Community Asset Transfer and the Community Right to Bid, Locality
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Slides used by Catherine Perry and Neil Berry, Locality at the Big Local spring events. Catherine spoke at the event in Birmingham (on Thursday 8 May 2014)and Neil at the event in York (on Wednesday ...

Slides used by Catherine Perry and Neil Berry, Locality at the Big Local spring events. Catherine spoke at the event in Birmingham (on Thursday 8 May 2014)and Neil at the event in York (on Wednesday 21 May 2014), both organised as part of the Local Trust programme of networking and learning events for Big Local residents. The event took place. (Slides include Neil's name as he was last person to use them, but the same slides were used by both Catherine and Neil.)

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  • National charity and membership organisation. <br />
  • Merger in 2010, but roots go back a long way. <br />
  • Stats from latest survey. <br />
  • So, we have acknowledge that at the heart of CAT is this dynamic between genuine assets as opposed to a liabilities, and harnessing peoples’ passion, skills and experience in a focused way. <br /> And that’s what Locality members (and many of the organisations we work with) are trying to do on a daily basis. <br />
  • Now we recognise that CAT operates on a sliding scale, and many good outcomes have been achieved by gradual progression rather than overnight ownership. <br /> The opportunities potentially increase with greater autonomy, but so do the obligations and challenges for groups. <br />
  • To achieve that level of self-determination, the business model is orientated around sustainable earned income (rather than grants) as much as is possible – <br /> Often through a combination of sweating an asset and social enterprises. <br />
  • Which underpins the concept of local economic resilience. <br />
  • The sustainability argument is demonstrated by this graph, which shows that those Locality members with an asset base typically generate 25% - 30% more earned income than those without. <br />
  • Which can be really difficult when some of the things that communities most value and have got used to are changing, or disappearing altogether. <br /> This is a cartoon produced for the Kensal Rise library campaign in the wake of Brent council’s decision to close the library service and the owners – All Souls College, Oxford – intention to sell the 114 year old library. <br />
  • And that’s going to hit some places worse than others. <br /> Many communities already suffer from too much of this blight, so surely doing nothing is not a realistic option. <br />
  • Today’s topic was given the subtitle ‘seize the day’ by the organisers. <br />
  • But that upbeat message also needs to be balanced against a more dispassionate and objective view. <br />
  • CAT (and community asset acquisition more generally) can, and does, apply to all sorts of asset types. <br />

Community Asset Transfer and the Community Right to Bid, Locality Presentation Transcript

  • 1. Bi g Local Spr i ng Event Wednesday 21st May YORK
  • 2. Community Asset Transfer Community Right to Bid Neil Berry LOCALITY web:www.locality.org.uk email:info@locality.org.uk tel:0845 458 8336
  • 3. What’s coming up 1) Background – Locality – who we are and what we do 2) Asset Transfer and the Right to Bid – what are they, how can YOU use them in YOUR Big Local Area 3) Asset Mapping – what are the assets in your area? 4) Help and support –case studies, tools, grants
  • 4. Locality is the leading nationwide network of settlements, development trusts, social action centres and community enterprises.  Locality Our vision is to make every community a place of possibility – through social action, community enterprise and community asset ownership
  • 5. Locality was formed through the merger of bassac and the Development Trusts Association, two leading networks of community owned and led organisations.
  • 6. o 423 trusts in England (over 700 across UK) o Members have a combined income of £325m o Of which £172m is earned income o £660 million community owned assets o 5,500 staff o 20,000 volunteers Locality Membership
  • 7. Locality Members o Community led – by the people, for the people. o Social change – to make communities fairer and more inclusive. o Community enterprise – earning income for community benefit, not for private profit and aiming for long-term sustainability. o Developing assets – maximising community assets: people, land and buildings o Independent – working in partnership but accountable to the local community and free to determine their own objectives.
