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1240/5(2822)
WRITTEN QUESTION TO THE MINISTER FOR HOUSING BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 4th APRIL 2006
Question
- Will the Minister release to membersthe draft legislation on the regulation ofHousing Trusts currently underhis consideration, along with any associated reports, background papers and consultation submissions?
- Will the Minister liaise with the Minister for TreasuryandResourcesregarding the report entitled "Benchmarking against U.K. Housing Association Performance Indicators", referred to in the 9th AnnualReportof the Jersey HomesTrust(JHT) dated January 2005, with a view to releasing this tomembers and, if not, the reasons why?
- Extracts from the BenchmarkingReportmentioned in (b) abovereveal the following 2003 JHT figures:
Gross rentals £3,500,805 Property expenses £264,678 Operating expenses £322,325
Do the total costs of £587,003 (16.7%) conform to any agreements in place with the
Minister regarding the level of such costs in view of States subsidies on housing trust schemes and rent abatement payment?
- In the AnnualReportofJanuary2005, the JHT Chairman states:
"It (the JHT) is fully accountable to the Housing and Finance and Economics Committees
and operates transparently under well understood safeguards and protocols".
Will the Minister release to members details of these safeguards and protocols, and if not,
the reasons why?
Further, the Report states:
"The work of the Trust is out-sourced under a strict code of conduct. This code specifically
permits the awarding of contracts for remunerated services to firms having a connection with a Trustee".
Has the Minister been provided with this code of conduct and, if so, would he agree to
provide it to members?
Answer
- Yes. Anymemberrequiring a copyof this information should contact the Housing Department.
- The report for the year ending 2004, referred to in the question, and the equivalent report for2005 have been circulated to membersbye-mail.
- Yes. Individual scheme models tend to have 18-20% rental income offset for management,maintenanceandvoids over the loan repayment period. The models don't represent an agreement, rather a basis for establishing affordability. The letters of comfort are reviewable quinquennially and the level of financial support can be amended if therewere a significant departure from the modelassumptions.Should the
Trust make profits above that necessary for the long term maintenance of its stock or future
development, the Trust's constitution requires that such funds are repaid to the States.
- The safeguards are embodiedin the formal Royal CourtContractbetween the JHT, and the States, as well as the Constitutionof the JHT,(whichwasapprovedby the former Finance andEconomics and HousingCommitteesand the LawOfficers' Department and registered in the RoyalCourt).The Regulations attached to the constitution govern the negotiation and conductof contracts entered into bythe trust, includingrelated party contracts. Thesafeguardsinclude,forexample,theappointmentofTrusteesbeing subject to approval by the HousingMinister,making trust properties only available for social rental purposes and not for sale, there beingnoremunerationofTrustees, the submission ofannualaccounts,80% nomination rights by the HousingDepartmenton all new developments in receipt ofStatessubsidy,and rentals that mustnotexceed Housing Departmentfair rents. Anymemberwho would like a full copy of the codeof conduct should approach the Housing Department.