As NSW Government super department Human Services seeks to micromanage the lives of marginalised families and communities for Australian & NSW Governments capitalist ideal -the Wageslave Farm, the ripoffs of your taxpayers dollar continue unabated from the leaky sieve of NSW Governance. HousingNSW is the States biggest residential property landlord (by residential properties leased) and now,it seems, HousingNSW is also the States largest residential tenant.

We’ve been aware of the distance between both Federal and State budget appropriation figures for social housing – huge budgets, which shrink inexplicably when measured against the actual social housing incomes. Inexplicably if one uses prevailing market prices as guidance of housing unit acquisition.

But the Treasury geniuses in Canberra and MacQuarrie St are no longer just  buying properties, in their ingenuity, they have decided to burden taxpayers for the longer term with recurrent rental arrangements -arrangements which are sure to drive residential property prices ever skyward as the ever greedy investors continue to buy borderline habitable properties to rent for maximum market rental to the gullible minions of NSWHousing.

Rort a)

How it works:

NSW Housing have selected realtors in a closed market arrangement, as area providers of rental properties. These realtors are supposed to charge NSWHousing “80% of market rent” but with no quantification of a formula by which to calculate market rent.Simple.Property “real” market rent is $450 per week. Agency advertises property for rent at $650,minus 20%, thats $520 per week- an  actual $70 above market payment.

What should be happening: (assumes HousingNSW should be renting,another issue completely)

  • All available rental properties in an area should be considered, not just the stock held by one,or a particular group of realtors.This would include direct owner-to-department rentals.
  • Properties would be selected on the basis of value as HousingNSW needs to accumulate stock.
  • A price cap per area would be applied on the basis of property configuration,and the last months rentals across the area (based on security bond lodgements).Rental would be 80% of that figure.
  • All properties to be pre-inspected professionally for health safety and maintenance compliance.

Following confidential discussions with a current realtor employee, we can say that this agent consistently engages in this pricing duplicity.This agent even has a related party purchase properties which are on-sold within months on to grateful new investors,at a reasonable profit to the realtor related parties.

On the basis of rents notified to tenants, cross referenced to Real Estate .com.au and Domain.com.au , we have found that actual rents paid by the department are consistently higher than the average for the area -not the “80% pf market value we are led to believe” and the properties we visited are invariably below average in appearance, badly located,and sometimes badly maintained compared to the area norm.Of the 48 properties used in our sample,just two,in the Newcastle area appeared at below “market rental.” A further online archive search of the properties concerned showed that many properties leased for $100 or more per week less a mere 6 months previously.1 property was rented to House-O for $220 more than last advertised.

Our concern is for the gross waste of taxpayers funds,and also that those funds could buy much better value, while not driving private housing purchase and rental affordability beyond the reach of even workers and working families.

Rort b) This ones even better:

HousingNSW also rents ‘temporary accommodation’. I don’t know whether they actually check the quality liveability or fair pricing of these temporary accommodation solutions, and I’m sure the majority are properly priced and maintained – but some clearly are not.

We have had many homeless men and women-even family groups-prefer to sleep on the streets when faced with the unsanitary, unhealthy or illegally dangerous accommodation solutions HousingNSW pro-offer as Temporary emergency accommodation.

The cockroach infestations and bedbugs many report from Wesley Mission owned Edward Eagar Lodge in Surry Hills are comparative non issues. Naked electrical wiring, rising damp, stinking carpet, filthy urinals, syringes, and inappropriate management or staff behaviours are the norm- coupled with “terms and conditions” which state that HousingNSW will not assist you further “if you do not get along with the landlord.”

The ripoff?? $460 per week for a single smelly room which many have walked out of in disgust. Double that if 2 people occupy the room.

Several properties have been notified to us but none as often, or as loudly, as Tivoli Accommodation 205 Cleveland St
Redfern NSW. Owned since 2002 by JU’NEE PROPERTIES PTY. LTD. & TIVOLI DEVELOPMENTS PTY. LIMITED,We have received reports concerning this hellhole,which HousingNSW has no qualms in sending junkies and young families to co occupy,since 2003.Its remarkable that none of these people who have complained to us have not complained to HousingNSW,and even more remarkable that, if they had, HousingNSW still persist in sending people there. We are continuing our checks to try to understand more fully the precise relationship between HousingNSW , its officers, The NSW Labor Party and the above identified businesses and their proprietors. The place makes Fawlty Towers look downright respectable and Smoky Mountain look hygenic.

Our checks of several other motel/guest type accommodations we are aware of reveal that these premises are rented at advertised peak market rates. WOTIF and several other booking engines all confirm the same price. I wonder how many millions of your hard earned Tax Dollars evaporate in practices like these?? Shonky businesses & cohorts ripping of Housing NSW -willingly or not,Housing NSW ripping off the Taxpayer Homeless & Marginalised

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