  • 8. What they do!!! Provide childcare, make benches, manage office space, cook healthy food, run community cafés, recycle paper, support people with special needs, grow stuff, manage community centres, run cinemas, build and rent out houses, youth work, provide home help schemes, transport schemes, lobby Council’s fori mprovements, consultancy work, run schools for excluded young people, have festivals & fun days & Dickensian Christmas Fayres, neighbourhood management and other local initiatives, run social enterprises, support people to find work, manage football pitches, manage Healthy Living Centres, run community conference facilities, create web-sites, provide a refuge for women, repairing and selling bicycles, DJ Workshops, refurbish derelict buildings, run credit unions, manage parks and play areas, teaching basic skills English and Math, lend money, employ local people, running play schemes, manage sports facilities, publish community newsletters, teach construction and catering skills, support community radio, run community arts projects, manage renewable energy schemes, build green homes, manage grant funding, managing local markets (market stalls), run community cohesion projects, manage street ranger schemes, advice and debt counselling, promote tourism, manage heritage sites, manage shops, run pubs and bars, manage allotments, run Tourist Information Centres, run Abattoirs, provide ferry services, book publishing, fish hatchery, holiday homes, golf courses, boat slipway, goose and deer management, Taxi service, rent a hen………………………………
  • 9. ????????? How much do you know about Community Asset Transfer and the Right to Bid? oA lot oSome of the basics oVirtually nothing oThey are confusing
  • 10. The drivers Political Community Community Right to Bid & Asset Transfer The political vision: putting more power and opportunity into peoples’ hands - Localism Act (2011) Driver 1. Localism and Decentralisation Driver 2. Community asset ownership Communities generating wealth and circulating it locally. Retaining key local buildings and services. Increased financial & operational independence.
  • 11. The Community Rights are a set of powers that give you a greater say over how your community develops. They can help you to save local shops, pubs, libraries, parks and football grounds. You can decide what is built and how the area should develop. Groups of people have the chance to deliver local services and develop them into community enterprises. There are four Community Rights oCommunity Right to Bid oCommunity Right to Build oCommunity Right to Challenge oNeighbourhood Planning Community Rights
  • 12. o Community Right to Build - Gives communities the power to build new shops, housing or community facilities without going through the normal planning process. o Community Right to Challenge - Gives local groups the opportunity to express their interest in taking over a local service where they think they can do it differently and better.   o Neighbourhood Planning - Gives people the chance to decide how their local area should develop and what should be built. New rights and powers for communities and individuals
  • 13. o Came info force in September 2012. o Voluntary and community organisations (and parish councils) can nominate land and buildings to be included in a local ‘list of assets of community value’. o The local authority is required to maintain the list. If the owner of a listed asset decides to sell, they must inform the council and a moratorium period (a 6 month ‘pause’ in the sale process) will be triggered during which time the asset cannot be sold. o This window affords communities precious time to raise the necessary funds and bid for its purchase. Community Right to Bid (Assets of Community Value)
  • 14. ‘I want to save my local pub, library, community centre, park……’ You can use the Community Right to Bid to ‘pause’ the sale of a building or land you care about, giving your community time to develop a bid to buy it. Community Right to Bid Further Info: http://mycommunityrights.org.uk/community-right- to-bid/how-does-it-work/
  • 15. What is Community Asset Transfer? oThe transfer of the interest/ownership in buildings and/or land (most often from the public sector) oTo locally accountable community organisations (i.e. independent, community reps, often membership, often charities) oThe type of transfer varies, but communities typically take on the ownership or management of a community asset on either a freehold, long lease, shorter lease or a licence to occupy basis (key is security of tenure and ability to manage it as an asset). Longer leases are required to secure grants. oCan be at ‘nil consideration’, less than best consideration or below market value
