Payment

Accommodation Security Cover Grant can be claimed if the client owes their former accommodation supplier outstanding accommodation costs and expenses at the end of their accommodation agreement.

Clients who have entered into an accommodation agreement that the Residential Tenancies Act 1986 does not apply to are generally not able to lodge a tenancy bond with Tenancy Services and are not protected by the Residential Tenancies Act 1986.

Note Clients can contract into the provisions of the Residential Tenancies Act 1986 to lodge a bond with tenancy services. However, contracting into the provisions of the Residential Tenancies Act 1986 in this way does not mean that the accommodation agreement is an RTA agreement for the purposes of the Housing Support Programme.

Accommodation Security Cover Grant is paid to cover costs at the end of the accommodation agreement to ensure that the payment is used in a similar way to a bond payment.

Accommodation Security Cover Grants are recoverable. The client must pay back any costs paid under an Accommodation Security Cover Grant to MSD.

The maximum amount of outstanding accommodation costs and expenses payable is equal to 4 weeks accommodation costs based on the accommodation costs agreed to at the start of the accommodation agreement.

Payment is calculated as total costs up to 4 weeks accommodation costs.

Example

The maximum amount payable based on accommodation costs of $350 per week is $1,400.

Accommodation Security Cover Grant cannot be paid more than twice in a 52-week period unless exceptional circumstances exist. The count for Accommodation Security Cover Grant includes any Bond Grant payments.

When a client applies for Accommodation Security Cover Grant, MSD must check how many Accommodation Security Cover Grants or Bond Grants have been paid in the last 52 weeks. Any Accommodation Security Cover Grants paid in the 52-week period before the latest application are counted, including any Accommodation Security Cover Grant claims paid due to exceptional circumstances. If a client was conditionally granted Accommodation Security Cover Grant but it was not paid, this is not included in their grant count.

If a client gets more than one payment under a conditional grant of Accommodation Security Cover Grant or Bond Grant in a 52-week period, they can get up to the maximum amount for each grant.

A payment under Accommodation Security Cover Grant can only be paid to the client's former accommodation supplier or their agent (e.g. a property manager) unless MSD is satisfied exceptional circumstances exist.

If exceptional circumstances exist, MSD may pay Accommodation Security Cover Grant to the client's payment card or directly to the client.

Sometimes a client may agree with the accommodation supplier that they owe a part, but not all, of the outstanding accommodation costs and expenses that the accommodation supplier wants to charge the client.

In these cases, MSD can approve the costs that are agreed by the client. Any additional outstanding cost will need to either be agreed by the client and accommodation supplier or a Disputes Tribunal, Tenancy Tribunal or court order would need to be provided by the client or accommodation supplier.

Generally, a client or their agent will need to be the person to contact MSD to request that their Accommodation Security Cover Grant be paid out.

Their accommodation supplier cannot request that MSD pay the claim unless there is an order from the Disputes Tribunal, Tenancy Tribunal or court confirming that the client is responsible for the costs.