Security deposit approved for a household

The security deposit is approved for the client who applies for housing assistance for their household. This is the client who was granted an Emergency Housing Grant, or accepted into transitional or contracted emergency housing.

A household includes the client, their partner and dependent children (if any).

The client who is approved a Security Deposit Grant is responsible for repaying it to MSD, if the security deposit is paid to a supplier or provider for loss or damage caused either by the client, a member of their household or a guest.

Emergency Housing Grant

If a household of more than one adult (who are not in a relationship, e.g. sisters), are applying for an Emergency Housing Grant, they must be treated as separate households, and each client must apply for an Emergency Housing Grant and a Security Deposit Grant in their own right.

They can choose to stay in individual units or share one unit between them. If one unit is shared, each client must apply for an Emergency Housing Grant for their portion of the accommodation costs and security deposit.

How the accommodation costs are split must be agreed to by each client. The amount covered by each security deposit will be based on how their portion of the accommodation costs is split.

Example

A mother and her adult daughter apply for an Emergency Housing Grant to stay in the same motel unit. Both apply for an Emergency Housing Grant in their own right.

The accommodation cost is $800 for 7 nights. The mother and daughter agree to split the cost 50/50, so an Emergency Housing Grant is approved to each of them for $400.

The security deposit amount required by the motel provider is $800 (equivalent of 7 nights’ accommodation) and will be split the same way as the Emergency Housing Grant (50/50).

A security deposit for $400 is approved for each client.

Transitional and contracted emergency housing

For transitional and contracted emergency housing, the treatment of more than one adult (who are not in a relationship) for payment and the security deposit is at the discretion of the provider (with the household's agreement).

The provider will determine whether the adults are treated as one household, and only one client needs to apply for the Security Deposit Grant, or if each adult needs to apply as separate households.

The number of units required for the household may also be taken into consideration.

How the household is made up and the amount of security deposit required will be indicated by the provider when the security deposit is applied for.

When there is a change in circumstances and the client who was approved a Security Deposit Grant moves out, it is up to the provider to check for damages at that time and make a claim if necessary.

The provider should also ensure anyone remaining in the emergency, transitional or contracted emergency housing has applied for, and been approved a Security Deposit Grant, to ensure the relevant cover is in place.

If a new security deposit is not agreed and applied for, by the remaining client straight away, the period in between will generally not be covered by a security deposit, and the provider can only make a claim from the date the new security deposit is approved.

If a security deposit amount was split (e.g. 50/50) between 2 clients and 1 client moves out, the provider will need to ensure the client who remains in the accommodation applies to increase the security deposit to cover their continued stay.

If there is a period where the security deposit has not been increased, the provider will only be able to make a claim up to the original split amount of security deposit.