General
1. The bond assistance loan scheme is the first alternative to public rental housing. The scheme is also designed to form part of the department’s exit strategy from public housing when clients seek to relocate to the private rental market.

Bond loan repayments for the interest free bond loan are intended to be set at a level, which will not result in financial hardship.

The current minimum loan repayment is $25 per fortnight from the 1st July, 2009 for new approved bond applications.  The rate of $15 per fortnight will apply to existing loans prior to 1st July, 2009 (See Section 13.1 &13.2)

Previous Department of Housing Tenants
2. Tenants who are in the process of vacating their Department of Housing property will be eligible to apply for Bond Assistance.

2.1 Refer to Area Manager, Manager Customer Service, Manager Rental Service, Assistant Regional Manager or Regional Manager, for discretionary decision should the tenant be vacating because of eviction action related to high level of debt, anti-social behaviour or serious property standards.

3.1 Applicants must have a verifiable income, i.e. Youth Allowance (away from home rate), New Start/Job Search, wage slip.

3.2 Applicants under 18 do not require a letter from their parents giving permission to apply for assistance.

3.3 16 and 17 year olds are legally responsible for any bond debts incurred.

3.4 Assistance will be provided to person/s aged 15 years, provided they are in receipt of Youth Allowance (away from home rate) and have external support mechanisms to assist before and during the tenancy. (To be verified by the Support Worker in writing). Assistance will only be provided as a last resort where no other options are available and the decision to assist will be at the discretion of the Manager Bond Assistance.

3.4 See Proof of Identity Policy (POI)

Applicants for Community Housing Accommodation Options Funded by the Department

4. Clients of Community Disability Housing Program (CDHP), the Community Housing Program (CHP), the Joint Venture Program (JVP) are not eligible for a Bond Assistance Loan.

Income

5. Applicants must have an income source received in Western Australia.

5.1 Recipients of Centrelink benefits must be registered with a Western Australian Centrelink office.

5.2 Applicants who are working must earn their wage or salary in WA.

5.3 An applicant in receipt of an overseas pension will need to prove permanent residency status and provide written evidence of his/her pension and the amount.

5.4 Applicants’ income must be within current Department of Housing income limits at the time of application. (See Eligibility relating to Income Limits)

5.5 100% of incomes of all applicants in the household are taken into consideration in accordance with 5.10.

5.6 Where there are independent household members not applying for assistance, then assistance to applicants is to be pro-rata, i.e. family of five with an independent member. Bond paid is 4/5th’s.

5.7 A self-employed applicant must have a business registered in Western Australia and furnish his/her taxation return for the previous financial year and provide company books to verify an average weekly earning for at least a three-month period. These applicants will be assessed their taxable income or the equivalent award, whichever is the greater.

5.8 Information on award rates can be obtained from the Department of Consumer and Employment Protection (1300 655 266).

5.9 Applicants should be advised to apply for Family Tax Benefit (FTB) A and/or B if they are eligible, but not in receipt of it. Once eligibility is established taking into account FTB, approval can be given even if FTB is not verified in writing.

5.10 Income counted when assessing eligibility and income not counted when assessing eligibility is the same as specified in sections 2 and 3 of the “Eligibility Relating to the Income of Applicants” policy in Department of Housing’s Rental Policy Manual.

7.1 All migrants must have permanent residency status. If avisitor, the passport will be stamped temporary resident or visitor.

7.2 Refugees are eligible if granted permanent Australian residency.

7.3 If there is any doubt concerning the status of a migrant. Details of the visa stamp in passport can be given to DIMA and they will advise the status of people with such a visa stamp.

• Department of Immigration and Multicultural Affairs
• City Central
• 411 Wellington Street
• Perth WA 6000 (Entry is made via the escalator on level 1)
• Telephone: 131 881
• Fax: (08) 9415 9286

7.4 Sponsored migrants or migrants with assurances of support are not eligible even if in receipt of an income or Centrelink Benefit.

7.5 Interstate arrivals are regarded as eligible provided they meet all Department of Housing eligibility criteria.

7.6 A Class 800 Territorial Asylum Visa provides migrants with permanent residency status, making them eligible for assistance. A Class 785 Temporary Protection visa only allows migrants a temporary stay of up to three years, making them eligible for assistance.

7.7 Proof of Identity
Bond Assistance Loan (BAL) only. Applicants who are unable to raise the required number of combination of identity documents, will have their documents and circumstances examined by the Manager Bond Assistance, Manager Customer Service or Assistant Regional Manager for immediate approval. If documents are not approved, applicant may appeal through the Department of Housing appeals process.

8. Liquid Assets – cash in bank limits

Single applicants (without dependents) – $2,500
Singles and couples (with dependents) – $5,000

8.1 Discretion may be used in certain cases. Example: proposed self-funeral expenses for an aged person tenant.

8.2 Definition of Cash Assets: These refer to the financial investments of a Department of Housing customer, which include

• Deposit in a bank, credit union, building society, savings/cheque account, cash, term deposit and shares. Applicant to provide evidence of account balances, eg account statement, or ATM balance slip
• Friendly Society and insurance bonds managed investments such as loans, debentures, friendly society and insurance bonds, unlisted equity and property trust

8.3 Cash assets do not include a customer’s car, antique furniture; stamp collection, life insurance policies. Superannuation and annuities that are not accessible are not assessed, but any annual income/return/dividend received are assessed as part of the income assessment process.

