The loan supports Ayrshire Housing’s latest project in Ayr which is just getting underway. The 27 flat project includes housing for clients of the South Ayrshire Health and Social Care Partnership within an integrated setting. The loan is part of a wider facility which can also further the association’s plans for another 125 housing starting over the next twelve months.
Ayrshire Housing is one of Ayrshire’s leading housing associations and, with a heritage of almost 30 years of community and tenant focused work, now has a stock of over 1,500 houses across East, North and South Ayrshire. The housing association has ambitious plans which build on a track record of award-winning developments combined with a focus on high quality housing services and community engagement.
Jim Whiston, Director of Ayrshire Housing, said: “We’re delighted to be working with Allia for a second time. Their loans are structured to suit our long-term business model. This means we can optimise our investment potential so as to take up the Scottish Government grants currently available for much needed affordable housing. The Allia team really understand the housing association sector and are a pleasure to work with”.
Allia has been supporting the vital development of affordable homes across Scotland for the last four years with the 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 “It’s wonderful to see one of the first borrowers through the Scottish charitable bond programme return to use it again. We last supported Ayrshire Housing in 2015 with a £1.6 million loan, so it’s great we can support their ongoing affordable home development plans with this second loan of £3 million.”
Housing Minister Kevin Stewart said: “We believe everyone should have a safe, warm place to live. This loan will help provide new quality, affordable homes for people in Ayrshire, and contribute to the vibrant and flourishing community here.
“The work of Ayrshire Housing and partners shows how our innovative use of charitable bonds is helping us meet our target to deliver 50,000 affordable homes by March 2021.”