  • 16. Community asset acquisition – a spectrum of options o Management arrangements. o Meanwhile. o Short term lease. o Long term lease. o Freehold. Increasing: •Autonomy •Risk •Impact •Opportunity •Capacity “The greater the stake, the greater the financial and legal responsibility the organisation takes on, but also the greater the freedom to exploit the asset’s potential” Quirk review, (2007), DCLG
  • 17. Community Asset Transfer - A potted history… oGrowth of the ‘third sector’, particularly ‘community anchors’, enabling role of Councils, community empowerment, neighbourhood renewal, devolution and localism etc. oA history of Councils recognising the power of communities to optimise the community benefit of public owned assets o2003 General Disposal Consent o2006 Government White Paper – Strong and Prosperous Communities o2007/2008 The Quirk Review, Community Assets Fund & Advancing Assets for Communities o2008 Government White Paper – Communities in Control o2009 Asset Transfer Unit & Communitybuilders Fund o2010 Big Society & Localism Bill – Community Right to Bid o2012 Localism Act and Community Assets and Services Grants
  • 18. HEART, Headingley, Leeds
  • 19. Milennium Park, Heeley, Sheffield
  • 20. Elsie Whiteley Centre, Halifax
  • 21. Right to Bid vs Asset Transfer Right to Bid Asset Transfer Basis Statutory National policy Type of asset Any asset Any council owned asset Ownership Any owner Public sector Process Defined in Localism Act Mutual negotiation Value Market value Undervalue Terms Freehold or lease of 25+ years Mutual negotiation
  • 22. The Challenge Grant funding Assets Enterprise o Communities generating wealth and circulating it locally. o Retaining key local buildings and services. o Increased financial & operational independence.
  • 23. Generating wealth and circulating it locally
  • 24. The asset effect % of unrestricted earned income for Locality members with and without a significant asset 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 Orgs with Asset Orgs without asset
  • 25. The other asset effect -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Earned Income ProfitMargin With Asset No Asset
  • 26. People develop strong links to ‘their’ buildings…
  • 27. The risk of doing nothing Often, surplus assets exist in areas of market failure and voids can have a significant negative impact on communities.
  • 28. Community Asset Transfer – Seize the day! (Carpe diem)
  • 29. Caveat emptor (Buyer beware!)
  • 30. Managed workspace, industrial buildings, visitor centres, marina, sports facilities, training facilities, shops, cafes, cinemas, housing, green spaces, car parks, community centres, live/work spaces, health centres, nurseries, transport, wind farms, arts centres…and even an abattoir! Types of asset s …
  • 31. ???????????? Are all of the local assets of importance in your community listed or mapped? oYes oNo oI’ve no idea
  • 32. The Place Station http://www.theplacestation.org.uk/
  • 33. Bi g Local Spr i ng Event Wednesday 21st May YORK Asset Mappi ng i n Your Ar ea
  • 34. Case Study Coin Street Community Builders Coin Street Community Builders (CSCB) is a social enterprise and development trust which seeks to make London's South Bank a better place in which to live, to work and to visit. CSCB has transformed a largely derelict 13 acre site into a thriving mixed use neighbourhood by creating new co-operative homes; shops, galleries, restaurants, cafes and bars; a park and riverside walkway; sports facilities; by organising festivals and events; and by providing childcare, family support, learning, and enterprise support.
  • 35. Case Study Hudswell Community Pub Ingredients Local residents Passion, resilience, belief, and patience…and investment Finance Community Shares (residents) Grants (RDA, Locality, others) Loan/Equity (Key Fund) Advice Co-ops UK (community shares) Locality & others (business planning)
  • 36. Case Study Hastings Pier and White Rock Trust Ingredients Engagement Rules Build membership, mobilise networks, listen actively and openly, take risks Local residents Passion, politics, campaigns, resilience, belief, patience……and investment Community Share issue
  • 37. Part 2. The Right to Bid – the detail
  • 38. STEP 2: Get 21 people together and nominate the asset ... STEP 3: Local Authority accepts/rejects nomination ... STEP 4: If asset sold, up to 6 months to raise funds to bid to buy ... STEP 5: Finance, (Community Shares?) www.communityshares.org.uk ... STEP 1: Get informed, get organised, get mapping www.mycommunityrights.org.uk www.theplacestation.org.uk STEP 6: Asset is brought into community control ... The process…step by step…
  • 39. Yes we can! • Local strengths & opportunities. • What do we already have? • What are we capable of? • Where do we want to go from here? • What sort of value - intrinsic; a means to an end, future potential? • Engagement tools: http://www.partnerships.org.uk/guide/index. htm • MAP WITH A PURPOSE!