9.1 Applicants may retain ownership of property where there are special needs, i.e. family breakdown/domestic violence.

9.2 Discretion may be exercised in all cases where difficulties exist concerning the prompt realisation of an asset, or where there will be limited personal equity in the asset.

9.3 Discretion may also be exercised in the following cases:

• An applicant, who is moving due to employment and applying to reside in an area remote from his/her present accommodation, may retain ownership of residential property where that employment is for 12 months or less. However, the policy of not owning residential property will apply generally statewide.
• If an applicant must reside elsewhere due to access requirements caused by a sudden disability, then property ownership is not a bar. However, the property must be sold within a reasonable time.
• Consideration can be given in special circumstances to applicants who own a single block of residential land of little value and no prospect of building on it in order to house themselves. Note: All of the above must be verified by the provision of relevant documentation.

10.1 Further assistance where applicants have a previous Bond debt will be considered provided the applicant makes an arrangement to repay the Bond debt/s.

10.2 Where the private landlord is terminating a tenancy for which a customer has an existing Bond and they have maintained their repayment agreement they may make further application for another Bond. A new arrangement can be accepted or an existing arrangement may continue at the discretion of Department of Housing.

10.3 Application for further assistance where a customer has not maintained their repayment arrangements will be at the discretion of Department of Housing. Discretionary approval will be given for further assistance, where there are genuine hardship factors, such as homelessness, domestic violence, family separation. However the applicant will be required to enter into an affordable arrangement to clear the debt.

10.4 The Manager Customer Service, Assistant Regional Manager, Area Manager, Administration Officer, Regional Manager or Manager Bond Assistance have the delegated authority to approve further assistance.

10.5 Applicants who are bankrupt can be considered for further assistance once the bankruptcy is verified. Further assistance may be granted at the discretion of the Manager, Bonds or Department of Housing Appeals Mechanism with regard to the applicant’s previous history.

10.5 When vacating a private rental property where Department of Housing has provided Bond Assistance the balance of the Bond loan must be returned by the landlord/authorised agent to Department of Housing unless previously advised that the Bond debt has been repaid in full.

11.1 The levels of assistance (below) are set at four times the median weekly rent for the appropriate form of accommodation for the household type. The maximum amount of assistance, or the equivalent of four weeks rent of the property accommodation, is made payable to the Landlord/Agent. [If less than the maximum amount of assistance or the equivalent of four weeks rent is required, this amount will be paid to the Landlord/Agent.]

11.2 The above limits shall be increased for remote and northwest areas by 40%.

11.3 Pro-rata assistance may be provided, where not all persons in the household are eligible for assistance.

11.4 Bond Assistance Loan will only be provided where the rent payable for the private rental is 60% or less of the gross income of the household.

11.5 A bond loan is 4 weeks rent, and Ingoing cost of an additional Two weeks rent in advance can also be lent to the bond applicant.

11.6 Where pro-rata allocation is to occur, each person deemed to be contributing to the rent, (this includes dependants on a person’s income, i.e. supporting parent) is to be apportioned an equal share of the total Bond Assistance that would be payable if all persons were eligible. Example: Sole parent with two dependants and a single person apply for Bond Assistance together. If the single person is ineligible, the supporting parent will be pro-rata 3/4 of the bond.

13.1 Repayment installments will be negotiated at time of loan approval with a minimum repayment of $25 per fortnight for new clients approved after 1 July, 2009, and $15 per fortnight for existing clients with an approved Bond Loan prior to this date.

13.2 For those who have a current in-principle approval prior to 30th June, 2009, they will still have their repayment assessed at $15; however, if their in-principle approval has lapsed, they will need to re-apply and this is treated as a new application and they will be assessed on the $25 per fortnight installment plan.

13.3 Where there is a proven difficulty for the applicant in paying this amount, the sum may be reduced at the discretion of the Manager Bond Assistance, Regional Manager, Assistant Regional Manager or Area Manager. Reduced repayment not to fall below $10 per fortnight.

16.1 This will apply only to wait turn applications (see RENTAL POLICY – Eligibility policy debt to Department of Housing).

16.2 A wait turn application will be withdrawn if arrears are not cleared within 14 days.

16.3 The application may be reinstated on request by the applicant, after the arrears have been cleared.

19. Housing Assistance Loan recipients are to make repayments:

• Through CLADD if a recipient of Centrelink benefits;
• By Department of Housing card at any Australia Post Office;
• By Direct Debit from a Bank account;
• By Direct Deduction through an employer;
• By mail – cheque or money order.
• By Online Bill Payment service (ActiveCall)

19.1 Any payment by mail must clearly state:

1. The payee's full name and address.
2. The Bond Assistance Loan account number.
3. Payments to be sent to:

Department of Housing City Office
605 Wellington Street
PERTH WA 6000