Where social fraud is suspected, an investigation into foreign property is mandatory

Woonhaven, the largest housing company in Antwerp, brought a tenant before the justice of the peace because he owned property abroad. The company claimed repayment of the rent reduction the man had received for nine years. The amount was approximately EUR 50,000, including the costs of the investigation.

The justice of the peace ruled in favour of Woonhaven and added a consideration of principle. A housing company has a duty to investigate property abroad. According to the judgment, this is in keeping with its remit to provide dwellings for households and single people in need. The court pointed in this respect to the waiting lists: in Antwerp, 24,400 prospective tenants were at that time waiting for a social housing unit.

Since 2017, the city of Antwerp has been using external investigation agencies to investigate suspicions of property abroad. The Antwerp alderman for Social Affairs felt strengthened by the judgment: it was the third case to come before the court and the third that the city won.

According to the city, an investigation is only started if there are indications or suspicions that a tenant is committing fraud. In 40 to 50 percent of those cases, the suspicion turns out to be correct. In the court case that follows, no fines are sought; what is claimed is repayment of the rent reduction, the costs of the investigation and the dissolution of the lease. Anyone who sells the dwelling abroad and regularises their situation may in some cases keep the social rental dwelling.

In response to these cases, the Flemish Minister for Housing announced a legal framework within which all housing companies can have such investigations carried out, through a public tender with one or more specialised agencies. That framework has existed since March 2021 in the form of the Flemish framework agreement for foreign property investigation. You can read more about this in the Flemish framework agreement explained.

According to this ruling, checking property abroad is not a choice but a duty arising from the remit of the housing company. This may strengthen your position towards tenants who dispute the investigation, and it is consistent with the rulings of the justice of the peace in Hamme and the court of first instance of Antwerp. Each ruling relates to a specific case file and offers no guarantee for the outcome of another case.

Sources: Het Nieuwsblad, report on the judgment of the justice of the peace court of Antwerp in the Woonhaven case; republished by SCEPTR (January 2020).