Certified Rent Guarantee Company Else Support Revises Guarantee Scheme for Hiratsuka Municipal Housing to Strengthen Sustainable Residential Support

Else Support Co., Ltd. (Headquarters: Nakano-ku, Tokyo; Representative Director: Kiyoshi Fujita; hereinafter 'Else Support'), which provides rent debt guarantee services within the Homenet Group—a group that promotes the construction of integrated community care systems through support for elderly housing and end-of-life planning—has announced a revision to its rent guarantee scheme for Hiratsuka municipal housing. This change is designed to address the challenges posed by the aging population and long-term occupancy of existing residents by transitioning to an operational framework that utilizes the Japan Housing Finance Agency's (JHF) rent debt guarantee insurance.

Public housing serves as a critical social infrastructure supporting the lives of those in need of assistance securing housing. However, as tenants increasingly become elderly, live alone, and reside for longer periods, the operational and financial burdens on local governments and designated administrators—including managing arrears, property restoration upon death, and handling remaining personal belongings—have become more complex.

While some of these risks have historically been mitigated by the guarantee functions of rent debt guarantee companies, the increase in elderly single-person households has created cases where traditional guarantee conditions are insufficient for guarantee firms to sustain coverage.

This revision aims to maintain a sustainable housing safety net by appropriately distributing the operational burden on the local government and the underwriting risk on the guarantee company, all while supporting elderly tenants in continuing their residency in public housing.

As a guarantee company certified under the Ministry of Land, Infrastructure, Transport and Tourism's 'Certified Rent Debt Guarantee Business System,' Else Support will move forward with building a high-efficiency guarantee scheme that benefits all three parties: the local government, the residents, and the guarantee firm.

[Background and Objectives]

Japan is seeing an increase in elderly single-person households due to the progress of an aging society. This issue is becoming increasingly significant not only in private rental housing but also in public housing.

Public housing is a foundation for the lives of low-income earners, the elderly, and persons with disabilities who require assistance securing housing. Unlike private rental properties, however, there are institutional constraints regarding tenant burdens and fee collection. As such, local governments are required to maintain operational structures that protect the secure residency of tenants while preparing for arrears, property restoration, and personal belongings management within limited budgets and institutional frameworks.

Supporting public housing mechanisms relies not only on tax revenues and administrative operations but also on the risk underwriting provided by guarantee firms. However, with the rise of elderly single-person households, this guarantee function is facing increasing pressure. To maintain a housing safety net, it is necessary to move away from placing the burden solely on local governments or concentrating risks only on guarantee firms; instead, we must redesign sustainable mechanisms that leverage institutional frameworks and insurance.

In particular, for public housing, how to handle the aging of residents who have already lived there for a long time is a crucial issue, beyond just managing new tenants. For long-term residents, initial contract terms and the status of joint guarantors may no longer align with current systems or family structures. Organizing the guarantee and contact systems—including joint guarantor agreements signed before the Civil Code revision—in accordance with the current institutional environment is a theme common to many local governments.

Against this backdrop, the need to revise the existing guarantee scheme for Hiratsuka municipal housing became apparent, aiming to support the continued residency of elderly tenants while appropriately distributing risks between the local government and the guarantee firm.

Based on the operational reality of Hiratsuka municipal housing and the impact on residents, Else Support proposed a revision to the rent guarantee service, aiming to create a mechanism that supports the housing safety net in a sustainable way by utilizing JHF rent debt guarantee insurance.

[About the Revised Rent Debt Guarantee Scheme]

The revised rent debt guarantee scheme strengthens the service previously provided in Hiratsuka municipal housing to better address issues related to the aging and long-term residency of existing tenants.

The main features are as follows:

- Rent guarantees supporting the continued residency of elderly tenants By providing rent debt guarantees, the company supports the continued residency of those needing housing assistance, including the elderly, so they can live in public housing with peace of mind. For local governments, utilizing a guarantee firm can lead to reduced administrative burdens regarding arrears processing, advance payments, and debt management.

- A guarantee scheme that addresses the aging and long-term residency of existing tenants In public housing, managing the aging of existing long-term residents is as important as managing new arrivals. Under this scheme, the company strengthens the guarantee service to address the challenges associated with the aging and long-term residency of existing tenants, while maintaining the established guarantee support.