Security deposit required for emergency, transitional or contracted emergency housing
Emergency housing suppliers, transitional or contracted emergency housing providers usually require a security deposit as security against loss or damage to their property before they will allow clients to move into their accommodation.
MSD may approve a Security Deposit Grant for all emergency accommodation funded by either:
- an Emergency Housing Grant or
- the Ministry of Housing and Urban Development (transitional or contracted emergency housing providers)
As part of the expectations and conditions of stay in the above accommodation, clients must be advised what a Security Deposit Grant is for, the grant amount approved by MSD, what is does and does not cover and what happens if a claim for loss or damage is made.
Security deposits, if paid out, are always recoverable from client
In all cases, when a Security Deposit Grant is paid to an emergency housing supplier, transitional or contracted emergency housing provider for loss or damage, the amount paid out is recoverable from the client as an MSD debt.
Amount of security deposit must be approved before start of stay
An initial Security Deposit Grant must be approved by MSD before the start of the client's stay.
However, a new Security Deposit Grant can be approved by MSD after the client has entered the accommodation if:
- MSD is satisfied a new Security Deposit Grant is required and
- it would be appropriate for MSD to approve a new Security Deposit Grant
Claim for loss or damage under a security deposit
If MSD accepts a claim for payment under a security deposit, MSD can only pay the supplier or provider the amount needed to cover the actual and reasonable costs incurred for loss or damage (up to the security deposit amount originally approved).
The emergency housing supplier, transitional or contracted housing provider must contact MSD to claim this payment.
For more information see:
Legislation
- Security deposit grant part 5 Emergency Housing Grants Programme
