Rental Subsidy Non-Disclosure - SUB0045A

 1.

Housing NSW receives information about an alleged change in the tenant’s household circumstances

There are many ways Housing NSW can become aware that a tenant may be receiving a rental subsidy they are not entitled to. The most common ways include:

• The tenant provides information that is inconsistent with information supplied for previous rental subsidy applications or rental subsidy renewal certificates.
• Housing NSW receives information which is inconsistent with its current records relating to the tenant’s household circumstances.
• An acquaintance, relative or work colleague of the tenant advises Housing NSW of changes to the tenant’s household circumstances.

Housing NSW may ask the person who supplied the information (informant/complainant) if they are willing to provide their information in writing.

The identity of an informant/complainant will be protected at all times and cannot be disclosed without their permission unless required by law, for example, as part of a criminal proceeding.

In order to protect the tenant’s privacy, the informant/complainant will not be told about the outcome of the investigation.

 2.

Initial assessment of allegation  

Housing NSW will undertake an initial assessment of the allegation received. 

Where the assessment indicates that possible subsidy non-disclosure has occurred, the matter will be investigated as detailed in this policy.

Where the assessment indicates that possible subsidy fraud has occurred it will be investigated with a view to criminal prosecution. The standard procedures for criminal investigations will apply.

 3.

Investigate allegations of subsidy non-disclosure 

Housing NSW may make inquiries about matters related to an alleged failure to disclose a change in household circumstances where:

• There is a lawful reason to do so (for example, where the information is required for a purpose directly related to assessing the tenant’s eligibility for rental subsidy); or
• There is a current signed authority (for example, the tenant has signed an application for rental subsidy authorising contact with third parties);
• There is a clause in the Tenancy Agreement giving consent to Housing NSW to make enquiries with third parties about the tenant’s income and assets; or
• An exemption has been granted and is documented in the Housing NSW Privacy Code of Practice (for example, protection of the public revenue).

Inquiries may be made with:

• The tenant’s employer or alleged employer.
• The tenant’s neighbours.
• Supply authorities, such as gas, electricity, water and telephone providers.
• The police or other government agencies.
• The appropriate local council.
• Any other likely sources of relevant information.

Housing NSW will also review the tenant’s file and any rental subsidy applications or rental subsidy renewal certificates submitted by the tenant during the period of the alleged failure to disclose information.

 4.

Advise tenant of information received

Housing NSW will advise the tenant in writing that we have reason to believe that the information contained in a subsidy application may not be correct. 

The tenant will be advised of the substance of the information received by Housing NSW. 

They will be given an opportunity to present information/documents to dispute any allegations during an interview.

 5.

Interview Tenant

There may be situations where tenants do not disclose changes to their household circumstances.  This does not necessarily mean that they have committed rental subsidy fraud.

The purpose of the interview is to assess the situation objectively and try to ascertain if the tenant has failed to disclose information and, if they have, their reason for doing so.

The tenant may have a support person present at the interview.  If an interpreter is required, Housing NSW will arrange for one.  

The tenant will have the right to be heard impartially. They will:

• Be advised of the policy and what is required of them.
• Be told about the information received by Housing NSW and any documentary evidence Housing NSW has obtained.

The tenant will be given a reasonable opportunity to respond to any allegations made against them.

 6.

Assess the evidence related to the tenant’s alleged failure to disclose a change in their household circumstances 

When assessing a tenant’s alleged failure to disclose information relating to their household circumstances Housing NSW will use the assessment criteria set out in this policy.

The assessment criteria will help to determine whether Housing NSW classifies the situation as one of unsubstantiated allegation, rental subsidy non-disclosure, or possible rental subsidy fraud.

 7.

Determine the action to be taken following an assessment of the tenant’s alleged failure to disclose a change in their household circumstances 

 A range of actions may be taken depending on whether Housing NSW has determined that the situation is one of unsubstantiated allegation, rental subsidy non-disclosure, or possible rental subsidy fraud.

If it is determined that the allegations are unsubstantiated Housing NSW will not take any further action, except to remind the tenant of their obligation to disclose any future changes to their household circumstances.  Information regarding the allegation and resolution will, however, be kept on the tenant’s file.

Where rental subsidy non-disclosure is determined, Housing NSW may take one or more of the following actions:

• Reassess the tenant’s subsidy* from the date the change occurred and negotiate a repayment plan for any resulting arrears. 
• Cancel the tenant’s subsidy from the date the change occurred and negotiate a repayment plan for any resulting arrears. 
• Take action to terminate the tenancy.

