Rent choice policy

1. Background

Rent Choice is a form of private rental assistance that helps clients who have capacity to sustain a private rental tenancy to access safe and affordable housing in the private rental market.

It provides a time limited private rental subsidy for up to 36 months and facilitates access to support services, including training and employment opportunities, to build capacity for independent living.

The following Rent Choice products may be offered to eligible clients:

• Rent Choice Start Safely
• Rent Choice Youth
• Rent Choice Veterans
• Rent Choice Assist
• Rent Choice Transition
• Moderate Income
• Deeper Subsidy
• Get Started
• Brokerage

2. Scope

This policy applies to all clients who may be eligible for Rent Choice. Clients must have the capacity to sustain private rental accommodation at the end of the subsidy period.

Under Housing Pathways, all participating community housing providers may facilitate access to Rent Choice, however only the Homes NSW and Social Housing Management Transfer community housing providers (SHMT CHPs) (Rent Choice providers) may deliver Rent Choice.

3. Policy statement

Rent Choice provides short to medium term financial assistance for up to 36 months for low to moderate income households.

Rent Choice helps clients to secure and sustain private rental accommodation. Rent Choice may be provided to eligible clients who know each other, have appropriate supports in place and wish to share a property. Each client is managed as an individual.

Clients must express a commitment to sustaining a tenancy while receiving the subsidy and to transitioning to independent living. Clients must be willing to engage with support services, where relevant.

Rent Choice is not intended for clients who need long-term help with housing and who have long term support needs. Social housing may be the most suitable option for those clients.

Assessing former tenants for Rent Choice

Rent Choice providers need to be satisfied that a former social housing tenant can sustain a private rental tenancy.

Social housing providers apply certain categories when a tenant leaves social housing. Some of these categories may affect a person’s eligibility or the client may need to meet specific conditions. For more information go to Specific conditions for former social housing tenants.

The Satisfactory former social housing tenant category does not affect a person’s eligibility for Rent Choice.

The Less than satisfactory former tenant category and the Unsatisfactory former tenant category require the client to meet specific conditions before they can be approved for Rent Choice.

Rent Choice providers also need to consider whether clients in the following categories who have been found responsible for antisocial behaviour, property damage or acts of violence are suitable for Rent Choice. In addition to existing Independent Support Plan (ISP) requirements, if approved for Rent Choice, clients in these categories must also have an ISP:

• Less than satisfactory former social housing tenants
• Unsatisfactory former social housing tenants
• Ineligible former social housing tenants.

Clients who are classified as Ineligible former tenants must be assessed on a case-by-case basis to determine their suitability for Rent Choice.

Any client who has debt/s with a social housing provider must repay those debts. Clients who demonstrate a commitment to repaying debt/s by making regular repayments can be considered for Rent Choice.

The NSW Housing Register

Once approved for Rent Choice, clients do not need to apply for, or be listed on, the NSW Housing Register.

Rent Choice Assist clients who are listed on the NSW Housing Register must agree to be removed from the NSW Housing Register.

Rent Choice Transition clients are not eligible for the NSW Housing Register while they are receiving a Rent Choice subsidy.

Clients with an active Rent Choice Start Safely, Youth or Veterans subsidy must have their status suspended on the NSW Housing Register, from the time they start/started receiving a Rent Choice subsidy until they exit the program.

If a Rent Choice client’s application is suspended on the NSW Housing Register, their eligibility for social housing can be re-assessed if required, once they exit the program:

• If they are eligible for social housing, they will be re-activated on the NSW Housing Register from the date they lodged their application for housing assistance.
• If they are not eligible for social housing, they will be removed from the NSW Housing Register.

Border towns

Rent Choice providers may waive the NSW residency rule for Rent Choice clients for any of the following reasons:

• the client lives in a NSW border area such as Albury-Wodonga, Tweed Heads-Coolangatta
• the client lives outside a border town but accesses medical, educational, or commercial facilities in NSW
• the client needs to move to NSW for specialist medical treatment that is not available in the State they are currently living in
• the client needs to move to NSW to escape or is at risk of domestic or family violence, serious harassment or threats of violence.

Clients must provide proof of why they need to live in NSW.

The property for which the Rent Choice subsidy is being paid must be located in NSW.

Property affordability and calculating a subsidy

Rent Choice clients are expected to find a property within their affordability. This ensures that clients have the capacity to afford private rental accommodation when the subsidy ends. When calculating affordability, Rent Choice providers calculate the combined total of 50% of the gross household weekly income plus 100% Commonwealth Rent Assistance (CRA) that the client is eligible to receive.

Clients who receive Rent Choice are entitled to receive CRA as they are renting in the private market and are not public housing tenants. When assessing the household income for rental affordability, Rent Choice providers will presume that a client is receiving CRA even if they have not applied to Centrelink for assistance.

A Rent Choice subsidy makes up the difference between the amount the client pays and the market rent. For the first 12 months, Rent Choice will pay the difference between market rent and 25% of the client’s gross assessable income, plus 100% of their CRA entitlement.

Paying a Rent Choice subsidy

A Rent Choice subsidy will be paid from:

• the date on which the client was approved for Rent Choice, if the client is remaining in their existing property, or
• the start date of the client’s new tenancy.

The subsidy is paid directly to the landlord/agent, with payment generally being one month in advance. A Rent Choice subsidy is never paid to the client under any circumstances.

A Rent Choice subsidy will end:

• when a client has undergone a review and a decision to exit Rent Choice has been made, or
• following a change of circumstances where a client is no longer eligible for Rent Choice, or
• when the maximum period of 36 months has been reached.

Reviewing Rent Choice

Rent Choice providers will conduct a review every three months to determine a client’s continued eligibility and need for the subsidy, assess whether the client is managing their tenancy effectively, check whether appropriate support services are in place, and monitor client progress towards agreed goals.

This is called a quarterly review.

When a client advises of any changes to their household or household income, their subsidy will be reassessed to ensure that the household is paying the correct amount of rent and is still entitled to receive a Rent Choice subsidy.

When a client advises of a change in market rent, the property must still be within their affordability.

Subsidy tapering

Rent Choice clients must have their subsidy tapered. Subsidy tapering prepares clients to pay full market rent through a gradual reduction in the subsidy amount. By gradually reducing the subsidy amount, the amount of rent a client pays gradually increases. This supports the client to build capacity over time, to be able to sustain private rental accommodation at market rent and become financially independent.

The key stages where tapering adjustments are implemented are at six monthly intervals – at the end of 12 months, 18 months, 24 months, 30 months and then at the end of the subsidy period of 36 months. These adjustments will be discussed and confirmed with the client at the quarterly reviews three months prior, where the client’s readiness for tapering will be assessed - at 9 months, 15 months, 21 months, 27 months and 33 months.

Tapering of the client’s rent will generally commence on the 12 month anniversary of the first subsidy payment. The subsidy amount will then be gradually reduced at six monthly intervals. Each time a taper is due, the most recent subsidy amount is divided by the remaining number of tapers:
Taper amount = Most recent subsidy amount / number of tapers left.
The amount of rent the client pays increases by the taper amount that has been calculated.

If the decision is made not to taper the client’s subsidy, the client will be reviewed again for tapering at the next quarterly review. If the client is unable to start tapering at the next quarterly review, Rent Choice may not be suitable for them.

Exceptions where subsidy tapering can be applied at a reduced rate

If the tapering of a subsidy may impact negatively on a client’s capacity to sustain a tenancy, a reduced rate of tapering may be applied. A reduced taper rate can be considered if the client can demonstrate that:

• reducing their subsidy could negatively impact their ability to complete qualifications
• they are experiencing financial stress as a result of medical treatment for themselves or a household member
• they have incurred extensive funeral costs
• they are experiencing financial difficulties as a result of court proceedings.

Changes in circumstances

A Rent Choice client must advise their Rent Choice provider within 28 days of any changes in:

• household members
• household income
• rent
• property address, or
• landlord or real estate agent.

If information is obtained alleging a client has failed to declare changes to their circumstances, the matter will be investigated and if substantiated may result in the loss or reduction of a client’s subsidy and/or criminal prosecution. For more information, see the Private Rental Assistance Non-Disclosure policy.

