Mutual Exchange - EST0005A

Policy   

The Mutual Exchange program helps tenants already housed by Housing NSW find other tenants who might want to exchange Housing NSW dwellings.

When a match is found between two (or more) tenants, letters containing the other tenant’s contact details are sent to each of them. They arrange to view each other’s dwelling and decide whether or not they want to exchange. Tenants cannot move until Housing NSW has approved the exchange.

Mutual Exchanges will only be approved if:

• Both rental accounts are up to date
• Both water usage accounts are up to date
• The number of bedrooms is appropriate to the size of the household 
• Any damage to the current dwelling is fixed before moving 
• The tenant’s income level does not exceed the income eligibility limits for public housing (this condition may by waived if the exchange is related to a medical condition or disability that means the current housing is unsuitable)
• There are no substantiated nuisance and annoyance complaints against the tenant
• The tenant agrees to accept the relevant type and length of lease when they move. 

These criteria may be modified if the exchange provides an advantage to Housing NSW.

Tenants cannot offer financial or other incentives to encourage other tenants to exchange. If we become aware that incentives of any form are involved, we will not approve the exchange.

For more information on this policy, look in Entitlement, Background and Business Rules.

Tenants who registered for Mutual Exchange before 27 April 2005

Tenants who registered for Mutual Exchange before the announcement of the Reshaping Public Housing reforms on 27 April 2005 will have their income eligibility preserved (“grandfathered”). This means that they can remain on the Mutual Exchange register provided they continue to meet the current or previous income eligibility limits in addition to all other eligibility criteria for mutual exchange.

For more information on the public housing income eligibility limits refer to the policy Eligibility for Public Housing (ALL0030A).

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Entitlement 

Tenants are able to register in the Mutual Exchange program. There is no charge for this service. Tenants may also advertise or arrange an exchange themselves.

Some properties may not be approved for Mutual Exchange, for example:

• Properties that are proposed for sale or redevelopment
• Homes that have been modified for occupants with a disability

Special conditions may apply when  Senior Communities and Aboriginal Housing Office (AHO) properties are involved in exchanges. See ‘Limitations on Exchanges’.

Tenants can reject an offer to exchange without incurring a penalty.

Tenants who are approved for a transfer can also register in the Mutual Exchange Program.

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Background

The Mutual Exchange provides a way for tenants to move to a location they prefer, or to get more suitable accommodation, by exchanging with another Housing NSW tenant.

Housing NSW provides a computer matching service to help tenants find and contact other tenants living in homes that are suitable to mutually exchange. An exchange may involve more than two tenants.

The time taken to find a match depends on the availability of tenants in the desired location who want to exchange.

Business Rules

Registering for Mutual Exchange

Tenants register for Mutual Exchange by completing a registration form. They specify the location and the type of dwelling they would like. Tenants can nominate up to three allocation zones and one postcode which relates to their preferred area within the three zones selected.

Housing NSW:

• Checks that the dwelling requested is appropriate for the household size, and then
• Sends a letter confirming registration.

The tenant’s details are entered into Housing NSW's computer system. When a match is found, Housing NSW will notify each tenant and send them a letter containing the name and phone number of the other tenant. The tenants then make their own arrangements to view each other’s dwellings.

If the tenants agree to exchange they must notify their local office. Tenants are under no obligation to accept an exchange and can reject an alternative home without penalty.

Tenants will be told in writing whether their application for Mutual Exchange has been approved or rejected. If it has been rejected, the tenant will be told why.

Tenants may advertise exchanges in newspapers but must not offer any financial or other incentive.

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Limitations on Exchanges

Mutual exchanges will generally not be approved if:

• One of the properties is part of a proposed redevelopment site or likely to be sold
• A property would be under-occupied by more than one bedroom, or severely overcrowded
• Extensive modifications have been made to a dwelling to meet the needs of the tenant
• The exchange would result in a tenant losing an advantage gained by previous transfer, or
• One of the properties is a Senior Communities property and the client does not meet the eligibility criteria for a Senior Communities property.

Tenants exchanging into a headleased or Public Equity Partnership property cannot buy the property or carry out any modifications or additions. See the policies on Headleasing (EST0012A) and on Public Equity Partnership (EST0120A).

A Mutual Exchange cannot be approved between a tenant occupying an Aboriginal Housing Office (AHO) property and a non Aboriginal tenant. See the policy on Aboriginal People and Housing Assistance (ALL0030B).

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Finalising an exchange and Tenancy Type

Mutual Exchanges must be approved before the tenants move. If they move before approval is given they may have to return to their previous dwellings. Moving without approval is a breach of the Tenancy Agreement.

The tenants must sign a new Tenancy Agreement for the new home. They sign at the same time, preferably in the same departmental office. Tenants are responsible for arranging keys and for paying their own removal costs. If a tenant is on the transfer register they will be taken off the shortlist once a Mutual Exchange is finalised.

The type and length of lease offered if a client arranges a Mutual Exchange will depend on the following:

Tenants who are on a continuous lease and accept a Mutual Exchange will be offered a new continuous lease.

If the tenant has a 2, 5 or 10 year fixed term lease they will receive the remainder of their existing lease unless they accept a Mutual Exchange during the lease review period.

If there is a Mutual Exchange during the lease review period, the tenant will be assessed to see if they are eligible for a further lease.  If they are eligible, they will be offered a new 2, 5 or 10 year fixed term lease.

If a tenant has a fixed term lease and they are assessed as no longer eligible, generally Housing NSW will not proceed with the Mutual Exchange.

When agreeing to an exchange tenants need to be aware that market rents differ. Additionally, existing tenants who have their rent capped at 18% will continue to pay 18%. See the policy on Rental Subsidies SUB0044A.

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Appealing Decisions or Actions

If a client disagrees with a decision Housing NSW has made, they should first discuss their concerns with a Client Service Officer. The next step if they still believe we made the wrong decision is to ask for a formal review of the decision. For information on how reviews work, the client can ask the Client Service Officer for a copy of the fact sheet ‘Reviewing Decisions’, or go to our web site www.housing.nsw.gov.au to read the Appeals and Review of Decisions (EST0015A).

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