The Scottish Government will make innovative use of financial transactions funding by investing £10 million in a Charitable Bond that will create new homes and jobs.
The investment is a reinforcement of the Government’s support for community – led regeneration schemes and will generate more funding for house builders and the trade industry.
As part of the People and Communities Fund, it will lend almost £9 million to a Registered Social Landlord to build 150 affordable homes in Scotland.
The People and Communities Fund supports community-led regeneration to deliver a wide range of employability and preventative action outcomes for the benefit of local people and communities.
The Scottish Government is currently consulting with existing applicants to the People and Communities Fund about going forward via this new funding route.
Speaking at the Local Government and Regeneration Committee, the Minister for Housing and Welfare Margaret Burgess said: “This investment is an innovative way of generating additional funding for Scotland’s most disadvantaged communities.
“It will be used to support projects and services that will benefit our local communities. I’m delighted too that our investment will be helping deliver much-needed affordable housing in Scotland.
“This is the first major investment in Charitable Bonds in the country, this Government is taking the initiative, however with full economic levers we could deliver more support for the poorest communities.”
Tim Jones, Chief Executive of Allia, said: “We’re delighted to see the Government leading the way with what is both the first major Scottish investment and the largest investment in a Charitable Bond to date.
“We hope that many more Scottish companies and individuals will follow their lead and add their own investment to support charities in Scotland.”