Gazette.govt.nzPursuant to section 124(1)(d) of the Social Security Act 1964, the Minister for Social Development makes the following instrument.
I n s t r u m e n t
1. Title—This instrument is the Housing Support Assistance Amendment 2015.
2. Commencement—This instrument comes into force on 29 June 2015.
3. Principal programme—This instrument amends the Housing Support Assistance Programme (as established and approved on 26 June 2014)1 (the principal programme).
4. Clause 4 amended (Interpretation)—(1) In clause 4(1), definition of applicant, after paragraph (b), insert:
“(ba) includes a person to whom the chief executive is considering whether to grant assistance under Part 3; and”.
(2) In clause 4(1), definition of letting fees assistance, replace “recoverable” with “non-recoverable”.
(3) In clause 4(1), insert, in their appropriate alphabetical order:
“conditional grant letter assistance is the assistance under Part 3
rent in advance assistance is the non-recoverable assistance under subpart 6 of Part 2”.
5. Clause 6 amended (Assistance is discretionary)—(1) In clause 6, after “Part 2”, insert “or Part 3” in each place.
(2) In clause 6(3), replace “and 25” with “25, 41, and 47”.
(3) In clause 6(3), replace “or letting fees assistance” with “letting fees assistance, rent in advance assistance, or conditional grant letter assistance”.
(4) In clause 6, after subclause (2), insert:
“(2A) Subclause (1) is also subject to clause 6A.”
6. New clause 6A inserted
After clause 6, insert:
“6A Relationship between Part 2 and Part 3
(1) Despite clause 6(1), an applicant who has been granted conditional grant letter assistance under Part 3 must not, during the period specified by the chief executive under clause 49, be granted bond assistance, letting fees assistance, or rent in advance assistance under Part 2.
(2) Despite clause 6(1), if a component of conditional grant letter assistance granted to an applicant has been paid under clause 52, a grant of assistance under Part 2 for the same costs must only be made, within the appropriate limit set out in Part 2, to assist with costs in excess of the component of conditional grant letter assistance paid.”
7. Clause 8 amended (Application for assistance required)
In clause 8(1), after “under”, insert “Part 2 of”.
8. Clause 9 amended (Payment of assistance)
In clause 9(b), after “former”, insert “, current,”.
9. Clause 23 amended (Purpose of this subpart)
In clause 23, replace “recoverable” with “non-recoverable”.
10. Clause 28 revoked (Letting fees assistance recoverable)
Revoke clause 28.
11. New Subpart 6 inserted
In Part 2, after subpart 5, insert:
“Subpart 6—Rent in advance assistance
39 Purpose of this subpart
The purpose of this subpart is to provide grants of non-recoverable financial assistance to specified people towards rent in advance required by their landlords to enter alternative housing to help alleviate hardship of having to meet that payment from their immediately available resources.
40 Rent in advance assistance: eligibility
(1) An applicant who meets the residential criteria is eligible to be considered for rent in advance assistance under this programme if,—
(a) the applicant (whether alone or together with any other person) is either—
(i) a tenant of any social housing; or
(ii) a person who is awaiting allocation of social housing; or
(iii) a person who has contacted the department or the agency in regard to the person’s housing need; and
(b) the applicant is a tenant under a tenancy agreement for alternative housing that requires the tenant or tenants to pay rent in advance at the start of the tenancy; and
(c) in the chief executive’s opinion having regard to sustainability, the applicant is likely to be able to retain alternative housing.
(2) Subclause (1) is subject to clauses 41 and 42.
41 Rent in advance assistance: ineligibility
An applicant is ineligible for rent in advance assistance if he or she has cash assets or income in excess of the cash assets limit or the income limit.
42 Rent in advance assistance: restrictions on grant
Only 1 grant of rent in advance assistance may be made to an applicant or his or her spouse or partner (if any) in a 52-week period.
43 Rent in advance assistance: principles to be applied in exercise of discretion to grant assistance
In exercising the discretion under clause 6(1), the chief executive must have regard to—
(a) the reasons the applicant needs rent in advance assistance; and
(b) whether other assistance or an advance payment of a benefit under the Act in respect of rent in advance is available to the applicant; and
(c) any other matters the chief executive considers relevant.
44 Rent in advance assistance: amounts and limits
(1) The amount of any rent in advance assistance under clause 6(1) must be set by the chief executive within the limits set out in subclause (2).
(2) The total amount any rent in advance assistance must not exceed the lesser of the following amounts:
(a) the amount of the rent in advance payable by the applicant for the alternative housing (not exceeding the amount that is equivalent to 2 weeks’ rent for that housing):
(b) $1,000.”
12. New Part 3 inserted
After Part 2, insert:
“Part 3
Conditional grant letter assistance
45 Purpose of this Part
The purpose of this Part is—
(a) to provide conditional grants of assistance to people who are disadvantaged in the housing market to alleviate the hardship of having to meet the cost of bonds, rent in advance, and letting fees from their own resources to enter alternative housing; and
(b) to provide written assurance to the people referred to in paragraph (a) that they will be able to access financial assistance towards the costs of entering a tenancy for that housing and thereby encourage private sector landlords to let alternative housing to them.
