Community loans policy

Contents | Introduction | Framework for the policy | Implementation | Loans pool | Monitoring and review | Appendix

Introduction

This policy has been developed to guide the assessment of community loans. The policy covers small loans, medium loans and large loans for recreational, community, sporting, arts or cultural facilities of local, citywide, regional or national significance in Auckland City. For the purposes of this policy, a community loan is defined as a loan given to a community group from the Auckland City Community Loans pool and from the former Hillary Commission funding (held in trust by the Auckland City Council). The policy also covers Concessionary Interest Grants. Under this policy, community groups are those with recreational, community, sporting, arts or cultural purposes.

This policy updates, consolidates and replaces the previous Loans and Loan Guarantees Policy (1995) and the previous Large Loans Policy for Community Loans Over $200,000 (updated 2002). Loan guarantees and overdraft guarantees are discontinued from this point, with the exception of existing loan guarantee agreements.

The policy sets out to define what council wants to achieve from these loan agreements, how it will make decisions in relation to each loan application and the parameters in which these loan agreements will be formed. The policy will assist with transparency and fairness of decision-making, and define accountability in order to demonstrate good stewardship of public funds.

The policy falls under the umbrella of the Community Group Assistance Policy. The Community Loans Policy does not cover partnerships formed under the Facility Partnerships Policy but sets out to complement that policy.

Published July 2005