HJALTLAND Housing Association has secured £1.3 million in additional loan funding for affordable housing in Tingwall, Scalloway and Lerwick.
The money comes as part of a £70 million government investment in charitable bonds issued by the social investment charity Allia.
The bonds provide loans to housing associations and allow the interest to be made immediately available as charitable donations.
Hjaltland’s head of finance Susan Gray said securing the funding meant the association could continue to “to increase the supply of much needed affordable homes for families in Shetland”.
“This particular new funding stream will assist in the development of additional rented properties in Tingwall, Scalloway and Lerwick,” she said.
“The innovative scheme has been straightforward to put in place and has minimised the up-front arrangement costs and security requirements of the loan.”
Housing minister Kevin Stewart added: “The latest round of funding means that we have now invested a total of £70 million in nine charitable bonds, providing an innovative source of finance for housing associations to support the development of 935 homes for social and mid-market rent across the country.
“We have committed to deliver 50,000 new affordable homes during the term of this parliament and this is yet another important step towards this target.”
Allia director of impact finance Phil Caroe said the charitable bonds programme had been a great success story of using finance for social good.
“We’re pleased to see that the government’s leading example is now attracting interest from other parts of the UK,” he said.
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