Land trust requests loan extension
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A request from Beer’s Community Land Trust (CLT) to extend its loan repayment has been recommended for approval by district officers.
The CLT borrowed more than £1million from East Devon District Council (EDDC) to help fund the building of seven properties in the village - four for the open market and three to provide ‘affordable’ housing for the local community.
As of March last year, the CLT has sold three properties on a shared equity basis to repay £755,000 of the loan.
The second instalment of £305,000 is due to be paid in full on June 24. The CLT has requested to pay £290,000 of that figure over the next five years. EDDC’s cabinet will meet on Wednesday to discuss the proposals.
In a report to members, an EDDC officer said that it was a council priority to provide affordable housing for the local community, adding: “After five years, the position will be revisited with a view to refinancing a further reduced amount of principal. As with the initial loan, Beer CLT will be responsible for the full loan repayment and any interest or costs incurred. The underlying need for the loan has not changed and is in line with the council’s priorities to provide affordable housing to the community of East Devon.”