Rent Choice Policy

1. Background

Rent Choice is a form of Private Rental Assistance (PRA) that supports clients who have capacity to sustain private rental accommodation to access safe and affordable housing in the private rental market.

It provides a time limited private rental subsidy for up to 36 months and facilitates access to support services, including training and employment opportunities, to build capacity for independent living.

The following Rent Choice products may be offered to eligible clients:

• Rent Choice Start Safely
• Rent Choice Youth
• Rent Choice Veterans
• Rent Choice Assist Trial
• Rent Choice Transition Pilot
• Deeper Subsidy
• Moderate Income

2. Scope

This policy applies to all clients who may be eligible for a Rent Choice product. Clients must have the capacity to sustain private rental accommodation at the end of the subsidy period.

Under Housing Pathways, all participating community housing providers may facilitate access to private rental assistance products, however only the Department of Communities and Justice (DCJ) Housing and Social Housing Management Transfer community housing providers (SHMT CHP's) may deliver Rent Choice products.

3. Policy statement

Rent Choice provides short to medium term financial assistance for up to 36 months for low to moderate income households, to enable them to secure and sustain private rental accommodation. The program helps clients to access support services, including training and employment opportunities, to build capacity to continue living independently after the Rent Choice assistance ends. It ensures that clients are supported in their transition to sustainable independence. Clients must express a commitment to sustaining a tenancy while receiving the subsidy and to transitioning to independent living. Clients must be willing to receive and continue with support services where relevant.

Clients who receive a Rent Choice subsidy and are approved to receive a deeper subsidy are required to have an Independence Support Plan (ISP). The ISP is a person-centred approach to coordinating wrap-around services to support clients to build their capability to transition to housing independence at the end of the subsidy period.

The ISP is completed by both the client and either DCJ, a SHMT CHP, or the client’s support provider. If the client is in receipt of Rent Choice Youth, the ISP will need to be endorsed by the Partner Facilitation Group. An ISP aims to help clients develop realistic goals, and identify the appropriate support needed to achieve these goals. Effective support planning is critical for managing the provision of support services as well as broader training and employment opportunities.

Once approved for Rent Choice, clients do not have to apply for, or be listed on the NSW Housing Register. Clients that elect to receive Rent Choice Assist and Transition are ineligible for inclusion on the NSW Housing Register. Rent Choice Start Safely, Youth and Veterans clients who are listed on the NSW Housing Register will have their Housing Register status changed to ‘suspended’ from the time they start receiving a Rent Choice product until they exit.

Rent Choice is not intended for clients who require long-term housing assistance and who have long term support needs. Social housing may be the most suitable housing option for those clients.

In addition to Rent Choice, clients may apply for other Rentstart Bond Loan, Advance Rent and Tenancy Assistance, to assist with costs to establish and maintain a tenancy in the private rental market and assistance to pay rental arrears. For more information, go to the Rentstart Assistance policy.

Rent Choice can also be used in conjunction with other private rental assistance products including, Private Rental Brokerage Service, Rent Choice Brokerage Funds and Bond Extra. For more information, go to the Private Rental Assistance policy.

Property affordability and calculating a subsidy

Rent Choice clients are expected to find a property within their affordability. This ensures that clients have the capacity to afford private rental accommodation at the end of the subsidy period. When calculating affordability, DCJ Housing or a SHMT CHP calculates the combined total of 50% of the gross household weekly income plus 100% Commonwealth Rent Assistance (CRA) that the client is eligible to receive.

Clients who receive Rent Choice are entitled to receive CRA as they are renting in the private market and are not public housing tenants. When assessing the household income for rental affordability, social housing providers will presume that a client is receiving CRA even if they have not applied to Centrelink for assistance.

A Rent Choice subsidy makes up the difference between the amount the client pays and the market rent. For the first 12 months, Rent Choice subsidises the difference between the market rent and 25% of the recipient’s gross assessable income plus 100% of their CRA entitlement.

Rent Choice clients are required to have their subsidy tapered. Subsidy tapering prepares clients to pay full market rent through a gradual reduction in the subsidy amount. By gradually reducing the subsidy amount, the amount of rent a client pays gradually increases. This supports the client to build capacity over time, to be able to sustain private rental accommodation at market rent and become financially independent.

Tapering of the client’s rent will generally commence on the 12 month anniversary of the first subsidy payment. The subsidy amount will then be gradually reduced at six monthly intervals. Each time a taper step is due, the most recent subsidy amount will be divided by the remaining number of taper steps: 
Taper amount = Most recent subsidy amount / number of expected taper steps left. 
The client’s rent is increased by the taper amount calculated.

Reviewing Rent Choice

A review is conducted every three months to determine continued eligibility and need for the subsidy, assess whether the client is managing their tenancy effectively, check whether appropriate support services are in place, and monitor client progress against agreed goals.

This is called a quarterly review.

When a client advises of any changes to their household or household income, their subsidy will be reassessed to ensure that the household is paying the correct amount of rent and is still entitled to receive a Rent Choice subsidy.

When a client advises of a change in market rent, the property must still be within their affordability.

The key stages where tapering adjustments are implemented are at six monthly intervals – at the end of 12 months, 18 months, 24 months, 30 months and then at the end of the subsidy period of 36 months. These adjustments will be discussed and confirmed with the client at the quarterly reviews three months prior, where the client’s readiness for tapering will be assessed - at 9 months, 15 months, 21 months, 27 months and 33 months.

If the decision is made not to taper the client’s subsidy, the client will be reviewed again for tapering at the next quarterly review. If the client is unable to commence tapering following a subsequent quarterly review they may need to be assessed for alternative types of assistance.

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 can be given if the client can demonstrate (but is not limited to) that:

• reducing their subsidy could negatively impact their ability to manage while they are completing qualifications
• they are experiencing financial stress as a result of medical treatment for themselves or a household member
• they have incurred extensive funeral costs
• they are experiencing financial difficulties as a result of court proceedings.

Changes in circumstances

A Rent Choice client must advise their social housing provider within 28 days of any changes in:

• household members
• household income
• rent
• property address or
• landlord or real estate agent.

If a Rent Choice client does not tell their social housing provider about a change to their household circumstances, there may be an investigation to determine their eligibility for a Rent Choice subsidy. In some cases, this may result in their subsidy being ended. For more information, see the Private Rental Assistance Non-Disclosure policy.

A client must also liaise with their approving provider before they move to another property as this may affect the approval of their subsidy or the amount of their subsidy, including the rate of their subsidy taper.

Paying a Rent Choice subsidy

A Rent Choice subsidy will be paid from:

• the date on which the client’s assistance was approved, if the client is remaining in their existing property, or
• the start date of the client’s tenancy.

The subsidy is paid directly to the landlord/agent, with payment generally being one month in advance. A Rent Choice subsidy is never paid to the client under any circumstances.

A Rent Choice subsidy will end when a client has undergone a review and a decision to exit Rent Choice has been made, following a change of circumstances where a client is no longer eligible to receive a subsidy or when the maximum period of 36 months has been reached.

Border towns

A social housing provider may waive the NSW residency rule for Rent Choice clients for any of the following compelling reasons;

• The client lives in a NSW border area such as Albury-Wodonga, Tweed Heads-Coolangatta.
• The client lives outside a border town but accesses medical, educational, or commercial facilities in NSW.
• The client needs to move to NSW for specialist medical treatment that is not available in the State they are currently living in.
• The client needs to move to NSW to escape domestic or family violence, serious harassment or threats of violence.

The Rent Choice subsidy must be provided on a property located within NSW.

Clients are required to provide proof of their NSW residency or demonstrate why they need to live in NSW.

Assessing former tenants for Rent Choice

Housing providers need to be satisfied that a former tenant of social housing has the ability to sustain a tenancy in the private rental market.

