Date of Report: - 16th April 2007
Report for Housing Minister
Approval of Policy HD17 - Tenants in Rent Arrears with Assets
Background
As part of the Rent Abatement process tenants are expected to supply all information regarding income and any savings or assets.
Recent figures from the abatements submitted during the preceding 12 months show that there are 2,584 tenants with declared assets totalling £24,492,820.27.
Relevant Statistics
There are:
366 tenants who owe in excess of £1,000 in rent arrears
106 of those 366 with declared assets of £ 217,139.87
1 of the 106 has assets of £127,356.20
11 of the 106 who have sufficient savings to completely clear their debts
95 of the 106 who have insufficient savings to clear their debts in full but could reduce their indebtedness significantly
£ 203,240.88 outstanding from these 106 tenants
A policy document, Housing Department Policy HD 17 ‘Tenants in Arrears with Assets’ has been developed to provide specifically for these and future cases.
Recommendation
That the Minister approve Policy HD17 ‘Tenants in Arrears with Assets’
Louise Baudains
Compliance Officer
13/04/07
POLICY HD17
STATES OF JERSEY HOUSING DEPARTMENT
POLICY IN RESPECT OF
Tenants in Rent Arrears with Assets
The Housing Department has a ZERO TOLERANCE POLICY
in respect of rent arrears
Policy HD4 describes the Departments approach where rent accounts of current tenants are in arrears. The term “Rent Arrears” applies only to rent, not any other debts incurred by the Tenant.
The Policy applies to all rented property administered by the Housing Department. The Department expects tenants to prioritise rent above other bills.
This Policy deals predominately with tenants in arrears who have declared assets.
As part of the Rent Abatement process tenants are expected to supply all information regarding income and any savings or assets. Tenants are obliged to provide information to the Department if their income changes throughout the duration of their tenancy in order to ensure that they are being assessed accurately for Rent Subsidy.
Aims
It is inappropriate that any tenant, whether or not they are receiving rent subsidy, has rent arrears with the Department whist having the means at their disposal to completely repay or reduce that debt.
Tenants with assets greater than their arrears should be asked to clear the balance from their savings. Where the savings will not be sufficient to meet the full debt they will be required to reduce their arrears balance as much as possible from those savings.
If tenants state that they are unable to clear their arrears with savings – i.e. not having sufficient savings any longer, high interest account which they can not access etc… - they should be asked to provide bank statements or written confirmation of this to the Department. If they can provide these details they will be asked to agree a realistic repayment plan with the Department based on the established Policy in respect of Rent Arrears (Policy HD4).
Sanctions
Should tenants refuse to clear their rent arrears with their savings and/or refuse to provide the information requested they may then be referred to the Petty Debts Court for immediate settlement of the debt. A copy of their declared assets will be provided to the Law Officers as evidence of their ability to pay.
Effective Date
The Policy shall become active on the date on which the respective Ministerial Decision is signed by the Minister.
Policy Drafted | 16th April 2007 | Louise Baudains |
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