Returning accumulated unspent receipts
9 Returning accumulated unspent receipts
This section applies if—
a funding agreement is in force; and
the funding agreement relates to a funded property; and
the funded provider is not required, under the funding agreement, to pay the chief executive amounts, consisting of receipts for a housing service, that the funded provider has not spent, either—
while the funding agreement is in force; or
when the funding agreement ends.
The chief executive may, by written notice (a payment notice) given within 12 months after the end of a financial year (the notice year), require the funded provider to pay an amount of not more than an amount equal to the accumulated unspent receipts to the chief executive.
If the funded property to which the funding agreement relates was not acquired, constructed or improved wholly using receipts, the accumulated unspent receipts amount must be reduced by the offset percentage.
The funded provider must pay the amount stated in the payment notice to the chief executive within 8 weeks after the day the funded provider receives the written notice.
In this section—
accumulated unspent receipts means an amount equal to the receipts amount less—
the spent amount; and
the repaid amount.
offset percentage means the amount of money other than receipts that is used to acquire, construct or improve a funded property, expressed as a percentage of the total cost of acquiring, constructing or improving the funded property.
Example—
A funding provider acquires a property for $1,000,000, using $750,000 of receipts and $250,000 of the provider’s own money. The offset percentage is 25%.
receipts amount means the amount of receipts, other than funding, for the housing service received by the funded provider, as at the end of the notice year.
repaid amount means the amount of receipts, other than funding, the funded provider has paid to the chief executive as at the end of the notice year.
spent amount means the amount of receipts, other than funding—
the funded provider has spent, as allowed under the funding agreement, as at the end of the notice year; or
the funded provider has retained, with the written approval of the chief executive, as at the end of the notice year.
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