Social housing providers apply certain categories when a tenant leaves social housing. Some of these categories may affect a person’s eligibility or the client may need to meet specific conditions if they apply for housing assistance. For more information go to 3. Specific conditions for former social housing tenants.

The Satisfactory former social housing tenant category does not affect a person’s eligibility for Rent Choice.

The Less than satisfactory former tenant category and the Unsatisfactory former tenant category require the client to meet specific conditions before they can be approved for Rent Choice.

The provider also needs to consider whether clients in the following categories who have been found responsible for antisocial behaviour, property damage or acts of violence are suitable for Rent Choice. In addition to existing Independent Support Plan (ISP) requirements, if approved for Rent Choice, clients in these categories must also have an ISP;

• Less than satisfactory former social housing tenants
• Unsatisfactory former social housing tenants
• Ineligible former social housing tenants.

Clients who are classified as Ineligible former tenants must be assessed on a case by case basis to determine their eligibility for Rent Choice.

Any client who has debts with a social housing provider must repay those debts. Providers will still consider the client for assistance if they demonstrate their commitment to repay the debt by making regular repayments.

Rent Choice Products

3.1 Rent Choice Start Safely

Rent Choice Start Safely applies to clients escaping domestic or family violence who are homeless or at risk of homelessness and eligible for social housing.

Rent Choice Start Safely clients with a moderate income may be eligible to receive a Rent Choice Start Safely subsidy if they have been identified as being at serious threat and referred through a Safety Action Meeting (SAM). The SAMs are regular meetings of local service providers that aim to prevent or lessen serious threats to the safety of domestic violence victims and their children through targeted information sharing. Members share information to develop tailored, time-specific Safety Action Plans for victims at serious threat and their children.

In locations where a SAM is not available, a delegated officer of DCJ Housing or a SHMT CHP can also directly assess and recommend moderate income clients for Rent Choice Start Safely. They must include in their assessment the reasons why the client is at serious threat of domestic or family violence. As indicated above, this can be demonstrated where local police, courts or services have assessed the client using the Domestic Violence Safety Assessment Tool, or there is equivalent evidence.

Rent Choice Start Safely is currently available in all areas across NSW where social housing is delivered.

In high cost locations, clients may be eligible to receive a deeper subsidy if their ISP includes a strategy for increasing their income by the time they are ready to exit Rent Choice. A deeper subsidy allows the client to find a property with a higher market rent than the standard affordable rent. For more information, go to Maximum affordability limits for deeper subsidy by bedroom category table.

Rent Choice Start Safely clients may be eligible to receive Rent Choice Brokerage Funds to assist them with costs relating to establishing and maintaining their tenancy once their subsidy is activated. For more information on Rent Choice Brokerage Funds, go to Private Rental Assistance policy.

Eligibility for Rent Choice Start Safely

To be eligible for Rent Choice Start Safely, clients must:

• be eligible for social housing* (for more information, go to the Eligibility for Social Housing policy)
• be escaping domestic or family violence
• be homeless or at risk of homelessness
• express commitment to sustaining a tenancy while receiving Rent Choice and to sustaining their independence after Rent Choice ends
• commit to engaging with the review process and working toward meeting support plan goals; and
• be willing to receive and continue with support services where relevant.

* Income eligibility for moderate income households is defined in the NSW Affordable Housing Ministerial Guidelines

Evidence requirements

Rent Choice Start Safely clients must provide suitable documentary evidence to:

• support their eligibility for social housing. Go to Eligibility for Social Housing policy for more information; and
• support that they are homeless or at risk of homelessness due to domestic or family violence. Go to Evidence requirements information sheet for more information.

Clients must also provide proof of income for all members of the household aged 18 years and over. For more information, go to Proof of income and assets.

3.2 Rent Choice Youth

Rent Choice Youth applies to clients between the ages 16 and 24 years who:

• are capable of living independently;
• are homeless or at risk of homelessness;
• are eligible for social housing; and
• have the capacity and intention to engage in employment, education or training.

