Building has started at a 24-home development in Smethwick thanks to a unique funding model, which has allowed us to access investment from the Homes and Communities Agency (HCA).
We are working in partnership with Lovell to develop the site at Bearwood Road, in Smethwick, which is a mix of three and four-bedroom homes, and two-bedroom apartments. They will be available for rent, part ownership and intermediate market rent.
The £3million development has been made possible with funding from the Homes and Communities Agency which has come through to Family via Lovell Plus Ltd - a special purpose vehicle set up to access the funding. We also received £250,000 of funding from housing market renewal pathfinder Urban Living.
The funding model involves the HCA paying the grant to Lovell Plus Ltd, a company in which both Family and Lovell hold shares. Without the grant the scheme would not be financially viable.
Rob Ellis, director of resources and investment at Family Housing, said: “We are pleased that this innovative funding model has allowed us to access support from HCA to carry out the Bearwood Road development.
“One of the specific benefits of this model is that it reduces the administration burden for the partners involved. There is a central point of contact which makes the process smoother and less administratively demanding.”
David Gough, regional director for Lovell, said: “We have used this funding model several times, and we’re pleased that it has meant that the development has been able to go ahead with funding from the HCA.
“This model gives all partners benefits and works well to get much needed affordable housing developments off the ground.”
Rob Kilby, investment and regeneration manager for the Homes and Communities Agency Midlands, said: “We have worked closely with Lovell and Family to bring forward these much-needed homes for Smethwick and we are delighted that HCA investment is enabling them to deliver this important scheme at Bearwood Road.”
The development is due to be completed by early 2012.