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The Tenancy Tribunal has been ordered to rehear Housing New Zealand's (HNZ) case involving efforts to evict a family living in an Auckland state house.
HNZ tried to evict Sharon Salt and her family last year from their state house in Rangeview Rd, Mt Albert.
Neighbours said the family terrorised the street, stopped cars, assaulted residents and visitors and made living there unbearable.
The Tenancy Tribunal refused to grant the tenancy termination order after a lengthy hearing, but has been ordered to rehear the case by the Auckland District Court.
"This judgement is significant for all residential landlords," HNZ operations director Celia Patrick said.
"It quashes a ruling by the Tenancy Tribunal that, if left in place, could have altered the legal balance between a tenant's rights and a neighbour's rights."
HNZ argued that the tribunal had significantly erred in the way it had run the hearing, and in the way it had applied the law, she said.
"The judgement has provided valuable guidance on what the Tribunal needs to consider in any future cases when deciding if a tenant's behaviour is causing significant disturbance to the neighbourhood."
HNZ will wait for the Tribunal to set a new hearing date.
- NZPA