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Introduction
In general the Association supports the
basic framework the discussion document has laid down for the development for a housing
strategy for Aotearoa New Zealand and
we endorse the proposed areas for action
outlined under each of the six sections of the document.In our submission we highlight some of the
issues addressed within the discussion document by providing our own statistics and
case studies gathered from contact with clients who come to our bureaux and we make
suggestions and recommendations for action. We have not responded to every
question in the document. The majority of our housing related
enquiries are from low income/vulnerable groups. Our submission therefore addresses the
issues and questions raised in the discussion document mainly as they relate to the
protection of these groups.
Comments on the Discussion Document
Question: What should New Zealand do to plan for future
housing need?
We see a tension between the increasing
cost of housing and incomes that are not keeping pace with housing cost. Given that
Government has limited control over housing prices in the private market, it
will need to address income levels, mortgage assistance, and provision of state housing
to ensure future housing needs of low and middle income New Zealanders can be met. We are pleased to note the government’s
commitment to increase Housing New Zealand Corporation (HNZC) rental housing
stock over the next four years. However, we note that HNZC has been allocated less in
the 2004 budget than in the previous budget to expand its stock and that
significantly more investment in this area is required to bring housing stock up to a level where
current and projected demand can be met. Government should plan to invest in state
housing stock to a level where it can meet demand.
Question: What areas of
government policy and activity, other than housing policy, could be changed to improve
housing outcomes? In what way?
Employment and welfare policy must be
addressed alongside housing affordability and availability. We find that clients coming to
bureaux with housing problems tend to be on low incomes or benefits. They may have
problems meeting rent or mortgage payments because prices have simply shifted beyond
what they can afford, or because they have been made redundant and are in-between jobs,
or they have not been able to secure full-time employment. For example:
A family of five came into a bureau desperate because they had been given notice
to quit
their rental accommodation. The breadwinner had been recently made redundant and
had not been able to find more work. The family was unable to pay the rent and had
fallen behind in the payments.
The client may be on a benefit and, for one
reason or another, not in receipt of their full entitlement, or their benefit is simply too
low to cover their housing costs. We also deal with clients who have no income at all,
whether because they are on a stand-down or for other reasons. If efforts to improve
housing for low income and vulnerable people are to be meaningful and have the desired
the effect, they will need to happen in conjunction with efforts to improve access
to quality employment and to ensure adequate income assistance for all in need
of it.
Because of the interdependent nature of
housing, employment and welfare, the relevant government organisations (HNZC and Work and
Income) should work more closely with each other and take a cooperative approach
to addressing the needs of the people who use their services. Bureaux have reported
cases where clients have either been passed from one agency to the other because
of confusion as to which was responsible for addressing the client’s needs, or where
the client has not been referred on to another agency for assistance when clearly
this should have happened, or where application of policy by one or other
organisation has been inflexible and resulted in clients finding themselves in precarious
situations. For example:
A man
approached a bureau to ask for assistance regarding his application for a HNZC house.
The client’s rent (in private rental accommodation) had recently increased to a level
he could not afford to pay. The client was on a sickness benefit and had been
told by
WINZ that he was not eligible for additional accommodation supplement. The
client had
put his name on the waiting list for a HNZC house. In the meantime, the client moved
out of the rental accommodation into a garage. Upon doing so, HNZC advised that
having left the rental accommodation the client would no longer be considered a priority
for a HNZC house.
The Association suggests that HNZC and
Work and Income work together to improve the communication between them, that they
align their systems more closely and that they develop streamlined processes to ensure
clients in urgent need do not get caught in a loop between them and are provided the
right kind of assistance when it is required.
Anecdotal evidence from bureaux suggests
drug addiction is an issue for some young people and acts as an obstacle to their
ability to acquire safe, healthy and appropriate housing. We are also aware of the high level
of demand for services reported by community organisations providing assistance
specifically for young people with drug addiction. Young people with drug addictions are often
isolated, having been cut off from their families and communities and therefore are
lacking in a support base. An example of such a case from one of our bureaux:
A
young man came to a bureau asking for help because he had nowhere to live and
no income.
He did not have the support of family or friends to fall back on; his family
were not
speaking to him due to his past drug problems and as a recovering addict he
could not
stay with friends because they were still doing drugs. He was isolated, did not
know how to
access income or accommodation, and just needed a bit of help to set things up so he
could start afresh.
