Cornwall Council has re-launched its Revolving Loan Fund. The aim of the fund is to support the development of new affordable housing by Community Land Trusts (CLTs). The £4m fund has been revised and improved in the light of experience gained during the operation of the previous CLT Revolving loan fund from 2009-14. The fund is now open for bids from qualifying organisations constituted as CLTs and can provide loans of up to £1.5m per scheme. Loans can support the development of all types of affordable housing including shared ownership, shared equity, affordable rent, intermediate rent and intermediate sale. Cross subsidy schemes incorporating an element of open market housing may also be considered.
Applicants will be expected to demonstrate that they have a fully funded proposal. This must be supported by a comprehensive business case including long-term post-development finance where required.
- 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 (currently 4.5%)
- 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 £1,500. Longer-term loans with multiple stage payments would incur higher arrangement fees
- Loans offered are subject to a legal charge being secured.
If you would like more information on the CLT Revolving Loan Fund, or to discuss a proposal please contact the Rural Housing Enabler on 01872 326353 or email email@example.com
Application forms, guidance and supporting documents are available to download: