Housing News, November 1998 - the newsletter of Tenants Protection Association (Chch) Inc.

It is exciting that we are again in the position to be able to produce a monthly "Housing News". TPA looks forward to input from anyone interested in sending in information about housing or articles of interest to be included in "Housing News".

TPA works to promote the interests of tenants. It is unfortunate that much of what is happening in housing generally has such an adverse impact for many tenants.

Over the next months we would like to explore some of these issues and look at ways that we can work together to address them.

One issue that we are concerned about is the introduction of the Application Fee of $20.00 to the Tenancy Tribunal on the 5th October. TPA believes that this is inequitable because the bond monies that tenants pay, which are held at the Bond Centre, generate interest which effectively pays for 43% of the administration of the tribunal. The average daily balance of the tenancy bond fund investment for the year ended June 30 1998 was $87.9 million.

Only 13% of all applications to the tribunal are made by tenants. It would be more fair then, that the 87% of claims lodged by landlords should be levied (remembering also that landlords may also have a portion of their application fee refunded through their taxes). TPA in Auckland reports that applications to the tribunal have dropped considerably especially from tenants. We will be monitoring the impacts in Christchurch and keep you posted!

A Prayer

Tribunal Tales

Case 1

Mr. and Mrs. A entered into a fixed term tenancy of one year. The weekly rent was set at $380.00. As the tenants just recently arrived from Germany and were more familiar with paying rent monthly, the landlord agreed to receive monthly payments of $380.00 X 4 = $1520.00 for 12 months. The tenants were aware that the rent was quite high but because they were getting a "bonus" by paying monthly they agreed.

Partway through the tenancy, the landlords notified the tenants that they had made a mistake in the amount of rent to be paid in the contract because there are more than 48 weeks (4weeks X 12 months) in the year. They asked for the monthly payments to Increase to $1626.00. The tenants did not agree because they were very clear about the meaning of the original contract that they signed and the matter went to the tenancy tribunal.

At the hearing the adjudicator noted that "when an agreement is ambiguous the ambiguity is resolved by construing the agreement against the party who made the agreement (in this case the landlords)". Therefore the tenants were not required to pay any more rent.

Case 2

Three young Korean students rented a property with a fixed term lease of one year at a weekly rent of $325.00. They asked before signing the lease for it to be terminated one month earlier because of their holidays. The landlord agreed to this if the tenants would then pay a weekly rent of $340.00.

Halfway through the tenancy the students could no longer afford the property and asked the landlord to terminate the lease. He agreed if the students paid 2 months rent in advance plus reparation costs for some damage to garage and carpets. The tenants did not agree with the estimated costs for damage and offered to bring in their own builders and painters to which the landlord agreed.

After inspecting the premises once the work was complete the landlord expressed his dissatisfaction with the quality of the repairs. The tenants hired painters a second time to repaint the premises. The tenants remained in the premises another three months, signed a termination agreement with the landlord, paid the one months' rent in advance as requested by the landlord and left the property.

After repeated requests from the tenants to refund their bond of $680.00 the landlord refused. The tenants discovered that the landlord never lodged their bond with the bond centre and sought compensation for this unlawful act and the full refund of their bond through the tenancy tribunal.

On the day of the hearing the landlord did not appear. The adjudicator was satisfied that the tenants had proved their claims and made this ruling: 'taking into account the landlord's intent, the effect of the unlawful act on the tenants, the tenants' interests and the public interest the Tribunal considers that the appropriate amount to award by way of exemplary damages is $400.00".

So the tenants received altogether their full bond refund and exemplary damages for the landlord failing to lodge the bond at a total of $1080.00. But the tenants still had to pay the $20.00 tribunal filing fee to seek back their own bond money.

What Is Affordable Housing?

Affordable, accessible housing Is a basic human right. It's Important to define what constitutes "affordable" when we assess housing needs in our community. State housing authorities and governments around the world have set benchmark figures reflecting their definitions of affordability of housing to assist with policy making and distribution of resources.

The Tenants' Rights Action Collective In Vancouver, Canada has found that affordable housing typically refers to housing where the annual costs are less than 30 % of a person's gross annual income.

In Australia, the National Housing Strategy set the current benchmark of 25 % of income for public housing tenants.

In the United States, the public housing authority has determined that a level of 30% of a person's monthly Income should be the maximum that Is paid on monthly housing costs.

In Russia the average family spends only 6% of Its income on housing costs. The Russian government has begun reducing subsidies for housing and !t is expected that by the year 2003 all people living In govemment owned buildings will have to cover all of their own housing costs although the government will offer compensation to those people whose rent exceeds 15 % of their Income.

Most mortgage lenders in this country use the figure of 30% gross annual Income as a maximum that can be spent on housing ( i.e. mortgage repayments, rates and Insurance of a property) when they set their lending criteria.

