Cornwall Council's Revolving Loan Fund supports 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 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 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
Please contact the Affordable Housing Team on affordablehousing@cornwall.gov.uk for an application form, guidance and supporting documents. Please see the process Process flow diagram for process information.