Jersey Homes Trust: Annual Payment Agreement

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A decision made on 9 January 2017:

Decision Reference: MD-TR-2017-002
Decision Summary Title:	Jersey Homes Trust (JHT) – Annual Payment Agreement.		Date of Decision Summary:	3rd January 2017
Decision Summary Author:	Head of Shareholder Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Jersey Homes Trust (JHT) – Annual Payment Agreement.		Date of Written Report:	3rd January 2017
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	FOI Art.33 – Commercial interests.
Subject: Jersey Homes Trust (JHT) – Annual Payment Agreement.
Decision(s): The Assistant Minister approved and agreed to sign the Annual Payment Agreement between the States of Jersey and Jersey Homes Trust.
Reason(s) for Decision: The States in approving P.33/2013: The Reform of Social Housing agreed a rent policy of a return to near market fair rent levels of up to 90% for all Social Housing Providers. This was to be implemented on all new tenancies after 1st April 2014. It was acknowledged that this would result in additional cost to the Income Support Scheme from claimants of Income Support in Housing Trust properties. Initial analysis was that this additional Income support cost would build over many years as new tenancies were created. It was further agreed as part of P.33/2013 that this additional cost of Income Support would be funded by the Housing Trusts themselves, as they would be in receipt of additional rental income over and above previously expected levels. Indicative figures were included in P.33/2013 for this additional annual income to be paid to the States by the individual Housing Trusts. These figures were based on a proposed methodology produced by the Housing Department as part of the business case for Incorporation. Provision for this payment has been included in the income forecasts for the States of Jersey and is reflected in the current MTFP and Budget.
Resource Implications: The States of Jersey will receive annual payments from JHT in line with the illustration as set out in Schedule 1 of the Annual Payment Agreement. There are no additional financial or manpower costs arising as a result of this decision.
Action required: The Head of Decision Support to notify the Head of Shareholder Relations once the decision has been approved. The Head of Shareholder Relations to ensure that after the Agreement has been signed by the Assistant Minister that it is also signed by the Chairman of JHT.
Signature:		Position: Connetable J M Refault, Assistant Minister for Treasury and Resources
Date Signed:		Date of Decision: