DEBT SET UNFAIR Social Housing, Debt and Homelessness
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
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- 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
You can also read