The Courier & Advertiser (Fife Edition)
Bonds to help association build more Fife homes
A housing association in Fife has secured £5.22 million of borrowing to build 116 new homes through a Scottish Governmentsupported bond.
Kingdom Housing Association is one of four social landlords to benefit this year from the £50m Allia charity bond to support almost 1,000 new homes.
The new source of finance, announced by Social Justice Secretary Alex Neil in Dunfermline, provides unsecured loans backed by a bond with an attractive interest rate.
It will be used for 27 homes in Kincardine, 22 in Dunfermline, 49 in Cupar and 18 in Lower Largo, all ready for sale or rent next year.
Visiting Calaiswood Crescent, where Persimmon Homes is building, Mr Neil said: “Innovative financing schemes such as charitable bonds will play a major role in our approach to supporting a major expansion in housing supply over the next parliamentary term.
“The bonds are ethical financial products that are providing housing associations in Scotland with easily accessible development finance for new affordable homes.”
Nick Pollard, Kingdom Housing Association director of finance, said: “We are delighted to be involved in this innovative funding. It enables us to continue to deliver much needed homes across the Fife region meeting our planned objectives.”