The £12 million scheme will see a mix of 82 houses and flats built at the site Nethan Street, Govan. Each house will have front and back gardens, with flats having a south facing balcony.
The project has been made possible thanks to a charitable bond scheme, where social housing providers can access flexible loans from Allia, a social investment charity.
The Scottish Government has invested £6.8m in the latest bond issue, with a £5m loan provided to Elderpark to help build the development. In addition, Glasgow City Council has granted £6.4m towards the scheme, with a further £600,000 from Elderpark.
The remaining £1.8m from the charitable bond scheme will be given as a donation to housing associations for the construction of social housing.
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Overall, this latest investment brings the Scottish Government's total charitable bond investments with Allia to more than £54 million – supporting the development of 743 affordable homes across Scotland.
Speaking during a visit to the site today, 01 March, Housing Minister Kevin Stewart said: "Charitable bonds enable us to provide vital investment to social housing providers like Elderpark Housing Association. They are a crucial tool which has helped to develop 743 affordable homes across Scotland so far.
"We are committed to delivering at least 50,000 affordable homes over the lifetime of this parliament - backed by more than £3 billion. Access to quality housing is a vital part of our drive to secure economic growth, promote social justice, strengthen communities and tackle inequalities. These new homes in Govan mark another step on the road towards delivering that pledge."
Gary Dalziel, Chief Executive of Elderpark HA, added: "Elderpark Housing Association is about to undertake a significant development project and has secured loan finance through the innovative charitable bond model delivered in partnership between the Scottish Government and Allia.
"By using this model it has ensured that the funding was both immediately accessible and provided at a competitive rate which will ensure we can provide further 82 high quality and much needed new homes in the Greater Govan area."
(LM/CD)
