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Andium Homes Ltd: Amendment to terms of certain Housing Development Fund loans

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

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  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

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A decision made on 21 March 2022

Decision Reference:  MD-TR-2022-192

Public

Subject: Andium Homes Ltd: amendment to terms of certain Housing Development Fund loans

 

Report Title: Andium Homes Ltd: amendment to terms of certain Housing Development Fund loans

Public

Decision(s):

The Minister for Treasury and Resources, as representative of States of Jersey as Guarantor (the 'Guarantor'),  approved the variation of the interest rates on certain loans extended to Andium Homes Limited ('Andium') from the Housing Development Fund ('HDF') and the corresponding Agreement to vary the terms between the Guarantor and Andium.

Reason for Decision(s):

In approving P.90/2021: Government Plan 2022-2025 as amended, the States Assembly approved a change to the Social Housing Rents Policy whereby social rents were capped at 80% of the market rate from 2022 onwards. This change to the Policy had an impact on the income received by Andium and its business model. The reduction in the interest rates charged on certain loans extended to Andium from the HDF was proposed by the Minister for Housing and Communities as a partial mitigation of the impact of the 80% social housing rents policy on Andium’s business model in the medium-term.

Resource Implications: The reduction in interest rate charged on certain loans from the Housing Development Fund (“HDF”) will result in reduced income for the HDF for the period 2022-2025 of some £1.05 million. There are no additional resource implications, financial or manpower as a result of this decision for the Government of Jersey

 

Action Required: The Head of Financial Governance to notify the Head of Shareholder Relations once this decision has been approved.   The Head of Shareholder Relations to send the signed Agreement to Andium Homes for Board approval.

Signature:

 

 

Signed By: Minister for Treasury and Resources

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

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