Grandparented rate for Kāinga Ora clients
On 1 December 2000, Income Related Rent replaced all accommodation assistance that was paid to Kāinga Ora (previously Housing NZ) clients. To ensure that no clients were worse off due to the transition to Income Related Rent, these tenancies had their rent capped at the net rent level as at 18 November 2000. Net rent is the rent payable to Kāinga Ora, less any accommodation assistance.
Before 1 December 2000, a client could have received the following accommodation assistance from Service Delivery:
- Tenure Protection Allowance
- Special Transfer Allowance
- Accommodation Supplement or
- Accommodation Benefit
Clients whose calculated rate of Income Related Rent was greater than net rent were given a special rent rebate. There are 2 types of rent rebates, these are known as:
Cumulative rent
The cumulative rent is a client's net rent on 1 December 2000, adjusted for any abatement in their cap at the time the Income Related Rent is calculated. The cumulative rent is the maximum rent that the client will pay while subject to the Income Related Rent grandparenting provisions.
If the calculated rate of Income Related Rent is below the cumulative rent then the client will pay the calculated rate of Income Related Rent.
