This document discusses funding options for community-led housing projects at different stages from group formation to residents moving in. It provides examples of how groups have accessed funding and support. In the first stage of group formation, options include the CLT Start-Up Fund and Big Lottery Awards for All grants. For acquiring land and securing planning permission, pre-development loans are available from groups like CAF Venturesome. Building projects can use funding from ethical lenders and community share issues. The £300 million Community Housing Fund also provides capital for affordable housing. Support is available to CLT groups through the National CLT Network, including legal and governance advice.

1. Paying for Community led housing
The A-Z of finance
Beth Boorman, Communications Manager
National CLT Network

2. ● The National CLT Network
● Overview of funding throughout the process
● Hoops and how to jump through them
● Help and Support

3. Our Vision:
We want to see a Community Land Trust in every
community that wants one.
● Lobbying and campaigning
● Raising awareness
● Ensuring CLTs have the right support and advice
The National CLT Network

4. The CLT landscape
20162010 2013

5. A “typical” CLH project pathway
Group
Site
Plan
Build
Live

6. Rule #1
Cost the whole project
from the outset!

7. Rule of thumb – how much you need
Group £5,000
(£1,000 – £10,000)
£14,000 / £1,400 per home
(£10,000 – £200,000)Site
Plan
Build
£60,000 / £6,000 per home
(£40,000 – £300,000)
£1,800 – 2,200 per square metre
(£0.4m - £5m per project)
Live
£1,000 per year
(£800 – £15,000)

8. Risk vs control
Partner with a housing association
• CLT covers ‘group’ stage costs
• HA and CLT jointly get finance for site, plan & build
• CLT has less control, HA takes most of the risk
Go it alone
• CLT arranges finance at all stages
• CLT has all the control and all of the risk!

9. Partner with a housing association – Lyme Regis
Group gets together
Group incorporates as a CLG
Outline planning secured,
against officer advice!
Construction begins
Residents moved in
2012
2014
2016
2017
2016

10. Going it alone - Broadhempston
Group gets together
Group incorporates as a CIC
Planning permission secured,
land acquired
Construction begins
Residents moved in
2011
2012
2015
2016
2014

11. Available funding and support
Group
• CLT Start-up Fund (£4k & advisers)
• Big Lottery Awards for All (£10k)
• Crowdfunding
• BUT limited support for other forms of CLH
• Community Housing Fund phase 1
• Pre-development loans from CAF Venturesome
• Community share issues
Site
Plan
Build
• Ecosystem of lenders (Charity Bank, Ecology, Triodos) but no
access to commercial lenders.
• Community Housing Fund phase 2 TBC
• Community share issues
• S106 homes (buy off a developer? Get commuted sums?)

12. Available funding - Start up Fund
Group
Stage 1 - Steering group scoped out idea
with technical advisor (1 days support)
Stage 2 - Further 2 days support -
support with reviewing legal structures,
advice on membership and fundraising
Stage 3 Grant (available for members) -
£4,000 to help with legal incorporation
fees, communications and membership
drive.

13. Available funding and support - pre development
Case Study 2 - Totnes Community Development Society
Site
Plan

14. Available funding and support - pre development
Case Study 2 - Totnes Community Development Society
CAF Venturesome is the first charity investor to develop a CLT-
specific loan fund to help with pre-development and
development costs.
Totnes Community Development Society received £70,000
towards costs associated with securing planning permission
from the fund.
The loan has an annual interest rate of 10% payable when
capital is repaid - if planning permission had been refused it is
likely that they would have written off the loan.
Site
Plan

15. Available funding - Community shares
Case Study 3 - Leeds Community Homes
Build
Leeds Community Homes raised £360,000
through a Community Share Offer in just
three months.
Is being used to build 16 community led
affordable homes in Leeds - their first
project.
Over 270 individuals and organisations
invested in the community share issue – with
two thirds of those investors coming from
Leeds

16. £300m Community Housing Fund

17. How the Fund will operate (ex London & Wales)

18. How to get funding
• Good governance
• Business plan
• Financial viability assessment
• Evidence of community support and social impact

19. How to get funding – business plan
Business plan
• Nature of the problem - local need
• Policy context
• Support for the concept in the community
• Stakeholder and expert support
• Proposed sites/buildings
• Proposed designs
• Scheme delivery – partnership, management, timescale
• Funding and finance
• Live stage housing management
• Risk analysis

20. How to get funding – viability assessment

21. • Social impact
• Charitable activities
• Registered Provider status
• Investment Partner status
Funding hoops

22. Social/charitable impact
Some sources of finance want to see your impact, e.g.
• Revenue loans - Resonance, CAF Venturesome
• Ethical banks – Charity Bank, Triodos, Ecology Building Society,
Unity Trust, etc.
• Homes England and local authorities
Types of social impact:
• Provision of affordable housing / relief of poverty
• Homelessness, unemployment
• Community development
• Reduction on draw on statutory services (e.g. social care)

23. Do you need to be an RP?
✗ To access revenue funding
✗ Capital for home ownership
✓ Capital for sub-market rent
Two objectives of regulation:
Economic: viable, value for money, avoid misuse of
£ Consumer: well managed, protecting
residents
Registered Provider status

24. ● Homes England capital funds go to ‘IP’s
● Distinct from being an RP
● Can be IP, or join an IP consortium, or partner with an IP
Investment Partner status

25. Support for new groups
• CLT Start Up Fund
• Free online resources
• Model Rules for Community Benefit Societies
Support for members
• CLT Handbook
• Example policies and procedures
• Discounts on model rules
• Legal advice line
• Directors and officers insurance
How we help

26. Beth Boorman
Communications Manager
beth@communitylandtrusts.org.uk
@community_land
www.communitylandtrusts.org.uk
Thank you