Accommodation Security Cover Grant letter and conditions of grant

When a client gets a conditional grant of Accommodation Security Cover Grant, MSD will give them and their accommodation supplier an Accommodation Security Cover Grant letter of assurance.

The letter explains what Accommodation Security Cover Grant is and shows the client has been approved for financial assistance from MSD to help pay any outstanding accommodation costs and expenses at the end of their accommodation agreement.

It also explains what both the accommodation supplier and client need to do to meet the conditions of the Accommodation Security Cover Grant. Accommodation Security Cover Grant cannot be paid to the accommodation supplier (or their agent) unless all the conditions of the grant are met.

The conditions of Accommodation Security Cover Grant are as follows.

At the start of the accommodation agreement:

• the client meets the eligibility criteria, and
• the accommodation supplier has only entered the accommodation agreement on the condition that Accommodation Security Cover Grant is granted

• the client has given MSD a copy of the accommodation agreement

At the end of the accommodation agreement:

• the accommodation agreement has ended within 12 months of the Accommodation Security Cover Grant being made (including any subsequent grants)
• the client owes the accommodation supplier outstanding accommodation costs and expenses, and
• the client or accommodation supplier has claimed payment of the outstanding accommodation costs and expenses within 3 months of the end of the accommodation agreement (unless they qualify to extend the claim period), and
• MSD has the supporting evidence it needs to decide whether to pay the claim

Even if all of the conditions are met, MSD can only pay a claim for payment under Accommodation Security Cover Grant when:

• the client agrees with the amount of costs claimed or
• there is a Disputes Tribunal, Tenancy Tribunal or court order confirming that the client must pay the outstanding accommodation costs and expenses

Clients who have been granted an Accommodation Security Cover Grant can only resolve disputes with their accommodation supplier through the Tenancy Tribunal when the parties to the accommodation agreement have contracted into the jurisdiction and powers of the Tenancy Tribunal under the Residential Tenancies Act 1986.

Change in circumstances

The conditions of Accommodation Security Cover Grant are not affected by a change in the client’s circumstances after the accommodation agreement has started.

There is no limit on how many times a client can be conditionally granted Accommodation Security Cover Grant in a 52-week period unless:

• the client has already received 2 payments under Accommodation Security Cover Grant or Bond Grant within a 52-week period and
• there are no exceptional circumstances to justify another conditional grant of Accommodation Security Cover Grant during that same 52-week period