Section 1 Name of the investment mandate – Section 1 provides that the title of the investment mandate is the National Housing Finance and Investment Corporation Investment Mandate Direction 2018. Section 2 Commencement – Section 2 provides that the investment mandate commences the day after it is registered. Section 3 Authority – Section 3 provides that the investment mandate is made under sub-section 12(1) of the National Housing Finance and Investment Corporation Act 2018 (the Act). Section 4 Definitions – Section 4 provides definitions for the building contract”, “AHBA”, “capacity Financier”, decision”, proposal”, “Commercial “financing “financing “infrastructure loan, grant or investment”, target value”, Fund” and “minimum “NHIF”, “Permanent proponent”. Other terms used in the investment mandate that are defined in “project the Act (such as and community housing provider”) take on the “NHFIC” “registered meaning given by the Act, as per section 13 of the Legislation Act 2003. Section 5 Purpose of the investment mandate – Section 5 provides that the purpose of the investment mandate is to give directions to the Board in relation to the operation of the National Housing Finance and Investment Corporation (the NHFIC). Part 2 Activities and allocation of funds – Division 1 The Corporation’s activities – The NHFIC is required to engage in two activities to support investment in Australian housing: the establishment and operation of an Affordable Housing Bond Aggregator (AHBA) to provide finance to registered community housing providers by aggregating their lending requirements and issuing bonds to institutional investors; and the establishment and operation of the National Housing Infrastructure Facility (NHIF) to provide grants and finance to support the creation of housing-related infrastructure. The NHFIC is also permitted to engage in capacity building services to support registered community housing providers. The NHFIC must operate with a commercial approach when making financing decisions. The NHFIC may not spend money, or make loans, investments or grants for any other purpose unless it is incidental to the permitted activities.
Section 1 – Name of the investment mandate Section 1 provides that the title of the investment mandate is the National Housing Finance and Investment Corporation Investment Mandate Direction 2018. Section 2 – Commencement Section 2 provides that the investment mandate commences the day after it is registered. Section 3 – Authority Section 3 provides that the investment mandate is made under sub-section 12(1) of the National Housing Finance and Investment Corporation Act 2018 (the Act). Section 4 – Definitions Section 4 provides definitions for the “AHBA”, “capacity building contract”, “Commercial Financier”, “financing decision”, “financing proposal”, “infrastructure loan, grant or investment”, “minimum target value”, “NHIF”, “Permanent Fund” and “project proponent”. Other terms used in the investment mandate that are defined in the Act (such as “NHFIC” and “registered community housing provider”) take on the meaning given by the Act, as per section 13 of the Legislation Act 2003. Section 5 – Purpose of the investment mandate Section 5 provides that the purpose of the investment mandate is to give directions to the Board in relation to the operation of the National Housing Finance and Investment Corporation (the NHFIC). Part 2 – Activities and allocation of funds Division 1 – The Corporation’s activities The NHFIC is required to engage in two activities to support investment in Australian housing: the establishment and operation of an Affordable Housing Bond Aggregator (AHBA) to provide finance to registered community housing providers by aggregating their lending requirements and issuing bonds to institutional investors; and the establishment and operation of the National Housing Infrastructure Facility (NHIF) to provide grants and finance to support the creation of housing-related infrastructure. The NHFIC is also permitted to engage in capacity building services to support registered community housing providers. The NHFIC must operate with a commercial approach when making financing decisions. The NHFIC may not spend money, or make loans, investments or grants for any other purpose unless it is incidental to the permitted activities.
NHFIC-Investment-Mandate-Explanatory-Statement-1.docx