Payment of the security deposit to a supplier or provider

MSD will only pay a Security Deposit Grant approved for emergency, transitional or contracted emergency housing to a supplier or provider, if the supplier or provider has incurred damage or loss covered by the security deposit.

If there is no damage or loss, the security deposit will not be needed, and no payment can be made to the supplier or provider.

A Security Deposit Grant must be granted to a client before their supplier or provider makes a claim. If there is no Security Deposit Grant in place at the time the supplier or provider incurred loss or damage, MSD cannot approve or pay the claim. The supplier or provider will need to claim the amount directly from the client, under their insurance or another avenue such as the Disputes Tribunal.

When there is damage or loss, the supplier or provider must identify this during the client's stay or by the time the client completes their stay. The decision about whether the client must pay for damage or loss is between the supplier or provider and the client.

If there is agreement between the supplier or provider and the client that the client is responsible for the costs due to the damage or loss, MSD can pay the provider up to the security deposit amount originally approved. Security Deposit payments are recoverable from the client as an MSD debt.

Note before payment can be made, the provider must confirm the client is responsible for damage or loss arising from their stay, and there was no known dispute of that responsibility by the client when they completed the check-out process.

Any dispute between the client and emergency, transitional or contracted emergency housing provider as to the client's responsibility for the costs potentially covered by a security deposit is to be resolved between the client and the provider (not MSD). This may involve the matter being taken to the Disputes Tribunal.

If the client fails to check out, and the supplier or provider says the client is responsible for damage or loss during their stay, MSD can pay the provider for these costs up to the security deposit amount originally approved.

The security deposit amount paid will be recovered from the client as an MSD debt.

The supplier or provider must confirm:

• there is damage or loss that is the client's responsibility
• the client did not complete the check-out process to enable the issue to be discussed directly with the client
• the client has not disputed the damage or loss

Sometimes a client may leave some of their belongings behind at the accommodation after moving out.

This can result in a loss to the provider if they cannot sell the accommodation until the client's belongings are removed.

This loss is generally covered by the security deposit.

If a Security Deposit Grant is paid to the supplier or provider, the amount becomes recoverable from the client from the date it was paid. The amount paid will be recovered from the client using MSD's existing debt recovery process.

Clients are encouraged to talk to MSD when they do not understand or disagree with a decision about payment of a security deposit.

Clients have the right to have decisions formally reviewed.

The client can apply for a review of decision when:

• they dispute the recovery rate or
• a payment has been made for more than the approved amount or
• they consider payment has been made for costs that are not covered by the security deposit

However, any dispute between the client and the supplier or provider for the responsibility of costs covered by a security deposit must be resolved between the client and the supplier or provider, not MSD.

For more information see:

When the value of the damage or loss is above the amount originally approved for the security deposit, the emergency housing supplier, transitional or contracted emergency housing provider may seek:

• reimbursement of the remaining amount directly from the client (this may involve taking the client to the Disputes Tribunal) or
• compensation from their insurance company