COUNCILLORS will consider loaning £100,000 to a company aiming to bring empty properties back into use.
Deighton-based social enterprise Fresh Horizons, has expanded its empty homes project beyond Deighton and Brackenhall and secured £500,000 from the Department of Communities and Local Government.
It will use that money for a project which aims to bring 63 empty homes in Kirklees and Calderdale back into use before March 2015. Of those 32 are in Kirklees. About £16,000 will be invested per property.
Members of Kirklees Council’s Cabinet will consider loaning £100,000 towards the scheme from cash received via housing and land sales.
A report says the cash is needed to ‘pump-prime’ financial confidence among other lenders, as Fresh Horizons would need to find £112,000 from private banks or other lenders to complete the project.
The report to be presented to Cabinet says: “The (previous) model relied mainly on the uplift between a pre-works valuation and the funds realised on sale, net of investment costs incurred.
“In the current flat market, using this approach alone is unlikely to deliver equity growth.
“Consequently, the model has been refined following grant funding ... to focus on leasing the property from the owner and sharing the rental income stream.’’
The council’s report shows that there are 3,120 empty homes in Kirklees which have been vacant six months or more.
The authority is expected to deliver 1,457 affordable homes every year, but the council is already behind the target with just 800 built in three years.
Repayment of the loan is predicted to take nine years and would be in the form of a ‘soft loan’ which is non-interest bearing.
If the Cabinet backs the loan, the council will first examine Fresh Horizon’s accounts before it is handed over
Fresh Horizons employs 60 people, 21 are local and based within the empty homes project. Continuation of the project will safeguard jobs and enhance skills.
