Making loans to provide affordable rental properties in local communities
Big Society Capital has made a £2,500,000 secured loan to Community Land & Finance CIC (CLFCIC), a subsidiary of impact investment firm Resonance Limited. This will enable CLFCIC to make loans to Community Land Trusts (CLTs) and similar community focused organisations in order to provide affordable rental properties in local communities. CLTs are non-profit, community-based organisations run by volunteers that develop assets for long-term community benefit, including affordable housing to sustain local communities.
Resonance has a track record for consulting on and financing community projects, including offering technical support to CLT projects. The loan from CLFCIC is an innovative product designed to enable CLTs to finance up to 100% of the cost of an affordable home which can then be refinanced with conventional bank lending within 8-9 years. BSC's loan represents the cornerstone investment in this Affordable Homes Rental Fund, and is sufficient to finance around 24 affordable homes within the next 12 months, helping to attract further investors to the fund in the near term.
Housing, Property and Essential Needs
- Fewer people are homeless or living in poor quality homes
- Improved access to affordable basic needs
- Fewer families are homeless or living in poor quality homes
- Increase in affordable housing
- Increase in community housing
Personal and Social Well-Being
- Improved feelings of independence, control and life satisfaction
- Improved community cohesion and community relations, neighbourliness
Local area and getting around
- Increase in community assets, community facilities and centres
- Increased community cohesion
- Community, Sector and Society