Reading Whale's post, it strikes me that there are plenty of provisions for dealing with problem tenants (whether or not they are Housing NSW's sub-tenants).
There are parts of Sydney that are considered no-go areas because of massive Housing NSW blocks where there are third and fourth generation unemployed and anti-social behaviour is part of the cultural norm.
It strikes me that if there is some way of giving a hand up to the odd family that has a chance of dragging itself out of this quicksand of deprivation, then we should do so. You would hope that Housing NSW would put their best and not their worst clients in these sub-lets … and one way to make sure that happens is to issue Notices To Comply to Housing NSW, as Whale described, if and when things go wrong.
Yes , there will be yahoos and idiots – but they could just as easily be owners (like the father who bought a flat for his teenage son and his mates so they could have somewhere to party and not bother him.)
Otherwise, the only people who are against second chances are those of us who've never needed one … so far.