So how about New Zealand? The Ministry of Housing has no benchmark figure for affordability of housing. The Accommodation Supplement continues to be the sole means of providing assistance with housing costs. A review of the accommodation supplement commissioned by the Department of Social Welfare and the Ministry of Housing In 1996 found that 41 % of people receiving an accommodation supplement were still spending over half of their Income on accommodation.

Sadly, fewer and fewer families live In affordable housing situations in this country. In a report studying poverty and hardship in Christchurch in January of this year, the city council found that 80% of families with children in their study were spending over 40 % of their income on accommodation costs.

Housing can consume so much of a household's resources that they are unable to pay for other necessities like food, clothing and medical costs. In Christchurch high rental costs were also found to be related to the likelihood of going without meals. Of those people in the study who were paying over 50 % of their income on accommodation, over half were also going without meals. Almost half of the people in this study (43 %) did not visit a doctor at some point due to cost.

Clearly such disproportionate spending on housing costs increases the risk of social and public health problems and prevents citizens of our community from having their basic needs met for peace, food and shelter.

Did You Know...

...that in New York City the capital of the free market!, 19 % of all households had difficult rent burdens and that rental properties that cost more than 50% of a tenants' income are considered °a serious housing problem". Contrast that figure with results from a recent (1996) survey in New Zealand that found that 5996 of state house tenants and 63% of private tenants were spending more than 50% of their income on housing costs.

Co-Operative Housing

In working towards a more just and sustainable society, it is essential that housing options be provided that affirm the values of "self-help, self-responsibility, democracy, equality, equity and solidarity" (to quote the principles of the International Co-operative Alliance).

The desire to have control over a basic need, shelter, Is obvious and explains why many people buy their own house or land. Others do not have that option because It is an unaffordable dream. Still others believe that private ownership of land is unethical. And so, we rent our house.

With rents set at market level (i.e. as high as landlords can get away with) housing options are severely restricted for the financially less advantaged. Housing co-operatives can help people to escape the poverty trap by bringing rent down to basic maintenance levels.

A housing co-operative is a group of people who come together to provide good quality homes for one another. As housing costs increase, co-op housing offers a secure, affordable home in a community environment based on honesty and social responsibility.

In Christchurch we have several examples of cooperative housing in action. In upcoming issues of Housing News we will profile these alternative housing initiatives. This month we look at the Peterborough Housing Cooperative which has been housing tenants for the last 17 years. Located on Peterborough Street in the central city, the Peterborough Housing Co-op is made up of four well maintained houses in a row which house six different households (two single parent families, a couple, a woman, a two parent family and a flat). All up - 11 adults and 5 children. The large back section is common to all the tenants and includes a variety of gardens, open space, even a tree fort!

Tools, sheds, garages, community room and laundry are all shared as is the Sunday meal.

The Otakaro Land Trust owns the land, houses and sheds. The primary objective of the Truce is "to relieve poverty amongst the economically disadvantaged and poor of Christchurch". The Trust has also initiated a worker co-operative, Piko Wholefoods, and owns the building housing this enterprise.

Some of the tenants of the Peterborough Housing Co-op are also the trustees so that tenants become their own landlord. The housing co-op is managed by the , tenants as well as other trustees who meet monthly and make decisions by consensus. Tenants pay a reduced rent because they work six hours a month in a working bee maintaining the property.

The rent goes towards paying off the mortgages of the houses. Ten percent of any annual profit is given to a charity. The rest goes into ongoing maintenance and repairs. There is a waiting list of about a dozen interested prospective tenants for the Peterborough Housing Cooperative and acceptance is conditional on collective approval of the community. Sounds daunting but the process is not a cross examination. After an initial meeting with two trustee members, a prospective tenant meets the other tenants at an informal pot luck dinner where everyone gets to know each other. The tenants then collectively decide on acceptance.

According to Trystan Swain, a tenant of four years, all the tenants in the Peterborough Housing Co-op share a vision of co-operative living which extends to respect for the environment, democratic decision making, openness and positive conflict resolution. Peterborough and the other local housing co-ops have set up the Co-operative Housing Forum whose aim is to encourage other co-operatives to form.

Who's Who... In Housing

There are literally hundreds of government agencies, community groups, Church organisations, etc. around the country which offer Information, advice or advocacy on housing issues. To help make sense of it all, HOUSING NEWS will list the key players in housing in every Issue.

This month we look at national government. There are now three separate government housing agencies: Housing New Zealand, Housing Corporation, and the Ministry of Housing.

Ministry of Housing

Tenancy Services

Provides information and advice primarily relating to the Resi dential Tenancies Act 1986 and mediation and dispute resolu tion services to tenants and landlords about residential tenan cies.

National Manager: Robin Henderson
Southern Regional Manager: Keith McDonald

Bond Centre

Tenancy Tribunal

A venue to determine expeditiously disputes arising between tenants and landlords of residential tenancies.

Housing New Zealand Limited

Mission Statement:
To provide rental housing to those on low incomes In a man ner which meets the Crown's social objectives, enhances shareholder value, is customer focussed and attracts private sector investment.

A Crown-owned company that owns and manages the state's interest in 65,000 rental properties.

Minister responsible for Housing New Zealand: Murray McCully
Southern Regional Manager: Ian Bourke (Christchurch)
Area Managers: Rick Jones (Papanui and Unwood), Stewart Kearney (Riccarton)

Housing Corporation of New Zealand

A Crown entity responsible for the efficient management of an existing portfolio of housing loans, managing the sale of a residual portfolio of Crown land not vested in Housing New Zealand and providing mortgage finance and suspensory loans to tenants buying properties under the Home Buy programme.

Owns properties let by Community Housing Ltd. to community housing organisations.

Community Housing Ltd.

Mission Statement:
To provide, throughout New Zealand, suitable and wellmaintained accommodation and excellent service which meets the accommodation needs of community groups and individuals with disabilities.

TPA Top Five

During the month of October, TPA received well over 150 phone enquiries and over 50 drop-in visits. Many of our visitors were referred from Tenancy Services for assistance in preparing for a tribunal hearing. The phone calls Involved giving advice on a wide range of topics. Here Is a list of the five most common enquiries of the month:

Foreign Correspondence:
Win Win Housing In Canada

Tenants' organisations from around the world struggle daily with lobbying their local and national governments for more accessible and affordable housing. Creative thinking has become the order of the day and there are plenty of examples of innovative ideas for alternative housing projects and for strategic partnerships between property developers, governments and tenants' groups.

In Vancouver,Canada a housing project has just been completed that offers low income housing to needy tenants without using a public subsidy! Local government, tenants and developers are all happy! How did they do this?

Located in the downtown eastside of the city of Vancouver, a 110 unit condominium project called "the Edge" was built on land that was originally zoned "industrial". It was up-zoned by the municipal government to allow for the development of a high density "artists live-work" residential project. The new residential zoning enhanced the land value by 50%. The developer dedicated a portion of this up-zoned value to the qty in exchange for project approval. The City, in turn, decided to take public housing units in the project as the public benefit for the rezoning. As a result, the qty received 22 units in the Project which it will rent to low-income artists who are currently on a housing waiting list. Everyone benefits ...and Bob's Your Uncle!

Fire Protection In State Housing

Smoke detectors save lives - it's a fact! And that fact has been taken to heart by some policy makers in government.

As a part of it's maintenance policy, Housing New Zealand has begun installing smoke alarms in it's stock of houses. Smoke detectors will be installed in the living area, hallway and in each bedroom of every state owned house. Each detector comes equipted with a 10 year lithium battery. It is hoped that all Housing New Zealand houses will be fitted with smoke detectors by the end of June 1999.

In August 1998 the recently departed mayor of Christchurch, Vicki Buck, intitiated a programme to equip every household in the city with a smoke detector. To aid in this rather monumental task, she negotiated with suppliers to get enough detectors and set up a Smoke Alarm Hotline. Now every household in Christchurch can ring up the hotline on 332 8923 to receive a smoke detector for a reduced cost and have it installed for free.

The Christchurch City Council has also just completed installation of smoke detectors in all of its city housing properties. One detector per house or flat has been installed with the possibility of a battery replacement programme being put into place in the near future.

Comcare, a community organisation that supports people who have experienced mental illness, has smoke detectors installed in all of its houses.

There is no legislation requiring private landlords to equip their rental properties with smoke detectors. According to Graham Davies of the Fire Service, the majority of fires in Christchurch occur in rental properties. Overcrowding and the use of older electrical equipment are contributing factors.

It would therefore seem beneficial for all concerned if landlords supplied smoke alarms. Maintenance of the detectors would be the responsibility of the tenants (i.e. replacing batteries, etc.) and lives and property would be better protected.

Welcome To Your New Home:
Housing Refugees And New Migrants

Re-settling in a new country can be a stressful and lonely experience. Refugees and new migrants often arrive with little or no money, belongings or community support. They have often escaped from war or survived violation of their human rights. From June 1997 to June 1998 , 828 refugees entered New Zealand. A further 200 people approximately out of 1600 applicants were granted refugee status after already arriving into the country.

In Christchurch most refugees and new migrants come from Somalia, Ethiopia, Vietnam, Cambodia, Pakistan, Egypt, Iraq, Bangladesh, India, Korea, Saudi Arabia and Bosnia. Most of these people are granted refugee status on "Humanitarian" grounds or under the "Family Reunification" category which allows migrants to apply for their dose relatives to join them.

