Procedure
This procedure is generic, irrespective of the tenure type. However, there are different stages to follow dependent upon whether a property is rented, leasehold or shared ownership.
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Arrears prevention: rented
- Where there is concern about affordability the applicant(s) should be supported,prior to sign up, to complete a financial assessment in relation to charges (including care costs for extra care properties) from Housing Benefits or Universal Credit and Social Services to offer peace of mind
- New residents are required to pay their rent by Direct Debit. Only in exceptional circumstances will alternative arrangements be agreed (see Lettings Policy).
- New residents are required to pay four weeks rent in advance at sign up. In cases of financial hardship a minimum of one week’s rent in advance may be accepted in conjunction with an agreed payment plan after completing a financial assessment on the basis that the account will be four weeks in advance within 12 months of the tenancy start date.
- Residents who transfer between courts are able to transfer any credit balance to their new tenancy and will not be required to make up any difference between this and the four weeks rent in advance. However, if the resident has a nil or arrears balance and is transferring, they will be required to pay rent in advance as detailed in 2.3 above. If the resident cannot pay at least one weeks rent in advance, the offer should be referred to the relevant OM/ ECM for sign off.
- The Scheme Manager/ Housing Manager will support the resident to estimate their personal rent or service charge contribution where they are not entitled to full Housing Benefit. Assistance with the calculation can be obtained from Housing Benefits departments or using the benefits calculator provided on the Housing 21 desktop. Ensuring the resident understands they are responsible for providing information/ proof of income to their local Housing Benefit Department or Department for Work and Pensions in a timely manner.
- When Housing Benefit and any other benefit entitlements are confirmed the personal rent liability will be adjusted, through the use of contributions and entitlements within our housing management system. In the event that Housing Benefit is not sufficient to clear the arrears, the Scheme Manager / Housing Manager will liaise with the resident to ensure that the arrears are cleared immediately or alternatively an agreement to clear the arrears within a 12 month period.
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Arrears prevention: leasehold and shared ownership
- At pre-sale interview where there is concern about affordability, the applicant(s) should be supported to complete a financial assessment in relation to charges (including care costs for extra care properties) from Housing Benefits Universal Credit and Social Services to offer peace of mind
- As with tenants and new leaseholders, residents are offered the option to pay by Direct Debit however, it is not a condition of sale or a requirement of the lease. Scheme Managers should support new residents to pay by electronic means where ever possible.
- New residents are required to bring their service charge account up to date and pay in advance. Residents often move in mid-month so will be advised prior to completion what charges remain for that particular month as well as the forthcoming month.
- The Scheme Manager/ Housing Manager will support the resident to estimate their personal rent or service charge contribution where they are not entitled to full Housing Benefit. Assistance with the calculation can be obtained from Housing Benefits departments or the DWP.
- When Housing Benefit and any other benefit entitlements are confirmed the personal rent liability will be adjusted, through the use of contributions and entitlements within our housing management system. In the event that Housing Benefit is not sufficient to clear the arrears, the Scheme Manager/ Housing Manager will liaise with the resident to ensure that the arrears are cleared immediately or alternatively an agreement to clear the arrears within a 12 month period.
