Private Rental Assistance Policy Supplement

Last published 17 Jul 2024

Private Rental Assistance policy.

Index

Statement of Satisfactory Tenancy

1. Minor matters

Minor matters are actions which might be a technical breach of the residential tenancy agreement, such as adding a small fixture to a property without permission from Homes NSW, but which do not justify classifying a Homes NSW tenant as ineligible for a Statement of Satisfactory Tenancy.

2. Eligibility criteria and evidence requirements for a Statement of Satisfactory Tenancy

Homes NSW will only provide a Statement of Satisfactory Tenancy if, apart from minor matters, they meet the following criteria:

the tenant’s Homes NSW accounts have a nil or credit balance and the tenant’s payment performance for the accounts was satisfactory for the 12 months before the assessment of the Tenancy Statement. Homes NSW accounts include any former tenancy accounts linked to the current tenancy or the immediate former tenancy
a current tenant has not breached their tenancy in the twelve months prior to Homes NSW receiving their application for a Tenancy Statement, or
a former tenant has not breached their tenancy.

Homes NSW will consider the 12 month period as a whole when assessing whether the tenant made reasonable efforts to keep up to date with their payments and to repay any arrears in accordance with arrangements made.

Homes NSW is not in a position to decide whether former tenants who breached their public housing Tenancy Agreement have rectified the behaviour giving rise to that breach. Former tenants who are ineligible for a Tenancy Statement on the grounds of such breaches will remain ineligible. However, should they sustain a tenancy in the private rental market, then they may be able to ask for a tenant reference from the property owner or manager.

When a tenancy transfers from the management of Homes NSW to the management of a Social Housing Management Transfer (SHMT) Community Housing Provider (CHP), the tenant is not classified as a former tenant of Homes NSW and therefore is not eligible for a Homes NSW Statement of Satisfactory Tenancy.

Evidence requirements

Homes NSW will consider the material held on its tenancy management system and tenant files in relation to the tenancy history of a tenant over:

the 12 months prior to a current tenant’s application for a Tenancy Statement, or
the duration of the tenancy for a former tenant, with the exception of rent and other payments, which Homes NSW will consider over a 12-month period prior to receiving the application.

3. Conditions for becoming eligible for a Statement of Satisfactory Tenancy in the future

Clients of Homes NSW public housing who are ineligible for a Statement of Satisfactory Tenancy may become eligible in the future if they satisfy the following conditions:

all of their Homes NSW accounts (including accounts from linked former tenancies) have a nil or credit balance when Homes NSW next assesses their eligibility for a tenancy statement and their payment performance was satisfactory in the 12 months before Homes NSW’s assessment, and
for current Homes NSW tenants, apart from minor matters, they have no breaches of their Tenancy Agreement for the 12 months before Homes NSW receiving their next application for a Tenancy Statement, or
for former Homes NSW tenants, apart from minor matters, they had not breached their Tenancy Agreement.

Private Rental Brokerage Service

1. Locations where Private Rental Brokerage Service (PRBS) is available

The PRBS is available in the following Homes NSW offices: Albury, Bathurst/Orange, Queanbeyan, Burwood, Strawberry Hills, Central Coast, Fairfield, Bankstown, Blacktown, Campbelltown, Mount Druitt, Hurstville, Lismore/Tweed, Liverpool, Newcastle, Parramatta, Penrith, Wagga Wagga, Wollongong, and Wyong.

The PRBS is available in the following Social Housing Management Transfer community housing provider (SHMT CHP) offices: Armidale, Brookvale, Cessnock, Coffs Harbour, Glenn Innes, Gunnedah, Inverell, Kempsey, Maitland, Moree, Muswellbrook, Nowra, Port Macquarie, St Leonards, Tamworth, Taree and West Ryde.

2. Eligibility criteria for Private Rental Brokerage Service

To be eligible for the PRBS, clients must:

be an Australian citizen or permanent resident (for more information, go to Eligibility for social housing – residency), and
meet the income eligibility criteria for social housing (for more information, go to Income eligibility limits), and
be homeless or at risk of homelessness and have complex needs (for more information, go to Definition and assessment of complex needs), and
have a support service and case plan in place (for more information, go to Support services and Case plans), and
have the capacity to afford and sustain a private rental tenancy. In order to afford a private rental tenancy, the client must be in receipt of a regular weekly income. For more information, go to Capacity to afford and sustain a private rental tenancy.
acknowledge their former social housing tenancy debt if applicable, and enter into a repayment arrangement that will allow them to afford and sustain a private rental tenancy. For more information see the Social Housing Eligibility and Allocations policy supplement.