A client must also liaise with their Rent Choice provider before they move to another property as this may affect their eligibility for Rent Choice, the amount of their subsidy and/or the rate of their subsidy taper.

4. Rent Choice products

4.1 Rent Choice Start Safely

Rent Choice Start Safely applies to clients escaping or at risk of domestic or family violence, who are homeless or at risk of homelessness and eligible for social housing.

Rent Choice Start Safely clients with a moderate income may still be eligible to receive the subsidy if they have been identified as being at serious threat and referred through a Safety Action Meeting (SAM). SAMs are regular meetings of local service providers that aim to prevent or lessen serious threats to the safety of domestic violence victims and their children through targeted information sharing. Members share information to develop tailored, time-specific Safety Action Plans for victims at serious threat and their children.

In locations where a SAM is not available, a delegated officer of Homes NSW or a SHMT CHP can also directly assess and recommend moderate income clients for Rent Choice Start Safely. They must include in their assessment the reasons why the client is at serious threat of domestic or family violence. This can be demonstrated where local police, courts or services have assessed the client using the Domestic Violence Safety Assessment Tool, or if there is equivalent evidence.

Rent Choice Start Safely is currently available across NSW.

Eligibility

To be eligible for Rent Choice Start Safely, clients must:

• be eligible for social housing (for more information, go to the Eligibility for Social Housing policy)
• be within the moderate household income limit
• be escaping or at risk of domestic or family violence*
• be homeless or at risk of homelessness
• express commitment to sustaining a tenancy while receiving Rent Choice and to sustaining their independence after Rent Choice ends
• participate in reviews and work towards meeting ISP goals; and
• engage with support providers where applicable.

*This includes clients leaving custody or residential rehabilitation centres who may still be at risk of domestic or family violence.

Evidence requirements

Rent Choice Start Safely clients must provide evidence to support:

• their eligibility for social housing. Go to Eligibility for Social Housing policy for more information; and
• that they are homeless or at risk of homelessness due to domestic or family violence. Go to Evidence requirements information sheet for more information.

Clients must also provide proof of income for all members of the household aged 18 years and over. For more information, go to Proof of income and assets.

4.2 Rent Choice Youth

Rent Choice Youth applies to clients between the ages of 16 and 24 years who:

• are capable of living independently
• are homeless or at risk of homelessness
• are eligible for social housing, and
• have the capacity and intention to engage in employment, education or training.

Priority groups for Rent Choice Youth are those leaving Out of Home Care, and/or those who have experienced domestic violence or family breakdown. The client must be able to sustain a tenancy while receiving a subsidy and be financially independent after the subsidy ends. The client must be engaged with a Partner Facilitation Group (PFG). The PFG will represent the client and ensure that the client maintains engagement with support providers.

If the client is under 18 years of age, they must agree to have their Residential Tenancy Agreement explained and witnessed by a Tenants' Advice and Advocacy Service, solicitor or legal representative. They cannot participate in the program without this occurring.

PFGs are in the following locations:

Hunter New England and Central Coast

• Armidale
• Moree and Narrabri
• Newcastle
• Tamworth
• Wyong

Western Sydney and Nepean Blue Mountains

• Parramatta, Blacktown and Mount Druitt
• Penrith

Northern NSW and Mid North Coast

• Coffs Harbour
• Lismore

South Eastern Sydney, Northern Sydney & Sydney Districts

• Inner City
• Inner West
• North Sydney
• St George and Sutherland Shire

South Western Sydney

• Liverpool

Illawarra Shoalhaven and Southern NSW

• Goulburn/Yass
• Queanbeyan/Eurobodalla
• Wollongong

Murrumbidgee, Far West and Western NSW

• Albury
• Bathurst
• Dubbo
• Orange
• Wagga Wagga

Eligibility

To be eligible for Rent Choice Youth, clients must be:

• between 16 and 24 years of age
• eligible for social housing
• within the social housing income eligibility limits
• able to live independently with appropriate support in place
• homeless or at risk of homelessness
• engaged with a support provider that has been approved by the PFG
• willing to have an Independent Support Plan (ISP)
• willing to engage in training, education or employment while they receive the subsidy.