Priority groups for Rent Choice Youth are those leaving Out of Home Care, and/or those who have experienced domestic violence or family breakdown. The client must be able to sustain a tenancy while receiving a subsidy and be financially independent after the subsidy ceases. The client must be engaged with a Partner Facilitation Group (PFG). The PFG will represent the client and ensure that the client maintains engagement with support providers.

If the client is less than 18 years of age, they are required to agree to have the lease agreement explained and witnessed by a Tenant's Advice and Advocacy Service, solicitor or legal representative. They cannot participate in the program without this occurring.

Rent Choice Youth Partner Facilitation Groups are currently available in the following locations:

Hunter New England and Central Coast

• Armidale
• Moree and Narrabri
• Newcastle
• Tamworth
• Wyong

Western Sydney and Nepean Blue Mountains

• Parramatta, Blacktown and Mount Druitt
• Penrith

Northern NSW and Mid North Coast

• Coffs Harbour
• Lismore

South Eastern Sydney, Northern Sydney & Sydney Districts

• Inner City
• Inner West
• North Sydney
• St George and Sutherland Shire

South Western Sydney

• Liverpool

Illawarra Shoalhaven and Southern NSW

• Goulburn/Yass
• Queanbeyan/Eurobodalla
• Wollongong

Murrumbidgee, Far West and Western NSW

• Albury
• Bathurst
• Dubbo
• Orange
• Wagga Wagga

In high cost locations, clients may be eligible to receive a deeper subsidy if their support plan includes a strategy for increasing their income by the time they are ready to exit Rent Choice. A deeper subsidy allows the client to find a property with a higher market rent than the standard affordable rent. For more information, go to Maximum affordability limits for deeper subsidy by bedroom category table.

Rent Choice Youth clients may be eligible to receive Rent Choice Brokerage Funds to assist them in establishing and maintaining their tenancy and/or to cover relevant study related costs once their subsidy is activate. For more information on Rent Choice Brokerage Funds, go to Private Rental Assistance policy.

Eligibility Rent Choice Youth

To be eligible for Rent Choice Youth, clients must be:

• aged between 16 and 24 years of age
• eligible for social housing
• able to live independently with appropriate support in place
• homeless or at risk of homelessness
• engaged with a support service that has been approved by the Partnership Facilitation Group; and
• willing to engage in training, education or employment during the period of the subsidy.

Evidence requirements

Rent Choice Youth clients, through their support providers, must provide suitable documentary evidence to:

• support their eligibility for social housing. For more information, go to the Eligibility for Social Housing policy; and
• support that they are homeless or at risk of homelessness.

3.3 Youth Share

Youth Share allows Rent Choice Youth clients who do not know each other to share suitable accommodation. To be eligible for Youth Share clients need to be matched and recommended by their support providers and approved by the Partnership Facilitation Group (PFG).

Youth Share Subsidy involves the provision of a Bond Grant for the property rather than a Bond Loan, recognising that young people may be ready to exit the Youth Share program at different times. The Bond Grant provides stability for the remaining client. At the commencement of a shared tenancy, a Bond Grant will be paid by DCJ directly to the Rental Bond Board for each share client. If there is a change in the household, the lease will be updated with the name of the new client. There is no change to the bond arrangement, as the existing bond is retained by the Rental Bond Board. At the end of the tenancy, the bond will be returned to DCJ by the Rental Bond Board.

The Youth Share helps house young people in areas where rental costs are not affordable for a single person receiving a Youth Allowance payment from Centrelink. Youth Share is available wherever Rent Choice Youth is offered.

For a property to be suitable, the property should be close to transport, be in a safe area, and accessible to educational, employment and/or training facilities. For more information, go to the Social Housing Eligibility and Allocations policy supplement.

