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Policy Water Usage: Public Housing Tenants

SDMS ID Number P 2012/0178-022 SDMS Title Water Usage: Public Housing Tenants – Policy – P 2012/0178-022 Effective From January 2013 Applies to All Housing Tasmania employees Custodian Manager Housing Strategy Summary This policy defines the protocols and procedures for the installation of water supply sub-meters in public housing properties.

Replaces Doc. No. n/a Author Area Housing Strategy – Asset Planning and Policy Unit Contact Review Date January 2016

Policy Intent The purpose of this policy is to inform both tenants and staff about how Housing Tasmania manages the measurement of water usage now and how this will be managed in the future. The Tasmanian water corporations have recently established a two part pricing regime for water usage. It consists of a fixed supply charge and a volumetric usage charge. It is current policy that Housing Tasmania pays both charges. But regardless of who meets the volumetric charges, the implementation of a two-part pricing structure requires the installation of water meters to all residential properties, including multiple dwellings.

1 At a minimum, a water meter is installed at the boundary connection. Separate sub-metering of the water supply to strata titled units has not occurred in all cases. Housing Tasmania is supportive of metering where possible to provide an accurate basis for the charging system. This is required as well by The Residential Tenancy Act 1997 which supports a user pays charging system providing each property has a meter or sub-meter installed and tenants are charged for the measured volume of water used. Housing Tasmania will work with Body Corporates to achieve this outcome by installing sub-meters in multiple dwellings.

Application Single dwellings will have a water meter installed at the boundary. No further action is required. The water corporations will regularly read the meter and account for the volume of water consumed during the billing cycle and proportion of the annual fixed supply charge. Strata-titled units that have a single water meter installed at the property boundary have the water costs apportioned as per unit entitlements on the strata title plan and billed to each unit owner. Strata-title unit owners may elect to install sub-meters to each unit. Housing Tasmania will support the installation of sub-meters.

Pricing of Water The water corporations’ fixed fee is uniform across similar property types. The variable fee is based on the amount of water consumed by each household. The fee is calculated by multiplying the charged rate for water by the volume of water consumed by the household. The volume of water consumed by the household is measured by an inline water meter.

Cost recovery of water Currently the Tasmanian Government’s position is that public housing tenants do not pay for the water they use. If that position ever changed then Housing Tasmania’s tenants would be expected to pay for the cost of household water consumed in line with the water corporations billing cycle. Where a tenancy ceased between meter readings, Housing Tasmania would arrange for the meter to be read and the water supply would be stopped until a new tenancy commenced.

Installation of water sub-meters The installation of sub-meters into strata titled properties can only be undertaken after application from the body corporate. The cost of installing sub-meters is apportioned to all unit holders in the strata title plan. Engaging a plumbing contractor to install sub-meters is conditional on all unit owners agreeing to their share of the installation cost and the alteration of the billing regime. At some strata title properties the installation of water sub-meters may be technically problematic or prohibitively costly. In those properties where water meters cannot be practicably installed the water authority will bill tenants at a proportion based on relative unit size. This will be acceptable to Housing Tasmania. But should the cost recovery policy (see above) alter, it is to be noted that as landlord Housing Tasmania would not be able to recover the cost of water consumed at the property, because there would be no objective base for the charges.

2 Approval of sub-meter installation Housing Tasmania will be part of the decision making process as a member of the active Body Corporate which has decided to install sub-meters. Housing Tasmania’s position would be to approve installations.

Budget for water sub-meter installation The budget and oversight for the installation of water sub-meters is the responsibility of Housing Operations.

Water usage in common areas Where common areas within strata title developments have an unmetered supply, the cost of common area water usage shall be determined by the difference between the sum of the sub-meter readings and the master meter. The value of the difference shall be apportioned between all owners of the strata title plan in accordance with the general unit entitlement. Housing Tasmania as an owner will pay for its water share cost appropriate to the unit entitlement.

Installation of Sub-meters into newly constructed Where new strata title properties are constructed for public rental, water sub-meters shall be installed. The installation properties of sub-meters will allow future recovery of water consumption costs.

Installation of water sub-meters into Strata Titled Where Housing Tasmania wholly owns strata titled complexes retrofitting of water sub-meters should be undertaken properties wholly owned by the Director of Housing when the properties are being significantly upgraded; and where the cost of water sub-meter installations is not excessive. This would acquire a higher priority and be financially viable if the cost recovery policy were to change. Applicants should confirm with the respective regional water corporation the financial implication of sub-meter installations. Once installed, they will not be taken out. Public housing tenants cannot make their own arrangements for the installation of a water meter at a Housing Tasmania property.

Leased properties Where Housing Tasmania leases properties to not for profit organisations, the lessee shall pay all fees and charges associated with the water supply. Any supplementary installation of water sub-meters to leased properties shall be approved by the Director of Housing.

Legal Framework This Policy adheres to the Residential Tenancy Act 1997

Exemptions None

Responsibilities/ Delegations All Housing Tasmania staff are responsible for ensuring the appropriate application of the policy in their respective area of responsibility. The authority for managing Body Corporate matters in accord with legislative responsibility, is the Manager Housing Operations.

Disclaimer This is a statewide policy and must not be re-interpreted so that subordinate policies exist. Should discrete operational differences exist, these should be expressed in the form of an operating procedure or protocol that must be approved at the same level as this policy.

Audit and Compliance Failure to comply with this policy, without providing a good reason for doing so, may lead to disciplinary action. Compliance with this policy is monitored by the Manager Housing Operations, through the delegated Area Managers.

Procedures and Forms N/A

3 Glossary N/A