Savers help fund homes for the homeless
Savers are being given the chance to take part in a pioneering project to support the building of homes for the homeless. The project – believed to be the first of its kind in the UK – is being delivered through a partnership between Framework and the leading regional building society The Nottingham.
Through this innovative development, financing will be provided for much-needed homes for homeless people, helping to create or complete a pathway of housing and support services that will lead to independent living.
The Nottingham has agreed to lend Framework £800,000 on commercial terms out of a total of £1.1m needed to provide 14 units of crucial move-on accommodation in Lincoln and Swadlincote, Derbyshire.
These self-contained one bed flats will accommodate homeless people on their journey to living independently whilst freeing up much-needed space in emergency accommodation.
The scheme is the first step in a wider programme by Framework to raise £10m through social investment to provide 150 units of move-on accommodation for homeless people across the East Midlands over the next three to five years.
The cost of the loan from The Nottingham, will be partly offset by savers’ investment in special Framework savings accounts provided by The Nottingham – where the lower the interest rate paid on their savings bond, the cheaper the loan to Framework will be.
Savers can choose from four fixed rate accounts with a choice of interest rates, investing in all four accounts if they wish. The amount which Framework pays to borrow from The Nottingham will be determined by the level of public investment and the extent to which savers are prepared to sacrifice interest. The less Framework pays, the more is available to invest in further accommodation for homeless people.
The Nottingham has also waived its administrative and usual lending fees for a loan of this type.
The details of this unique initiative were formally announced at The Nottinghamshire Golf and Country Club on Tuesday 11th June 2013 by David Marlow, Chief Executive of Nottingham Building Society and Andrew Redfern, Chief Executive of Framework.
Nottingham Building Society has been supporting homelessness charity Framework through a variety of fundraising initiatives for more than two years – staff and customers have raised nearly £27,000 to support its work.
David Marlow, who has participated in many of the Society’s projects to support homeless people, said: “One of the founding principles of The Nottingham was to help provide homes for people who otherwise could not afford them. This package of investment and support is an ideal way to show that we are as committed to that ideal today as the Society’s founders were more than 160 years ago.
“This arrangement provides a double benefit for supporters of the excellent work that Framework does – allowing them to know that their savings are doing good for people in need but enabling them to retain their investment in a reputable Society with all the protection and flexibility this brings. We are delighted to be able to set up this win-win situation which benefits charity supporters and homeless people.
“What started out as a very traditional relationship between a business and a local charity has developed into something ground-breaking. Hopefully others will follow this lead in the future.
“Homelessness is an issue that has really struck a chord with our staff, many of whom have taken the opportunity to view at first hand the life-changing activities of Framework.”
Andrew Redfern added: “We know that the quality of outcomes for vulnerable people is linked closely to the quality of their accommodation. In difficult economic times such accommodation is needed more than ever but finding the money to provide it is an increasing challenge.
“Challenging times require radical new approaches and so Framework is becoming involved in social investment for the first time. This new development of our partnership with The Nottingham represents a visionary and pragmatic solution and is an excellent new way of bringing social investment to the high street.
“By investing in Framework in this way The Nottingham and its customers are also investing in the long-term futures of many hundreds of vulnerable people – both now and in times to come.”
For more detailed information on the products, please visit your local branch of The Nottingham or Framework Savings Accounts