Evidence requirements

Rent Choice Youth clients, through their support providers, must provide evidence to support:

• their eligibility for social housing. For more information, go to the Eligibility for Social Housing policy, and
• that they are homeless or at risk of homelessness.

4.3 Youth Share

Youth Share allows Rent Choice Youth clients who do not know each other to share suitable accommodation. To be eligible for Youth Share, clients need to be matched and recommended by their support providers and approved by their PFG.

Homes NSW will provide a Bond Grant for Youth Share clients rather than a Bond Loan. This is because clients may exit Youth Share at different times. A Bond Grant provides stability for the remaining client. At the start of a shared tenancy, Homes NSW will pay a Bond Grant directly to the Rental Bond Board for each Youth Share client. If there is a change in the household, the lease will be updated with the name of the new client. There is no change to the bond arrangement, as the existing bond is retained by the Rental Bond Board. At the end of the tenancy, the bond will be returned to Homes NSW by the Rental Bond Board.

Youth Share helps clients to live in areas where rental costs are not affordable for a single person receiving a Youth Allowance payment from Centrelink. Youth Share is available in the same locations as Rent Choice Youth.

For a property to be suitable, it should be close to transport, in a safe area, and accessible to education, employment and/or training facilities.

Eligibility

To be eligible for Youth Share, clients must:

• be approved for Rent Choice Youth
• be willing to share housing, and
• have low to medium support needs.

4.4 Rent Choice Veterans

Rent Choice Veterans applies to former members of the permanent Australian Defence Force (ADF) who are homeless or at risk of homelessness. It aims to build the client’s ability to sustain a tenancy and achieve independence in the private rental market.

Clients do not need to be eligible for social housing, although clients who are eligible for social housing may also be eligible for Rent Choice Veterans.

Housing Pathways providers can facilitate access to Rent Choice Veterans however, it is only delivered by Homes NSW.

Client must be referred by RSL LifeCare to Homes NSW to assess eligibility.

Eligibility

To be eligible for Rent Choice Veterans, clients must:

• be a resident in New South Wales
• be a citizen or have permanent residency in Australia
• be at least 18 years of age
• be homeless or at risk of homelessness
• be within the moderate household income limit
• not own any assets/property that can be used to resolve their housing need
• have low to medium support needs
• be a former member of the permanent ADF – naval, military or air force; and
• have an Independent Support Plan (ISP) completed with RSL LifeCare.

Evidence requirements

Clients must provide evidence to support that they are homeless or at risk of homelessness.

Reviewing Rent Choice Veterans

RSL LifeCare undertakes quarterly reviews for Rent Choice Veterans clients and makes recommendations to Homes NSW.

4.5 Rent Choice Assist

Rent Choice Assist applies to clients on low income with a strong history of being housed without assistance, who have experienced a financially destabilising event.

Rent Choice Assist is only available in the following Homes NSW locations:

• Sydney and South Eastern Sydney District
• South Western Sydney District
• Western Sydney and Nepean Blue Mountains District, and
• Newcastle, Lake Macquarie and Maitland.

Clients can apply for Rent Choice Assist and will have their application assessed by Homes NSW.

Eligibility

To be eligible for Rent Choice Assist, clients must:

• establish their identity
• be a resident in New South Wales
• be a citizen or have permanent residency in Australia
• be at least 18 years of age
• have low to medium support needs
• have a household income within the low income limit at the time of application
• agree to be removed from the NSW Housing Register, if they are listed
• not own any assets that can be used to resolve their housing need.

Low Income Limits 2023-2024

Source: NSW Affordable Housing Ministerial Guidelines 2023-2024 – updated annually

Calculating Low income limits

Household complement: Number of adults + Number of children

Example 1: Sydney household: 2 adults + 3 children

Weekly limit: 2 adults ($994 + $498) + 3 children ($298 x 3) = $2386

Annual limit: 2 adults ($51,700 + $25,900) + 3 children ($15,500 x 3) = $124,100

Example 2: Rest of NSW household: 1 adult + 2 children

Weekly limit: 1 adult ($898) + 2 children ($269 x 2) = $1,436

Annual limit: 1 adult ($46,700) + 2 children ($14,000 x 2) = $74,700

Evidence requirements

Clients must provide evidence to support that they:

• are homeless or at risk of homelessness as a result of a financially destabilising event, and
• have a history of workforce participation and successfully sustaining housing in the private market.

