Residential Tenancy (Deposit Scheme) (Jersey) Regulations 2015: Appointment of Scheme Administrator

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A decision made 17 September 2015:

MINISTERIAL DECISION REFERENCE: MD-C-2015-0111
DECISION SUMMARY TITLE: Residential Tenancy (Deposit Scheme) (Jersey) Regulations 2015 – Appointment of Scheme Administrator
DECISION SUMMARY AUTHOR:	Policy Officer Strategic Housing Unit	IS THE DECISION SUMMARY PUBLIC OR EXEMPT? (if exempt state clause from Code of Practice booklet and from 1st January 2015 stating the relevant article/paragraph of the Freedom of Information Law/Regulations)		Public
REPORT TITLE: Residential Tenancy (Deposit Scheme) (Jersey) Regulations 2015 – Appointment of Scheme Administrator
REPORT AUTHOR OR NAME OF PERSON GIVING REPORT: (if different from Decision Summary Author)	Policy Officer Strategic Housing Unit	IS THE REPORT PUBLIC OR EXEMPT (if exempt state clause from Code of Practice booklet and from 1st January 2015 stating the relevant article/paragraph of the Freedom of Information Law/Regulations)		Public
DECISION AND REASON FOR THE DECISION: The Minister for Housing: a) Agreed the acceptance of tender and awarded by signature the contract to Tenancy Deposit Solutions Limited (t/a mydeposits Jersey) for a residential tenancy deposit scheme in Jersey. b) Decided to appoint Tenancy Deposit Solutions Limited as the scheme administrator to establish and maintain a residential tenancy deposit scheme in accordance with Regulation 3 (1) of the Residential Tenancy (Deposit Scheme) (Jersey) Regulations 2015.
RESOURCE IMPLICATIONS: There are no resources implications arising from the Ministerial Decision.
ACTION REQUIRED: The Minister for Housing is asked to sign the contract with Tenancy Deposit Solutions Limited for the provision of a tenancy deposit scheme.
SIGNATURE:			POSITION: Deputy Anne Pryke Minister for Housing
DATE SIGNED:			EFFECTIVE DATE OF THE DECISION:

Residential Tenancy (Deposit Scheme) (Jersey) Regulations 2015: Appointment of Scheme Administrator

Minister for Housing

Strategic Housing Unit

Appointment of scheme administrator for a tenancy deposit scheme

Recommendation to the Minister for Housing

Introduction

1.1. This report presents the recommendation of the Strategic Housing Unit to the Minister for Housing in respect of the appointment of a scheme administrator to establish and maintain a tenancy deposit scheme in Jersey.

1.2. It is recommended that the Minister appoint Tenancy Deposit Solutions Limited (trading as mydeposits Jersey) as the scheme administrator for a tenancy deposit scheme in accordance with Regulation 3 (1) of the Residential Tenancy (Deposit Scheme) (Jersey) Regulations 2014.

1.3. The recommendation follows a procurement process undertaken by the Strategic Housing Unit, and follows the finalisation of contractual arrangements with the preferred scheme administrator.

Background

2.1. The Residential Tenancy (Deposit Scheme) (Jersey) Regulations were agreed by the States on 14th July 2014. The Regulations provide the legal framework for a scheme to protect deposits paid in connection with a residential tenancy.

2.2. The purpose of a scheme is to prevent deposits from being held unfairly by landlords, and to increase protection for landlords and tenants by making available an alternative dispute resolution service where disagreements arise over the return of deposit money.

2.3. The Regulations give the Minister for Housing responsibility for appointing a person to set up and maintain a scheme as soon as reasonably possible after the Regulations come into force. The Regulations came into force on 28th February 2015.

2.4. Following the States Assembly adopting the Regulations, the Strategic Housing Unit began a procurement exercise in late 2014 to secure a suitable provider to set up and maintain a scheme as prescribed by the Regulations.

2.5. Having reviewed the tender bids, it was the view of the evaluation panel that Tenancy Deposit Solutions provided the most advantageous bid which satisfied the requirements of the Regulations and the specifications set out in the Invitation to Tender.

2.6. It was the view of the panel that Tenancy Deposit Solutions:

Satisfied the requirements of the Regulations;
Provided a business plan for a self-financing scheme, including fee proposal
Demonstrated considerable understanding of the brief;
Displayed awareness of the complexities of working in Jersey;
Had proven experience of similar work in other jurisdictions; and
Proposed appropriate customer service facilities, including ADR service.

2.7. The Minister therefore selected Tenancy Deposit Solutions as the preferred provider for a tenancy deposit scheme on 28th May 2015 (MD-C-2015-0060) and invited the company to begin contractual discussions, subject to further due diligence and clarification of certain aspects of the bid.

2.8. The Strategic Housing Unit has since discussed draft contractual arrangements with Tenancy Deposit Solutions with support of Law Officers and ascertained assurances around a time-table to launch the scheme; the holding of deposits in regulated financial institutions; and the protection afforded to deposit money in the event of bank failure.

2.9. Having now reached agreement with Tenancy Deposit Solutions, the contract will be signed on 17th September 2015 with a view to the scheme beginning on 2nd November 2015. During this period, mydeposits will hold several stakeholder workshops to explain the scheme and how it will work to landlords and letting agents.

Financial and resource implications

3.1. There are no financial or resource implications arising from the decision to appoint Tenancy Deposit Solutions (t/a mydeposits Jersey) as the preferred provider for a tenancy deposit scheme.