CASE STUDY: How a village trust partnered with developers, overcame challenges and delivered new homes

In 2023 South Cambridgeshire District Council granted planning permission to Elbourn Memorial Housing Trust (the Trust) for two 1-bed and two 2-bed properties to be built adjacent to the three existing almshouses, together with landscaping and shared parking.

In addition to utilising the developer’s Section 106 obligation, the Association supported the Trust with a £25,000 grant and £75,000 interest-free loan.

A further loan was secured from Charity Bank, with the Trust also utilising some of its reserves to make the project viable.

If a charity does not have sufficient funds to carry out necessary works to their almshouses, part of the service The Almshouse Association offers its member charities is financial help in the form of grants and loans.

History

Elbourn Memorial Housing Trust (the Trust) was established in 1950, with a bequest from the late Miss Elbourn who lived in the village of Bassingbourn, South Cambridgeshire.

The Trust manages three single occupancy properties in High Street, Bassingbourn and, in line with the wishes of Miss Elbourn, the scheme provides affordable accommodation for local people in need.

The original ‘scheme of governance’ was established and registered with the Charity Commissioners for England and Wales in 1951. It was amended most recently in October 2023 when the trust became a Charitable Incorporated Organisation (CIO).

The work to become a CIO was initiated because of a desire to build additional almshouses, initiate commercial agreements and limit any potential liabilities for trustees.

The Trust has on average, four trustees. The recruitment and retention of trustees remains the biggest challenge.

Demographic need

More recently, as an existing single occupancy almshouse became available it became apparent that the ‘need’ had shifted from being predominantly older people to couples and young families that could not afford private rentals, to purchase a home or were struggling to access the small stock of council properties.

Historically, the land owned by the Trust has not been fully utilised and sufficient space to build additional homes has always existed. It was agreed that new builds should be houses (as opposed to the three existing single storey dwellings) and a mix of one and two bed homes.

This necessitated a change in our processes and handbook but allowed the Trust to adapt to better suit local need.

The opportunity

The Trust’s income and reserves were not sufficient to initiate a build programme.  Having investigated planning applications within the South Cambridgeshire District Council (SCDC) planning portal, a trustee approached a local developer who had been granted planning permission to develop a parcel of land within the village to discuss off-setting their Section 106 (S106) affordable housing obligation.

Initial discussions took place with the developer where we outlined our idea to utilise the Trust’s land and frame a potential financial agreement whereby the Trust and developer contributed roughly equal amounts to the project. Furthermore, it was proposed that the developer undertake all building works.

This approach would reduce the developer’s S106 commitments and permit a more profitable utilisation of the developers site by avoiding a scenario where affordable homes were built within a prestige development. It would also allow a small trust like us to undertake a building project as the customer and to partner with an established and experienced property development company. More importantly, it would facilitate the build at cost (i.e. zero profit margin to the developer) thereby minimising the Trust’s share of the total project cost.

The process

It was agreed that the developer would work to include the utilisation of the Trust’s land into their S106 agreement with SCDC. An existing trustee and local architect developed initial plans for the houses as a basis for discussion between the Trust and developer. In September 2015, the Trust applied for planning permission with SCDC linking-in with the developer’s S106 agreement. Discussions then took place concerning the Trust’s suitability as an affordable home provider and an evaluation of the Trust’s scheme and processes took place.

At this stage, the Trust also engaged with The Almshouse Association and there were several discussions around project management, budgets, legal aspects, and fund raising. All of which provided the trustees with excellent guidance and examples of how other trusts had approached building projects. It was also recommended that the Trust should become a CIO.

SCDC planning took time to consider the application and with additional information, extensions and changes being made it was determined in 2021 that the Trust would also be required to enter an S106 agreement with SCDC and the developer.

The Trust acknowledged that legal assistance would be a necessity and so a search of how to approach what could be an expensive requirement, started. A trustee, when researching pro-bono legal works came across a charity called Law Works, an organisation that attempts to match worthy causes with law firms that are willing to offer pro-bono services. After initial contact and a call to discuss the requirements the Trust was contacted by a London law company that was willing to act on the Trust’s behalf. In January 2023, the Trust’s S106 was finalised.

Planning permission was finally granted in February 2023

A small team of trustees began to focus on the task in March 2023 and met every two weeks. We initiated formal requests for information on loans and grants from The Almshouse Association, Charity Bank and other financial entities.

We were once again fortunate enough to engage a pro-bono legal team to help us with constructing and agreeing a commercial contract with the developer. To enable the initiation of the pre-build works (detailed drawings, planning pre-conditions etc.) the developer and the Trust signed a ‘letter of engagement’ prior to the full commercial contract. This enabled the Trust to pay the developer to commence the works.

The full commercial contract was signed on 23 April 2024. The risks to the Trust were mitigated by:

  1. the developer owning the financial risk of any project cost over-run. In effect the Trust had a fixed price contract.
  2. Other than pre-build costs, the developer agreed to contribute their ‘half’ of the project cost before the Trust made any payments of their own.  

Breaking ground happened in early May 2024 and the houses were completed in early-June 2025. New residents moved in on 14  June 2025 and comprise a much broader demographic including single parent families and younger residents. All have strong connections with the village.

On reflection

  • Small trusts can achieve big things. No problem is insurmountable and there are many people and institutions willing to help.
  • Adopt a team approach, some trustees will accept a challenge while others would prefer not to.
  • If you approach developers prior to a S106 being agreed with the local authorities there may be an opportunity to utilise or off-set any commitments.
  • The Almshouse Association was our first port of call for all information relating to the project.
  • Be prepared to fill in a lot of forms!
  • Explore ‘for free’ services first – legal advice is essential but expensive.
  • Our developer was very supportive of the Trust’s objectives and challenges. The arrangement worked well for both parties, financially, commercially, and altruistically.
  • Gaining planning permission takes time and patience (this may be different in other counties).
  • Plans, risk management and budgets are essential tools.
  • There are always unbudgeted costs – reserves are essential.

Congratulations to all the trustees and staff of Elbourn Memorial Housing Trust on the successful completion of their project and thank you for sharing the experience.

[Photo credits: Elbourn Memorial Housing Trust]

The Almshouse Association would also like to thank all the people and organisations who so kindly donate to The Almshouse Association and leave gifts in their Wills. Without their generosity, we would not be in a position to help support almshouse charities with their renovations and new builds.

The Almshouse Association awards loans and grants to our member charities every year. In 2024, £813,667 was approved in new loans and grants totalled £60,000. Charities pay no interest on the loans, just a small administration fee. As they make repayments on the loans over a ten-year period, the Association can continue to offer loans to charities year after year, meaning that your donations continue to support almshouses and their residents in perpetuity.

If you are interested in making a donation to The Almshouse Association or leaving a gift in your Will, please do visit our Support Us pages here.

posted 16 September 2025