A loan to a housing developer has been extended by the Cambridgeshire and Peterborough Combined Authority to avoid a ‘legal dispute’.

A report published by the authority said the final repayment date of a £8million loan to Histon Road Development LLP had been extended, but that no further loan advances would be made.

The loan was made by the Combined Authority under its affordable housing programme, which granted loans to development companies to support the building of additional affordable housing.

A report to the environment and sustainable communities committee on June 12 said other loans issued under the programme had been repaid with interest.

However, it said an extension for the loan to Histon Road Development LLP had been agreed. The report said that the outstanding balance of the loan as of May 2023, was £8,172,335.

It said: “The action to extend the duration of the loan to support the development at Histon Road will avoid an imminent legal dispute and enable work on site to continue.

“The [Combined Authority’s] security over the site shall remain as a first legal charge and there shall be no further loan advances.

“There is clear financial incentive for the borrower to repay the [Combined Authority] loan as soon as possible and the action to extend the term of the loan agreement will minimise disruption to delivery of the housing.”

Some of the report information around the decision has been kept confidential and not published.

Councillor Bridget Smith, chair of the committee, said she had been “fully informed” about the situation and was “fully supportive of the decision that was made”.