Bunker Housing Co-operative Limited Loanstock Investment pack

A Self-build Housing Co-op. Building High Quality Homes for Low Income people.

1

Bunker Housing

Co-operative Limited

Loanstock Investment pack

Bunker Housing Co-op is supported locally and nationally. Brighton and Hove Community Land Trust (BHCLT), Brighton & Hove City Council (BHCC) and is affiliated with CHIBAH (Co-op-erative Housing in Brighton and Hove) and the Confederation of Co-operative Housing (CCH). We have received local and national press cov-erage and strong support from other co-oper-atives and several already invested in our first site on Plumpton Road. Our network of stake-holders also includes the government’s housing accelerator, Homes England and the National Community Land Trust Network.

2

Who do we work with?

“You never change things byfighting the existing reality. To change something, build a new model that makes the existing model obsolete.” Buckminster Fuller

3

Our Mission Statement

To self- build and self -manage homes for local people in housing need that are affordable in perpetuity.Our vision

To develop homes in Brighton & Hove that will be available to local households in housing need via co-op membership. To work with Brighton & Hove Community Land Trust and other community-led hous-ing Organisations to grow the community self-build sector in the city & beyond.To work with Brighton & Hove City Council (BHCC) to maximise the use of available land that is unsuitable for mainstream social housing development, for commu-nity self-build development. What is a housing Co-op?

A housing co-operative is a group of peo-ple and the means they use to collectively control and manage their housing. As a co-operative we are both landlord and tenants, allowing us to collectively take control of our housing. Who are BUnker?

Bunker Housing Co-operative Limited was formed in 2015. Our membership is made up of low-income people who currently live in private rented accommodation. We are building high quality homes for affordable rent, on land leased from the local council.

4

How are we paying for it?

Our first development is funded 80% by a 40 year commercial mortgage from Ecology Building Society and 20% by Loan stock. The mortgage is between the co-op and EBS secured on the value of the homes and the leasehold of the land.We also received a £38k grant from BHCLT our local CLH Hub to pay some pre-development fees.For our second development we are looking for further loan stock investment from organisations, groups and individuals, grants from Homes England's Community Housing Fund & a commercial mortgage from EBS or similar ethical lender.

Site one - Plumpton Road – 2 x 3 bed Homes

5

Introduction

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currently in our pipeline?

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6

Reproduction Art: Logotype Proportional Scaling

1/1250 @ A3

_GA_100

SITE A AND B AS PROPOSED

DRAFT SCHEME

PROJECT TITLE

TITLE

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INFORMATION

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PURPOSES OF PLANNING AND BUILDING REGULATIONS.

ALL DIMENSIONS TO BE CHECKED ON SITE.

www.auraa.studio 1A Chalk Farm Parade

[email protected] London NW3 2BN

DO NOT SCALE FROM THIS DRAWING EXCEPT FOR THE

DUNSTER CLOSE

15.02.2019

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DU

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Y R

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D

DUNSTER CLOSE

SITE B

SITE A

3 Bedroom House

1 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

1 Bedroom Flat

4 Bedroom House

SITE B

SITE A

3 Bedroom House A

1 Bedroom Flat B

2 Bedroom Flat C

2 Bedroom Flat D

2 Bedroom Flat E

4 Bedroom House A

1 Bedroom Flat B

2 Bedroom Flat C

2 Bedroom Flat D

2 Bedroom Flat E

1/200 @ A3

_GA_120

SITE B FLOOR PLANS ASPROPOSED

DRAFT SCHEME

PROJECT TITLE

TITLE

DATE

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LC / RL

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REVISION:

NOTES






DUNSTER CLOSE

15.02.2019

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DU

DLE

Y R

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DUNSTER CLOSE

SECOND FLOOR

A: 30 m2B: 28 m2C: 77 m2

FIRST FLOOR

A: 30 m2B: 28 m2D: 77 m2

GROUND FLOOR

A: 30 m2E: 77 m2

TOTAL

House A: 90 m2Flat B: 56 m2Flat C: 77 m2Flat D: 77 m2Flat E: 77 m2

Communal area: 50 m2

DU

DLE

Y R

OA

D

DUNSTER CLOSE

3 Bedroom House A

1 Bedroom Flat B

2 Bedroom Flat C

2 Bedroom Flat D

2 Bedroom Flat E

SECOND FLOOR

FIRST FLOOR

GROUND FLOOR

SITE B

SITE A

SITE BSITE A

SITE B SITE BSITE B

Communal Area

1/200 @ A3

_GA_110

SITE A FLOOR PLANS ASPROPOSED

DRAFT SCHEME

PROJECT TITLE

TITLE

DATE

SCALE

DRAWN

STATUS

DRG No

INFORMATION

LC / RL

REV:

