Statement re H Corp Consents

RNS Number:5504Y
Funding For Homes Ld
16 February 2006

Funding For Homes Limited

Funding For Homes Limited #183,000,000 10.125 per cent. Debenture Stock 2018 
("the Stock")

Funding For Homes Limited notes the announcement made on 14th February, 2006 to
Parliament by Housing Minister Yvette Cooper that The Government will legislate
to modernise the Housing Corporation's decision making arrangements as
necessary, at the earliest opportunity. This will clarify its ability to
delegate decisions from the Board to subcommittees and to officers. Funding For
Homes Limited also notes the statement made by the Office of the Deputy Prime
Minister to Lenders on 14th February, 2006 that in ODPM's view (having taken its
own Counsel's opinion) security over assets is secure at present. ODPM says it
fully recognises the seriousness of the issue to lenders and the Government has
therefore agreed in principle to legislate and to give retrospective effect to
some historical consents given by officers of the Housing Corporation at the
earliest opportunity.

The Stock is secured by legal charges granted by a number of registered social
landlords/housing associations, which charges in turn require s9 Housing Act
1996 consents to be valid. Accordingly Funding For Homes Limited welcomes the
announcement that primary legislation will be brought forward to deal with the
issue that, absent such remedial action, there are legal risks around the
authorisation by the Housing Corporation of the s9 consents, and the associated
uncertainty that poses for the security for the Stock. Funding For Homes
Limited has also been informed that the Housing Corporation is taking legal
advice on retroactively granting s9 consents to regularise the situation.

Funding For Home's Limited will monitor developments in this regard and will
make further announcements as appropriate. 

Contact details for further information:

John Shinton     Royal Bank of Canada Europe Limited
                 Telephone [phone]

Peter Hammond    Company Secretary Funding For Homes Limited
                 Telephone [phone]




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