Guidelines for Setting and Collection of Residential Charges in Disability Services Group Homes

Department of Human Services

Department of Human Services

Guidelines for setting and collection of residential charges in disability services – group homes

February 2014

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Authorised and published by the Victorian Government, 1 Treasury Place, Melbourne.

ISBN 978-0-7311-6678-7 (online)

Contents

Context statement 1

Definitions 1

Application of the guidelines 3

Provision of information 3

Objective 4

Key guideline principles 4

Key guideline elements 4

1. The amount and basis of the residential charge 6

2. The range and level of services to be provided 6

2.1 Fee-for-service charges 7

2.2 Reducing service items 7

3. Residents who receive compensation 8

4. Intentional damage of property 8

5. Payment and receipting of residential charges 8

6. Frequency, timing and process for variations to residential charges 9

7. Disputes relating to a notice of increase in residential charge 9

8. Process for consideration of undue financial hardship 12

9. Non-payment of residential charges 12

10. Grievance or complaints process 13

Further information 13

Approved 13

Attachment A 14

Attachment B 15

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Context statement

The Disability Act 2006 (the Act) provides a framework for a whole-of-government and whole-of-community approach to enable people with a disability to actively participate in the life of the community. The Act is guided by the principles of human rights and citizenship, and gives specific rights to people residing in residential services, while recognising the demands of providing disability services throughout Victoria.

The Disability Amendment Act 2013 (the Amendment Act) commenced on 18 December 2013. The Amendment Act makes minor amendments to the Act to clarify the role of the Victorian Civil and Administrative Tribunal (VCAT) in relation to review of a notice of a proposed increase of a residential charge. The Amendment Act provides that VCAT must dismiss an application if a proposed residential charge does not exceed the amount of the Commonwealth rent assistance allowance and/or the percentage cost of living increase to the Commonwealth disability support pension, and is equivalent to or below the prescribed amount in the Disability Regulations 2007.

These guidelines have been reviewed to incorporate the amendments to the Act.

Definitions

‘Common area’ means any area in which facilities are provided for the use of residents otherwise than as part of the room which the resident occupies.

‘Facilities’ means:

a.  land or buildings intended for use for storage space or car parking

b.  laundry facilities

c.  cooking facilities

d.  recreational areas

e.  garbage storage and disposal facilities

f.  bathroom, toilet and washing facilities

g.  appliances for heating or cooling premises

h.  communications facilities

i.  lawns, gardens and outhouses

j.  stairways

provided for the use of a resident otherwise than as a part of the room.

‘Fee-for-service’ means an agreed payment, in addition to the residential charge, paid to a service provider for the provision of a service, for example a fee for provision of transport services.

‘Group home’ means a residential service that is declared to be a group home under section 64 of the Act.

‘Premises’ means a structure that is designed to be used for human habitation and the area outside that structure which is part of the property on which the premises is located and includes the room occupied or to be occupied by a resident, any common areas and any facilities.

‘Prescribed amount’ in relation to a proposed residential charge, is the amount prescribed in the Disability Regulations 2007. The current prescribed amount is equal to the sum of 75 per cent of the Commonwealth disability support pension and 100 per cent of Commonwealth rent assistance received by the person to whom the proposed residential charge relates.

‘Rent component’ means an amount for the use by a resident of the room, any common area and the premises. The rent component may include costs for reasonable and necessary maintenance to a resident’s room, a common area (such as gardens, lawns and courtyards) and the premises.

‘Resident’ means a person who receives disability services in a residential service.

‘Resident’s administrator’ means the resident’s attorney appointed under an enduring power of attorney to administer the resident’s property, or a person appointed by a court or tribunal, such as the Victorian Civil and Administrative Tribunal, as the administrator of the resident’s property.

‘Resident’s guardian’ means the resident’s guardian appointed under the Guardianship and Administration Act 1986 or appointed by a court and, if the resident is a child, includes the child’s guardian whether or not the natural parent of the child.

‘Residential charge’ means a charge comprising the rent component or both the rent component and the services component.

‘Residential service’ means residential accommodation:

-  provided by, on behalf of, or by arrangement with a disability service provider, and

-  provided as accommodation in which residents are provided with disability services, and

-  supported by rostered staff that are provided by a disability service provider, and

-  admission to which is in accordance with a process determined by the Secretary of the Department of Human Services (the department).

‘Room’ means a room in a premises where the room is occupied or intended to be occupied by a person who has a right to occupy the room for the purpose of a residence together with a right to use in common with others common areas in the premises.

‘Services component’ means an amount for whichever of the following service items are provided to a resident:

a.  utilities (for example gas, electricity and water)

b.  communications including telephone

c.  bedding and linen (for example blankets and sheets, pillows, bathroom towels and tea towels)

d.  food

e.  general household consumable supplies (for example washing detergent, cleaners)

f.  communal furnishings and whitegoods (for example fridges in communal kitchens or sofas in communal living rooms etc)

g.  household equipment and utensils (for example vacuum cleaners, dusters, cooking utensils etc)

h.  replacement of items specified in sub-paragraphs (b), (c), (e), (f), or (g) following wear and tear or accidental damage.

‘VCAT’ is the Victorian Civil and Administrative Tribunal that can appoint guardians and administrators for persons with a disability over the age of 18 years. VCAT may appoint any suitable person as guardian including family members or the Public Advocate; or as administrator including family members or companies such as the State Trustees.

Application of the guidelines

These guidelines are made pursuant to section 65 of the Act, whereby the Secretary of the Department of Human Services (the department) may make and publish guidelines with respect to residential charges.

These guidelines are provided to assist disability service providers with the setting and collection of residential charges applicable to residents of group homes.

The guidelines set out:

-  Items that must be included in an organisation’s residential charges policy as specific requirements of the Act.

-  Items that should be considered as ‘good practice’ to ensure that residents receive and act on the best possible information and that this is consistent across the sector.

These guidelines apply to disability residential services that have been declared as group homes under section 64 of the Act.

Provision of information

The provision of any advice, notification or information to residents in relation to residential charges should be undertaken in line with the requirements of section 7 of the Act, which provides:

1.  The contents of any advice, notice or information given or provided to a person with a disability under the Act must be explained by the person giving the advice, notice or information to the maximum extent possible to the person with a disability in the language, mode of communication and terms which that person is most likely to understand.

2.  An explanation given under (1) must, where reasonable, be given both orally and in writing.

3.  If a person appears to be incapable of reading and understanding the information provided, the disability service provider must use reasonable endeavours to convey the information to the person in the language, mode of communication or terms that the person is most likely to understand.

4.  The disability service provider may give a copy of the advice, notice or information to a family member, guardian, advocate or other person chosen by the person with a disability. Where no person is chosen, the information may be given to a person the disability service provider considers can assist the person with a disability. The person must not be employed by, or be a representative of, the disability service provider.

It is important that families are supported to participate in the life of the individual in order to foster positive and cooperative partnerships between family and disability service providers. This is of particular importance with respect to assisting the individual to understand their rights and responsibilities, and the support available to them.

It is important, however, that all parties are mindful of respecting the wishes of the individual accessing services.

Objective

The objective of these guidelines is to provide a clear and transparent framework for the setting and collection of residential charges in group homes and to support the provision of quality, sustainable disability services.

Key guideline principles

The principles underpinning these guidelines:

-  Residents who live in department-managed or funded group homes are expected to contribute towards the cost of their daily housekeeping expenses (such as food and utilities) in a comparable way to other members of the community.

-  Residential charges should be set to result in a reasonable contribution towards the cost of the rent component, or the rent and services component of running a group home.

-  Residential charges should enable residents to retain some disposable income to support their participation in the community and pursuit of individual goals.

-  The level of residential charge should reflect the income available to residents, primarily the Commonwealth disability support pension and Commonwealth rent assistance.

-  Residential charges should be transparent. The rent, or rent and services components to be provided for in the charge, must be made clear. Service providers must provide information to residents outlining the basis of the charge and the process for increases to the charge.

-  The collection of payments should be administered efficiently and attempts made to minimise the cost of administration.

-  Services should not be refused on the basis of inability to pay, however residents claiming incapacity to pay need to demonstrate this through the application of undue financial hardship provisions. Disability service providers should ensure a process to consider these issues is in place and communicated to residents, their guardian, or administrator.

-  Residents in receipt of compensation will be charged the full cost of service provision to the extent that the financial settlement provides for their disability support.

-  The residential charge should make a reasonable contribution toward financial viability and sustainability of the service system.

Key guideline elements

The Act sets out the following key elements in respect of residential charges:

1.  There are two principal components of the residential charge: the rent component and the services component. A residential charge may be set on the basis of the rent component or a combination of the two components (section 57).

2.  The residential statement, which must be provided to each resident when they commence residing at the group home, must specify the amount of the residential charge and what the residential charge will cover in terms of rent and services (section 57).

3.  Disability service providers must give at least 60 days notice in writing of any proposed increase to the residential charge (including both rent and services component) to the resident and their guardian or administrator (section 66).

4.  If a disability service provider provides an additional service item to the resident at the resident’s request, the disability service provider may increase the residential charge without notice if the amount of the increase relates only to the services component. However, as good practice, residents should still be advised in advance in these circumstances (section 66).

5.  When the service items provided in the services component of the residential charge are reduced, the residential charge must be reduced by an amount agreed between the resident and the disability service provider. In instances where agreement cannot be reached either the resident or the disability service provider can apply to VCAT to have the matter determined (section 70).

6.  If a resident has a dispute in respect of a notice of increase in the residential charge, the resident may apply to VCAT for a review of the decision to issue the notice within 28 days (section 71). VCAT must dismiss an application if the proposed charge:

-  does not exceed the prescribed amount being equal to the sum of 75 per cent of the Commonwealth disability support pension and 100 per cent of Commonwealth rent assistance received by the person to whom the proposed residential charge relates, and

-  does not exceed an amount equivalent to Commonwealth rent assistance allowance and/or the percentage cost of living increase to the Commonwealth disability support pension (section 72A).

7.  A disability services provider must institute and operate a system to receive and resolve complaints made to that provider, in respect of disability services they provided. A contracted service provider, or a funded service provider, must also institute and operate a system to receive and resolve complaints made to that provider, in respect of services they provided to persons with a disability (sections 104 and 106A).Residential charges policy

Each disability service provider should maintain an up-to-date policy document on residential charges for their organisation. The policy document is an integral part of information provision to service users, their guardians and administrators.