A MERCEDES is parked in the driveway of one govern

A MERCEDES is parked in the driveway of one government-owned Logan home and a number of reported tenants are falsely claiming they have wives and children to stay in three-bedroom public houses, according to Neighbourhood Watch.

These are just some of the looming social housing issues facing Queensland's Minister for Housing Bruce Flegg, who last week sent out letters to Logan public housing tenants requesting those with spare rooms to voluntarily move out or let strangers move in with them.

Woodridge pensioner Joy Wright has lived in her three-bedroom home for 41 years where she raised five children.

"No way in the world am I going to respond to the letter," she said.

"I feel sorry for other older people in the same situation - the government has really scared them.

"The government knows nothing about their health conditions and to ask them to move out or share their home with someone is ridiculous."

Under occupancy is the government's main concern with 30,000 Queenslanders currently on the waiting list for public housing.

In Logan there are 2421 applications waiting for vacancies in the city's 4735 government-managed dwellings.

Of those occupied homes, 24% have two or more vacant bedrooms.

According to Mr Flegg 80% of those on waiting lists are single parents with children.

"Current figures indicate the social housing system is headed towards a $140 million deficit by 2015-2016," he said.

"We estimate there are more than 8700 public housing properties that have two or more additional bedrooms than needed by the occupants.

"It makes no sense for a single person to live in a two of three bedroom house that would be more suitable for a single parent with a child or a family of four."

But to stay in her three-bedroom home, Ms Wright's rent has skyrocketed from $80 per fortnight to $155 per week.

"I'm staying here until I die. They'll have to get the force in to get me out," she said.

When Ms Wright approached the Department of Housing about how she was meant to afford the rent increase on a $315 weekly pension, she was given a list of paper with charities she could get food or vouchers from.

"I was so insulted," the community volunteer of 15 years said.

Rising rents and cost of living is pushing more people to look for more affordable options in public housing, but according to Dr Flegg, the State Government has no money to build new homes.

He said the maintenance and upgrade costs of social housing were also increasing, while rent revenue was decreasing.

A spokesman for Rochedale South Neighbourhood Watch said of the 640 homes in their area, 320 were public houses.

Dr Flegg said the government had been forced to take a tough stance on those who abused the system.

"We are therefore implementing an amnesty for social housing tenants who have undeclared household members living with them.

Tenant's have until Friday, July 27 to notify the Department of Housing and Public Works of any undeclared household members living in their social housing property.

If they do not, undeclared household members will not be considered when the department under occupancy or transfer to a smaller property, or tenants will be forced to pay back rent at 25% of their household income.

"We are looking at ways to better match people with properties suited to their needs, and redeveloping ageing multi-bedroom stock to provide higher density, mixed tenant solutions," Mr Flegg said.

Ms Wright encouraged residents to sign a petition against the government's proposal by visiting State Member for Woodridge Desley Scott's office.