Circle VHA takes an innovative approach to the raising of private finance. Recently Circle VHA was the first Approved Housing Body to open up access to Credit Union Funding. Circle VHA has agreed a loan facility with Multaque Funds ICAV. This Fund is authorised by the Central Bank of Ireland. This loan origination Qualifying Investor Alternative Investment Fund will lend up to €800 million to Irish Tier 3 Approved Housing Bodies (AHBs).
This new funding was developed with a partnership approach with the originators of the fund and their advisors. The advantages of funding from this source from Circle perspective are:
- Built from the ground up’ Circle VHA and the Credit Union League are aligned in values as pillars of the community with a not-for-profit ‘people first’ approach
- Creates the opportunity for two community-focused sectors to co-operate in addressing the current national housing shortage
- It is another option for CVHA to obtain funding for its development pipeline
- More lenders to the AHB sector can lead to innovations
- This funding is off balance sheet, making more capital funds available for social housing
The facility negotiated is for €5m and will form the framework for increased lending to Circle VHA. We have already drawdown €700k from the facility which has kept 3 families in their homes. It is envisaged that over the next two year Circle VHA will draw over €50m from the facility which equates to over 200 new homes.
It is also very welcome to have a new funder available to all Approved Housing Bodies that can assist greatly in delivery.