Abuse of Government's Housing Assistance Programme can run into the hundreds or thousands of dollars.

But Housing Assistance Manager Olga Scott maintains that most of the people in the housing subsidy scheme are honest.

The Royal Gazette was recently told that a mother of two, employed by Government and in regular receipt of child care payments, was receiving money from the Social Assistance Department to pay the mortgage of her brother's home.

That allegation is now being investigated by Mrs. Scott and her team.

But Mrs. Scott admitted that her department often received reports of abuses.

"Some are frivolous and some are genuine concerns, but in most instances no violation is taking place,'' she said.

According to Mrs. Scott, Bermudians seem to get most aggrieved when they notice people on assistance taking trips overseas.

"We cannot prevent people from travelling overseas, but we do need to know the source of additional funds that allow them to be able to travel,'' she said.

The department assesses each household receiving assistance annually or more frequently if they deem it necessary. In cases where there has been an abuse, the matter is referred for debt collection.

Mrs. Scott revealed that such infractions can run into hundreds and even thousands of dollars.

"The single largest repayment that has had to be made to date was $6,000,'' she noted. "We must always be concerned with abuse of the system as this is use of taxpayer dollars.

"But I must say the overwhelming majority of people are honest and call us to report any change in their situation.'' Mrs. Scott explained that Housing Assistance works as a housing subsidy to low income individuals and families who apply and meet the criteria.

"We calculate the combined net income of family members and we do not take into account any of their expenses,'' Mrs. Scott explained. "We verify that income, along with items such as rent and child support.'' The Act governing this area also stipulates that the dwelling unit must have its own assessment number and the person applying should have a job. To safeguard abuse it also restricts an individual without children from being eligible unless they are elderly or have a disability.

In two-person households, one must be a dependent of the other. In larger family settings, relationships do not need to be explained.

"It is true that many people feel we are being nosy, but we are accountable and don't ask more than we have to know,'' Mrs. Scott said. "Dignity and respect are part of the professionalism this office practices as a matter of course.'' With a budget of $2.3 million, the Housing Assistance programme currently helps 366 families. Most recipients are single mothers although there are a number of single fathers on record as well.

"The number of families on housing assistance tends to fluctuate between 360 and 480,'' Mrs. Scott noted. Changes in family income, rent, place of accommodation must be reported by the beneficiary and failure to do so results in `termination of the benefits'.'' Asked how pervasive the issue is, Mrs. Scott cited some statistics.

"In the last four months we have seen five infractions, all of which were cases of failure to report information,'' she said.

"On average we see between eight and ten infractions a year.'' According to the Act governing the programme, benefits are given in what is termed "maximum allowable rents''.

"We are a housing subsidy so we never cover the entire cost of housing for any of our clients.'' Mrs. Scott explained. "We work on the calculations of $790 for a single bedroom, $1,310 for a two-bedroom unit and $1,600 for a three-bedroom home.'' Clients who fall into deeper financial difficulty while on housing assistance are often transferred for social assistance. No-one is allowed to receive from both programmes simultaneously.

Aware of the lack of affordable housing in Bermuda, Mrs. Scott noted that the problem is very real with no end in sight.

"Until we have an adequate supply of affordable housing, the Housing Assistance subsidy will be necessary,'' she concluded.

Household Total Size Monthly Income 1 $2,170 2 $2,670 3 $3,150 4 $3,580 5 $3,960 6 $4,320 7 $4,770 8 $5,070 HOUSING HSG