The London Community Housing Fund is expected to unlock 500 community-led homes by 2023 and will make grants or loans available to support the building, development and delivery of these homes.
Some of the funding will also be allocated to provide financial help for potential costs, such as submitting planning applications or design fees.
The fund has now opened for bids, alongside a new prospectus published online by City Hall, which provides guidance for community groups who wish to bid, and advice for Londoners who wish to create such a group.
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“In London, we have become far too reliant on large developers to build new housing,” said the mayor of London.
“We need more homes to be built by councils and by communities themselves – and so I want to support more community-led housing projects that put London residents at the heart of the process.
“We have listened to what community-led housing groups say they need, and in response this new fund offers practical support and help with development costs that have often held community-led projects back.
“I urge Londoners interested in developing their own homes to read our new guidance and bid for funding.”