Who owns housing associations property's

utmbuilder

New builds, in the region of 400 Million annually have been acquired by "Housing Associations" , the local authority gives them the money they buy off the builder.

Assocation's give developers record pricing as an example new builds in Drogheda are 265,000 euro at the moment.

They even file whats called a C1 form of ownership of the building which shows up in their accounts.

If Housing Association's money is cut for buying future affordable housing, can they leverage loans based on the stock the asset's they control I.E the social Housing and if so what happens if they default?

Does anyone know how this structure is setup and if the assets of the social housing is protected against being leveraged to raise more capital outside of government funding?

surrender monkey

utmbuilder wrote: »

New builds, in the region of 400 Million annually have been acquired by "Housing Associations" , the local authority gives them the money they buy off the builder.

Assocation's give developers record pricing as an example new builds in Drogheda are 265,000 euro at the moment.

They even file whats called a C1 form of ownership of the building which shows up in their accounts.

If Housing Association's money is cut for buying future affordable housing, can they leverage loans based on the stock the asset's they control I.E the social Housing and if so what happens if they default?

Does anyone know how this structure is setup and if the assets of the social housing is protected against being leveraged to raise more capital outside of government funding?

The Housing association owns the property. They buy it with a non repayable loan from the local authority. The local authority have a mortgage over the properties for 30 years.

The form c1 is the registration of the mortgage as a charge against the housing authority in the companies registration office this is done by a company whenever they borrow money.

No they can't use the social housing stock as leverage to borrow more money as the local authority already have a mortgage registered and if they need more money they will get it off the local authority. It's been going on for years don't worry about it. It's called the capital assistance scheme there's plenty of info out there on it.

johnnyskeleton

As I understand it, it's basically a way of providing social housing without the local authorities having to deal with complaints etc. They basically outsourse the hassle to the housing associations for a fee