The Property Deed of Charge provides a formula for calculating the Human Services financial interest on any occasion of funding. It is reproduced here as follows:
Where :
On the first occasion of funding by Human Services, the Human Services funding and financial interest is identified in the Property Deed of Charge.
On future occasions of funding by Human Services, the Human Services funding and the financial interest is identified in the Supplemental Property Deed.
The proportional interest claimed by human services will remain the same or vary in accordance with the ,em>rate at which the organisation and Human Services fund future works.
On the first occasion of funding, a project may comprise either a property purchase or upgrade.
For property purchase projects, "a" = 0% "b" = $0
For upgrade projects, "a" = 0% "b" = $ in valuation (ie sum of market value of land and replacement cost of improvements)
On future occasions of funding (new funding), a project can only comprise an upgrade, so that, "a" = % in Property Deed of Charge "b" = $ in valuation (ie sum of market value of land and replacement cost of improvements)
Human Services may not contribute funds to all future capital works at the property. In cases where organisations fully fund capital works, they must be able to establish a claim for modification of the Human Services financial interest identified in the Property Deed of Charge/Supplemental Property Deed.
In order to substantiate a claim, the organisation must arrange for valuation of the property prior to the capital works being undertaken and provide to Human Services, no later than the 30 June of the financial year in which a construction project is completed, an audited statement of project costs as follows:
The value of works fully funded by the organisation is taken into account on the next occasion of funding by Human Services and incorporated in the formula for calculation of the revised Human Services financial interest, which is identified in the Supplemental Property Deed of Charge.
If the property is to be sold or is subject to an equity exchange or buy-out of interest, then the value of works fully funded by the organisation is also taken into account when the current Human Services financial interest is calculated.