At a national level, the Immigration service provides an introductory orientation on life in New Zealand and English language tuition for those people who are granted residence In New Zealand under the refugee quota. There Is no provision for those who enter the country under Family Reunification. There is also no provision for those seeking refugee status on Humanitarian grounds.

Some new settlers anive in Christchurch to be reunited with family or friends, some are helped by sponsors, while others must start the process of establishing themselves in a new country on their own.

In August 1997, the Christchurch City Council researched refugee Issues in the city and found that support for and access to English language tuition is inadequate and that refugees are more likely to experience economic hardship than other New Zealanders.

All quota refugees are given a six week orientation session when they first arrive and the refugee and migrant service In Mangere organises their housing In the community before the session is completed. All of these refugees are organised into state housing around the country. However little information is targeted to new settlers about their rights and responsibilities as tenants. Refugees who are granted refugee status after arriving in New Zealand often face lengthy waiting periods before their status is determined and must seek accommodation on their own.

They are only given information at the airport on hostel accommodation. Anecdotal evidence from asylum seekers and new migrants indicates they sometimes face discrimination and overcharging while trying to access rental housing. In the CCC's refugee study most single refugees (9096) were living in rental accommodation and were paying higher weekly accommodation costs than were single non-refugees. Over half of the refugees in the study struggled to meet their accommodation cost. Almost half of the refugees were not satisfied with their rental accommodation because of broken appliances, no hot water cylinder, houses too cold, outside only toilets, overcrowding.

Heang Thou, a social worker at Refugee Resettlement Support has found that some of her clients have encountered problems with renting (i.e. high rental costs, substandard housing, discrimination) but they are reluctant to complain because of worry that if they cause a fuss their family members may not be reunified with them. Many of her clients have children and are spending over 50% of their income on accommodation.

At Tenants' Protection Association in Christchurch we have been contacted for advice in dealing with many disputes that have arisen involving recent immigrants who have difficulties with communication in English and also have different cultural experiences and expectations regarding renting procedures. Most of the problems involve misunderstanding of the terms of the tenancy agreement, most of which are fixed term leases.

To address these problems, a community education programme is required to provide appropriate information to new settlers about housing and tenants' rights and responsibilities. Workers from this programme could liaise with service providers for new settlers such as the refugee and new migrant service, Pasefika Employment and Education Training Organisation, Refugee Resettlement Support, health centres, and ESOL groups. Workshops could provide information on tenancy services, legislation and appropriate referrals when a refugee has housing/tenancy issues. Interactive workshops could also be conducted with the different ethnic groups along with interpreters and handouts in the appropriate languages. Some of the topic could be how to find a rental property, bonds and letting fees, tenancy agreements and the rights and responsibilities of landlords and tenants.

This could be one step in addressing the needs of one of the most marginalised communities in New Zealand.

HOME...
is where the heart is

What does "home" mean? This is the primary question that is explored in TPA's educational workshops. We all have our own definition of what a home represents and that idea will often drive how we live our lives. Home is more than a roof over our head. It conjures up family and a place in society. Homelessness, then, is more than a material deprivation. It means living without a place in society, without links to the community. Academics argue over absolute definitions of what is and what is not homelessness. No government statistics exist on the number of homeless people in New Zealand. It is a phenomenon that is not officially recognised yet we consistently meet clients who have experienced the emptiness, fear and depression of not having a secure place to live. Overcrowded houses, flats and shelters can harbour infectious disease and put children at risk not only of ill health but also physical, sexual and emotional abuse.

Here are some of the thoughts on what is important about home and what it's like to be homeless from dozens of young people who make up the Limited Services Volunteer Company at Burnham Military Camp near Christchurch. Many of these young adults have directly experienced homelessness... living under bridges, in friend's flats, on the streets.

HOME
SHELTER	WARMTH
FOOD	LOVE
SECURITY	WHANAU
MEMORIES	LEARNING
BELONGING	HAPPINESS
COMFORT	FREEDOM
SADNESS	ANIMALS
OWN SPACE	FRIENDS
RELATIONSHIPS	ALCOHOL
SLEEP	PARTIES
SEX	MUSIC
CHOICES	PRIVACY
TV/VIDEO	BILLS
CLEAN	HEALTH

HOMELESS
COLD	WET
EMPTY	UNWANTED
DRUGS	CRIME
PROSTITUTION	ABUSE
HUNGER	SUICIDE
WORTHLESSNESS	FREEDOM
OVERCROWDING	LOW SELF ESTEEM
LONLINESS	DEATH
STRESS	DEPRESSION
VIOLENCE	LOST
NO MONEY	DIRTY
FRIENDLESS	DESPERATION
INVISIBLE	CARDBOARD
SICKNESS	JAIL

From The Desk of...Helen, TPA Co-ordinator