                                               system not included in this Report.
Hand-Up is based on the WDO            the NSW Government expand
                                                                               However, Homelessness NSW
model and involves Bridge Housing      the operation of the Work and
                                                                               hopes that the Report will serve
offering tenant’s                      Development Scheme to former
                                                                               as a starting point for dealing with
                                       tenants with unresolved debts.
                                                                               issues that specialist homelessness
                                                                               service and people experiencing
                                                                               homelessness are currently facing.

                                                                               This Report will be submitted to
                                                                               the NSW Minister for Family &
                                                                               Community Services and Minister
                                                                               for Social Housing and relevant
                                                                               NSW Government departments
                                                                               and agencies.

                                                             Debt Set Unfair: Social Housing, Debt and Homelessness | 17
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