Isos, which has 350 staff, has more than 11,000 homes in the North East and built more than 200 properties in the year to the end of March.
NomadE5, which is part of the Isos Group, secured the new funding from the Abbey UK Corporate Bank, and is aiming to build 1,000 homes in the next five years
Mr Loraine believes NomadE5 was in a strong position to borrow thanks to its prudent financial approach.
He said: “The Isos Group is seen as a good covenant, a good risk for the banks, so we have been able to negotiate sensible terms in a very difficult economic climate. The association will still be able to live within its financial constraints, with headroom and capacity to develop long into the future, because we have managed our affairs prudently. The association has low levels of borrowing compared to many other housing associations.
“We have always managed our financial affairs tightly, even when the climate was more benign, which has stood us in good stead in these more difficult economic circumstances.”
Hundreds of jobs have been lost in the region’s construction sector in the past year because of the decline in housebuilding as the housing bubble deflated.
But there have been signs of increased activity in recent weeks and yesterday Newcastle housebuilder Bellway said it would shortly start work on more than 3,000 homes in east London.