REVISION:

NOTES






DUNSTER CLOSE

15.02.2019

1903_

DU

DLE

Y R

OA

D

DUNSTER CLOSE

SECOND FLOOR

A: 38 m2B: 35 m2C: 61 m2

FIRST FLOOR

A: 38 m2B: 35 m2D: 61 m2

GROUND FLOOR

A: 60 m2E: 61 m2

TOTAL



DU

DLE

Y R

OA

D

DUNSTER CLOSE

4 Bedroom House A

1 Bedroom Flat B

2 Bedroom Flat C

2 Bedroom Flat D

2 Bedroom Flat E

SECOND FLOOR

FIRST FLOOR

GROUND FLOOR

SITE B

SITE A

SITE B

SITE A SITE ASITE A

SITE A

Communal Area

Site two? – ****** Close –10 Homes sITE tWO dunster Close Hollingbury

10 new Homes1X4 BED1X3 BED6X2 BED2X1 BED

1/1250 @ A3

_GA_100

SITE A AND B AS PROPOSED

DRAFT SCHEME

PROJECT TITLE

TITLE

DATE

SCALE

DRAWN

STATUS

DRG No

INFORMATION

LC / RL

REV:

REVISION:

NOTES






DUNSTER CLOSE

15.02.2019

1903_

DU

DLE

Y R

OA

D

DUNSTER CLOSE

SITE B

SITE A

3 Bedroom House

1 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

2 Bedroom Flat

1 Bedroom Flat

4 Bedroom House

SITE B

SITE A

3 Bedroom House A

1 Bedroom Flat B

2 Bedroom Flat C

2 Bedroom Flat D

2 Bedroom Flat E

4 Bedroom House A

1 Bedroom Flat B

2 Bedroom Flat C

2 Bedroom Flat D

2 Bedroom Flat E

1/200 @ A3

_GA_120

SITE B FLOOR PLANS ASPROPOSED

DRAFT SCHEME

PROJECT TITLE

TITLE

DATE

SCALE

DRAWN

STATUS

DRG No

INFORMATION

LC / RL

REV:

REVISION:

NOTES






DUNSTER CLOSE

15.02.2019

1903_

DU

DLE

Y R

OA

D

DUNSTER CLOSE

SECOND FLOOR

A: 30 m2B: 28 m2C: 77 m2

FIRST FLOOR

A: 30 m2B: 28 m2D: 77 m2

GROUND FLOOR

A: 30 m2E: 77 m2

TOTAL



DU

DLE

Y R

OA

D

DUNSTER CLOSE

3 Bedroom House A

1 Bedroom Flat B

2 Bedroom Flat C

2 Bedroom Flat D

2 Bedroom Flat E

SECOND FLOOR

FIRST FLOOR

GROUND FLOOR

SITE B

SITE A

SITE BSITE A

SITE B SITE BSITE B

Communal Area

1/200 @ A3

_GA_110

SITE A FLOOR PLANS ASPROPOSED

DRAFT SCHEME

PROJECT TITLE

TITLE

DATE

SCALE

DRAWN

STATUS

DRG No

INFORMATION

LC / RL

REV:

REVISION:

NOTES






DUNSTER CLOSE

15.02.2019

1903_

DU

DLE

Y R

OA

D

DUNSTER CLOSE

SECOND FLOOR

A: 38 m2B: 35 m2C: 61 m2

FIRST FLOOR

A: 38 m2B: 35 m2D: 61 m2

GROUND FLOOR

A: 60 m2E: 61 m2

TOTAL



DU

DLE

Y R

OA

D

DUNSTER CLOSE

4 Bedroom House A

1 Bedroom Flat B

2 Bedroom Flat C

2 Bedroom Flat D

2 Bedroom Flat E

SECOND FLOOR

FIRST FLOOR

GROUND FLOOR

SITE B

SITE A

SITE B

SITE A SITE ASITE A

SITE A

Communal Area

Site two? – ****** Close –10 Homes Second Site - Dunster Close-

10 new Homes1X4 BED1X3 BED6X2 BED2X1 BED

7

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01

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As a fully mutual Industrial & Provident Society we are able to issue loanstock for people who are interested in invest-ing in and supporting our proj-ect. Loanstock helps the co-op raise the finance it needs while creating a secure and ethical investment opportunity. The system is one of 'fixed-term' loans. In other words, people lend money to the co-op for a set period that they decide.