46 Conditional grant letter assistance: eligibility
An applicant who meets the residential criteria is eligible to be considered for conditional grant letter assistance under this Part if the chief executive is satisfied that the applicant (whether alone or together with any other person),—
(a) is either—
(i) awaiting allocation of social housing; or
(ii) in social housing, has been assessed by the agency as continuing to be eligible for social housing, and waiting to be allocated other social housing; and
(b) is, in the chief executive’s opinion, having regard to sustainability, likely to be able to retain alternative housing; and
(c) is, within a period specified by the chief executive, likely to be a tenant under a tenancy agreement for alternative housing; and
(d) in the case of an applicant who has previously been granted conditional grant letter assistance, either—
(i) there is no decision pending or likely to be made under clause 52 to make payment of that grant on a claim for payment made within the period specified by the chief executive under clause 49; or
(ii) the chief executive is satisfied that no assistance is payable under that grant because none of the conditions for payment under clause 51 have been met.
47 Conditional grant letter assistance: ineligibility
An applicant is ineligible for conditional grant letter assistance if he or she has cash assets or income in excess of the cash assets limit or the income limit.
48 Conditional grant letter assistance: components and limits
(1) Conditional grant letter assistance granted to an applicant under clause 6(1) comprises the following components:
(a) a sum towards the payment of any letting fees for alternative housing not exceeding 1 week’s lower quartile rent plus GST:
(b) a sum towards any bond demanded for the alternative housing not exceeding the lesser of—
(i) 4 weeks’ lower quartile rent; and
(ii) $2,000:
(c) a sum towards any rent in advance demanded for the alternative housing at the start of the tenancy not exceeding the lesser of—
(i) 2 weeks’ lower quartile rent; and
(ii) $1,000.
(2) In this clause, lower quartile rent means the weekly lower quartile market rent for the area in New Zealand in which the applicant seeks alternative housing as most recently published by the Ministry of Business, Innovation and Employment.
49 Conditional grant letter assistance: conditional grant
Any conditional grant letter assistance granted to an applicant under clause 6(1) is a conditional grant and is only payable if and to the extent that the applicant has, within a period specified by the chief executive, met the conditions for payment of all or part of that assistance under clause 51.
50 Conditional grant letter assistance: procedure following grant
(1) If the chief executive grants conditional grant assistance under clause 6(1) to an applicant, the chief executive must—
(a) issue the applicant with a letter (a conditional grant letter) stating—
(i) that the applicant has been granted conditional grant letter assistance; and
(ii) the components and maximum amounts of that assistance; and
(iii) the conditions for payment of all or any of that assistance (as set out in clause 51); and
(iv) the period in which the conditional grant letter is valid (being the period specified under clause 49 within which the conditions of the grant must be satisfied); and
(v) the information and documentation the applicant must supply to the department within that period to satisfy the department that the conditions of grant have been met; and
(b) take reasonable steps to assist the applicant to understand the conditions of the grant.
(2) A conditional grant letter may contain any other information or advice the chief executive thinks fit.
51 Conditional grant letter assistance: conditions of payment
The conditions that must be met before conditional grant letter assistance is payable under clause 52 are that, within the period specified by the chief executive under clause 49, the applicant has supplied the department with the information and documentation required to satisfy the chief executive that—
(a) the applicant (whether alone or together with another person) has become a tenant under a tenancy agreement for alternative housing; and
(b) for payment of the letting fees assistance component of the assistance, the applicant has paid or become liable to pay a letting fee in respect of entering that tenancy agreement; and
(c) for payment of the bond component of the assistance, the tenancy agreement requires the payment of a bond; and
(d) for payment of the rent in advance component of the assistance, either—
(i) the tenancy agreement requires payment of rent in advance at the start of the tenancy; or
(ii) the landlord has demanded payment of rent in advance at the start of the tenancy
52 Conditional grant letter assistance: payment
(1) This clause applies if the chief executive is satisfied that—
(a) the conditions set out in clause 51 have been met within the period specified under clause 49; and
(b) 1 or more of paragraphs (b) to (d) of clause 51 applies.
(2) If this clause applies, the chief executive must in accordance with clause 9 make payment of the 1 or more components of the conditional grant letter assistance for which the conditions of payment have been met within the appropriate maximum amounts set out in the conditional grant letter.
53 Conditional grant letter assistance recoverable in certain circumstances
(1) Any payment of a grant of conditional grant letter assistance is recoverable from the applicant if subclause (2) applies.
(2) This subclause applies if, within 52 weeks from the date of payment of the grant or any component of the grant, the applicant or his or her spouse or partner again becomes a person awaiting allocation of social housing.
(3) If subclause (2) applies, the amount of the payment is a debt due to the Crown by the applicant for the purpose of section 85A(d)(i) of the Act.”
Dated at Wellington this 29th day of June 2015.
Hon ANNE TOLLEY, Minister for Social Development.
Explanatory Note
This note is not part of the instrument, but is intended to indicate its general effect.
This instrument comes into effect on 29 June 2015. It amends the Housing Support Assistance Programme under the Social Security Act 1964. The effect of this instrument is to introduce assistance for rent in advance as a standard grant under Part 2 of the Programme and changes the existing letting fees assistance from recoverable to non-recoverable assistance. It also inserts a new Part 3 that introduces new conditional grants of assistance towards bond, rent in advance and letting fees to encourage private landlords to let housing to people on the social housing register by providing written assurance that they will be able to access financial assistance towards the costs of entering a tenancy for alternative housing if certain conditions are met. These new conditional grants will be supported by a conditional grant letter and will be recoverable in certain circumstances.
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