We suggest Government provide more
funding for drug prevention initiatives and drug addiction treatment services for young
people, as a crucial element in addressing housing needs for some vulnerable groups of
youth. Are the six areas the right
ones for a New Zealand Housing Strategy? If not, what should they be?
We are confident that the six areas to be
outlined within the proposed New Zealand Housing Strategy capture the broad range of
issues we are concerned to see addressed, particularly as they relate to
low income and vulnerable groups. We do not see that any one of these six areas is
necessarily more important than the other because they all impact in some way upon the
ability of people to access affordable, safe, healthy and appropriate housing.
How do you think housing
assistance and affordability could be improved for low-income and disadvantaged people?
We acknowledge the increase to the
accommodation supplement made in the 2004 budget but we would also like to see a
subsidy of 100% of additional housing costs over and above the 25% of income threshold. This
will be especially important with the removal of the special benefit which, as the
discussion document points out, has been used increasingly in recent times to meet
high housing costs. The removal of the special benefit may have the effect of leaving some
people unable to meet their rent payments within existing income. Unless the
accommodation supplement is adjusted accordingly, more people will be worse off.
What kinds of activities or
policies will have a positive effect in housing markets under stress?
We are pleased to note that investigation
is to be made into the level of demand for emergency
housing, and for the
development of clearer funding policies to assist in ensuring those with most severe housing need
are safely housed in the short term. We believe this to be an area in urgent need of
addressing. The numbers of people seeking assistance from bureaux to secure
emergency and temporary accommodation has increased by over 74% since 1999. From
July 2002 to June 2003 Citizens Advice volunteers dealt with 2,145 enquiries in
this area.
While the numbers of people seeking
short-term emergency housing assistance have increased, bureaux are also experiencing
greater difficulties in securing emergency accommodation for their clients. Places are
often either full or there is difficulty making contact with them (inadequate staffing,
restricted opening hours, single phone line for all forms of office-based communication etc).
Sometimes clients do not meet the criteria or requirements for the emergency or temporary
accommodation available e.g. wrong gender, an inability to provide cash
upfront, or, especially in the case of private accommodation, the client may not be a
desirable customer from the supplier’s point of view. Here are some examples of what bureaux
often encounter with cases involving emergency accommodation:
A man
turned up at a bureau needing help to find emergency accommodation after finding
himself in the situation of having no place to stay and no regular income. He was
new to the area. The client had been sleeping rough at local railway stations, under
bridges etc. The bureau contacted every relevant organisation in their area and finally
managed to secure a place for the client in a local hostel.
A
woman with three children approached a bureau for assistance after having been asked
by her mother to leave the extended family home. The family had nowhere else to
stay and was sleeping in their car. The bureau contacted all the local
emergency housing
organisations with no success. Other temporary accommodation was sought but
proved either to be full up or too expensive. The client left the bureau
without accommodation
having been secured for her and her children. As she did not return or contact
the bureau again, the bureau does not know what happened to this family.
A man
came to a bureau for help having been given notice to vacate his present accommodation.
The client had recently come out of prison and was hoping to start a new
life. On his behalf the bureau contacted a church agency, a community organisation,
the client’s Parole Officer, Work and Income, a local marae, and the local body
authority in an attempt to secure emergency accommodation for the client. The client
left the bureau and did not make contact again.
Clients in need of emergency
accommodation often do not have access to funds or have no money left after paying for food and
other bills. They may also be in debt. So, even when accommodation is available,
clients may not always be in the position to access it because they cannot pay for the
necessary travel costs or they are unable to pay for the accommodation – particularly if
an upfront cash payment is required.
Not only is there a need for more
emergency accommodation to meet the level of demand, the accommodation must also be
accessible in terms of its location and cost. It is important that emergency accommodation
is not financially burdensome to individuals who use it and that they do not
incur debts they will be unable to repay later.
Some of the emergency or temporary
accommodation available is simply not appropriate but may be used because of a
lack of other options. For example, clients needing a level of care, supervision,
personal safety and security or additional support, may end up in private accommodation that is
inappropriate for them e.g. a backpackers hostel, camping ground, motor park, or
motel. Not only is there a need for more emergency accommodation, but emergency
accommodation must be safe and secure, and involve additional support where
appropriate.
Emergency accommodation should be located
close to public transport routes and other services e.g. shops, medical centers,
schools, community centers, Work and Income and HNZC offices etc. It is important to
ensure vulnerable people in need of emergency accommodation are not isolated and that they
are linked into the community. This will enable them to quickly access the services
they need, improve their situation and move into more permanent and appropriate
accommodation.
The Association recommends that, as a
matter of some urgency, the government acts quickly to establish the level of demand for
emergency housing, and that it then invests sufficient funds to ensure the demand for
this type of assistance can be met. The Association would be happy to participate in
a needs analysis process.
Should the government be
assisting people to buy their own homes? If so, how?
Since 1999, enquiries relating to rented
accommodation have increased by about ten percent while enquiries relating to home
ownership have remained relatively level over the period. Tenancy-related issues now make
up the single largest number of enquiries under our broader category of
housing and accommodation issues. This reflects the general trend away from home
ownership towards increasing reliance on rented accommodation.
As the discussion document states, people
who live in their own home experience a range of benefits that those living in
private rental accommodation do not. Case studies from bureaux illustrate the relative
vulnerability and lack of security of tenants in rented accommodation e.g. instances where landlords
have increased rent substantially and at short notice, or where landlords have
entered and inspected properties without providing notice, or where landlords have
failed to return bond payments upon expiry of the tenancy agreement. Some examples:
A
client had just signed a tenancy agreement for rent of $120 a week and had
moved in to
take up residence. Two days after signing the agreement, the landlord’s agent
wrote to the
client to inform them that the rent was to be increased in 3 weeks time to $170
a week.
A
bureau was approached regarding the case of a recent immigrant to New
Zealand that
wanted to know their rights as a tenant. This person lives in a private rental property
that has recently been sold. They are aware that the new landlord is entering the
property and going through the house while they are not at home and without
giving any
notice. On one occasion, the landlord entered the house while the tenants were
in fact
at home.
Upon
expiry of the tenancy agreement, a client had sought recovery of the bond they
had paid
to the landlord at the start of the tenancy agreement. The landlord paid a
small portion of the
bond to the client claiming that they were holding the rest back to cover
unpaid rent. The
client disputed that there was any rent owing at the end of their tenancy. The
landlord has
since moved abroad and cannot be reached.
While the Association believes that
tenancy issues such as awareness of rights and responsibilities and ensuring legislative
compliance need to be addressed, we recognise the benefits of home ownership and
would support a move by government to assist more low and middle income people to
buy their own homes. We would support further investigation of the suggestions
outlined in the discussion document as to how this can be achieved.
What are the strengths and
weaknesses of New Zealand’s private rental sector?
How could it be improved?
Bureaux observe that there is a tension
between high rental prices and low incomes. Low income people, whether employed or not,
are generally finding it very difficult to meet their rent payments. There is little
control over pricing levels for private rental accommodation (beyond what the market will
tolerate) but on the other hand there is a ceiling on the level of accommodation
supplement available to low income people. Rent prices continue to increase at a
reasonably fast pace while income remains fairly static. Low-income people are therefore
finding it difficult to cope in the private rental market. It is essential that government provide
an alternative to the private rental market for low-income people. While current
HNZC stock is being increased, demand is nowhere near being met. The Association
believes that additional resource should be put into providing enough HNZC
accommodation for those who need it.
Based on our experience with clients
coming to bureaux, we know there are many tenants and landlords who are not aware of
their rights or their corresponding responsibilities. Most (but not all) of the
cases that come before bureaux involve a question as to whether the tenant’s rights
have been infringed by the landlord or a third party e.g. real estate agent, but
occasionally we also receive queries from landlords experiencing problems with their tenants
e.g. disputes over rent payments, liability for damage to property etc. Sometimes it may not
be immediately clear as to whether a breach of the law has occurred or who is
responsible for addressing the problem. At other times cases may be more ‘cut and
dried’ where, very clearly, there is an issue of legal compliance to be answered. We suggest
that government look at providing greater support for public education and
awareness-raising about the rights and responsibilities involved in the tenancy
relationship.
