New investment takes charitable bond fund to £37m
A further £2 million is to be invested in charitable bonds to help boost the supply of affordable homes, housing minister Margaret Burgess confirmed yesterday.
The latest investment, which will be used by Castle Rock Edinvar Housing Association — part of the Places for People Group — to build over 30 affordable homes in Midlothian and East Lothian, comes on top of £10m invested in 2013-14, with a further £25m allocated for 2015-16.
The £37m charitable bond pot could allow housing associations to provide up to 600 affordable homes across Scotland.
The Scottish Government has pioneered this innovative use of funds in partnership with Castle Rock Edinvar and the social investment charity Allia, which developed the Charitable Bond model.
Housing Minister Margaret Burgess said: “We are determined to ease housing pressures by continuing to explore innovative funding approaches that can help deliver more affordable homes.
“Charitable bonds represent this type of innovation; it is helping increase the supply of affordable homes and delivering vital support for construction and house building companies.
“Last year, with a £10m investment, we became the only Government in the UK to invest in these bonds.
“Over and above the £25m already set aside for next year, an additional £2 million will bring total charitable bond investment to £37m.”
Heather Macnaughton, head of community investment at Castle Rock Edinvar, said: “This latest iteration of the Charitable Bond model, utilising the resultant donation as well as the loan to support the building of affordable housing in Scotland, provides another much need financial tool for the sector to consider.”