We’ve secured a £55m loan to build more homes
Last week it was confirmed that, following a successful application process, we have secured a £55m loan to support our development of new affordable homes across the East Midlands.
The money is on loan from the government’s £3 billion Affordable Homes Guarantee Scheme (AHGS). The fund was launched in 2020 and started issuing its first loans to housing associations at the end of 2021.
We are absolutely delighted by this announcement.
The aim of the scheme is to offer long-term, low-cost, fixed rate debt to support the building of new homes. Our loan, to be repaid after 30 years, will enable us to build 450 new affordable rented and shared ownership homes.
Naomi Dobraszczyc, Director of Finance & Resources at Nottingham Community Housing Association, comments: “At NCHA, we’re developing 2,100 new homes across the East Midlands over the next five years. Our new funding from the Affordable Homes Guarantee Scheme provides outstanding value for money in support of these plans. Value for money is one of our corporate priorities at NCHA as we look to maximise our social impact and invest resources in our environmental aims. We are committed to supporting better lives for our customers and freedom from fuel poverty.”
The loan, secured against some of our existing homes, is guaranteed by the UK government and offers an attractive interest rate.
The AHGS is funded by a capital markets bond programme and guaranteed by the Department for Levelling Up, Housing and Communities. The scheme is managed by ARA Venn on behalf of the government.