Housing association to build 300 new homes with £13m funding

Allia C&C has issued a £13 million Scottish charitable bond to Angus Housing Association to help build 300 new affordable homes over the next three years.

Housing association to build 300 new homes with £13m funding

Angus Housing Association's development at Anderson Street 

The Association’s proposals will see excellent quality, affordable housing provided across Angus and Dundee.

In Angus, the new homes will support existing communities and assist in establishing new mixed tenure estates. In the Dundee area, Angus Housing Association will be continuing to support and strengthen thriving communities in the north east of the city as well as establishing a foothold in the west end of the city.

Angus Housing Association owns over 2000 homes and provides factoring services for around 600 owner occupiers throughout Angus and Dundee. The association has a long history stretching back to the earliest days of the housing association movement in Scotland. 2020 marks the 50th anniversary of the initial registration of the Auchmithie Housing Association in May 1970.

The Association has grown from 300 units to over 2000 and the Allia C&C bond will ensure the ongoing development programme provides desperately needed homes for local communities.

Kevin Stewart, housing minister, said: “Everyone deserves a safe, warm place to call home, and that’s why we’re investing £172m 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.”

Hazel Farquhar, chair of Angus Housing Association, added: “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.”

Allia C&C has been supporting the vital development of affordable homes across Scotland for the last four years with its Scottish Charitable Bond programme.  The bonds provide simple, affordable loans to housing associations solely for building affordable housing, using Scottish Government investment.

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.

Daniel Carrico, head of origination at Allia C&C, said: “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 such a significant and beneficial effect on their community, so it’s great to be a part of that journey.”

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