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Income Related Rent debt : Contents

Income Related Rent debt due to undeclared circumstances

It is an offence for a client not to provide information or to provide false or misleading information to MSD.

When it is determined a client has deliberately not provided information or provided misleading information, and, as a result, there is an under-calculation of their Income Related Rent rate, an Income Related Rent debt will be established from the date the offence was committed to the day before the client starts paying the correct rate of Income Related Rent.

However, if MSD finds that the client did not intentionally omit to declared information (for example at the time of assessment or any time during their tenancy), it will be treated as a change in circumstance.

Debt will be established 61 days after the date of the change in circumstances until the day before the client starts paying rent at the correct Income Related Rent rate (that is the day before the rent effective date).

For more information see:

Legislation

  • Recovery where rate of rent too low section 127 Public and Community Housing Management Act 1992
  • Recovery of debt where agency is Ministry section 128 Public and Community Housing Management Act 1992
  • Offence not to provide information or to provide false or misleading information section 130 Public and Community Housing Management Act 1992
  • Offence to mislead agency for certain purposes or results section 131 Public and Community Housing Management Act 1992
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The rent effective date is the one-off date on which an increased rate of Income Related Rent is charged.

The rent effective date is aligned with the next charge date.