Cornwall Council has re-launched its Revolving Loan Fund. The aim of the fund is to support the development of new affordable housing by organisations that are community-led and have housing charitable purposes or are a Community Land Trust (CLTs).
The fund is open for bids from qualifying organisations. Groups can apply for loans of up to £1.5m per scheme. Loans can support the development of all types of affordable housing including:
- Shared ownership,
- Affordable and social rent,
- Intermediate rent.
- Intermediate sale
Applicants need to demonstrate that they have a fully funded proposal. This must be supported by a comprehensive business case which provides evidence of how the scheme will be funded in the long term (such as a mortgage in principle).
Key Features
- Loans are for the development and construction of new affordable housing.
- Eligible costs can include purchase of land, buildings, construction and conversion of a building (where this will result in the provision of new affordable housing).
- Site acquisition costs must form part of a fully funded scheme.
- Loans of between £75,000 and £1.5m per scheme for terms of up to 18 months.
- Loans are to be repaid within 12 months of completion of the scheme.
Interest will be charged at Cornwall Council’s standard loan rate. - In addition, an arrangement fee to cover administration and legal costs will be charged. As an example, the minimum fee for a short-term loan would be in the region of £1,800. Longer-term loans with multiple stage payments would incur higher arrangement fees.
- Loans offered are subject to a legal charge being secured.
More Information
If you would like more information on the Revolving Loan Fund, or to discuss a proposal please contact the Affordable Housing Team on 01872 326353 or email affordablehousing@cornwall.gov.uk
Application pack
Application forms, guidance and supporting documents are available to download: