ELIGIBILITY RELATING TO APPLICANTS WITH A DEBT TO HOMESWEST

See also DEBT DISCOUNT SCHEME POLICY
PREAMBLE
Many tenants who make application for further public rental housing assistance have debt from a previous Homeswest assistance. The previous assistance will be from either a previous tenancy, a Housing Assistance Loan (HAL) or a combination of both. It is an unsatisfactory business practice to re-house persons who owe money and Homeswest requires applicants to repay the debt before further assistance is given. Discretion is available for applicants with extenuating circumstances (example, Domestic Violence). See DISCRETIONARY DECISION MAKING POLICY.
It must be appreciated that if some tenants do not pay their debt to Homeswest, there is less money for public housing generally and other applicants will have to wait longer to be assisted.
It is also an unsatisfactory business practice to lend money for a HAL, to persons who have not fully repaid the previous loan.
This policy is applicable to applicants for public rental housing, who include a partner or other people to be housed on their application, who have a debt to Homeswest from a previous assistance, regardless of whether that person/s intend to sign the tenancy agreement.
The policy is also applicable to applicants for rental assistance, on a wait turn or priority basis, with discretion available where necessary. (See DISCRETIONARY DECISION MAKING POLICY).
It must also be noted that Homeswest does not exercise a legal right to Joint and Several Liability and that joint applicants need only repay a proportion of the debt equal to the number of other tenants and need not accept responsibility for the proportion of the debt of the other party/s.
POLICY

GUIDELINES & PRACTICES
24. Applicants with a debt to Homeswest will be requested to make arrangement to repay their debt, if applicable they may make application to participate in the Debt Discount Scheme.
 24.1 See also DISCRETIONARY DECISION MAKING POLICY making policy.
  • Bankruptcy policy suspended May 2001. Debt repayment does not apply to the bankruptcy component of any debt – this debt is non-recoverable.


POLICY

GUIDELINES & PRACTICES
Proposal to Repay the Debt
25. An applicant requiring further public rental housing with a debt to Homeswest, must enter into a proposal to repay the debt on application for assistance registered. The Applicant may make application to participate in the Debt discount Scheme.
25.1 A registered application is one that is registered with the date of application but does not accrue time on the waiting list. However, when the debt is repaid, the application is given the benefit of the listing date and credited with the time accrued from that date. If payments are defaulted, the application may be withdrawn.
25.2 The proposal to repay, includes the following.
Any remaining balance must be paid off in regular instalments, as agreed by the proposal.
The payments must be paid through Centrelink Direct deduction, if the applicant receives a statutory income.
26. The proposal to repay the debt will be confirmed in writing with the applicant and include an itemised account of the debt. The Applicant may make application to participate in the Debt discount Scheme.
27. Any applicant who defaults on a proposal to repay, may have their application for assistance withdrawn and will be required to reapply for further assistance. The Applicant to be advised and may make application to participate in the Debt discount Scheme.
27.1 See 25.1.
27.2 The decision to withdraw the application will take into account the repayment history. Contact will be made with the applicant where possible, to ascertain whether there are any extenuating circumstances contributing to the default. Any future application after an application has been withdrawn, may not have the benefit of the earlier listing date.



POLICY

GUIDELINES & PRACTICES
Debt Subject of Dispute
28. Where the debt is the subject of a dispute, which is pursued through court action or Homeswest Appeals mechanism, no action will be taken until the process has been completed.

28.1 This includes entering in to a proposal to repay the debt.
Referral to Commercial Debt Collection Agency
29. A debt will only be referred to a commercial debt collection agency, after all approaches from Homeswest have failed.
29.1 Where personal contact can be made, the debtor will be contacted by Homeswest, advised of the debt and the intention to refer to a commercial agency and offered an opportunity to make repayment.
Statute Barred Debt
30 Under the Limitation Act 1985 the period for a tenancy debt is 6 years. Expiration of the period does not expunge the debt as if it never existed but once this period has elapsed, the debt becomes “Statute Barred” and legal recovery is not permitted.
Under the Bankruptcy Act 1996, where a client declares bankruptcy, the debt becomes “Statute Barred”, subsequent discharge of the bankruptcy relieves the customer of the legal liability to repay the debt, but it does not expunge the debt as if it had never existed.
Repayment of statute barred debts will not be pursued by the Department of Housing and Works and will not preclude further assistance being offered by the Department of Housing and Works.



30.1 Repayment of statute barred debts cannot be pursued