The Housing Finance Corporation [THFC] is a mutually owned, registered society under the Co-operative and Community Benefit Societies Act 2014.
It is the leading aggregating body in the UK housing market. Established as a not for profit business model in 1987 (through a combined initiative of the Housing Corporation and the National Housing Federation), THFC continues to grow in size and reputation.
The relationship between the two institutions is well established. Through large-scale investment from the European Investment Bank [EIB], THFC is able to fund a very broad range of housing associations [HAs] in their delivery of affordable homes.
EIB provides long term funding through THFC for investing in urban regeneration schemes. All schemes funded are part of a published regeneration plan for a specific area.
EIB only funds 50% of any scheme, and if the grant of a scheme exceeds 50% of cost, EIB will fund the balance of the cost less grant.
For all schemes the lender is THFC, and we undertake our own credit and security checks.
THFC holds an A (Stable) credit rating from S&P.
By definition, the affordable housing market, to which THFC lends, delivers sustainable, high-quality housing to those in housing need.
THFC’s involvement has facilitated a variety of community based schemes, employment opportunities and environmental incentives, with HA’s having a direct focus on providing responsibly for their tenants.
Since THFC’s establishment in 1987, due to varying financial instruments and covenant structures, multiple subsidiaries have been incorporated to meet market demand. For clarity on how each subsidiary works. See Management and Subsidiaries.
THFC undertakes thorough due diligence as part of its credit approval process, covering all financial and non-financial aspects of a housing associations business. There is a particular focus on financial viability and the business plan of an association, and the risk appetite of an association towards non-social housing activities. After making a loan, THFC continues to monitor each borrower’s performance closely, by reference to Regulatory Reports and quarterly management information.