6.2. The development model – obtaining funding
Funding the capital costs (ie. the costs of building the homes) of CCLH schemes can be challenging - but there are various avenues to explore to obtain funding.
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Funding the capital costs (ie. the costs of building the homes) of CCLH schemes can be challenging, not least because the comparative costs for a housing scheme are substantially more than what is needed to fund other community programmes.
Sources of funding
The following are potentially sources of funding:
- loans from financial institutions
- loans through local authority borrowing facilities
- community shares and loanstock from private investors (individuals or organisations)
- personal investment from the CCLH scheme members (dependent on the type of scheme being developed)
- grant or loan funding from national or local Government, charitable or other institutions
- land, buildings or other resources from public or private sources (some provided at less than market value)
- cross subsidy from other sources
If a CCLH scheme is being developed with a housing association, they will use their loan facilities to fund it. This means that the scheme would need to remain on their balance sheet during the loan period, and they would at least have to own scheme freehold.