Government of Jersey

Information about the publication of Ministerial Decisions

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.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

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
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

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The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 10 January 2012:

Decision Reference: MD-H-2011-0118
Decision Summary Title :	DS – Approval of Policy HD42		Date of Decision Summary:	28th December 2011
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Policy for Calculating the Deferred Payment Entitlement for P.6/2007 Property Plan Sales		Date of Written Report:	28th December 2011
Written Report Author:	Finance Manager (updated existing document)		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: An update to the policy for calculating deferred payments for applicable property sales. See changes tracked in attached policy.
Decision(s): The Minister approved Policy HD42.
Reason(s) for Decision: To ensure that multiples of incomes are considered appropriately when granting deferred payments on property sales.
Resource Implications: NIL
Action required: Finance Manager to ensure that relevant staff members are informed of update to policy HD42.
Signature:		Position: MINISTER
Date Signed:		Date of Decision (If different from Date Signed):

Policy HD42 - Approval: Calculating deferred payments for applicable property sales

Policy HD42

States of Jersey Housing Department

Policy for calculating the deferred payment entitlement for P6/2007 Property Plan sales

Purpose of the policy

This policy aims to create a robust way of calculating the most appropriate level of “deferred payment” that a purchaser is entitled to when buying a home through P6/2007, the Social Housing Property Plan 2007 – 2016. It is accepted that properties can only be sold to current social housing tenants, and as such, further accepted that the Minister for Housing is trading some immediate financial value for social benefit in accordance with a decision made by the States Assembly.

The “deferred payment”

The Property Plan provides an opportunity for States tenants (and those Trust tenants originally nominated by the Housing Department) to purchase a home at the full first time buyer market value. It also allows the Housing Minister to offer up to a maximum of a 25% deferred payment, depending on the applicant’s financial circumstances, which is repayable when the property is next conveyed.

When calculating the deferred payment entitlement, the Department will take into account the purchaser’s gross income, savings and age in respect of years available for a mortgage. At all times, the Department will be looking to secure the lowest possible deferred payment amount.

Income

As a general rule, the Department proposes to use 4.0 to 4.5 times gross income for this calculation. This multiple~~percentage~~ will be regularly reviewed under advice taken from the Treasury Department.

The Department will accept multiples outside of this range if there is justification to do so in the circumstances. For example, we may accept a lower multiple in a circumstance where a mortgage provider is only willing to loan a lower multiple. This may be because the mortgage term is shorter due to the age of the purchaser. In any such circumstances the rationale will be noted in the ministerial decision.

Savings and investments

The first £15,000 of any savings or investments will be ignored but buyers will be expected to put any remaining savings or investments towards the purchase of their home.

Savings can derive from numerous routes, whether they be true savings, divorce settlements, insurance pay outs etc. The source of the funds will be considered by the Housing Minister and should he feel it is justified, he may permit an additional £15,000 to be retained by the purchaser. This is entirely at the discretion of the Housing Minister.

A “deferred payment” calculator, mathematically formulated to take into account all of the above, has been developed and is attached at Appendix 1.

Appeals process

Purchasers who wish to appeal against their “deferred payment” entitlement are asked in the first instance to write to the Director of Strategic Development~~Sales & Lettings~~. If matters can not be resolved, the case will be heard by the Housing Minister who ultimately makes the decision.

Effective date

The policy shall become active on the date on which the respective Ministerial Decision was signed by the Minister.

Policy Drafted	28th August 2009	D Caunce Director of Sales & Lettings

Policy Reviewed	Date	Reviewed by
Minor changes made to the text of the report and calculator	19 November 2009	Decision Making Team
NIL	12 December 2010	C Mavity
Policy reviewed and updated with regard to income multiples	28 December 2011	Lindsay Wood Finance Manager

Update Policy Register with Review Date

Policy Register.xls