The occupants of nine government houses in the southern region have been evicted by Housing New Zealand for "deliberately ripping off the system" to the tune of nearly $63,000.
One was a Dunedin woman, who cost the taxpayer more than $17,000 when she failed to tell Housing New Zealand her husband had been living with her for the past three years, which meant she had received taxpayer-subsidised rent to which she was not entitled.
The former tenant was also defrauding the Ministry of Social Development by receiving the domestic purposes benefit.
Housing New Zealand discovered the former tenant's fraud after the Ministry of Social Development prosecuted her for fraud.
She was among 312 tenants nationwide evicted by Housing New Zealand in the past 12 months, after investigations found they had obtained a state house or taxpayer-subsidised rent by lying about their circumstances.
APNZ reported a Dunedin couple running an escort agency from home were also evicted from their state house after lying about their income so they could stay at the property.
The couple were prosecuted for income-related fraud, sentenced to 100 hours' community work and 12 months' supervision and were ordered to repay $7500.
Housing Minister Phil Heatley said there had been a "sharp increase" in the number of state tenancies ended for dishonesty over the past couple of years.
"Housing New Zealand has worked hard to identify and remove tenants committing fraud, and to make sure those most in need are assisted for as long as they have that need.
"We have built a very effective and skilled team of investigators who are very good at detecting, investigating and dealing with tenants who are deliberately ripping off the system."
The investigations revealed tenants who failed to advise Housing New Zealand about income from employment, business interests, assets, that they lived with a partner or that they sublet their tenancy.
One of the most extreme cases was a South Island tenant who failed to include his wife and her income when claiming income-related rent subsidies.
An investigation was carried out after a family photograph was recovered from Facebook.
The wife lived undeclared at the tenancy and was continuously employed for 11 years.
The couple also jointly owned a property, located about 5km from the state house they rented, which they did not declare.
The tenant was prosecuted and is awaiting sentencing.
Another case involved two Auckland tenants who claimed taxpayer-subsidised income-related rent while running an internet services business which generated $392,850 in bank deposits between 2006 and 2010.
Mr Heatley said during the past 12 months, Housing New Zealand was successful in establishing more than $9.6 million in Crown debts for overpaid rent subsidies, bringing the total during the past four years to nearly $23.3 million.
"It's very important that we not only end tenancies, but also seek to recover the taxpayer-funded rent subsidies that these people received by knowingly lying about their circumstances.
"A state house is not an automatic entitlement, and people who deliberately lie about their circumstances are depriving families in real need, and receive benefits that they are not entitled to."
By freeing up 709 homes in the past three years, Mr Heatley said Housing New Zealand was able to help a significant number of people on the waiting list who desperately needed a state house.
Of the nine former tenants evicted from government houses in Timaru, Dunedin and Invercargill since July last year, three have been successfully prosecuted.
Nationwide, 120 tenants have been successfully prosecuted for fraud.
Terminations
Year to June 30, 2012: 312.
Year to June 30, 2011: 241.
Year to June 30, 2010: 114.
