ABSTRACT
The proposal is for the council to lend Wealden Housing and Regeneration Company (WHRC) development finance at market rates. The company would then invest a mix of debt and equity in acquiring homes and development land, securing planning consents and then constructing homes. Homes would be sold and rented for a commercial return. It is expected that the council will provide equity input to the company in the initial development period to cover running costs and development costs. The drawdown of the equity and loan provided by the council to the company would be taken in stages as development and acquisition proposals came forward. One model only provided for the development of homes for outright sale whilst the other model retained some housing for long-term rent. Both options assumed that the proposed developments would meet planning policy affordable housing thresholds, with any affordable housing being provided through the Housing Revenue Account (HRA).
