A £400,000 loan from Norwich City Council to YMCA Norfolk will part fund the build of move-on accommodation for a number of homeless and vulnerable young people in Norfolk.
When work on the Bethel Street site finishes in May 2012, the YMCA will have completed its two-part project to relocate its services.
The cash injection has been welcomed by the charity, as the interest accrued on a private loan would have forced it to direct resources away from the vital work it does.
This in turn would have had a knock-on impact on council homelessness services and the lives of a number of vulnerable local people.
With the loan agreed, YMCA Norfolk is now looking to raise the final £370,000 to make sure the project is fully funded, with applications to grant-making trusts and an on-going public appeal.
Norwich City Council supplied land adjacent to the bus station in Surrey Street to enable completion of the first phase in 2009. This involved building a 34-bedroom assessment centre offering short-stay accommodation.
Construction of the new 40-bedroom site on Bethel Street began after the YMCA’s St Giles Street building was deemed unfit for purpose, leading the charity to consider selling the property in order to finance the creation of new accommodation.
However, the project suffered a setback when an offer for the St Giles Street premises in 2008 was shortly followed by the UK’s economic downturn, prompting it to be withdrawn.
When the YMCA approached the city council for funding, arrangements for an interest free loan were put in place to help enable completion of the much-needed accommodation.
Cllr Victoria MacDonald, cabinet member for housing, said: “I am delighted that we were able to step in to ensure this building is finished. There is a very real need to provide housing in Norwich for homeless and vulnerable people and the support which the YMCA provides is invaluable.”
YMCA Norfolk chief executive Tim Sweeting said: “The backing of Norwich City Council is a very welcome boost to the project, which aims to help homeless and vulnerable young people take the next step in moving towards independent living and fulfilled lives. We will now be able to focus our efforts on raising the final £370,000 we need to complete the project.”