Hon Phil Heatley
Minister of Housing
22 August 2012
Media Statement
312 state house tenancies ended for dishonesty
Housing New Zealand has terminated 312 tenancies in the year to 30 June 2012 after investigations found the tenants had
obtained a state house or taxpayer-subsidised rent by lying about their circumstances, Housing Minister Phil Heatley
said today. The figure is up from 241 last year and 114 in 2010.
“There has been a sharp increase in the number of state tenancies ended for dishonesty over the past couple of years,”
Mr Heatley said.
“Housing New Zealand has worked hard to identify and remove tenants committing fraud and to make sure those most in need
are assisted for as long as they have that need.
“We have built a very effective and skilled team of investigators who are very good at detecting, investigating and
dealing with tenants who are deliberately ripping off the system,” he said.
In addition, during the past 12 months Housing New Zealand was successful in establishing $9.6 million in Crown debts
for overpaid rent subsidies – bringing the total over the past four years to nearly $23.3 million.
“In one recent case the courts ordered the former tenant to repay over $75,000 in rental subsidies. It’s very important
that we not only end tenancies, but also seek to recover the taxpayer-funded rent subsidies that these people received
by knowingly lying about their circumstances.
“A state house is not an automatic entitlement – and people who deliberately lie about their circumstances are depriving
families in real need and receive benefits that they are not entitled to.
“By freeing up 312 homes in the past 12 months, a total of 709 over the past three years, Housing New Zealand is able to
help a significant number of people on the waiting list who desperately need a state house.”
The investigations revealed situations where tenants failed to advise Housing New Zealand about income from employment,
business interests, assets, that they lived with a partner, or they sublet their tenancy.
Since July last year Housing New Zealand has also successfully prosecuted 120 tenants for fraud. Sentences for the 120
people convicted included:
· prison sentences (three)
· home detention/community detention (42)
· community work (45)
· reparation only (five)
· convicted and discharged (four)
· awaiting sentence (21)
Examples of former tenants investigated over the past year
Running a business
Two Auckland tenants were claiming taxpayer-subsidised income-related rent while running an Internet services business
with 300 residential customers. Between 2006 and 2010 the business generated $392,850 in bank deposits. The tenancy was
terminated and the tenants prosecuted through the courts. They have been sentenced to community work and ordered to pay
reparation.
Undeclared partner
A West Auckland tenant with an undeclared partner living at her state rental house made a joint application with her
partner to purchase the Housing New Zealand property she lived in. An investigation determined that the two had been in
a long-term relationship, and they intentionally did not declare the partner on Income Related Rent applications forms
to avoid paying higher rent. If the partner had been declared, the tenant would not have been eligible for the
taxpayer-subsidised rent that she was receiving – it was calculated that she received $75,310 in rent subsidies that she
should not have received. The tenancy was terminated, and the tenant sentenced to eight months’ home detention and
ordered to pay reparation of $75,310.
Undeclared partner
An investigation into a South Island tenant found he had failed to include his wife and her income when claiming Income
Related Rent subsidies. The investigation came about as a result of a family photo being recovered from Facebook. The
wife lived undeclared at the tenancy and was continuously employed for 11 years. The couple also jointly owned a
property, located about 5km from the state house they rented, which they did not declare. The tenancy was ended and the
tenant was prosecuted and pleaded guilty. He is awaiting sentencing.
Subletting tenancy
An Auckland couple renting a state house sublet the house for one year, and lied about their income for four years. When
interviewed the couple denied subletting but the investigation established that they were living in Palmerston North,
where their children were enrolled in school. The tenancy was terminated, and both tenants were convicted and sentenced
to 150 hours community work each. They are currently repaying Housing New Zealand $22,486.
ends