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Income Related Rent : Contents

Refunds - paying to client and the housing provider

In some situations, you may need to issue the refund to the client and to the housing provider.

This can happen when the client has paid some but not all of the rent charged to their housing provider.

The refund remaining after the housing provider has been paid is due to the client.

A refund may be used to repay current MSD debt only if the client agrees to this. If the client does not agree, or you are not able to contact the client, the refund must be issued directly to the client.

Example

The client's rate of Income Related Rent and rate of rent charged was $130 per week. A decision is made to backdate the rate of Income Related Rent and issue a refund. The new rate of Income Related Rent is $91 per week.

The refund period is between 12 August 2023 and 26 August 2023. During this period the client made three rent payments.

Refund period (12 August 2023 and 26 August 2023)

Week 1

Week 2

Week 3

Totals

Rate of Income Related Rent and rent charged

$130

$130

$130

$390

Backdated rate of Income Related Rent

$91

$91

$91

$273

Actual rent amount paid by client to housing provider

$100

$100

$100

$300

The difference between the rate of Income Related Rent and the new lower rate for the period is $117. This is the total refund amount for the period.

The client has under paid their rent by $90.

A refund of $90 would be issued to the housing provider and a refund of $27 would be issued to the client.