6.2.3. Other funding options

From member equity to Government support, there are various other ways to fund a CCLH development.

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Member personal equity

Some CCLH schemes enable their members and residents of the schemes to invest their own equity and resources in the scheme.

This could be either through them investing at the outset (ie. either through personal savings or a mortgage or a mixture of both), or through gradually buying equity as their personal circumstances enable them to.  Schemes that enable full or shared ownership are discussed below, but where this approach is taken, this income would be factored into the CCLH scheme’s financial modelling.

Public grant and loan funding

The Welsh Government (WG) provides a Housing and Regeneration Funding Framework with set rates for affordable rented homes and for low cost home ownership. This programme is administered centrally but is allocated through local authorities. It is available to Registered Social Landlords. The Welsh Government has made a commitment to co operative housing and will consider applications to fund viable CCLH schemes that meet the necessary requirements.

Who can access the funding

Government funding to support the costs of building homes can only be accessed through organisations that are registered with respective Government regulators – Registered Providers in England and Registered Social Landlords in Wales. These registered organisations include housing associations, and in England, local authorities that own housing stock, most housing co-operatives, and other organisations. It may be possible to register new CCLH organisations with the respective regulators.

Being registered means that any CCLH organisation that receives grant funding from Government (either directly or through a partner organisation) has to comply with either HCA defined Regulatory Standards in England or Welsh Government defined Regulatory Standards in Wales, such as how organisations are governed, who can live in the homes built, what rent levels can be charged, and what service standards are expected.

Behind Government regulator registration lies the important principle that publicly subsidised homes should be available for people who most need them. Given the extreme housing need in England and Wales, this is an important principle for any potential local authority and housing association partners, and it should be an important principle for any CCLH scheme that is developing with public funding.