3. Definition and assessment of complex needs

Clients are eligible for the PRBS if they are homeless or at risk of homelessness. Homelessness includes:

People living in the streets, parks, squatting, or in cars.
People moving frequently from one form of temporary shelter to another, including:
- emergency and transitional accommodation provided under the Specialist Homelessness Services (SHS)
- people staying with other people because they have no accommodation of their own.
People staying in boarding houses on a short-term basis.
- people living in boarding house accommodation on a medium to long-term basis.

In addition to being homeless or at risk of homelessness, the client must have complex needs. Examples of complex needs include:

physical illness
mental illness
physical disability
intellectual disability
substance abuse issues
domestic or family violence
problem gambling
criminal justice issues
child protection needs
family support needs.

4. Support services

For a client to be accepted into the PRBS, they must be engaged with a support service. The primary support service must complete the Private Rental Brokerage Referral Form outlining the client’s support needs, housing status and be committed to providing support to the client during the tenancy according to the agreed case plan.

Support providers and clients are encouraged to contact their nearest Homes NSW office or SHMT CHP and discuss the appropriateness of the referral and the case plan prior to sending the final referral.

Clients who are not being assisted by a support service will not be accepted into the PRBS.

5. Case plans

The support service completing the Private Rental Brokerage Referral Form must provide a case plan for the client. The support offered to the client is required to address issues identified and assist in sustaining the tenancy.

The case plan must cover:

details about the client’s support needs and issues they are facing
other support services involved or current referrals to other agencies
information about the nature of the support being provided and the frequency of contact with clients
the agency/person responsible for providing support
a timeframe for involvement/intervention, and
a commitment by the support worker to continue working with the client to address the issues that may impact the client’s ability to pay rent and meet the conditions of the lease.

6. Capacity to afford and sustain a private rental tenancy

All forms of income are included in the household income calculation to determine affordability of rent, including maintenance, Family Tax Benefit Part A and Part B and other allowances that are not included in the income assessment for social housing eligibility. When assessing the client’s ability to afford private rental, the provider will consider the following:

the client’s weekly household income
any debts that the client may have
weekly income when compared to the average weekly rental prices in the area being sought by the client
entitlement to Commonwealth Rent Assistance.

There must be a reasonable chance that the support offered to the client through the PRBS and the support service has the capacity to address any risks to the client’s ability to sustain a tenancy in the private rental market.

7. Gathering information about a client’s needs and expectations

The client will be interviewed to gather information about their needs and expectations, and to determine eligibility. This information will include the:

complexity of the client’s needs
support needs of the client and whether current support provided meets those needs
suitability of current housing arrangements
housing needs of the client.

During the assessment, the provider will:

talk to the client about their situation
explain the service and assistance to be provided if eligible
explore the client’s expectation of the service
detail what the client is expected to do
discuss past tenancies, why they ended and identify barriers to sustaining a tenancy
establish a tenancy history and possible references
identify what needs to change and what other help is required
confirm weekly income to ensure income eligibility.

8. Evidence requirements for assessing private rental brokerage eligibility

Homes NSW and SHMT CHPs will consider the following evidence when assessing eligibility for the Private Rental Brokerage Service.

Situation	Evidence
Client’s income	Clients must provide proof of all income received by members of the household aged 18 years and over.
Complex needs	Information provided by the client at interview and the details provided by the support worker when assessing complex needs.
Support service in place	This is demonstrated by the presence of a support provider who is willing to sign the Private Rental Brokerage Referral form and an appropriate case plan.
Case plan	The written case plan provided to the provider.

9. Tenancy Facilitation

Tenancy Facilitation includes:

assistance to compile appropriate documentation
help to search for suitable properties
support to submit private rental applications
coaching on how to interact with real estate agents and landlords
information on the rights and responsibilities of renters
assistance to address a listing on a tenant database.

10. Monitoring a private rental tenancy

When a client is successfully housed in the private rental market, the client’s progress will be monitored for between three and 12 months. The purpose of monitoring the tenancy is to ensure that the client is able to maintain the tenancy and that the support offered by the support provider is continuing.

The length of time that the tenancy is monitored will depend on the needs of the client. Monitoring is likely to be fortnightly during the initial stages of the tenancy and decrease to monthly where appropriate. Monitoring involves regular contact with the:

client, through telephone calls and/or home visits
agent/landlord to:
- assure the agent or landlord that the service is continuing and that they can contact the provider if they have concerns about the tenancy
- confirm that the tenant is fulfilling the requirements of the Tenancy Agreement.
support provider in working with them to:
- identify any potential risks to the tenancy
- confirm that support provision is continuing according to the case plan.

