As secretary of the owners corporation I have had to deal with Housing NSW a great deal and with some success once we figured out how . We have a property which has as neighbours, Housing NSW apartments. Housing NSW also took out a lease on a private townhouse in our complex which did not go well at all.
Housing NSW will make it very, very difficult for you. Their modus operandi is to stall, “lose” things, rotate staff regularly so you have to start again with someone “new” and on an on it goes until you have been so frustrated and exhausted, hopefully you will go away.
You have to have evidence. This has to be hard evidence. Photographs, recordings, all date stamped. Witness statements. You have to be relentless, remain polite and efficient. Believe me, this will exhaust you but if you want that lease on the house next door ended, you’re going to have to work hard for it. There are some good threads on this forum regarding HNSW – take the time to read them. Follow the rules and regulations that HNSW demand in so much as the correct paperwork, rubber stamping (get everything rubber stamped and copied as they are likely to “lose” your statements and evidence).
The worrying thing is that Housing NSW as I understand it, take out 3 year, 5 year and 10 year leases – you are right about your neighbour liking to do business with HNSW. They pay around 25% above market value (I wonder why). When the house is trashed, HNSW will repair it all and hand it back to the owners.
I feel for you and wish you luck. Your local member is a good place to go as well. It may take a while for the member to act, but eventually, with enough reasonable and factual evidence from you they will have to.