A man’s overseas medical treatment inadvertently led to him losing his home, as the Ministry of Social Development stopped paying his rent, causing it to skyrocket from $152 to $840 weekly.
Rent arrears led to eviction
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A man forced to stay overseas for medical treatment was evicted from his home after government rent assistance ceased.
- A man’s medical treatment abroad caused his rent to increase significantly.
- The Ministry of Social Development stopped rent payments while he was out of the country.
- His landlord, a not-for-profit social housing provider, could not absorb the increased costs.
- The man was ordered to pay $6,465 in rent arrears and cover the landlord’s filing fee.
The man told a tribunal, via phone, that he couldn’t leave his country of residence. Doing so would have jeopardized his visa, making re-entry difficult. His doctor also recommended he stay overseas for treatment.
How can beneficiaries afford to travel overseas for medical treatment? Individual circumstances vary, according to a spokesperson. The Ministry of Social Development directs inquiries about benefit rules for those overseas to its website.
Rent reverted to market value
With the man out of the country, the Ministry of Social Development stopped paying his rent on the home, which was managed by a not-for-profit social housing provider. As a result, the rent reverted to the market value of $840 a week, a sharp increase from the $152 he had been paying based on his income.
During his absence, his family moved into the home but continued to pay the subsidized weekly rent of $152. Adjudicator Toni Prowse noted in a recent decision that the social housing provider, acting as the landlord, was not funded for this shortfall.
“They cannot absorb this cost as a not-for-profit social housing provider,” Prowse stated.
Tribunal orders payment and possession
The tribunal’s decision to end the tenancy included an order for the man to pay the landlord $6,465 in rent arrears, along with the landlord’s $27 filing fee. The landlord had sought termination and possession of the premises on multiple grounds. These included the tenant’s failure to rectify a rent arrears notice within 14 days and the expiry of a 90-day notice issued on January 30, with the tenant still occupying the property.
Prowse was satisfied that the tenancy concluded on April 30 of the current year, and the landlord was rightfully entitled to reclaim the home. “Even if I had not been satisfied that the tenancy ended on April 30 by termination notice, then I would have ended the tenancy [today] because the tenant is more than 21 days in arrears, and the landlord has given the tenant a 14-day breach notice which remains unremedied,” Prowse added.
Benefit payments overseas
Generally, beneficiaries heading overseas may continue to receive benefit payments, contingent on the reason for travel. If approved, a benefit can extend from 28 days up to two years, depending on the specific circumstances. Different rules apply to those relocating overseas permanently while receiving a benefit, superannuation, or a veteran’s pension.
The Ministry of Social Development stated that information regarding how individuals on benefits might afford overseas medical treatment varies by case. The ministry did not provide specific details on this matter and therefore could not comment further.
