Minister must close Housing NZ loophole

“The Housing NZ loophole which has allowed some state house tenants to profiteer off the goodwill of the taxpayer must be closed down,” says National Party Housing spokesman Phil Heatley.

Mr Heatley is commenting on reports today that say hundreds of tenants are renting out rooms in their homes, but almost none are paying any extra rent.

1109 state house tenants have declared boarders, but because there is no penalty, it has been suggested that many more tenants aren’t telling Housing NZ about the arrangement.

“It is entirely inappropriate for Housing NZ tenants to be profiteering out of a taxpayer-funded privilege. The size of the home should fit the size of the family.

“I do not blame the clients. I lay blame at the feet of officials who continue to turn a blind eye.

“Since the department does not keep a record of how many tenants are caught with undeclared boarders, the Minister must conduct an urgent audit to find out how large this problem is.

“Surely Housing NZ must also consider penalties for those who do not declare boarders and those who are blatantly profiteering,” says Mr Heatley.

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