Where subsidy fraud is determined, Housing NSW may take one or more of the following actions:

• Reassess the tenant’s subsidy* from the date the change occurred and negotiate a repayment plan for any resulting arrears.
• Cancel the tenant’s subsidy from the date the change occurred and negotiate a repayment plan for any resulting arrears. 
• Take action to terminate the tenancy.
• Commence proceedings for criminal prosecution under the Housing Act or the Crimes Act.

* Where a tenant pays a water usage charge based on a percentage of net rent, the tenant’s water usage charges will also be reassessed.

 8.

Advise the tenant of the outcome of the assessment and any action to be taken 

The tenant will be advised in writing of:

• The outcome of the assessment;
• Housing NSW’s proposed action; and 
• Their right to appeal.

Is a tenant’s alleged failure to disclose information about their household circumstances an unsubstantiated allegation, rental subsidy non-disclosure or possible rental subsidy fraud

In deciding whether a tenant’s alleged failure to disclose information about their household circumstances amounts to an unsubstantiated allegation, rental subsidy non-disclosure or possible rental subsidy fraud, Housing NSW will take into account the following:

• Whether the tenant has denied the allegations.
• Whether the tenant has admitted, in part or in full, the allegations.
• Whether the tenant has a reasonable explanation for failing to disclose information about changes to their household circumstances.
• Whether the tenant was aware of their obligations to disclose information about the change to their household circumstance.  If the tenant claims that they weren’t aware of this obligation; whether this claim is reasonable.
• Whether the tenant signed a rental subsidy application form or rental subsidy renewal certificate during the relevant period.
• Any previous history of the tenant’s failure to disclose information about changes to their household circumstances.
• The estimated monetary value (in terms of arrears of new weekly rent).
• Length of time involved.
• The number of times the tenant has previously been interviewed in relation to current and/or previous allegations.
• The strength and reliability of information received by Housing NSW. 
• Whether the tenant has a reasonable ability to obtain the information required to clarify the circumstances.
• Whether the tenant has refused or failed to supply information that is reasonably available to them to clarify the circumstances.
• Relevant evidence/information provided by the tenant.
• Any extenuating circumstances or mitigating factors.

Extenuating or mitigating circumstances may include: 

• Diminished capacity of the tenant to understand their obligations (for example, due to disability barriers).
• Duress which the tenant may have suffered to falsely declare, or not declare, changes to the household circumstances (for example, threatened or actual domestic/family violence).

• Housing NSW will carefully consider the merits of any information before using it as the basis of a decision regarding a tenant’s alleged failure to disclose changes to their household circumstances.
• Information will be weighed according to its reliability, strength, impartiality and importance. Housing NSW will not give weight to evidence or factors that are not relevant or important to the case.  

Evidence that will be considered when determining if a tenant’s alleged failure to disclose information about their household circumstances amounts to an unsubstantiated allegation, rental subsidy non-disclosure or possible rental subsidy fraud may include:

• Any rental subsidy application form(s) or renewal certificate(s) signed during the period of alleged failure to disclose information (both of which contain information about a tenant’s obligation to disclose any change to their household circumstances).
• Any information that has been relayed to the tenant (verbal or written) which outlined the tenant’s obligation to advise Housing NSW of any change to household circumstances. 
• Oral or written advice from any third party that the tenant has had a change in their household circumstances.
• File notes and information held on Housing NSW’s computer system.
• Information about the tenant’s income that differs from previous information supplied for the same period.
• Any explanation provided by the tenant or other household member.
• Proof of residency of alleged additional occupants, e.g. drivers license, correspondence addressed to the tenant’s or other address.
• Proof of income for the tenant or alleged additional occupants, e.g., Centrelink income statement discloses income besides the basic benefit/allowance, such as wages.
• Evidence of ownership of property or other assets.
• Evidence of any extenuating or mitigating circumstances.

Evidence that may be considered in determining whether any mitigating or extenuating circumstances apply includes:

• File notes and information held on Housing NSW’s computer system relating to incidents of domestic violence or problems relating to cultural issues.
• Police reports.
• Support letters from advocates.
• Information held about the tenant’s capacity to read, write and understand English.
• Documentation of health or intellectual disability issues which may impact on a person’s comprehension or decision making ability.