Eligibility criteria for Youth Share

To be eligible for Youth Share clients must:

• be aged between 18 and 24 years of age
• be eligible for social housing
• be able to live independently with appropriate support in place
• be homeless or at risk of homelessness
• be willing to engage with their support provider
• be engaged with a PFG support service
• be willing to engage in training; education; or employment during the period of the subsidy
• be willing to share housing; and
• have low to medium support needs.

3.4 Rent Choice Veterans

Rent Choice Veterans applies to former members of the permanent Australian Defence Force (ADF) who are homeless or at risk of homelessness. It aims to build the client’s capability and competency to sustain a tenancy and achieve independence in the private rental market.

Rent Choice Veterans households do not have to be eligible for social housing to be eligible, though social housing eligible households may also be eligible for the program. For more information on the maximum moderate household income limit, go to the Moderate income limits table.

In high cost locations, clients may be eligible to receive a deeper subsidy if they can demonstrate the capacity to afford the higher rent at the end of their subsidy period. A deeper subsidy allows the client to find a property that is higher than the standard affordable rent set by DCJ. For more information, go to Maximum affordability limits for deeper subsidy by bedroom category table.

Rent Choice Veterans clients may be eligible to receive Rent Choice Brokerage Funds to assist them with costs associated with establishing and maintaining a tenancy. For more information on Rent Choice Brokerage Funds, go to Private Rental Assistance policy.

Access to Rent Choice Veterans is only delivered by DCJ Housing but can be facilitated by all Housing Pathways providers.

Rent Choice Veterans clients may be eligible to receive Rent Choice Brokerage Funds to assist them in establishing and maintaining their tenancy and/or to cover relevant study related costs once their subsidy is activated. For more information on Rent Choice Brokerage Funds, go to Private Rental Assistance policy.

Eligibility for Rent Choice Veterans

To be eligible for Rent Choice Veterans, clients are not required to be eligible for social housing however they must:

• be resident in New South Wales
• be a citizen or have permanent residency in Australia
• be at least 18 years of age
• be homeless or at risk of homelessness
• be within the moderate household income limit
• not own any assets/property that can be used to resolve their housing need
• have low to medium support needs; and
• be a former member of the permanent ADF – naval, military or air force.

Evidence requirements

Rent Choice Veterans clients must provide suitable documentary evidence to support that they:

• are homeless or at risk of homelessness
• have an Independence Support Plan completed with RSL LifeCare; and
• have a referral from RSL LifeCare supporting their eligibility.

Reviewing Rent Choice Veterans

RSL LifeCare undertakes quarterly reviews for Rent Choice Veterans clients and provides recommendations to DCJ.

3.5 Rent Choice Transition

Rent Choice Transition applies to current public housing tenants who would like to leave public housing and move into a tenancy in the private rental market. Rent Choice Transition clients must express a commitment to sustaining a private rental tenancy and to transitioning to independent living.

Rent Choice Transition has been piloted in five DCJ Districts – South Western Sydney, Western Sydney, Murrumbidgee, Hunter New England and Illawarra and where eligible tenants from other areas express an interest, tenants will be considered on a case by case basis.

Clients that elect to receive Rent Choice Transition are ineligible for inclusion on the NSW Housing Register.

To be eligible for Rent Choice Transition clients must meet all of the following:

• be resident in New South Wales
• be a citizen or have permanent residency in Australia
• be over 18 years of age
• be a current social housing tenant
• be within the moderate household income limit (Appendix 1: Moderate Income Table)
• be in stable employment or engaged with an Opportunity Pathways providers (if available)
• demonstrate ability to sustain and afford a tenancy at the end of the subsidy period
• have a satisfactory tenancy history; and
• be willing to find a private rental property within 3 months of approval for the program.

In high cost locations, clients may be eligible to receive a deeper subsidy if they can demonstrate the capacity to afford the higher rent at the end of their subsidy period. A deeper subsidy allows the client to find a property that is higher than the standard affordable rent set by DCJ. For more information, go to Maximum affordability limits for deeper subsidy by bedroom category table.

