Review of Policy HD31 Homebuy Criteria

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A decision made (04.12.2008) to approve the reviewed Homebuy Criteria Policy (HD31)

Decision Reference: MD-H-2008-0118
Decision Summary Title :	DS – Review of Policy HD31 Homebuy Criteria		Date of Decision Summary:	03 December 2008
Decision Summary Author:	Dominique Caunce – Director of Tenant Services		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Oral		Person Giving Oral Report:	Dominique Caunce
Written Report Title :			Date of Written Report:
Written Report Author:			Written Report : Public or Exempt? (State clauses from Code of Practice booklet)
Subject: A policy to set out the qualifying criteria for Jersey Homebuy, a new deferred payment housing scheme, which has now been reviewed.
Decision(s): The Minister approved the reviewed Policy and in doing so, rescinded MD-H-2008-0095.
Reason(s) for Decision: To ensure that robust and transparent qualifying criteria exists for eligibility for Jersey Homebuy.
Resource Implications: NIL
Action required: Director of Tenant Services to ensure that all Homebuy applicants are assessed for Jersey Homebuy using the strict criteria set out in Policy HD31
Signature:		Position: MINISTER
Date Signed:		Date of Decision (If different from Date Signed):

Review of Policy HD31 Homebuy Criteria

POLICY HD31

STATES OF JERSEY HOUSING DEPARTMENT

QUALIFYING CRITERIA FOR THE “JERSEY HOMEBUY” GATEWAY

The “Gateway” is predominantly a means-test to ensure that homes being sold under the Jersey Homebuy scheme are targeted at those who are most in need of the discounted prices and would otherwise be unable to afford to purchase a First Time Buyer Home in the open market.

The Housing Department is responsible for assessing applications for Jersey Homebuy through this “Gateway” and, on acceptance of an applicant, will provide a certificate which will be valid for 12 months and can be presented to any “Not for Profit Body” to assist in the allocation of Jersey Homebuy homes.

Who will qualify to purchase?

Applicants for Jersey Homebuy will be successful if they meet the following criteria:-

 Applicants must be suitably residentially qualified and be first time buyers. Following a review of the Policy in December 2008, applicants who have previously purchased share transfer or flying freehold property are NOT excluded from this scheme;

 Applicants must have a gross (joint where applicable) taxable income of between £40k and £60k per annum;

 For 3 bedroom properties or larger, applicants must have at least 1 child living with them as their principal place of residence.

Application Process

Applicants will be asked to complete a form which will request the following information:-

 The 3 preceding years income tax assessments; and

 Current salary statement(s) not more than 3 months old; and

 Birth Certificates for all children of the household. In cases of joint care arrangements, evidence will be required to confirm the child’s principal place of residence is with the applicant; and

 Any other information reasonably required to satisfy the Minister for Housing of the applicants eligibility for Jersey Homebuy

Internal Process

Anyone enquiring about the Jersey Homebuy Scheme will be given details relating to the qualifying criteria, as confirmed in Policy HD31. If they wish to apply for the scheme they will be asked to complete a Homebuy Application Form.

Applicants will be asked to submit the completed application form along with certain evidence to support their income details and family status. Specifically, they will be asked to enclose:-

 Income Tax Assessment for 2004, 2005 and 2006;

 Confirmation of earnings for 2007;

 Current salary slip;

 Copies of child or children’s birth certificates.

 Any other information deemed necessary to allow the Minister to reach a conclusion as to the gross household income

On receipt of the completed application form and all requested enclosures, the applicant will be assessed for the scheme through the Gateway.

Those qualifying will be provided with a qualification certificate which will be valid for 12 months. The sale of any individual house can only be to the persons named on the certificate and the certificate will contain a clause which will require that the holder advise the Minister of any material change in circumstances within the 12 month period thus avoiding the situation where an individual gets married or gets a new job after qualification and doesn't therefore qualify any longer.

The certificate must be presented to any “Not for Profit” Body which has been set up to sell homes under the Jersey Homebuy Scheme.

“Not for Profit” Body (NPB)

The NPB would not be a limited liability company and would be either the Public, Parish or a Trust.

It is proposed that the NPO’s be established under the Loi (1862) sur les teneures en fideicommis et l'incorporation d'associations, as amended.

This is the Law under which existing housing trusts are established and requires registration in the Royal Court.

The NPB will be responsible for the allocation of all Jersey Homebuy homes in strict accordance with Policy HD31.

Allocation Process

Much thought has gone into finding a fair and transparent means of allocating homes to qualifying applicants given that demand is likely to far outstrip supply. In consultation with the Housing Sub-Panel of The Health, Social Security and Housing Scrutiny Panel it has been agreed that the best way of ensuring this will be for all qualifying applications received on or before the deadline date given for each phase to be entered into a draw. This draw will be made by an independent person.

Those applicants who have been successful at the draw will be asked to provide the NPB with written confirmation of their First Time Buyer status from their Lawyer.

Appeal Process

Applicants who have been disqualified from the scheme and wish to appeal are requested to do so in writing to the Housing Minister, providing a detailed case as to the basis of their appeal.

Applicants who have received a certificate confirming their eligibility for the scheme, but wish to appeal having been unsuccessful in being allocated a property, are requested to do so in writing to the NPB, providing a detailed case as to the basis of their appeal.

The Minister shall have absolute discretion in the application of the Gateway and may after considering specific evidence accept an applicant as being a person who would be in need of assistance in order to acquire property and to whom Homebuy qualification should be granted to acquire the residential accommodation, notwithstanding the fact that he does not fall within the strict qualification criteria and where refusal of the application might create undue hardship.

Effective Date

This policy already has approval from the Health, Social Security and Housing Scrutiny Panel and becomes effective from the date Housing Ministerial Approval is obtained.

Policy Drafted	August 2008	D Caunce Director of Tenant Services

Policy Reviewed	December 2008	D Caunce Director of Tenant Services