Payment

Bond Grants are recoverable and must be paid back to MSD.

If a client qualifies for a non-recoverable re-establishment Special Needs Grant for a bond (General Bond and/or Pet Bond), this assistance must be considered first. MSD can consider any remaining amount still needed for bond under a Bond Grant.

The maximum Bond Grant payable is limited to:

• When entering or renewing a tenancy agreement:
  • the amount of the bond the client and their partner (if any) combined must pay for the accommodation or
  • the equivalent of 4 weeks rent for the accommodation or
  • if the client is in shared accommodation, the client and their partner's (if any) portion of 4 weeks rent
    
    whichever is the lesser amount.

• When due to an increase in rent:
  • the extra amount required to top up the bond or
  • the equivalent of 4 weeks of the increased rent amount
    
    whichever is the lesser amount.

MSD cannot pay more than the limits set out above. In general, four weeks rent is the bond amount asked for. This means if General Bond and Pet Bond costs exceed four weeks rent in total, MSD can only pay a maximum of 4 weeks and the client will need to cover the remainder.

Example

Sarah is entering into a new tenancy agreement. Her landlord has requested payment of:

• 4 weeks General Bond and
• 2 weeks Pet Bond (because Sarah will be keeping a pet)

Sarah has not received any Bond Grant from MSD in the past 52 weeks. MSD assesses her eligibility and approves a Bond Grant for up to four weeks rent. MSD cannot pay more than four weeks total, so Sarah must pay the remaining two weeks herself.

When a client is applying for bond assistance for social housing, the amount they can apply for is based on:

• the weekly rate of Income Related Rent charged by their social housing provider or
• if they do not pay Income Related Rent, the weekly market rent for the social housing

When deciding whether to grant a Bond Grant, and the grant amount, consider whether the client has, or will have, a refund of their previous bond by the date their new bond must be paid.

For example, a client applies for a Bond Grant of $1,500. They will get a refund for the previous bond of $900 before their new bond is due.

MSD must discuss this with the client, who says they will use the $900 toward the new bond.

MSD can approve a Bond Grant for $600, as this is the amount still needed by the client.

Any Accommodation Security Cover Grant that the client has been paid is included in their Bond Grant count.

When an Accommodation Security Cover Grant has been conditionally granted, it is not included in the grant count until it has been paid out.

Bond Grants and Accommodation Security Cover Grants (combined) cannot be paid more than twice in a 52-week period to a client, unless the Bond Grant is paid due to a rent increase in certain situations or there are exceptional circumstances.

When a Bond Grant is paid due to a rent increase and the client did not get a Bond Grant for entering or renewing the same tenancy, it is included in the grant count.

However, a Bond Grant paid due to a rent increase for the same accommodation a Bond Grant has already been made for is excluded from the grant count.

There is no limit on the number of Bond Grants that can be paid due to a rent increase but rent increases are limited to once every 12 months under the Residential Tenancies Act 1986.

When a client applies for a Bond Grant, MSD must check how many Bond Grants and Accommodation Security Cover Grants, that are included in the grant count, the client has had paid in the last 52 weeks. Bond Grants and Accommodation Security Cover Grants in the 52-week period before the latest application are counted, including any Bond Grants and Accommodation Security Cover Grants paid due to exceptional circumstances.

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

For more information see:

• Exceptional circumstances