Elderpark Housing Association to build 82 affordable homes in Govan thanks to charitable bond for Scottish Government
Elderpark Housing Association is to build 82 affordable homes in Govan after the Scottish Government provided a loan for the scheme.
The project has been made possible thanks to a charitable bond scheme, where social housing providers can access flexible loans from Allia, a social investment charity. Scottish Government investment of £6.8 million in the latest bond issue has provided Elderpark with a £5 million loan.
The remaining £1.8 million will be given as a charitable donation to housing associations for the construction of social housing. These funds will be earned back in interest on the loan to Elderpark, enabling the Government’s investment in the bonds to be repaid after ten years
Announcing the investment during a visit to the site in Nethan Street, Govan, housing minister Kevin Stewart said: “Charitable bonds enable us to provide vital investment to social housing providers like Elderpark Housing Association. They are a crucial tool which has helped to develop 743 affordable homes across Scotland so far.
“We are committed to delivering at least 50,000 affordable homes over the lifetime of this parliament – backed by more than £3 billion. Access to quality housing is a vital part of our drive to secure economic growth, promote social justice, strengthen communities and tackle inequalities. These new homes in Govan mark another step on the road towards delivering that pledge.”
This latest investment brings the Scottish Government’s total charitable bond investments with Allia to more than £54 million – supporting the development of 743 affordable homes across Scotland.
Phil Caroe, director of impact finance, Allia, added: “The Scottish Government’s partnership with Allia is helping to accelerate the development of affordable housing across Scotland. We’re delighted to support Elderpark in providing more homes for social rent in South Glasgow, and we’re looking forward to making further investments into new affordable homes by the end of the financial year.”
The £12 million development – a mix of houses and flats for social rent – will also receive a £6.4 million in grant funding from Glasgow City Council and £600,000 from Elderpark.
Councillor Maureen Burke, chair of Glasgow City Council’s Regeneration and the Economy Committee, said: “I am delighted by this announcement and for the people who will make their homes in these new flats and houses, and look forward to all the partners in this project contributing to another landmark in new housing and regeneration for Govan.”
Gary Dalziel, chief executive, Elderpark Housing Association, added:“Elderpark Housing Association is about to undertake a significant development project and has secured loan finance through the innovative charitable bond model delivered in partnership between the Scottish Government and Allia.
“By using this model it has ensured that the funding was both immediately accessible and provided at a competitive rate which will ensure we can provide further 82 high quality and much needed new homes in the Greater Govan area.”