Income and Cash Asset Testing for EMS Housing Modifications

Enable New Zealand Region

Enable New Zealand is introducing a change to the housing modification process and the timing of Income and Cash Asset Testing.

What is changing?
Once an application is received and eligibility is accepted the Income and Cash Asset Testing will be undertaken, where this is required, prior to any funding being allocated, the engagement of Consultants, or obtaining quotes from Contractors.

How does this work?
Enable New Zealand will evaluate the likely cost of the housing modifications. Where the cost of the new modifications (or sum of previous work) is over the $8,076 threshold an Income and Cash Asset test will proceed. The result of a Income and Cash Asset Testing will advise Enable New Zealand of the contribution required from a client. NOTE: The contribution figure is not affected by the actual total dollar figure of the housing modification, i.e. reducing the scope of a modification will not affect the contribution figure. Where a contribution is required, Enable New Zealand will advise the client in writing and this information will be copied to the EMS Housing Assessor who may wish to liaise with the client directly.

Any required contribution figure from the Income and Cash Asset test result will be applied once funding is approved and after the work has gone to tender and the actual building cost is known.

E.g.

Housing Modification Application for a wet area shower – estimated at $14,000.

• Income and Cash Asset test shows the person is required to contribute $3,000.
• Agreement is sought regarding the contribution from the client prior to any further work proceeding.
• Funding is approved or funding is available for an application on the Priority 2 list.
• Plans are drawn and tenders called. The actual cost of the modifications is $12,650.
• The client is required to contribute $3,000. Therefore the total sum from the EMS budget is $9,650.
• If the estimate was high and the quote was actually $10,000; then the contribution figure would be determined by the maximum threshold of $8,076. That is, the client is eligible for $8,076 towards a housing modification, so would have to contribute $ 1,924 ($ 10,000 - $ 8,076). When the income and asset cash test identifies that the person can contribute $3,000 towards housing modification, this means that the person is responsible for paying the first $ 3,000 over the threshold of $ 8,076. 
• If the tendered figure of the building work was higher than the original estimate (i.e. $17,200) then the EMS approved figure would be$14,200 ($17,200 minus the $3,000 contribution).

What is different to how the process works now?
The change is that this process will occur prior to drawing plans and calling for tenders. The Income and Cash Asset testing process has not changed, just the timing of the when the process is undertaken.

Importantly this process occurs for all Priority 2 housing applications once eligibility is confirmed and before funding is approved.

Why is this changing?
The client is better informed earlier in the process to understand any possible financial contribution they may need to make to the modification. They will then be in a position to make a decision regarding how they wish to progress their application significantly earlier in the process.

When will this change?
The change will apply to all newly received housing applications from the 1^st June. Enable New Zealand will evaluate how to progressively work through Priority 2 applications already received and in the system.

NOTE:
The change in title to "Income and Cash Asset Testing" has been made by Work and Income.

All figures are GST inclusive.