property...

Background

In 1999, CHFA was assigned the function of assisting DHBs to dispose of surplus property assets thereby releasing funds from under performing assets for reinvestment in the sector.  The property unit has a core competency in the management and disposal of surplus properties and compliance with all of the necessary statutory clearance and other regulatory processes.

In August 2005, the Property function was expanded to include the provision of other services including advice on acquisition, development, construction, leasing and rationalisation of DHB properties.  A growing number of DHBs are seeking advice from CHFA in these specialist property areas. 

There is no Crown funding or appropriation available for the property functions.  Capital funding for property purchases and all of our holding costs is provided for by way of bank loan.  The function has an objective to break even and all of its costs are covered by way of risk sharing with DHBs in the disposal process and income earned from advisory and agency services.  Incentives are appropriately aligned such that we are always focused on delivering the best possible financial outcome for our DHB clients. 

Disposal

The CHFA seeks to provide property services that assist DHBs to efficiently dispose of surplus properties, minimise the delays associated with the clearance processes, maximise the capital proceeds available for reinvestment in more productive assets and, overall achieve a more effective and efficient property estate.

The CHFA property disposal service allows DHBs to sell properties to the CHFA without them having to undertake the statutory clearance processes and thereby enabling an earlier release of capital for immediate reinvestment.  The CHFA then proceeds to work through the necessary processes before disposing of the property.  Other sale mechanisms require the DHB to have completed the clearance process before disposal can be effected.

Disposal of surplus Crown property assets can be complex and time consuming.  It is unrealistic that all DHBs should have access to in-house capability and the CHFA offers the sector consistency in approach and assurance of compliance with the very complex policy settings and regulatory requirements.

Property Advice

DHBs operate in a complex environment which is susceptible to a high degree of financial risk for non-compliance with statutory requirements and building legislation.  The CHFA offers specialist property advice to DHBs aimed at achieving outcomes that ensure compliance with these statutory requirements, follow good commercial business practice and are cost effective.

DHBs have always been free to seek the advice and assistance of others when selling surplus property or seeking property advice.  However, a central agency like CHFA offers the sector many advantages and added value, including our experience in the health sector and understanding of DHB property estate needs, knowledge of the statutory environment, consistency of approach and our property sector networks.