Bunker follows the 7 co-op principles - find them at https://www.ica.coop/en/cooperatives/cooperative-identity

8

What IS LOAN Stock?

It is in Bunker’s interest for the loan period to be as long as possible, however investors are able to choose a time period of 5, 10, 15, 20 or 25 years, as well as an interest rate of between 0% and 3%. The lower the interest rate the more affordable the housing. The co-op pays interest

(the level of which is also decided by the person investing), to the “loan-stock holder”. These payments are financed through the rents paid by the member households. Interest can be paid in two ways: simple or compound

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SimpleInterest – the amount of inter-est is fixed over a period of time, paid to the lender annually.

For example, if you were to invest £500 at 1% simple inter-est you would earn £5 per year, every year for the lending peri-od. The original £500 is paid at the end of the set period of 5, 10, 15, 20 or 25 years.

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Bunker loanstock offers an opportunity for an ethical investment in the development of community led housing

Compound Interest – the interest earned over time will continue to increase and the total interest, as well as the original amount will be paid at the end of the lending peri-od. All interest earnt remains in the loan so the sum from which to cal-culate interest becomes larger over time. For example, if you were to invest £500 at 1% compound interest in year one you would earn £5. In year two you would continue to earn 1% on the new amount of £505 so the interest earnt would be £5.05, taking the total amount to £510.05, and so on. At the end of the set period, the investor is paid back in full.

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How Does it work?

Our aim is to raise as much of the finance we require at the lowest interest rate possible so that we can use our cost rents to service our debts, main tain our properties and create our own financial sur-plus as soon as possible so that we may in turn help to finance other co-operative projects.

For the Dunster Close scheme, we need to raise £535,000 in loanstock and other funding, includ-ing government grants. As with our first site on Plumpton Road, we will be taking out a mortgage with the Ecology Building Society. The bank will only lend up to 80% of the total project costs so the money we are raising is for the further 20%. If we are able to raise more, we will be able to take out a smaller mortgage.

N.B. Loanstock is the form of a “stock” not a share therefore it does not give the lender any powers or rights over the running of Bunker Housing Co-op.

The process We are currently at the pre-development stage of the Dunster Close scheme and are collecting 'pledg-es' for loanstock. Once full planning permission is granted, the lease is signed and we enter the con-struction phase, we will ask those who have pledged to pay us the loanstock. This can be done by pay-ing the money by cheque or directly into our bank account. Loanstock certificates will be issued to all investors and annual interest will be calculated from the date of payment.

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all community led housing groups need the same things ... Land - people- money and support. Bunker is part of a growing co-operative movement with close to 70,000 members across the UK. Since the 1930s self-builders have been producing homes in the city but Bunker is the first co-op to build houses in over 20 years. Bunker members play an active role in CHIBAH (Co-operative Housing In Brighton & Hove) a longstanding network of housing co-operatives supporting each other and sharing their learning and experiences with other groups.

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Bunker Housing Co-operative Limited is incorporat-ed under the Co-operative and Community Benefit Societies Act 2014; Registry Number 4039. You can find confirmation and details at https://mutuals.fca.org.uk/

For Further Information or to make a pledge or donation you can con-tact our co -treasurers Amy & Guy via email for more informa-tion and follow our story @

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email [email protected]/bunkerbuildtwitter @bunkercoop

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In 5 years (2011- 16) House prices have risen in Brighton and Hove by 43% & Wages by 7% An average three bedroom home in Brighton & Hove costs around £479,793 – 16 times the typical salary (BHCC, 2018).

30% of people in Brighton & Hove live in private rented accommoda-tion where the average monthly rent can be over half of tenants’ incomes (Census, 2011 and BHCC, 2018).

The co-op can keep its rent afford-able. The tenants are also the land-lords and it is their choice on how to balance the books.

Almost a fifth of the UK population say they are always or often lonely (British Red Cross and Co-Op, 2016).Happier residents : Co-ops have the highest resident satisfaction rates of any housing type (CCMH, 2009).

Why a co-op makes sense.

Bunker Housing Co-operative Limited Loanstock Investment pack

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