Mission 3: Long-term affordable capital that works for community asset development
We’re running a test and learn programme to develop solutions that unlock affordable long-term capital into CADs to deliver neighbourhood transformation at pace and scale.
About Mission #3
The Challenge
CADs are stewarding the assets that neighbourhoods need…
In the face of decades of under-investment, growing regional and place-based inequalities, and the intensifying impacts of climate breakdown, CADs are working at grass roots to regenerate and transform neighbourhoods.
Through multi-asset ownership and development, they are building the physical and relational assets needed: affordable homes, renewable energy infrastructure, affordable workspace and vital social infrastructure, including youth clubs, public living rooms and cultural centres. And building community power and wealth as they do it and into the long-term.
They are delivering on the Government’s Pride in Place and growth in every postcode agendas and, as a market, are asset backed and asset rich, have proven social impact and demonstrable track records.
But capital is not getting to this work and in the way needed for it to scale and stabilise. Even for existing CADs with performing assets and proven revenues, what is available is high cost (8-11%) debt and often short term (1-5 years). Even longer term debt (10-25 years) is difficult because repayments eat up so much of the cashflow that is needed for the work on the ground. This is not to mention the challenges of covering the riskier pre-development phases, or securing development or acquisition finance quickly enough to seize opportunities.
The Solutions
Reimagining Finance - unlocking long-term affordable capital
Thanks to the support from Lloyds Bank Foundation and Joseph Rowntree Foundation, we’re running a test and learn project - Reimagining Finance. The project brings together CADs and Foundations, social investors, mortgage lenders, HNWIs and institutional investors to build understanding and capacity and co-design and prototype solutions that unlock affordable long-term capital into CADs.
In this project we are:
Building mutual awareness and understanding between investors, lenders and CADs, addressing perceptions of risk and other barriers whilst also working with CADs to improve investment readiness and evidencing value and impact.
Optimising the current system, exploring how current investor and lender practice can modify their lending terms and existing products to ‘normalise’ lending to CADs.
Developing and testing new and innovative forms of long term finance. For example, exploring what would it take for institutional investors involved in Place Based Impact Investment (PBII) to invest in community-owned neighbourhood infrastructure.
We are delivering this project in partnership with Power to Change and their Community Asset Development Finance Initiative.
Network Mission Leads: Melissa Mean (WeCanMake), Dr Jess Steele (Hastings Commons) and Wendy Hart (Nudge Community Buildings)
Mission Supporters: Bob Thust & Catherine Harrington
The Mutual - a member owned capital platform for CADs
A promising model Reimagining Finance is exploring is the Mutual, a member owned and governed capital platform for CADs. A pooled structure, the aim is to provide long term capital for mature CADs with performing assets to refinance or support safe purchasing. This would result in reduced refinancing pressure, the release of cashflow for local impact and the protection of community assets over decades.
The project is currently at the concept stage and is being supported by the Joseph Rowntree Foundation. Following extensive investor engagement (where we have engaged Foundations, social investors, institutional investors, sector experts and advisory bodies, legal firms and the Government), the team is now setting up a time limited Reference and Learning Group (from November 2026 and March 2027) to work together to resolve the remaining key design questions and finalise the model. In March 2027 we’ll test whether we’ve met our ‘proof points’ and whether the work can move onto detailed design and set up.
The Reference and Learning Group currently consists of the following members:
