DEBT DISCOUNT SCHEME POLICY

PREAMBLE
In recognition that many customers have no other housing options other than public rental housing, Homeswest offers customers with a debt, the opportunity to repay a proportion of the monies owing in lieu of the full debt, in order to facilitate earlier re-entry into the public rental housing program.
It is also available to customers with a debt to Homeswest, wishing to access home ownership in order to facilitate private home ownership.
POLICY

GUIDELINES & PRACTICES
General
13. A customer with a debt to Homeswest will be offered credit for monies repaid, in order to facilitate earlier re-entry into public rental housing or homeownership, if they participate in the scheme. To be eligible to participate in the scheme the debt must not relate to the current tenancy (The Debt Discount Scheme does not apply to Bond Assistance Loan debts). Applicants/Tenants should be advised of their rights to participate in the Debt Discount Scheme for debts that do not relate to the current tenancy. Where possible correspondence should include reference to the Debt Discount Scheme and application form. Applicants do not need to have a current application for public housing to participate in the scheme.
13.1 This is not available to tenants with a debt in their current tenancy (see 15).
13.2 A debt is deemed to be an old debt when it is not related to a current tenancy.
14. Any customer with a debt to Homeswest, which is currently being repaid, may participate in the scheme, the debt being calculated at the amount owing at the time of participation. (Not available to customers wanting to secure another Bond Assistance Loan or tenants with a debt in their current tenancy).
14.1 Example:
Original debt $1,000; amount already repaid $500; debt for the purpose of participation in the Debt Discount Scheme $500.
The discount will be calculated on the amount owing at the time of participation, not the total debt.
14.2 If you are already repaying a debt you may participate in the scheme. However, the discount will only apply to the amount that remains to be paid at the time you enter the scheme.


POLICY

GUIDELINES & PRACTICES
15. Participants will have their application for assistance registered with the date of commencement of participation in the scheme and will receive the benefit of this date when the fifty percent of the debt has been repaid.
15.1 A registered application accrues time on the waiting list, but only becomes active after a debt has been repaid.
16. If the applicant ceases to make payments, or fails to make payments as agreed, the application may be withdrawn. Tenants will be advised in writing giving them 21 days notice of such a decision and information on the appeal process.
Current Tenants
17. Tenants with a debt to Homeswest may only participate in the Debt Discount Scheme, in order to repay a debt from a previous tenancy/ies.
 17.1 The scheme does not apply to debts accumulated in the current tenancy or Bond Assistance Loan debts.
17.2 Debt Discount Scheme is not available to tenants who have had their tenancy terminated by the court and then restored by Homeswest at the same address.
17.3 Debt Discount Scheme is not available to Homeswest tenants who have been transferred to another tenancy and in doing so incur a debt.
Scheme Details
18 Participants will qualify for a discount of fifty percent off their debt; that is a $1 discount for every $1 paid, when fifty percent of the debt has been repaid
19 Payments must be maintained at the agreed intervals and at the agreed amount if participation is to continue.
18.1 Example:
A debt of $600 – participant will only be required to repay $300 before the debt is considered to have been cleared.
19.1 Example:
Participant agrees to make repayments at $10 per week – $10 is the agreed amount and the interval is a week. (See 14.)
19.2 Payments may be made as a single payment if a participant wishes.
20 Homeswest recognises that a customer signing a debt discount scheme application form may still be eligible to follow the appeals or court process. 20.1 Signing the debt discount form does not necessary constitute agreement to the debt.