For information on the types of evidence required, go to Eligibility for priority housing – evidence requirements.

4.6 Rent Choice Transition

Rent Choice Transition applies to current public housing tenants who would like to leave public housing and rent in the private market.

Rent Choice Transition is available in South Western Sydney, Western Sydney, Murrumbidgee, Hunter New England and Illawarra Districts. Eligible tenants from other areas who express an interest will be considered on a case by case basis.

Clients who receive a Rent Choice Transition subsidy are not eligible for inclusion on the NSW Housing Register.

Eligibility

To be eligible for Rent Choice Transition, clients must:

• be a New South Wales resident
• be a citizen or have permanent residency in Australia
• be over 18 years of age
• be a current social housing tenant
• be within the moderate household income limit
• be in stable employment or engaged with an Opportunity Pathways provider (if available)
• demonstrate ability to sustain and afford a tenancy when the Rent Choice subsidy ends
• have a satisfactory tenancy history; and
• be willing to find a private rental property within three months of approval for the program.

4.7 Moderate Income

Moderate household income limits apply to Rent Choice Start Safely, Rent Choice Veterans and Rent Choice Transition clients.

Rent Choice Start Safely clients with a moderate income may be eligible to receive the subsidy if they have been identified as being at serious threat and referred through a Safety Action Meeting (SAM). In areas where there is no SAM, clients may be eligible for the program if they are at serious threat or risk of Domestic and Family Violence.

Rent Choice Veterans clients with a moderate income may be eligible to receive the subsidy. Clients do not need to be eligible for social housing, although clients who are eligible for social housing may also be eligible for Rent Choice Veterans.

Tenants exiting social housing with a moderate income may be eligible for Rent Choice Transition.

Moderate Income Limits (2023-2024)

Source: NSW Affordable Housing Ministerial Guidelines 2023-2024 – updated annually

Calculating moderate income limits

Household complement: Number of adults + Number of children

Example 1: Sydney household: 2 adults + 3 children

Weekly limit: 2 adults ($1,492 + $746) + 3 children ($448 x 3) = $3582

Annual limit: 2 adults ($77,600 + $38,800) + 3 children ($23,300 x 3) = $186,300

Example 2: Rest of NSW household: 1 adult + 2 children

Weekly limit: 1 adult ($1348) + 2 children ($403 x 2) = $2,154

Annual limit: 1 adult ($70,100) + 2 children ($21,000 x 2) = $112,100

4.8 Deeper subsidy and Independent Support Plans

A deeper subsidy may be available for eligible Rent Choice clients who need accommodation in high-cost locations. It allows clients to find properties with higher market rent than the standard affordable rent.

Clients may be eligible to receive a deeper subsidy if they can demonstrate the capacity to afford the higher rent when their subsidy ends.

All clients who receive a deeper subsidy must have an Independence Support Plan (ISP).

An ISP aims to help clients develop realistic goals, and identify the appropriate support needed to achieve these goals. Effective support planning is critical for managing the provision of support providers as well as broader training and employment opportunities.

An ISP is completed by both the client and either the Rent Choice provider, or the client’s support provider. Rent Choice Youth clients must have their ISP endorsed by their Partner Facilitation Group.

Locations where a deeper subsidy is available

South Eastern Sydney, Northern Sydney, Sydney, Western Sydney, South Western Sydney, Central Coast, Nepean Blue Mountains, Illawarra Shoalhaven, Southern NSW, Mid North Coast, Northern NSW and Hunter New England.

Maximum affordability limits for deeper subsidy by bedroom category

The following maximum affordability limits will be considered in the following locations:

Based on the Homes NSW Rent and Sales report data based on Rents disclosed on Rental Bond Lodgement Forms lodged with BSU Rental Bonds, NSW Fair Trading. Median, 25th percentile rent and new bond count by the Homes NSW District and dwelling type.

