166 state tenancies ended for dishonesty
Since July last year 166 Housing New Zealand tenancies were terminated following investigations which revealed that tenants dishonestly obtained a state house or taxpayer subsidised rent.
Housing Minister Phil Heatley says better investigation of fraud has freed up much needed state homes for families in desperate need on the waiting list.
"Housing New Zealand will not tolerate people who abuse the state housing system, and will vigorously pursue those who do," says Mr Heatley.
"The overwhelming majority of Housing New Zealand tenants appreciate their home and abide by the rules. However, there are a small minority committed to accessing homes and subsidies they do not need.
"It is just not fair that we have families in need waiting for state housing assistance, while others, who have the benefit of a state home are flagrantly operating outside the rules," he said.
The 166 tenancies terminated included situations where tenants failed to advise Housing New Zealand about income from employment, business interests, assets, or that they lived with a partner.
"Over the past two years Housing New Zealand has built a highly effective team of expert investigators. This team has identified $6.3m in debt where tenants have received subsidised rent that they were not entitled to," says Mr Heatley.
More than 130 cases of tenant related fraud have been placed before the courts - a ten-fold increase from two years ago.
If convicted, sentences range from community work to home detention and imprisonment.
Actual examples of former tenants investigated over the last year.
- An Auckland man used his state house as a storage facility for commercial goods for his online business, while living in another property which he rented privately under an alias. The Corporation property he rented had five bedrooms - four of which he sublet for $165 a week each. He did not declare rental income or the profits from his business. His tenancy was terminated, criminal charges have been laid, and $18,270 in debt was identified for recovery.
- An Auckland man failed to declare that he was running a motor vehicle repair business, was buying and selling cars and leased large commercial premises. He also owned three rental properties which were under a company name, and was living with a partner. His tenancy was terminated and he was prosecuted for fraud. He was sentenced to five months home detention and 100 hours community work. A debt of $68,410 was identified for recovery.
- An Auckland woman, who lived in a state house for six years, deliberately disguised her position as director of a limousine company by using numerous false identities. She owned six taxis when she applied for a state house, and bought another six during her tenancy. She bought and sold a number of vehicles during the six years. She did not declare she had a partner - but married three times prior to and during her tenancy. She also purchased two houses during her tenancy, both of which she rented out. Her tenancy was terminated, and a debt of $63,319 was identified for recovery. She was prosecuted for fraud, and paid $50,000 at the time of sentencing in reparation to avoid prison.