Period to claim payment under Accommodation Security Cover Grant
A payment under Accommodation Security Cover Grant can be claimed if the client owes their former accommodation supplier (or the accommodation supplier’s agent) outstanding accommodation costs and expenses at the end of their accommodation agreement.
3-month period to claim costs
The client or the accommodation supplier generally has up to 3 months from the end of the accommodation agreement to make a claim to MSD for outstanding accommodation costs and expenses. However, the claim period may be extended in certain circumstances.
Claims for payment under Accommodation Security Cover Grant can only be made for accommodation agreements that end within 12 months.
If MSD approves a claim for payment, it is paid to the client's accommodation supplier (or the accommodation supplier's agent, e.g. a property manager). However, if exceptional circumstances exist, the claim may be paid directly to the client.
Extending claim period if a decision has not been made
An accommodation supplier or the client can dispute whether the client is responsible for the outstanding accommodation costs and expenses through the Disputes Tribunal, Tenancy Tribunal or court. If a claim has been lodged with a Disputes Tribunal, Tenancy Tribunal or court but a decision has not been made, the 3-month claim period may be extended.
An extension of the claim period cannot be made for any other reason.
A client or their accommodation supplier must contact MSD before the 3-month period ends to request an extension. If no contact is made, the grant ends (lapses) and there is no discretion to extend the 3-month period.
When a claim has been lodged with the Tenancy Tribunal, a request to extend the claim period can only be considered when it is made on or after 2 March 2026, and within the 3-month claim period.
Example
On 20 February 2026, Liam contacts MSD to make a claim against Susan's Accommodation Security Cover Grant with a Tenancy Tribunal order confirming that Susan must pay the outstanding accommodation costs and expenses of $750. The accommodation agreement ended after 4 months on 10 January 2026.
As the 3-month claim period ends after 2 March 2026, MSD advises Liam to submit the claim on or after 2 March 2026, but before the claim period ends. On 4 March 2026, Liam submits his claim, and MSD grants a payment of $750 to him from Susan's Accommodation Security Cover Grant.
Each case and extension must be looked at on its own circumstances.
Maximum limit on claim period extensions
When a client or their accommodation supplier request an extension on their claim period, this may only be extended for a maximum of 3 months. An extension should generally be applied for 3 months unless there is good reason to extend for less time.
A claim period may only be extended twice. There is no discretion to extend the claim period more than twice.
Example - 3-month extension
Logan was conditionally granted an Accommodation Security Cover Grant. He stays in the accommodation for 10 months before moving to new accommodation.
His accommodation supplier wants to make a claim for damages but Logan does not agree that he is responsible for them. The accommodation supplier lodges a claim with the Disputes Tribunal that Logan should be responsible for these costs.
After 2 and a half months, the accommodation supplier contacts MSD to request an extension to the three-month claim period as the Disputes Tribunal has not resolved this. MSD grants a three-month extension.
After 3 months, there is still not progress on the Disputes Tribunal claim as Logan hasn’t been contactable. The accommodation supplier contacts MSD for another extension. MSD grants the second and final three-month extension.
The Disputes Tribunal makes the verdict that Logan is responsible for the damages 8 months after Logan left the property. The accommodation supplier contacts MSD with the Disputes Tribunal claim, and MSD grants the Accommodation Security Cover Grant to pay for the damages.
Client applied for new grant during three-month claim period
When a client has been granted an Accommodation Security Cover Grant and their accommodation agreement ends within 12 months, they have three months to make a claim for their costs.
Most clients will move straight from one property to another. This means a client may apply for another Accommodation Security Cover Grant during the three-month period to claim costs from their previous accommodation.
If a client has already received a Bond Grant or claimed an Accommodation Security Cover Grant in the last 52 weeks, MSD must discuss with the client if it’s likely there will be a claim for costs on their current Accommodation Security Cover Grant before making a new grant for their next accommodation.
If the client advises that they will not make a claim for the costs, or if it is not clear whether they will make a claim, MSD can grant an Accommodation Security Cover Grant for their next accommodation.
If they advise that they will make a claim for the costs and will have been paid two grants in the last 52 weeks, MSD may decline the Accommodation Security Cover Grant for their next accommodation if they do not have exceptional circumstances.
Example
Rushika received a Bond Grant to move into accommodation and lived there for 6 months. There was some damage to the property and the Bond Grant was used to pay for this.
She applied for a Security Cover Grant to move into her second accommodation and was granted. She moved out after 4 months. The Security Cover Grant remains active for 3 months from the date she moved out of the accommodation.
Rushika has now contacted MSD to apply for a Security Cover Grant to move into her next property two weeks after she moved out of her last accommodation. She has already received 1 Bond Grant in the last 52 weeks, and currently has an active Security Cover Grant as it has not expired or been claimed yet.
If the Security Cover Grant is claimed, Rushika will have received 2 Bond/Security Cover Grants in the last 52 weeks and will have reached her grant limit.
In order to ensure Rushika does not receive 3 grants in 52 weeks, MSD contacts Rushika to determine if her second Security Cover Grant will be claimed. Rushika advises that there were damages to the property that will likely require the Security Cover Grant to be paid.
MSD declines her third request for a Security Cover Grant as the second grant is likely to be paid. If Rushika and her accommodation supplier advised that they were not intending to claim the payment, MSD could assist with her third Security Cover Grant application.