In addition to a lack of awareness of
rights and responsibilities under the law is the matter of ensuring compliance with the
legislation. While there are channels through which individuals can seek redress for their
grievances e.g. Tenancy Services, we are aware that enforcement capability is
limited. Consequently, there are tenants and landlords in breach of the law that are
never called to account for their actions. The Association believes it is time to look at
the development of a system for ensuring compliance of the law. However, care would
need to be taken to ensure that any such system put in place is fair and not heavy
handed. The Association notes that a review of the Residential Tenancy Act is currently
underway and that this is one area where this issue might be addressed.
How effective is the
current system for promoting and regulating housing quality? How could it be improved?
Our experience tells us that the current
system for promoting and regulating housing quality, particularly for private and state
rental accommodation, is not always as effective as it could be and changes will
need to be made to improve it. This is an issue the Association has been aware of for some
time. In our 2000 submission to the Social Services Select Committee on the Housing
Restructuring (Income Related Rents) Amendment Bill, we identified housing
quality for those in serious housing need as an issue that had to be addressed. This concern
remains as relevant today as it was then. Here are some examples from our bureaux of
recent case studies where housing quality was an issue:
A
group of flatmates contacted a bureau about their concerns over the condition
of their flat.
They are students living in private rental accommodation. The house they live
in is so
damp that the floors are always wet. Also, their power bills are very high
despite their
best efforts to save on power. They have approached the property manager and the
landlord, with no success.
A HNZC
tenant contacted a bureau asking for assistance. The house she lives in with her
children has broken windows, and the steps to the front door are also broken.
The client
has contacted HNZC a number of times to get them to rectify these problems but has
never had a response. She fears that the house is unsafe and unhealthy for her children.
One possible solution to addressing
quality of rental accommodation in the private sector (and this could be applied to all private
housing whether owner-occupied or rented) is that of a ‘warrant of fitness’ style of
check for housing to ensure minimum standards of quality and safety are met. Inspections
could be made upon point of sale or purchase of the property and again every three or four
years. A clause could be inserted into contracts “subject to quality inspection”
(i.e. same as for “subject to building inspection”). This was a suggestion made by a participant
at the HNZC stakeholder consultation meeting in Porirua on 15 June 2004 and we think it is a good idea worthy of consideration. Perhaps this general ‘warrant
of fitness’ approach could also be adapted to suit the state housing system.
Summary
The
Association supports the basic framework the discussion document has laid down for
the development of a housing strategy for Aotearoa New Zealand and we endorse the
proposed areas for action outlined under each of the six sections of the
document.
Government should plan to invest in state housing stock to a level where demand
can be
met.
Efforts to improve housing for low income people and vulnerable groups need to happen
in conjunction with efforts to improve access to quality employment and to ensure
adequate income assistance for those in need of it.
The Association suggests that Housing New Zealand Corporation and Work and Income
work together to improve the communication between them, align their systems more
closely and develop streamlined processes to ensure clients facing urgent housing
difficulties do not get caught in a loop between them and are able to access the right
kind of assistance when it is needed.
Government should provide more funding for drug prevention and drug addiction treatment
services for young people, as one of the crucial elements in addressing housing
needs for some vulnerable groups of youth.
The accommodation supplement should subsidize 100% of additional housing costs over
and above the 25% of income threshold.
The Association recommends that, as a matter of some urgency, the government
acts quickly
to establish the level of demand for emergency housing, and that it then invests sufficient
funds to ensure the need for this type of assistance can be met. Emergency accommodation
must be accessible, safe, secure, healthy, appropriate, and situated close
to services.
We recognise the benefits of home ownership and would support a move by government
to assist more low and middle income people to buy their own homes. We would
support further investigation of the suggestions outlined in the discussion document
as to how this can be achieved.
The Association believes that additional resource should be put into providing
enough HNZC
accommodation for those in need of it.
We suggest more public education and awareness-raising could be undertaken to educate
people about the rights and responsibilities involved in the tenancy relationship.
The lack of compliance with the law governing the tenancy relationship should be addressed
and consideration given to the development of a system for ensuring compliance.
The Association notes that a review of the Residential Tenancy Act is currently
underway and that this is one area where this issue might be addressed.
One possible solution to addressing housing quality is a ‘warrant of
fitness’ style of check
to ensure minimum standards of quality and safety are met.
Conclusion
The
Association is pleased to have had the opportunity to provide feedback on
‘Building the
Future’ and we would be interested to participate in any future consultations
on the
New Zealand
Housing Strategy.
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