Rent Choice Transition clients may be eligible to receive Rent Choice Brokerage Funds to assist them with costs associated with establishing and maintaining a tenancy once their subsidy is activated. For more information on Rent Choice Brokerage Funds, go to Private Rental Assistance policy.

4. Deeper subsidy

A deeper subsidy may be available for eligible Rent Choice clients who require accommodation in high cost locations. Clients may be eligible to receive a deeper subsidy if they can demonstrate the capacity to afford the higher rent at the end of their subsidy period. This will be outlined in the client’s ISP. A deeper subsidy allows the client to find a property with a higher market rent than the standard affordable rent.

Locations where a deeper subsidy is available

A deeper subsidy is available in the following locations:

South Eastern Sydney, Northern Sydney, Sydney, Western Sydney, South Western Sydney, Central Coast, Nepean Blue Mountains, Illawarra Shoalhaven, Southern NSW, Mid North Coast, Northern NSW and Hunter New England.

Maximum affordability limits for deeper subsidy by bedroom category

The following maximum affordability limits will be considered in the following locations:

Based on DCJ Rent and Sales report data based on Rents disclosed on Rental Bond Lodgement Forms lodged with BSU Rental Bonds, NSW Fair Trading. Median, 25th percentile rent and new bond count by DCJ District and dwelling type.

The weekly rent amount listed can replace the client's current affordability limit as the maximum weekly rent allowable.

A client's bedroom entitlement determines the size of the property and therefore maximum amount of deeper subsidy.

5. Moderate income

Moderate Income Limits for Rent Choice Start Safely, Rent Choice Veterans and Rent Choice Transition clients.

Moderate income clients who are identified as being at serious threat of domestic or family violence (DFV), are at risk of homelessness and are referred to a Safety Action Meeting (SAM) may be eligible for Rent Choice Start Safely. SAMs do not operate in every area. In areas where there is no SAM, clients will still be eligible for the program if they are at serious threat of domestic or family violence.

Veterans with moderate incomes may be eligible for Rent Choice Veterans. Rent Choice Veterans clients do not have to be eligible for social housing to be eligible, though social housing eligible households may also be eligible for the program.

Tenants exiting social housing with moderate incomes may be eligible for Rent Choice Transition.

Moderate Income Limits (2023-2024):

Source: NSW Affordable Housing Ministerial Guidelines 2023-24 – updated annually

Calculating moderate income limits
Household composition: Number of adults + Number of children

Example 1: Sydney household - 2 adults + 3 children
Weekly limit: 2 adults ($1,492 + $746) + 3 children ($448 x 3) = $3,582
Annual limit: 2 adults ($77,600 + $38,800) + 3 children ($23,300 x 3) = $186,300

Example 2: Rest of NSW household – 1 adult + 2 children
Weekly limit: 1 adult ($1,348) + 2 children ($403 x 2) = $2,154
Annual limit: 1 adult ($70,100) + 2 children ($21,000 x 2) = $112,100

6. Legislation and compliance

DCJ and Social Housing Management Transfer CHP are able to provide private rental assistance products in accordance with the Housing Act 2001.

7. Related documentation

• Eligibility for Social Housing Policy
• Private Rental Assistance Policy
• Private Rental Assistance Non-Disclosure Policy
• Children and Young People at Risk Policy
• Appeals Policy
• Domestic Violence Information Sharing Protocol

8. Further information

Appeals and review of decisions

If a client disagrees with a decision a social housing provider has made, they should first discuss their concerns with the staff member that made the decision. The next step, if they still believe the social housing provider made the wrong decision, is to ask for a formal review of the decision.

For information on how reviews work for decisions made by DCJ, the client can ask for a copy of the fact sheet Appeals and reviewing decisions, or read the Appeals policy.

For further information on community housing appeals, go to Community Housing Complaints, Issues and Appeals Management Framework.

Rent Choice decisions that cannot be appealed:

• The amount of assistance provided under the Rent Choice Subsidy.
• To end a Rent Choice Subsidy when the client has been given the maximum 36 months assistance.