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Income Related Rent debt : Contents

Income Related Rent debt under $500

MSD has discretion to not establish Income Related Rent debt.

Currently any Income Related Rent debt under $500 is not established.

When an Income Related Rent debt is calculated due to a change in circumstances, and the amount of the debt is under $500, it is not established or recovered.

Note this provision does not apply to debts established in fraud cases (for example, debt established because client undeclared or under declared their income, client falsified or provides misleading information).

You must record your Income Related Rent debt calculations and the total amount of the debt on the client's record in CMS, as the debt will not be calculated automatically by the system.

Example

During the annual review of Income Related Rent it is discovered that Sarah had a change in circumstances, which affects the calculation of the rate of Income Related Rent. The debt is calculated as $490. The debt amount is recorded on Sarah's record in CMS. However, as this debt is under $500 no debt is established.

For more information see:

Income Related Rent debt [no link find out why]

Legislation

  • Increase in rent due to change in tenant's circumstances (Kāinga Ora housing) section 74 Public and Community Housing Management Act 1992
  • Increase in rent due to change in tenant's circumstances (Community housing) section 94 Public and Community Housing Management Act 1992
  • Tenant's duty to advise changes of circumstances section 115 Public and Community Housing Management Act 1992
  • 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
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