The Homes & Communities Agency has published its heads of terms details for the loans and equity deals on offer for developers who can deliver new units by the end of 2014.
The £420m Get Britain Building programme will offer loans that expire in March 2018 on a sliding scale of interest rates according to credit-worthiness and financial contribution of the developer.
The loans will be deemed to have been breached and could be repayable in whole if the developer fails to start on site by 31 December or complete at least 25 units by 31 December 2014.
Developers will be expected to meet all legal and consultancy fees, section 106 planning condition payments to the local authority and provide detailed reassurances for due diligence. The due diligence requirements include evidence of financial health, planning permission, site valuation, drawings and construction schedule, marketing and sales timetable, and timings of drawdown of loan or equity payment.
The heads of terms were due to be published on Monday but came out yesterday on the HCA website here.
The deadline for bids is 12noon on Monday 30 January.