Capital Advance Leasing Facility (CALF)
The Capital Advance Leasing Facility aims to ensuring greater supply of housing. CALF is a facility available to assist Approved Housing Bodies (AHBs) to access private or Housing Finance Agency (HFA) loan finance for the purchase, and, in some cases, construction of units, that will then be made available for social housing under the leasing initiative.
CALF is one of the main capital funding streams for the supply of social housing. CALF is available to housing associations as part of a leasing project and must be for a term of between 10 and 30 years.
How CALF works
- An Approved Housing Body (AHB) must submit a proposal to the Department of the Environment, Community and Local Government (DECLG) for the purchase or construction of units using private finance and payments available under the leasing initiative.
- The AHB may, if necessary, request a capital investment from the DECLG or Local Authority. This will be based on a percentage of the acquisition or construction costs. A maximum of 30% of the capital funding, i.e. loan, will be contributed through the DECLG. The balance of funding must be raised privately by the AHB. The capital money advanced by the DECLG will be paid as a loan which accrues interest at a fixed rate of 2% per annum and must be repaid once the private loan is paid in full.
- If approved, the AHB and the Local Authority enter into two separate agreements:
Capital Advance Agreement (CAA) - which outlines the terms and conditions of the loan,
Payment and Availability Agreement (PAA) - which covers the conditions under which the properties will be made available for the term of the agreement.
Key criteria for approval under CALF
- AHB must be approved for finance from the HFA and be able to demonstrate access to private finance.
- AHB must demonstrate value for money.
Page last reviewed: 19/02/19Back to top