This section details what finance sections must do in order to provide an opinion on the consent to mortgages.
Data to be submitted by RHAS
In order to ensure the consent to the charge required by the Department (under Article 13 of the Housing (Northern Ireland) Order 1992) is executed efficiently and on a timely basis, finance section, who are required to provide an opinion on the consent, will carry out the following procedures.
Financial Information required from RHAs
- Application in writing setting out fully the circumstances of the funding application (eg full details of what the funding is for) and any rationale or assumptions used in financial analysis.
- Full details of the properties to which the funding is to be charged against, such as valuations, mortgage details etc.
- Details of the current levels of borrowing in place, including information relating to drawn down and undrawn facilities.
- A copy of the business case and all documentation submitted to the financial institute who awarded the funding.
- A copy of the decision given to the Association by the lender setting out the funding agreement details (facility letter/funding agreement and the details of all covenants).
- A business case and cash flow statements (short and long term) if these were not submitted as part of the funding application to the lender.
- Certification statements that the funding falls within the Association’s borrowing limits and that the new loan will not breach the covenants with existing borrowers.
The Department's Finance aim to have the work completed within 10 working days from the receipt of all the information required, to provide their financial opinion on the consent to mortgage charge. The Department aim to have mortgage documents signed within 10 working days from completion of finance review.
For more information see “Privately Financed Schemes” in the Governance guide