Bond Extra

1. Determining maximum rent

The maximum rent for which Bond Extra can be issued is 50% of the household’s gross weekly income plus 100% of any Commonwealth Rent Assistance received. When determining affordable weekly rent, the provider will consider any outstanding debts and other financial commitments that may impact the client’s ability to pay rent.

2. Shared households

Bond Extra can be approved for two unrelated, eligible clients who wish to share a property, as long as each client is named in the Residential Tenancy Agreement.

If one client leaves the tenancy, the remaining client must sign a new Residential Tenancy Agreement and Bond Extra must be re-issued to the remaining tenant.

If all clients wish to leave the household, Bond Extra can be re-issued to each client individually, if needed.

Bond Extra is not valid if the names of the clients living in the rented property do not match the names on the Residential Tenancy Agreement.

3. Types of accommodation where Bond Extra is not available

Bond Extra is not available for the following types of accommodation:

a boarding house or lodging arrangement
institutional care
holiday accommodation
accommodation covered by the Residential (Land Lease) Communities Act 2013 or Retirement Villages Act 1999
other agreements or premises to which the Residential Tenancies Act 2010 does not apply (see sections 7 and 8 of the Residential Tenancies Act 2010 for further detail on agreements excluded from the Act).

If Bond Extra is not available due to the type of accommodation, the offer of Bond Extra will still be valid and clients can continue looking for appropriate accommodation.

4. Circumstances where Bond Extra is not available

Bond Extra is not available under the following circumstances:

if the rent exceeds the maximum rent in the Bond Extra letter
if the landlord or agent will not provide a written Residential Tenancy Agreement with a fixed end date to the tenancy
if the landlord or agent has previously misused Bond Extra.

If the event of any of these circumstances, the offer of Bond Extra will still be valid and clients can continue looking for appropriate accommodation.

5. Responsibilities of the tenant and landlord/agent during the tenancy

Landlords/agents

Landlords/agents must sign a Bond Extra Offer Acceptance DH2052 form and agree to undertake appropriate action to prevent any loss should the client breach their Residential Tenancy Agreement, even if the expectations exceed the requirements of the Residential Tenancies Act 2010.

Landlords/agents should contact the housing provider if:

there are changes to a shared household that have Bond Extra
the landlord/agent is aware of any problems likely to affect or already affecting the tenancy
the client breaches their Residential Tenancy Agreement
the client fails to rectify breaches of their Residential Tenancy Agreement.

Clients

Bond Extra clients are responsible for:

abiding by the terms and conditions of their Residential Tenancy Agreement
informing the landlord/agent and the housing provider of any changes to shared households
seeking help and working with support service/s to resolve tenancy issues, if needed.

6. Circumstances where a client may require Bond Extra a second time

In some cases, a client may need Bond Extra a second time due to factors outside their control. For example, if the client needs to leave their tenancy before the end of the Residential Tenancy Agreement due to domestic and family violence.

A housing provider may approve Bond Extra a second time if:

the client is still eligible, and
there are no previous Bond Extra claims, and
the client provides evidence that they need to move due to a significant change in circumstances or housing needs, or
the client provides evidence that they need to move to access essential medical and support services, or
the client provides evidence of any other exceptional circumstances which are considered valid by the assessing Homes NSW or SHMT CHP officer.

7. Timeframe for submitting a claim for Bond Extra

A Bond Extra claim is valid if the landlord/agent submits the following to the housing provider within three months of the client’s Bond Extra expiration date:

a completed Bond Extra Claim DH2053 form, and
orders made by the NSW Civil and Administrative Tribunal (NCAT) specifying that the amount owed is greater than the bond, and
evidence that the full amount of the rental bond has been paid by the Rental Bond Board.

Bond Extra claims submitted more than three months after a client’s Bond Extra expiration date are not valid.

Where the landlord/agent cannot negotiate repayment of arrears or gain vacant possession to assess damage, they should notify the housing provider immediately and commence NCAT action within seven days.

Private Rental Subsidy

1. Protected entitlements prior 12 June 2012

New policy rules were introduced affecting clients approved to receive Private Rental Subsidy (PRS) assistance, effective from 12 June 2012.

Clients approved prior to the new policy taking effect retain all of their existing entitlements under the Private Rental Subsidy - Disability (PRS-D) and Private Rental Subsidy - Special (PRS-S), as long as they remain eligible for a Private Rental Subsidy. For more information, go to the Private Rental Assistance policy.

2. Eligibility criteria for Private Rental Subsidy assistance approved from 12 June 2012

For a client to be approved to receive the PRS assistance, they must meet the following eligibility criteria:

eligible for social housing
approved for priority status on the NSW Housing Register
have a recognised disability or medical condition
be able to demonstrate they are also ‘at risk of harm’ in their current housing which is not suitable for them to live in while they are waiting for social housing.

Priority status on the NSW Housing Register

To be eligible for priority housing status on the NSW Housing Register, applicants must meet all three of the following criteria:

be eligible for social housing
be in urgent need of housing
be able to demonstrate they are unable to resolve that need themselves in the private rental market due to their urgent housing needs and/or complex circumstances.

For further information on the Priority Housing eligibility criteria, go to the Eligibility for Social Housing policy.

Disability

A person is considered to have a disability if their ability to function is impaired or they have a medical condition that is:

due to an intellectual, psychiatric, sensory or physical condition, or combination of conditions, and
permanent or likely to be permanent, and results in:
- a substantially reduced capacity of the person for communication, learning or mobility
- the need for ongoing support services, or
- an inability to obtain housing from the private rental market.

The social housing provider’s focus is on the effect the disability has on the individual’s or household’s ability to find and keep suitable and affordable housing located near necessary health or support facilities. Having a disability does not automatically guarantee access to the PRS.

Risk factors in current accommodation

There are many situations in which the personal safety or the mental health of a client or another member of their household may be at risk of harm. To be eligible for the PRS, clients must demonstrate they are at risk of harm due to their current accommodation which places the client and/or household member at risk of physical or psychological harm relating specifically to a medical condition or disability. The client and/or household must demonstrate that it is no longer suitable for them to live in the accommodation while they are waiting for social housing.

To help determine which clients should be approved for a PRS, the provider will also consider whether:

the risk is serious and ongoing
the risk means the client cannot remain in the current dwelling and/or location beyond a medium length of time
the property and/or location significantly increase the risk and reduces the client’s safety
the property and/or location significantly increase the risk to the clients ability to manage their specific medical condition
apart from moving, there are no practical steps that can be taken by the client to lower or remove the risk
moving from current accommodation will help or resolve the situation and remove or significantly decrease the risk.

3. Evidence requirements for Private Rental Subsidy assistance

Clients must provide supporting evidence to:

support their eligibility for social housing
satisfy the priority assistance criteria
provide details of their medical condition and how it affects their accommodation needs and/or ability to satisfy those needs in the private rental market
provide evidence to support their risk in their current accommodation.

4. Considerations for clients approved from 12 June 2012

If a client receiving PRS assistance refuses a reasonable offer of social housing, they will no longer be entitled to receive the subsidy. In this case, clients will be expected to be able to meet their own housing needs until they receive an additional offer of social housing. If they cannot, they will need to consider relocating to a more affordable property.

Benchmark rents are capped at the median rent of the middle ring of the Sydney suburbs. If the rent increases above the benchmark amount a client is approved for, they may be required to find another suitable property.

Clients will receive a subsidy only for the same type and location of property which they are likely to be allocated in social housing.

Things considered when assessing the suitability of a property are:

that it is similar to the type of property which the client is likely to be allocated in social housing
that social housing is available in the same location of the property
whether the property has additional features that are not standard in social housing, or whether the features are required to support the management of a medical condition
that a client’s support services can be transferred between suburbs or to another provider within an allocation zone once they are housed in social housing.

Clients who do not secure a private tenancy within 3 months of approval will have their circumstances reassessed to determine their ongoing need for urgent housing.

5. Exceptions to calculating Commonwealth Rent Assistance (CRA) at 100%

Before 24 August 1998, clients contributed only 20% of their CRA in rent. These clients continue to contribute 20% of their CRA in rent while they stay at the same address. If they are required to relocate because the landlord terminates the tenancy for a reason other than a breach of the Tenancy Agreement, i.e. property sale or redevelopment, they will continue to contribute only 20% of their CRA in rent for a new tenancy. If a client is required to move because of a breach of the Residential Tenancy Agreement, their CRA will be assessed at 100%.

6. Situations where Private Rental Subsidy assistance may be considered for rent above the benchmark

Where a client finds a property and the rent is above the benchmark, or when an existing client’s property rent is increased putting the property rent above the benchmark, the provider may, in exceptional circumstances, approve payment of the subsidy based on this market rent. Approval may be provided for above the benchmark rent if the client can demonstrate that:

they cannot find a property at or below the benchmark that meets their special needs, for example, a modified property
this rent reflects the current market rent
the rent is affordable, and
if they have been assisted with a Bond loan, that they have the capacity to maintain the rent as well as the bond loan repayments.

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Last updated: 17 Jul 2024