Failure to find suitable properties
Increase in suitable properties due to downturn in tourist market post Covid 19, especially former small hotels, B&B, which suit long term supported housing services
Short stay/holiday lets could have changed use for long term accommodation
First property identified and agreed with City Edinburgh Council as a suitable location. Full planning application granted.
Should the purchase of the Peffermill property not be possible, CGAH will find an equivalent property.
Failure of charity partner to find tenants
Period of economic uncertainty post Covid19 will see increased demand for affordable housing
Homelessness has already increased by 22% in Edinburgh since March 2020. Funding for the hotels in which homeless people are accommodated finishes in September 2020
Failure of charity partner to pay rent
Rowan Alba have secured revenue funding for this service, and are working closely with City of Edinburgh Council to provide long term supported accommodation for their client group.
Property Values do not meet funding liabilities or withdrawals
6 month notice on withdrawing funds will provide time to secure further shareholders.
The option of a capital repayment mortgage may be considered by the board if economic to do so.
Financial projections show a trading surplus
Underestimation of refurbishment costs
Built into the detailed costings, conducted by specialists in this type of conversion, are generous allowances to ensure this does not happen.
CGAH will appoint a competent project manager, and work with reputable builders to ensure the completion of the project.
Over time, CGAH will build up a fund from Charitable funding sources to ensure against this risk.
Failure to purchase property
Should efforts to purchase a suitable property to execute CGAH's business plan be unsuccessful 12 months after closing the share offer, the charity will communicate with members about what we should do next, including possibly winding up the society and returning remaining funds to investors.