Grants for developers
Glasgow City Council has managed the Development Funding Programme for the City since the responsibility was transferred from Communities Scotland in 2003. Grants for Rent or Ownership (GRO grants) are part of the funding programme and allow for grants to be made to private housing developers, housing trusts (not registered housing associations) and building societies to go towards the cost of providing houses for owner occupation.
The housing for sale provided by such a grant may be new build or provided following the renovation of existing buildings. Generally, properties developed or improved with GRO grants are intended for those who wish to buy but are on lower than average incomes. Grant aided developments are usually approved in regeneration areas where owner occupation was not present previously.
There are three types of projects for which GRO grant may be available for. These are projects that:
- increase owner occupation in priority housing estates that are part of an area-based regeneration programme
- contribute to regeneration programmes in older urban neighbourhoods, particularly where there is limited supply of good quality houses for owner occupation and/or a limited range house sizes to meet demand
- help provide affordable housing in pressured market areas although Communities Scotland usually intended these for rural locations where supply is limited or where higher prices make it difficult for lower income households to become owner-occupiers .
Each project is appraised by the Council on its own merits.
Grants are limited to the minimum necessary for each project but the internal rate of return to the developer must be between 8% and 12%. Grants of up to 40 per cent of the total project costs are available although the overall average grant approved is about 25%.
A comprehensive information pack for developers is available by contacting the Housing Strategy and Investment team at (0141) 287 9982 or by sending a request to developmentfund@drs.glasgow.gov.uk
Copies may also be obtained from Communities Scotland at Thistle House, 91 Haymarket Terrace, Edinburgh, EH12 5HE, telephone 0131 313 0044
Electronic version of the guide and application pack .
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