Community Land Trust Revolving Loan Fund

Cornwall Council has re-launched its Revolving Loan Fund to support the development of new affordable housing by Community Land Trusts (CLTs). The £4 million 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 for loans of up to £1.5 million 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, supported by a comprehensive business case including long-term post-development finance where required.

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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 £1.5 million 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. 

More Information

If you would like more information on the CLT Revolving Loan Fund, or to discuss a proposal please contact the Rural Housing Enabler through 01872 326353 or email affordablehousing@cornwall.gov.uk

Application forms, guidance and supporting documents are available to download: