Housing Development Fund: Andium Homes Ltd: Approval of Loan: Langtry Gardens: 30 x One Bedroom Apartments

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A decision made 9 November 2015:

Decision Reference: MD-TR-2015-0115
Decision Summary Title:	Housing Development Fund - Andium Homes Ltd: Approval of loan - Langtry Gardens S3		Date of Decision Summary:	26th October 2015
Decision Summary Author:	Head of Shareholder Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Housing Development Fund - Andium Homes Ltd: Approval of loan in the sum of £4,991,000 (Langtry Gardens S3)		Date of Written Report:	26th October 2015
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt – FOI: Article 33
Subject: Approval of a loan in the sum of £4,991,000 to Andium Homes Ltd for the acquisition of 30 one bedroom apartments at Langtry Gardens S3.
Decision(s): The Minister for Treasury and Resources:- Approved the loan of £4,991,000, at an interest rate of 5.0% to Andium Homes Ltd for a period of 24 years expiring in 2039 and on the basis of the loan Schedule attached (Appendix 2) to the accompanying written report. Authorised the Treasurer of the States to sign the loan agreement in accordance with this Ministerial Decision. Requested that a loan agreement based on the model loan agreement approved in MD-TR-2014-0084 be prepared. Requested that the States are notified of the issuance of the new loan agreement in accordance with regulation 13(4) of the Public Finances (Transitional Provisions)(No. 2) (Jersey) Regulations 2005. This loan will be met from the £207 million allocated from the bond issued and earmarked for lending to Andium Homes Ltd.
Reason(s) for decision: To fund the acquisition by Andium Homes Ltd of 30 one bedroom apartments as approved by the Andium Homes Board. A debt redemption model produced by Andium Homes Ltd demonstrates that the acquisition costs are recovered within the loan period from the additional rents generated in support of P.33/2013: The Reform of Social Housing. The States, in approving P.129/2014 on 22 September 2014 agreed that the Minister could lend under Article 3(3)(b) of the Public Finances Law, 2005 to Andium Homes Ltd.
Resource Implications: There are no additional resource implications, financial or manpower, as a result of this decision.
Action required: Head of Shareholder Relations to produce the necessary loan agreement based on the model loan agreement approved in MD-TR-2014-0084 for signing by the Treasurer of the States. Head of Shareholder Relations to advise the Chief Operating Officer and Finance Director of Andium Homes Ltd that the loan request has been approved and that the loan agreement is being produced.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision: