Community Land Trust Fund

Delivering Affordable Sustainable Housing

Building out the scheme

Once you have got your planning permission you need to actually build the homes. This often requires a mix of finance from loans, grants and public funding.  Grants are becoming harder to find and many banks will only lend up to 60% of the value of the land leaving organisations having to secure additional funding to fill in the gap. The CLT Fund provides loan financing that can go towards filling in the development funding gap of up to £400,000 that may exist for some organisations.

Funding from the CLT Fund

The Fund offers social investment of up to £400,000 to enable a CLT to develop the site to completion. The finance is repayable with interest between 6.5-7.5% depending on the overall risk of the scheme.

The investment process

Schemes by this point will have a site that has planning permission or is close to securing it as well as a clear indication of the total development funding needed to build the scheme. You will apply to us for finance to either top up a gap in your finance or to help leverage in other lenders. Our due diligence process will look at a number of areas which include the following:

  • Details around the planning permission secured for the site as well as the final housing layout for the scheme
  • Information on the total development budget for the scheme
  • Satisfaction around the lending that the scheme has secured for the site and the funding gap that exists
  • Details on the sources of repayment of the development loan

Generally the development loan that is provided through the CLT Fund is repaid from the sale of the homes or refinanced through longer term mortgage financing for the homes.

For more information on how the CLT Fund works download our handy 2-pager overview document.

How to apply to the CLT Social Investment Fund

The CLT Social Investment Fund is administered by CAF Venturesome and will provide repayable finance to Community Land Trusts looking to build affordable homes in areas of England and Wales that have an acute shortage of affordable housing.

The CLT Social Investment Fund is currently open for applications and we welcome expressions of interest from organisations looking to secure financing to support the development of projects across England and Wales. In order to submit an expression of interest please fill in the form on the CAF Venturesome website or send an email to venturesome@cafonline.org and include your name and contact details, the name of your organization and a brief description of your scheme.

What is the eligibility criteria?

  • Incorporated body with an asset lock in place
  • Clear objective for the construction of affordable homes
  • Open membership system
  • Based in England or Wales

How to express interest?

Write to venturesome@cafonline.org and include:

  • Your name and contact details
  • The name of your CLT
  • A brief description of your CLT and the progress to date

Other sources of funding

The Homes and Communities Agency (HCA)

The HCA provides grant funding to organisations that become registered provider i.e. are registered to provide social housing, or are working in conjunction with a housing association. This covers a percentage of the build costs to allow the homes to be more affordable.

This is administered by the Homes and Communities Agency for England, and the Greater London Authority for Greater London.

The National CLT Network website has an overview of the funding conditions, and top tips for accessing the grants.