Tenancy Fraud Policy

Transcription

1 Tenancy Fraud Policy 1.0 Purpose To prevent, identify and act on the fraudulent use of our housing with the objective of minimising fraudulent activity and making best use of the housing stock we manage. 2.0 Impact Housing s commitment The association recognises that tenancy fraud is a risk in terms of meeting genuine housing needs, cohesive communities, inefficient use of the housing stock and cost to the public purse. The government has drawn attention to the issue highlighting that tenancy fraud costs the country 900m per year. Impact is committed to tackling and minimising fraud and to acting swiftly and strongly where fraud is detected. We will: Be proactive taking steps to prevent fraud occurring in the first instance Take seriously reports/indications of potential fraud, investigating quickly and thoroughly Use all available powers to tackle fraud Work in partnership with other agencies, particularly local authorities and other housing organisations, to deal with fraud. Regularly review and update our approach, including keeping abreast of the latest developments and good practice guidance. 3.0 Linked Documents 1. Process and Flowchart 2. Guidance Name: Duncan Tilbe Date Reviewed: July 2017 Job Title: Housing Manager Next Review Due: July 2019

2 Tenancy Fraud Flowchart Process for detecting and responding to tenancy fraud Housing application including mutual exchanges & succession requests Check & verify ID during Affordability check meeting re. mutual exchange/succession. Fraudulent application/request identified. All staff Alerted to potential fraud - indicators include: inability to gain access to a property lack of repairs requeseted large credit on rent account council tax arrears ASB Neighbourhood Co-ordinator Potential fraud identified from: scheme/area walkabout (visits to tenants, information received) tenancy follow up visit receipt of reporting slip. Fraud suspected Development Team Right to Buy/Right to Acquire contact appropriate NC to check criteria are met & applicant's identity. Concerns that application may be fraudulent Offer withdrawn/request refused. suspected fraud reported by resident/member of public feedback from contractor. Development Team make checks with local authority. Discuss with line manager/solicitor, local authority etc. to agree & take any further appropriate action. Refer to appropriate NC Neighbourhood Co-ordinator Investigate issue, e.g. attempt to contact tenant visit with contractor (e.g. gas servicing) Application determined as fraudulent Application rejected. Development Team discuss with N/C other actions e.g. criminal prosecution and advice sought from solicitor. check using photo ID check facebook cross-check with other agencies visit neighbours Neighbourhood Co-ordinator No evidence of fraud. Record details of check and outcome on CRM. Fraud evident N/C Discuss options for action with line manager, solicitor and local authority if appropriate Implement agreed actions If sub-letting Sub-letting Visit & encourage tenant to surrender tenancy. Tenant does not voluntarily surrender Letter advising that legal action will be taken if tenancy not surrendered. Tenant does not surrender tenancy NSP served (in discussion with solicitor). Progress to Court Take further action as agreed. Court order not made Discuss with solicitor next steps.

3 1. Process for Tenancy Fraud Policy 1.0 Introduction Tenancy Fraud is taken very seriously by Impact. The processes detailed in this document are intended to prevent fraud and to respond strongly and effectively where there is evidence of fraud occurring. Where necessary we will take legal action to regain possession of properties and recover any unlawful profits made by tenants where there is evidence of tenancy fraud. The right to do this has been enforced by the government in The Prevention of Social Housing Fraud Act Overview of process The process has three key stages: 1. Preventing fraud. Publicising/communicating what fraud is and the consequences of committing fraud 2. Identifying fraud. The methods and practices used to identify potential fraud. 3. Responding to suspected fraud, including using all appropriate legal powers to stop fraud and deter others. All staff have a responsibility to prevent, identify and deal with fraud. Neighbourhood staff have primary responsibility for investigating and dealing with fraud. 3.0 Flow chart of process Attached 4.0 Detailed process 4.1 Preventing fraud Publicity/information We seek to prevent fraud by informing tenants what fraud is and what the consequences will be of any fraudulent activity relating to the tenancy. Tenants are informed as follows: At the tenancy sign up meeting. In the Tenant s handbook On Impact s website Via literature sent out annually with rent statements or other mailings to tenants We will also publicise actions taken to deal with fraud, including in the Annual Report to Tenants, in order to deter future fraud. Pre-tenancy- checking and verifying applications As part of the letting of any property an affordability check/pre-offer interview is carried out. As part of this check/interview the prospective tenant is required to provide their last two bank statements and documents that permit the holder permanent right to rent in the UK. The following documents can be accepted to validate identity:

