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Housing Development Fund: Andium Homes Limited: Draft Model Loan Agreement

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A decision made 18 July 2014:

Decision Reference:  MD-TR-2014-0079

Decision Summary Title:

Approval of the Draft Model Loan Agreement to be issued by the Housing Development Fund to Andium Homes Limited

Date of Decision Summary:

17 July 2014

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:

Approval of the Draft Model Loan Agreement to be issued by the Housing Development Fund to Andium Homes Limited

Date of Written Report:

17 July 2014

Written Report Author:

Head of Shareholder Relations

Written Report :

Public or Exempt?

Public

Subject: Approval of the Draft Model Loan Agreement template to be issued by the Housing Development Fund to Andium Homes Limited.

Decision(s): The Minister for Treasury and Resources approved the Draft Model Loan Agreement template, which is proposed be used for the Housing Development Fund to issue loans planned for up to  £207 million to Andium Homes Limited, a States owned Company Limited by Guarantee, which commenced on 1st July 2014.

Reason(s) for decision:  The States approved in the 2014 Budget (P.122/2013) for the Housing Development Fund to lend up to a maximum of £250 million for housing purposes to Housing Trusts/Associations/companies or Bodies.

 

This approval is for the Draft Model Loan Agreement, referred to in the Draft Budget Statement 2015, under the Appendix for the rules for the operation of the Housing Development Fund.

Resource Implications: None.

Action required: Head of Shareholder Relations to arrange for the issue of the Draft Model Loan Agreement (Appendix 1).

Signature:

 

 

 

Position: Senator P F C Ozouf, Minister for Treasury and Resources

 

Date Signed:

 

Date of Decision:  

Housing Development Fund: Andium Homes Limited: Draft Model Loan Agreement

 

Treasury and Resources

Ministerial Decision Report

 

 

 

APPROVAL OF THE DRAFT MODEL LOAN AGREEMENT TO BE ISSUED BY THE HOUSING DEVELOPMENT DUN TO ANDIUM HOMES LIMITED

 

 

1.  Purpose of Report

 

For the Minister of Treasury and Resources to approve the Draft Model Loan Agreement template to be issued by the Housing Development Fund to Andium Homes Limited.  

 

2.  Background

 

The States approved in the 2014 Budget (P.122/2013) for the Housing Development Fund to lend up to a maximum of £250 million for housing purposes to Housing Trusts/Associations/companies or Bodies.

 

The forthcoming 2015 Draft Budget Statement includes an Appendix setting out the rules for the operation of the Housing Development Fund. This Appendix makes reference that the Minister for Treasury and Resources will approve the Draft Model Loan Agreement by way of Ministerial Decision for the planned loans to be issued from the Housing Development Fund.

 

 

3.  The Draft Model Loan Agreement

 

The draft Model Loan agreement has been prepared in consultation with advice sought from the Law Officers’ Department, Officers from the Treasury and Resources Department and Staff from Andium Homes Limited. (Appendix 1).

 

This model agreement has been prepared for the sole purpose of the Housing Development Fund to issue loans to Andium Homes Limited, a States owned Company Limited by Guarantee, which commenced on 1st July 2014 (formerly the Housing Department).

 

 

4. Recommendation

 

It is recommended that the Minister approve the attached Draft Model Loan agreement template (Appendix 1) and request the Greffier of the States to present the draft agreement to the States.

 

 

  1. Reason for Decision

 

To approve the Draft Model Loan agreement and present it to the States to co-inside with the launch of the 2015 draft budget statement.

 

 

 

  1. Resource Implications

 

None.

 

 

 

 

 

Report author : Head of Shareholder Relations

Document date : 16st July 2014

Quality Assurance / Review : Business Manager

File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0079 - New draft Loan agreement for Andium Homes\WR - Draft Model Loan agreement HDF to Andium Homes.doc

MD sponsor : Head of Shareholder Relations

 

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