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Private Rental Assistance Policy Supplement

Last published 25 Aug 2023

Index

Statements of Satisfactory Tenancy

  1. Minor matters
  2. Eligibility criteria and evidence requirements for a Statement of Satisfactory Tenancy
  3. Conditions for becoming eligible for a Statement of Satisfactory Tenancy in the future

Private Rental Brokerage Service

  1. Locations where Private Rental Brokerage is available
  2. Eligibility criteria for Private Rental Brokerage
  3. Definition and assessment of complex needs
  4. Support services
  5. Case plans
  6. Capacity to afford and sustain a private rental tenancy
  7. Gathering information about a client’s needs and expectations
  8. Evidence requirements for assessing private rental brokerage eligibility
  9. Tenancy Facilitation
  10. Monitoring a private rental tenancy

Bond Extra

  1. Eligibility criteria for a Bond Extra
  2. Determining the client’s need for a Bond Extra
  3. Potential risks to sustaining a tenancy
  4. Conditions which are necessary to activate a Bond Extra
  5. Responsibilities of the housing provider, the tenant and the landlord/real estate agent during the tenancy
  6. Circumstances where a client may require a second Bond Extra
  7. Timeframe for submitting a claim

Private Rental Subsidy assistance

  1. Protected entitlement prior 12 June 2012
  2. Eligibility criteria for Private Rental Subsidy assistance approved from 12 June 2012
  3. Evidence requirements for a Private Rental Subsidy
  4. Considerations for clients approved from 12 June 2012
  5. Exceptions to calculating Commonwealth Rent Assistance at 100%
  6. Situations where Private Rental Subsidy assistance may be considered for rent above the benchmark

Subsidy Tapering

  1. Exceptions where a Subsidy Taper can be applied at a reduced rate

Statements 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 DCJ, but which do not justify classifying a DCJ tenant as ineligible for a Statement of Satisfactory Tenancy.

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

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

  1. The tenant’s DCJ 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. DCJ accounts include any former tenancy accounts linked to the current tenancy or the immediate former tenancy.
  2. A current tenant has not breached their tenancy in the twelve months prior to DCJ receiving their application for a Tenancy Statement, or
  3. A former tenant has not breached their tenancy.

DCJ 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.

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

Evidence requirements

DCJ 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 DCJ 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 DCJ 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 DCJ accounts (including accounts from linked former tenancies) have a nil or credit balance when DCJ next assesses their eligibility for a tenancy statement and their payment performance was satisfactory in the 12 months before DCJ’s assessment, and
  • for current DCJ tenants, apart from minor matters, they have no breaches of their Tenancy Agreement for the 12 months before DCJ receiving their next application for a Tenancy Statement, or
  • for former DCJ 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 DCJ Housing 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 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:

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 DCJ 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, and
  • 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, and
  • 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, and
  • confirm weekly income to ensure income eligibility.

8. Evidence requirements for assessing private rental brokerage eligibility

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

SituationEvidence
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, and
    • 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, and
    • confirm that support provision is continuing according to the case plan.

Bond Extra

1. Eligibility criteria for a Bond Extra

Bond Extras is available to clients who:

  • are an Australian citizen or permanent resident (for more information, go to Eligibility for social housing – residency),
  • meet income eligibility criteria for Rent Choice (for more information, go to Rent Choice policy Income eligibility limits),
  • have already looked for private rental accommodation without success or are assessed as likely to experience difficulty in obtaining such accommodation,
  • have been assessed as able to afford private rental accommodation,
  • do not have a current Bond Extra,
  • have agreed to the conditions for receiving a Bond Extra, and
  • 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.

2. Determining the client’s need for a Bond Extra

As part of the assessment process, the provider will interview the client to determine the client’s need for a Bond Extra. This will include:

  • determining if the client needs a Bond Extra or if the client is able to obtain a private rental tenancy without a Bond Extra, and
  • assessing the client’s eligibility for a Bond Extra.

During the assessment, the provider will:

  • talk to the client about their situation,
  • explain the Bond Extra and assistance that will be provided, if eligible,
  • explore the client’s expectation of the purpose of the Bond Extra,
  • detail what the client is expected to do if a Bond Extra is offered, and
  • explore potential risks to sustaining a tenancy, including past problems, how the problems may have occurred, whether the client has made changes to address these problems, and whether referrals to other support services will address these risks.

3. Potential risks to sustaining a tenancy

Potential risks to sustaining a tenancy include:

  • tenancy breaches in the past
  • listing on a tenant database
  • limited independent living skills
  • lack of support services to help sustain a tenancy
  • outstanding debts
  • lack of affordable or suitable accommodation in the client’s preferred location
  • ongoing domestic violence
  • ongoing alcohol and other drug use
  • untreated mental illness
  • homelessness
  • under 25 years of age
  • no tenancy history.