4 Full UK or EU driving licence (with photograph) or a ten year UK or EU passport (with photograph). Plus one of the following: - Home Office documents confirming status - A current, valid credit or debit card with supporting bank statement with address - DWP welfare benefits correspondence showing name and address - For elderly residents, the travel pass issued for free public transport (with photograph) If a passport or driving licence with a photograph is not available, it is possible to accept two of the following forms of identification: Home Office documents confirming status A current valid credit or debit card with supporting bank statement with address DWP welfare benefits correspondence showing name and address For elderly or disabled residents, the travel pass issued for free public transport (with photograph) If none or only one of the above is available, the following documents may be considered but do not provide conclusive proof of identity: Student identity card- from reputable university or college i.e. that has met strict standars set set by the UK government and education sector Public sector work ID card National Insurance Number Card Medical card with national insurance number Birth/adoption/marriage certificate P45/P60 Certificate of employment in HM Forces The documentation must be the original copies. Photocopies cannot be accepted. All ID documents will be scanned into the tenant s file. 4.2 Identifying fraud Common areas of fraudulent activity are: Fraudulent applications for housing, including mutual exchanges and claims for succession Sub-Letting Fraudulent right to buy and right to acquire applications Officers have responsibility to detect and investigate tenancy fraud. Some of the common indicators of fraud are: The inability to gain access to properties, including to carry out gas safety checks The lack of repairs requested at a property Large amounts of credit accumulating on a rent account Anti-Social Behaviour Regular vandalism to communal door entry systems Council tax arrears A history of ongoing arrears Regular reports from neighbours about tenant absence or other persons using the property

5 Other methods used to check for fraud include: Regular (normally every 3 months) scheme /area walkabouts carried out by Neighbourhood Co-ordinators. At least one third of tenants at each scheme/in each area will be visited each year as part of the walkabout. Tenants with whom there has been no recent contact (within the last 12 months) will be prioritised for a visit. As part of the visit the Co-ordinator will verify that the named tenant is living at the property and there is no evidence of any illegal sub-letting. Tenancy Follow Up visits (within 6 weeks of start of tenancy) to check that all correct persons have taken up occupancy. The regular provision of reporting slips to tenants to enable the reporting of tenancy fraud. Slips will be sent out as part of the information sent annually with rent statements or other mailings to tenants. Feedback from contractors regarding residents at properties. Contractors are asked to report anything of suspicion/ concern. For mutual exchanges a formal assignment of tenancies will be undertaken, in person, by both tenants. Identity details will be confirmed as for other lettings and a tenancy follow up visit carried out within 6 weeks of the exchange taking place to confirm that the correct persons are in occupation. For succession requests, identity details will be requested as per other lettings and proof that the person has resided at the property for the required period of time. 4.3 Responses to suspected fraud Where it is suspected that there may be tenancy fraud the Neighbourhood Co-ordinator will take appropriate action. This may include a range of investigative actions: Attempts to contact the tenant using visits, telephone calls, texts, s etc Visiting the property with contractors undertaking a gas safety inspection or other maintenance visit Using previously collected photo ID when carrying out tenancy visits Checking facebook Cross checking information held with other agencies, including instructing traces via third parties. Visits to neighbours to gain information We will also support other agencies to investigate suspected fraud, where this involves our tenant(s). The remedies available to the association to deal with fraud are detailed in the Guidance section of this policy. In deciding on appropriate action to take, advice should be sought from: The Line Manager The Associations housing solicitor Local authority Fraud Investigation Officers Sub-letting Tenants are informed of the need to request written permission to sub-let both in their tenancy agreement and at the tenancy sign up meeting. This will also be communicated in regular information sent out to tenants on tenancy fraud.

6 Where illegal sub-letting is identified the Neighbourhood Co-ordinator will encourage the tenant to give up their tenancy voluntarily (surrender the tenancy). The Co-ordinator will make clear that legal action will be taken to end the tenancy, if necessary. The following action will be taken to end the tenancy: A visit to the property to encourage the occupants to make a statement as well as being given advice about their situation and the need to vacate the property/surrender the tenancy A letter will be sent to the tenant advising them that the Association is aware that the property is being sub-let and that legal action will be commenced if the tenancy is not voluntarily ended A Notice of Intent to Seek Possession will be issued if the tenant does not agree to a voluntary surrender A second letter sent to the tenant to give them a further opportunity to terminate their tenancy. The letter will inform the tenant of actions that may be taken under the Prevention of Social Housing Fraud Act 2013 (PHSFA) i.e. up to a two year prison sentence or a fine of up to 50,000 and the courts power to order the tenant to pay back any profits the tenant has made through illegal sub-letting. Progression to court to end the tenancy. Where the matter is progressed to court the Co-ordinator will take advice from the associations solicitors. This will include discussion regarding referral to the local authority to progress a criminal prosecution. Any eviction and criminal prosecution will require the authorisation of a Senior Manager, as per the Associations Eviction Policy. It is recognised that those sub-letting maybe unwitting participants in fraud. Where we are satisfied that participation is unintentional and the person(s) cooperate with investigations,they should receive no sanction and be supported to resolve their housing need where possible. Right to Buy and Right to Acquire Right to Buy and Right to Acquire applications are dealt with by the Development Team. To help prevent fraud the team will: Notify the appropriate Neighbourhood Co-ordinator of the application and the qualification criteria. The Co-ordinator will check to confirm as far as possible that the application details are correct, including confirming the applicants identity. Where there are any doubts about the application, the Development team will ask the Local Authority to check information from third parties to detect any fraud. Under the PHSFA, local authorities have powers to request information from certain bodies. Where a fraudulent application has been made the Neighbourhood Co-ordinator will discuss the matter with the Associations solicitor with a view to taking the appropriate legal action 4.4 Record Keeping Throughout the process of identifying, investigating and taking action against fraud, comprehensive notes must be kept using the Customer Relationship Module (CRM). All entries must be categorised on the CRM system as Tenancy Fraud. Any staff member involved with any part of the process is responsible for making a record of discussions, actions etc. using CRM.

7 All relevant documents, correspondebnce etc. must be scanned into the relevant documotive house file. 4.5 Monitoring The following information will be used to monitor the levels and type of tenancy fraud: The numbers of suspected tenancy frauds and types each year The number of actions and outcomes of Tenancy Fraud investigations This information will be taken from the CRM system and reported to the Senior Managers Group 5.0 Responsibilities chart Responsibilities Overall responsibility Review of Policy Communicating the policy Detecting potential fraud Investigating potential fraud Responding to fraud/enforcement Monitoring fraud Board /CEO SMT APG R.O. s/ Managers HM All Staff Specific teams or roles listed N/C N/C Specific teams or roles listed HM- Housing Manager n/c- Neighbourhood Co-ordinator 5.0 Links to other policies and regulations Eviction Policy Lettings Policy (Cumbria Allocations Policy) Homes and Communities Agency Regulatory Framework for Social Housing- April 2012 Name: Duncan Tilbe Date reviewed: July 2017 Job title: Housing Manager Next review due: July 2019

8 2. Guidance for Tenancy Fraud Policy 1.0 Impact s Guidance Tackling tenancy fraud is part of the associations day to day work. A number of practices, as detailed in the Process section of this policy, whilst not designed with the principle purpose of dealing with fraud, provide opportunities for preventing and detecting fraudulent activity. It is important that staff, particularly frontline staff, are aware of what fraud is, of the indicators of potential fraud and of the approaches and methods for dealing with fraud. The definition of fraud is wrongful or criminal deception intended to result in financial or personal gain There are many types of fraud including: Obtaining housing by deception- where a person obtains a home by giving false information Unlawful sub-letting- where a tenant lets out their home without the knowledge or permission of their landlord Tenancy succession by deception- this is where a tenant dies and someone who is not eligible tries to succeed the tenancy Deliberate misrepresentation of circumstances in order to obtain approval for mutual exchange. There are examples where a tenant may be paid to exchange into a different property as a first step to organising a sub-let. Deliberate misrepresentation of circumstances in order to succeed or be assigned to a tenancy Non-Occupancy: a tenant is not using their property as their main and principal home. Obtaining a discount to purchase a property under Right to Buy or Right to Accquire when not eligible for such a discount. Key selling: a tenant is paid to pass on their keys This policy is principally concerned with fraud relating to securing housing, including via Right to Buy and Right to Acquire. The Prevention of Social Housing Fraud Act 2013 (see below), introduced a number of new powers for local authorities to deal with fraud. In instances of fraud it is important that we work in partnership with local authorities, particularly looking to build strong relationships between Neighbourhood Co-ordinators and fraud investigation officers. In dealing with fraud and when considering the appropriate legal responses it is important to liaise with others and take appropriate advice, including from the associations housing solicitors. 2.0 Legal Guidance The Prevention of Social Housing Fraud Act 2013 The Prevention of Social Housing Fraud Act 2013 makes it a criminal offence for tenants to sub-let or part with possession of their home. The penalties for committing social housing fraud, if convicted, range from a 5,000 fine up to two years imprisonment and fine of 50,000.

9 The Act gives the power to prosecute for this new offence to local authorities, Local authorities may prosecute on behalf of associations, both in their area and from other local authority areas. There is no obligation to bring criminal prosecutions in cases of social housing fraud, and we may decide that recovering the property is the priority either through surrender, or court ordered possession. The act also includes powers for housing providers: Restitutionary Payments: the Court can award payment to the association in the form of an unlawful profit order. The award can be made by either the civil or criminal court and is valid along side any other sanctions, including a fine, imprisonment or eviction. The order can be made for any profit gained by the tenant from sub-letting the property, to be paid to the association. Security of Tenure: the Act amends the Housing Act 1988 to bring parity between assured and secure tenants, in terms of security of tenure. If a tenant parts with possession of their property, or sub-lets the whole of their property,they will lose their assured status and security of tenure. This cannot be regained by returning to the property. As a consequence the tenancy can be ended using a notice to quit. Data sharing and investigations: associated with the act are powers for local authorities to access information about an individual including their back account, data from utility companies and telecommunication companies to detect tenancy fraud. The Fraud Act 2006 Willfully misrepresenting circumstances or deliberately misleading someone in order to gain from that misrepresentation may also be a criminal offence within the meaning of the Fraud Act We may involve the police nd the appropriate local authority in bringing criminal proceedings against an individual(s) where satisfied that there appears to have been criminal intent. 3.0 Links to other guidance Chartered Institute of Housing tenancy fraud page- ID verification, Home Office briefing: lse-id-guidance.pdf Prevention of Social Housing Fraud Act Tenancy Fraud Forum: Name: Duncan Tilbe Date reviewed: July 2017 Job title: Housing Manager Next review due: July 2019