Red light for those seeking emergency housing

There’s been a sharp uptick in the numbers of people refused emergency housing grants, as the Government implements a new traffic light system.
Since August, the Ministry of Social Development has cracked down on three requirements: people staying in emergency housing must engage with services such as a housing broker or employment adviser; make reasonable efforts to obtain other housing; and pay their emergency housing contribution.
That’s coincided with the numbers of people declined emergency housing topping 400 a month, for three consecutive months. The only time ministry records show refusals topping 400 previously was in March 2021, as Auckland emerged from its big Covid lockdown.
The Government had set a target to reduce the number of households in emergency housing by 75 percent by 2030; the minister says it’s already got numbers down by 62 percent.
Associate Housing Minister Tama Potaka rightly points out that the number of applications has dropped. “Emergency housing remains available as a last resort of short-term accommodation for people in genuine need. It’s not an ideal situation, especially for whānau with tamariki.”
But he also claims the number of declined applications “has actually remained relatively consistent” – and as the above chart shows, that’s not correct. In fact, it’s both doubled to 10 percent of all applications, and it’s doubled in raw numbers.
Zac Thomas, president of Renters United, says: “Celebrating the reduction in emergency housing numbers is like saying hospitalisations have decreased when you’ve just made it harder to access the hospital. Kiwis see through the spin – they see the number of people sleeping in the streets and in cars and know things are only getting worse.”
Potaka argues that before people get to the stage of last resort, the Ministry of Social Development has a range of support products available to households. These can now also be used where people are flatting or boarding privately.
He gives the example of the Accommodation Security Cover Grant, helping people get a rental by providing assurance to landlords that any outstanding accommodation costs will be covered, if owed at the end of the agreed stay.
Where a client is declined emergency housing assistance, Potaka says there may still be other supports they can access through the Ministry of Social Development.
“The core eligibility criteria for emergency housing is unchanged,” Potaka insists. “The same income, asset and situational tests that applied under the previous government remain in place today as it was pre-26 August, when the changes were introduced.
“What has changed is that we are shifting to a more rules-based eligibility system which provides clearer expectations for people while in emergency housing.
“This includes being clear on our expectations of personal responsibility – that people meet three very reasonable responsibilities including to pay their financial contribution; to work with assigned support services; and to continue to look for alternative housing.”
From their eighth night in emergency housing, people must make a good effort to find other housing – even if that means couch-surfing. Potaka says they’re required to try other solutions like looking for rentals, getting help to pay for private accommodation, or staying with whānau or friends.
They must engage with support services like a housing broker or navigator, or budget or employment advisers, where they’re assigned – and pay their emergency housing contribution on time.
“If people do not meet these reasonable responsibilities, they get two warnings with the third time being that their application for further housing would be declined, with a 13-week stand down.”
Potaka say the Government’s vision for emergency housing is to return it to its original intent: as a last resort and for short periods.
Those whānau with tamariki who are in emergency housing for 12 weeks or more are required to be moved into social housing, he says. Since April 30 this year, there have been 726 households, including 1452 tamariki, moved into social housing.
But it’s not clear how many of those declined emergency housing are families with children as, somewhat conveniently, the ministry doesn’t record that data. It only records the numbers of families with children that are granted emergency housing. That’s been running at around 50 percent.
If the proportion of those declined emergency housing is the same (and that’s not necessarily the case) then more than 200 families with children are being refused emergency housing every month.