When assessing whether there are any barriers or risk factors to the client being able to sustain a tenancy, the provider may contact other services and organisations to confirm the assessment.

4. Affordable Housing Clients

Clients seeking assistance to secure an affordable housing tenancy may be eligible for a Bond Extra.

When a client applies for a Bond Loan to assist them into an affordable housing property the client may also be assessed and approved for a Bond Extra.

Clients applying for a Bond Extra to assist them into an affordable housing property with a CHP provider, must be assessed by DCJ Housing.

Clients applying for a Bond Extra to assist them into an affordable housing property with an agent or landlord can be assessed by their nearest social housing provider.

5. Conditions which are necessary to activate a Bond Extra

The following conditions are necessary to activate a Bond Extra:

Determining maximum rent

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

Shared households

A single Bond Extra can be issued for two individual, unrelated clients who are seeking a shared household arrangement, as long as each client is named on the Tenancy Agreement.

If one client leaves the tenancy, the remaining client must sign a new Tenancy Agreement and be issued with a new Bond Extra.

If all clients wish to move, a new Bond Extras can be issued to each client individually. In most circumstances, the record of a successful tenancy should be sufficient to allow the clients to secure a new tenancy without a Bond Extra.

If the names of the clients currently living in the rented property do not match both the names on the Residential Tenancy Agreement, the Bond Extra is invalid.

Excluded properties

The Bond Extra does not apply to agreements or premises that are not covered under the Residential Tenancies Act 2010.

Bond Extras does not cover accommodation in:

Where a property is excluded and the Bond Extra cannot be used, the provider will assure the client that the Bond Extra offer is still valid and that they should continue looking for appropriate accommodation.

Ineligible properties

A property is ineligible if:

  • the rent exceeds the maximum rent in the Bond Extra letter, or
  • the landlord/agent is not prepared to grant a Residential Tenancy Agreement, or
  • the landlord or agent has been excluded from the product for previous misuse.

Where a property is ineligible, the provider will inform the client. The provider will assure the client that the Bond Extra offer is still valid and that they should continue looking for appropriate accommodation.

6. Responsibilities of the tenant and the landlord/real estate agent during the tenancy

Landlord/agent

Signing the Landlords/Agents Acceptance of Bond Extra, landlords/agents agree to exercise their responsibilities to mitigate loss. This means that the landlord/agent should take prompt and appropriate action to avoid or minimise loss should the Residential Tenancy Agreement be breached, even if the expectations are in excess of the Residential Tenancies Act 2010.

The landlord/agent should contact the provider if:

  • there are changes to a shared household that is subject to a Bond Extra
  • the landlord/agent is aware of any problems likely to affect or already affecting the sustainability of the tenancy
  • the tenant has breached the Residential Tenancy Agreement
  • the tenant fails to rectify tenancy breaches.

Tenant

The tenant is responsible for:

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

7. Circumstances where a client may require a second Bond Extra

A client may need a second Bond Extra because of factors outside their control. For example, when the property covered by the Bond Extra is sold before they have been able to establish a successful tenancy record.

A provider may grant a client a second Bond Extra if:

  • the client is still eligible, and
  • there was no claim against any previous Bond Extra, or
    • DCJ Housing may grant a second Bond Extra to a client who has a claim against any previous Bond Extra under exceptional circumstances. The client must have compelling evidence for the need to establish a new tenancy due to a significant change in their housing needs which requires them to move, or
    • a need to move to maintain links to essential medical and support services, or
    • their previous tenancy for which assistance was provided is/will be ended due to sale of the property, or
    • as determined by the assessing officer.

8. Timeframe for submitting a claim

A landlord/agent has up to 3 months after the Bond Extra has expired to lodge a claim with the social housing provider.

The provider will only consider a claim valid if the landlord/agent has;

  • completed the Bond Extra Claim form;
  • provided orders made by the NSW Civil and Administrative Tribunal specifying the amount owed, that is greater than the bond;
  • provided evidence that all of the bond has been paid in full by the Rental Bond Board and
  • lodged their claim with their provider, within three months of the Bond Extra expiry date.

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

Private Rental Subsidy assistance

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, and
  • 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:

  1. Be eligible for social housing,
  2. Be in urgent need of housing, and
  3. 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:
    • 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, and
  • 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, and
  • 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.

Subsidy tapering

Exceptions where subsidy tapering can be applied at a reduced rate

In circumstances where the tapering of a subsidy may impact negatively on a client’s capacity to sustain a tenancy, a reduced rate of tapering may be applied. Approval for a reduced taper rate may be provided if the client can demonstrate (but is not limited to) that:

  • reducing their subsidy could negatively impact their ability to manage while completing qualifications
  • they are experiencing financial stress as a result of medical treatment for themselves or a household member
  • they have incurred funeral costs
  • their employment circumstances have changed, or
  • they are experiencing financial difficulties as a result of court proceedings.
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Last updated: 25 Aug 2023