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Case Study: Council agrees to apply rent hardship clause in Housing Assistance Payment (HAP) scheme
Published on
Last updated on
Published on
Last updated on
Hannah was renting her home with help from Galway County Council through the Housing Assistance Payment (HAP) scheme. Her only source of income was disability allowance. Between her weekly rent payment to the Council and a €350 monthly top-up to her landlord (to bridge the gap between the maximum HAP rate and the full rent), Hannah was spending 49% of her income on rent. She was struggling to meet her other expenses.
Hannah asked the Council to apply its ‘rent hardship’ clause to reduce the amount she would have to pay the Council weekly. The Council refused on the basis that Hannah had taken on a tenancy that, at 49% of her income, was unsustainable. The Council sent Hannah a photograph taken from Google Street view, which it said showed she was “living beyond her means” in a house that was much too big for her to afford in terms of both bills and rent.
Hannah complained to the Ombudsman that the photograph was not of her home but of a nearby pair of large semi-detached houses. She also said that she had searched extensively for an affordable and suitable property without success, and only reluctantly took on a tenancy with such a large top-up to the landlord when she felt she had run out of options.
When the Ombudsman raised Hannah ’s complaint with the Council, the Council acknowledged that it was incorrect in relying on the photograph in question but that the tenancy was nonetheless unsustainable. The Council noted that, even with the hardship clause, Hannah would still be paying more than 30% of her income on rent and that, in any case, hardship clauses apply only temporarily. The Council said that Hannah should move to a more affordable property.
The Ombudsman recognised the Council’s concerns about the long-term sustainability of Hannah ’s tenancy, even though the Council had in the first instance approved it for HAP with 49% of her income going on rent. However, the Ombudsman also noted the shortage of rental options within or close to HAP limits in Hannah ’s area and neighbouring counties. If her HAP tenancy ended in the short term due to a failure to pay rent to the Council or the landlord, she would most likely have to seek assistance and emergency accommodation from the Council.
Following discussions with the Ombudsman, the Council agreed to apply its hardship clause and charge the minimum rent permitted (€25 per week) for four months, to help Hannah keep her tenancy for the time being and give her an opportunity to search for a more affordable property.