The aim of the fund is to incentivise local authorities to begin building new homes and is the first such central government support to councils in a generation.
The total Scottish Government funding from the three rounds is almost £80 million and 3,300 homes will be developed across 23 Local Authorities. This will leverage in more than £300 million investment by local authorities.
Almost £50 million has already been allocated to 22 councils to build 2,297 houses across Scotland. The results of the assessment process were announced in two rounds, in April/June 2009 and December 2009.
A further £30 million was allocated to 22 councils to 'kick-start' the development of over 1,001 homes in the third round on 1 July 2010. The funding for the extra 1,000 council houses will support around 1,200 jobs in the construction industry and 700 more in related trades.
Funds are allocated to maximise the number of additional homes built of sufficient quality, in the right places according to the following principles.
The number of units that are built is maximised within the resources available, but not at the expense of having to compromise on design quality and quality of place.
Applications to the fund are considered jointly by COSLA (along with its expert housing advisers) and the Scottish Government against the above principles and related criteria.