The DoI Minister says the procedure for accessing the Housing Deficiency Fund Remains unchanged since the Housing Agency formed.
In a written reply to Onchan MHK Julie Edge, Minister Tim Crookall said the Housing Deficiency Fund is intended to ensure local authorities do not allow the maintenance of their properties to suffer when rental income does not meet costs.
He said the fund “is not designed to support the construction or purchasing of new properties, and it cannot be used for staffing purposes”.
Housing Deficiency Fund
Mr Crookall explained that the fund is a revenue subsidy mechanism, calculated by the Department of Infrastructure based on each authority’s net housing income and expenditure.
Where eligible expenditure exceeds income, the Department may make a housing deficiency payment, calculated in arrears and forming part of the authority’s housing revenue account.
For housing capital projects, the Minister said funding is accessed through borrowing, not the deficiency fund.
A local authority must petition the Department under Section 51 of the Local Government Act 1985, providing supporting information to seek approval to borrow under the Local Government Borrowing Agreement.
If approved, the Department then seeks Treasury concurrence. A pre‑petition process requires the authority to provide a business case and other project information.
Mr Crookall stated: “The formation of the Housing Agency has not changed the statutory or financial procedures.”
The full written answer can be found here.
