Around 300 affordable homes could soon be built in Dundee and Angus after a local housing association secured funding of £13 million.
The charitable bond from Allia C&C will cover the cost of Angus Housing Association’s planned builds over the next three years.
New mixed tenure estates will be established in Angus while existing communities will continue to be supported.
In Dundee, the cash will be used to strengthen existing communities in the north east of the city and also allow for more developments in the West End.
The numbers built will be roughly equal between Angus and Dundee.
The bonds provide “simple, affordable loans” to housing associations solely for building affordable housing, using Scottish Government investment.
Hazel Farquhar, chair of Angus Housing Association, said: “Last year the management committee and our consultants started the process to find funding to deliver around 300 new properties by 2023.
“The process was rigorous and having considered 17 funding offers, Allia C&C provided the best value for money for the Association.
“The Allia team have been efficient and flexible and the ease at which the process has been concluded has been ideal for our staff and the committee.”
Angus Housing Association owns over 2000 homes and provides factoring services for around 600 owner occupiers throughout Angus and Dundee.
2020 marks the 50th Anniversary of the initial registration of the Auchmithie Housing Association, in May 1970.
Housing Minister Kevin Stewart said: “Everyone deserves a safe, warm place to call home, and that’s why we’re investing £172 million in charitable bonds, providing development finance for over 1,200 affordable homes to date.
“It’s encouraging to see the success of the programme continue to grow, with the total bonds issued this year expected to reach almost £90 million by the end of March.
“This innovative programme is helping communities grow and thrive, and keeping us on track to achieve our target of 50,000 affordable homes by 2021.”
Daniel Carrico, head of origination at Allia C&C, added: “We’re really pleased our Scottish charitable bond programme was chosen by Angus Housing Association to help them deliver such a large project over the next three years.
“This will have a such a significant and beneficial effect on their community, so it’s great to be a part of that journey.”
The interest on the loans enables the Scottish Government to also provide grants for further social housing benefit.
The loans are available for 5 to 15 years on an unsecured basis with light covenants in place, and no loan or interest repayments are made until the end of the term.
