Simple development finance for Scottish housing
Allia’s Scottish charitable bond programme provides flexible loans for housing associations, supporting the vital development of affordable housing across Scotland.
The bond programme is funded through Scottish Government investment. The loans are unsecured, with simple and straightforward terms, for up to 15 years – and it’s only at the end of the term when the loan and interest needs to be repaid.
The added bonus is that any interest on the loans is re-used by Scottish Government to create a grant fund, so they can donate funds to further support housing development – which helps keep the money in the sector you work in. A real positive boost that couldn’t be achieved through other finance options.
Here’s what some of the housing associations we’ve helped have said:
Ayrshire Housing is one of Ayrshire’s leading housing associations with over 1,500 houses. The £1.6 million loan in 2016 enabled Ayrshire Housing to build 22 new affordable and energy-efficient homes for their community.
“Allia’s approach boosts confidence since the facility is guaranteed from the inception of a potential project. This translates into bricks, mortar and jobs.”
Jim Whiston, Director of Ayrshire Housing
Hjaltland Housing Association
Hjaltland Housing Association aim to provide high-quality housing for tenants throughout Shetland. The loan of £1.3 million they received in 2017 has helped them on their way to reaching their new home target, by enabling them to build 31 new homes in Tingwall, Scalloway and Lerwick.
“The funding was very straight forward to put in place and minimised the upfront arrangement costs. This included a significant saving on legal fees due to the limited security requirements of the loan.”
Susan Gray, Head of Finance and Corporate Services of Hjaltland
Lochaber Housing Association
Lochaber Housing Association was set up in 1988 as a response to the chronic housing need in Lochaber’s rural communities. With a £2 million loan in 2016, they have built 62 affordable homes, bringing significant benefits to the area.
“As well as offering a competitive rate, streamlined process and one main covenant; we were offered a facility which means we can return to Allia at a future date and the groundwork has already been done.”
Margaret Moynihan, Head of Corporate Services of Lochaber Housing Association
Orkney Housing Association
Orkney Housing Association’s £2.1 million loan in 2016 has meant they have been able to build an additional 30 new, high-quality and affordable properties for tenants and sharing owners. It also provides continuing work for local contractors – so supporting the local island economy.
“The Allia staff are both helpful and efficient, and the legal process was painless.”
Sandy Dennison, Finance Manager of Orkney Housing Association