11AHBA reserve

11 AHBA reserve

(1) The Board must allocate to a reserve for the AHBA amounts that Housing Australia borrows from the Commonwealth, out of money appropriated by the Parliament for the purpose of the reserve. (2) The Board may allocate up to $4 billion to the AHBA reserve. (3) Subject to subsection (5), an amount allocated to the reserve (an allocation) must relate to a particular loan by Housing Australia to a registered community housing provider. (4) For each allocation, being an amount that relates to a particular loan to a registered community housing provider, Housing Australia must, within the time periods set out in subsection (4A): (a) repay to the Commonwealth an amount equal to the loan; and (b) pay an amount to the Commonwealth to cover the Commonwealth’s cost of borrowing relating to the loan.

Note: The amount referred to in paragraph (a) is to be credited to the Housing Australia Special Account established under subsection 47A(1) of the Act. The amount referred to in paragraph (b) does not affect the Housing Australia Special Account.

(4A) Housing Australia must pay or repay the amounts to the Commonwealth before the end of the 6-month period which begins on the earliest of the following: (a) the day the registered community housing provider repays the loan; (b) the day the registered community housing provider is required to repay the loan; (c) the day Housing Australia raises finance by the issue of bonds for a purpose that relates to the loan.

Note: The AHBA operates by Housing Australia making loans to registered community housing providers, using money borrowed from the Commonwealth, and by raising finance by the issue of bonds on the commercial market (see Part 3).

(4B) Upon receiving a written request from Housing Australia in relation to a particular loan or loans, the Minister may extend the time for Housing Australia to pay or repay an amount to the Commonwealth if the Minister is satisfied it is appropriate in all the circumstances to do so. (5) An allocation may be used by Housing Australia for a purpose other than to make a loan to a registered community housing provider with the approval of, and in accordance with terms and conditions agreed with, the Minister and the Minister for Finance. Housing Australia must repay to the Commonwealth an amount equal to the allocation, adjusted to cover the Commonwealth’s cost of borrowing, in accordance with those terms and conditions, and reduce the reserve by the allocation. (6) Housing Australia must aim to maintain the reserve in the medium to long term at no more than one third of its total liabilities in relation to the AHBA. (7) Housing Australia must develop a business plan to achieve that aim, and provide a copy to the Minister by 30 June 2019.