The weekly rent amount listed can replace the client's current affordability limit as the maximum weekly rent allowable.

A client's bedroom entitlement determines the size of the property and therefore maximum amount of deeper subsidy.

4.9 Get Started

Get Started provides up to $850 to help approved Rent Choice clients pay costs associated with searching, applying for and securing a private rental property.

Before using Get Started, clients and/or their support provider must explore all other funding options. If the client is still not able to pay for approved expenses to search for and secure a property they can use Get Started.

A holding deposit amount equal to one weeks’ rent will be quarantined from each client’s Get Started balance that is equivalent to the client’s affordability or deeper subsidy. The holding deposit amount will be adjusted to match any changes in the client's affordability or deeper subsidy.

Items can be purchased by Rent Choice clients or a Rent Choice provider or support provider on a client’s behalf. Reimbursement for approved Get Started expenses will only be made via EFT by the Rent Choice provider. No cash or counter cheque reimbursements will be made.

Get Started can be used for:

• a holding deposit
• transport costs for property inspections such as Opal cards, taxi/Uber and/or fuel
• rental application costs such as photo ID and birth certificates
• administrative costs such as printing, scanning, prepaid mobile phones and data vouchers
• personal presentation costs such as haircuts, clothing for property inspections or meetings with agents/landlords.

Get Started cannot be used for:

• moving costs
• furniture and household items
• education/training
• work-related costs
• a bond, advance rent, rent or water arrears
• repaying debts
• vouchers, gift cards, cash, or cash equivalents given directly to the client.

4.10 Brokerage

Brokerage provides funding for Rent Choice clients when they start a new tenancy. It can help to pay for moving costs, furniture and household goods and work/study expenses.

• Rent Choice Start Safely, Youth, Veterans and Assist clients may be eligible for up to $3,000
• Rent Choice Transition clients may be eligible for up to $5,000.

Rent Choice clients can access Brokerage from the date their tenancy starts. Or if the client is already in a private rental tenancy, they can access Brokerage from the day they are approved for Rent Choice.

Before using Brokerage, clients and/or their support provider must explore all other funding options.

Current Rent Choice clients who are not receiving a subsidy due to income can still use Brokerage. This supports them to continue employment and work towards financial independence.

Items can be purchased by a Rent Choice provider or support provider on a client’s behalf. Reimbursement for approved Brokerage expenses will only be made via EFT by the Rent Choice provider. No cash or counter cheque reimbursements will be made.

Brokerage can be used for:

• education and training
• work-related expenses
• moving costs
• furniture and household goods
• professional services to support tenancy or job readiness
• counselling services
• help with transport
• any other approved expenses.

Brokerage cannot be used for:

• a bond, advance rent, rent or water arrears
• repaying debts
• vouchers, gift cards, cash, or cash equivalents given directly to the client.

5. Other help for Rent Choice clients

In addition to Rent Choice, clients may apply for other Rentstart products including Bond Loan, Advance Rent and Tenancy Assistance, to help with costs to establish and sustain private rental accommodation and help with rental arrears. For more information, go to the Rentstart Assistance policy.

Rent Choice can also be used with other private rental assistance products including Tenancy Facilitation, Private Rental Brokerage Service and Bond Extra. For more information, go to the Private Rental Assistance policy.

6. Legislation and compliance

Homes NSW and SHMT CHPs provide private rental assistance products in accordance with the Housing Act 2001.

7. Related documentation

• Eligibility for Social Housing Policy
• Private Rental Assistance Policy
• Private Rental Assistance Non-Disclosure Policy
• Children and Young People at Risk Policy
• Appeals policy
• Domestic Violence Information Sharing Protocol

8. Further information

Appeals and review of decisions

If a client disagrees with a decision a social housing provider has made, they should first discuss their concerns with the staff member that made the decision. The next step, if they still believe the social housing provider made the wrong decision, is to ask for a formal review of the decision.

For information on what Homes NSW decisions can be appealed and how appeals work, refer to Appealing a housing decision and read the Appeals policy.