Back to: Introduction: Housing Allowance
The key elements needed for a young person to apply for a Housing Allowance subsidy are as follows:
1. Awareness
Young person is provided information about the Housing Allowance.
2. Housing Pathway Planning Session
Transition Coaches work with young people to develop a Housing Pathway Plan. The information is then used to complete the application form.
Housing pathway plan – where do they want to live? now? Later? What do they need around them? How long can they live there for? Where next? Where if it goes wrong? What’s their dream home?
Check out the housing Pathway Planning tools on the CoP website
- Home Stretch WA – Housing Allowance – Housing Pathway Plan Session – Practice Guide
- Housing Pathway Discussion Guide & Checklist
3. Budget & Housing Allowance Rate
Transition Coaches support young people to create a detailed budget to work out what they can afford and how much housing allowance needed to make housing affordable.
Calculating the Housing Allowance Rate:
Private Rentals
For private rentals or living arrangements where only housing is being offered, the Housing Allowance payment rate should be determined using a simple formula. Housing Allowance = Total Rent – 30% Young Person Income
A young persons income should include Rent Assistance Payments, as well as taking into consideration any ongoing debts or expenses that may impact their cost of living.
Affordable Housing is generally understood as spending no more than 30% of total income on housing, based on the minimum living wage. This can be a helpful reference for young people who are on higher incomes, or who are contributing less than $200 per fortnight in rent or lodging. For young people on Youth Allowance, the 30% of income benchmark would still leave them living below the poverty line. Support around their individual budget is a more effective way to calculate an appropriate rate of payment for the Housing Allowance.
Living Together Agreements / Supported arrangements
Where meals, transport or other kinds of supports are offered as part of the living arrangement, the Housing Allowance payment rate should also consider a contribution towards these costs in addition to the basic cost of housing. Housing Allowance = Total rent + support costs – 30% young person’s income
Understanding the value of support costs can be a tricky negotiation, and would typically only be included when complete a Living Together Agreement. Staying On provides a useful comparison, and in some cases the support provided would be equivalent to a Staying On Agreement.
Watch the video below for an example of calculating the Housing Allowance for a rental property.
4. Negotiating with a Landlord & Establishing Housing Tenure
- Transition Coaches or delegated role support young people to Establish Housing Tenure through
- obtaining a Lease
- Boarding/Lodging Agreement
- OR negotiate a Home Stretch Living Together Agreement (in relative/friend/ host home living arrangement)
- Support the Landlord to understand and agree to the conditions of the Housing Allowance Payment
- Collect payment information and confirm identity of payment recipient.
For private rentals where a young person has well developed independent living skills, the young person may wish to complete this section without their Transition Coach. For other living arrangements, the Transition Coach will need to support the process.
This part of process may be quite stigmatising for young people. It should be handled sensitively and with respect to the capacity and agency of the young person.
Lease Agreements
- Lease Agreements must abide by the by Residential Tenancy Act
- The template is available from the Department of Commerce
- Lease Agreements Offer the most Stability and Rights of Abode
Board & Loding Agreements
- Department of Commerce provides a range of useful
resources to help outline the rights and responsibilities in living
arrangements. - These agreements do not have template, and do not offer
many rights to the young person
Living Together Agreements
- Equivalent to a Staying On Agreement
- Together with the Application Form Constitute a Boarding/Lodging Agreement
- Can be developed and supported by a Staying On Facilitator