The prospectus (17-page / 368KB PDF) invites applicants, such as housing associations, to bid for up to £200m of recoverable loans to support the building of fixed term affordable homes between 2015 and 2017 in London. A separate fund of £200m is also available for homes outside London.
The loan must be repaid within 16 years but bidders can repay early. Properties must be retained and let at sub-market rent for a minimum of seven years to people who have never owned a home before. If the landlord seeks to sell the property at any time after this period the tenant has a right of first refusal. The tenant can also put in a request to buy their home within this seven year period.
The prospectus invites bids for loan funding to the Homes and Communities Agency via the Investment Management system.