  • 40. Take (pre-emptive) action “They’ve closed our village pub how do we register it as a community asset and stop it from falling into the hands of developers?” “We want to take over our town hall and turn it into a community centre and hub.”
  • 41. The Pub? The Post Office? The Village Hall? The Corner Shop? The School? The Allotments? Your House? Managing the list • LAs manage the local list of ‘assets of community value’ (ACV). • Applies to public & private land. • Nominated by an eligible body. • LA has up to 8 weeks to decide. • LA must give notice to list to owner, occupier, nominee (and parish council). • Right of appeal for landowner. • If accepted, remains on list for 5 years.
  • 42. What is an Asset of Community Value? Its main use currently, or recently, has been to “further the social well-being or social interests of the local community” and there is a likelihood that it could continue to do so.
  • 43. Who can nominate? • Parish councils. • Neighbourhood Forums (as defined in Neighbourhood Planning regs). • Unconstituted community groups of at least 21 people on electoral roll. • Not-for-private-profit organisations (e.g. charities). • …with a local connection.
  • 44. How do you nominate? • By application to relevant LA. • Description of land and boundaries. • Known owners and occupiers. • Reasons why it is of community value. • Evidence of nominator’s eligibility. Nomination stage is meant to be easy!
  • 45. Some minor exclusions to listing But the main one is residential housing.
  • 46. Open to interpretation? • ‘Social well-being’ - not defined, but in practice has been applied very widely. • ‘Social interests’ - is defined, as: cultural, recreational or sporting interests. • ‘Recent past’ – not defined, but propose at least 5 years.
  • 47. Owner objections • Internal (LA) review. • First Tier tribunal. Chesham Arms Pub, Hackney, judge found that it is an asset of community value despite owner’s appeal. http://www.savethechesham.org/
  • 48. The Moratorium (pause) • Triggered when owner wants to sell. • Freehold/25+ lease (vacant possession). • Owner must inform LA of their intention to sell. • LA informs updates the list and publishes moratorium dates. • Owner cannot conclude sale, other than to a ‘community interest group’.
  • 49. Moratorium periods 6 months in total 18 month ‘protected period’ where owner can sell again without delay
  • 50. Who can express an interest at the moratorium stage? • Can only be made by a ‘community interest group.’ • ie: a legally constituted organisation such as a charity, co. limited by guarantee (that does not distribute profits amongst its members), an Industrial and Provident Society, a Community Interest Company or a Parish Council.
  • 51. • Business sold as a going concern. • Part-listed disposals (where land forms part of larger site, the remainder of which is not listed). • Planning obligation, option or pre-emption right made before the asset was listed. • Gifts to family members. • Statutory compulsory purchase. • Purpose of enabling NHS services to continue to be provided on the land. • For purposes of a school, a 16-19 academy or an institution within the further education sector. Moratorium exclusions
  • 52. Progress – the big picture • 1,100 listed (72% success rate). • Huge breadth and variety of asset types. • At least 150 pubs listed (half nominated by Parish councils). • Libraries, green space, sports facilities, football grounds, shops, churches, hospitals, town halls, barracks…and Greenham Common Control Tower!
  • 53. Do ACV listings affect planning decisions? “It is open to the local planning authority to decide whether listing as an ACV is a material consideration if an application for change of use is submitted considering all the circumstances of the case.” Community Right to Bid: Non-statutory advice note for local authorities, DCLG https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/14880/Community_Right_to_Bid_-_Non- statutory_advice_note_for_local_authorities.pdf Brent Council’s recent decision to refuse planning permission for the redevelopment of Kensal Rise Library.
  • 54. The Ivy House Pub, Nunhead, London Borough of Southwark The Ivy House pub was possibly the first place in the country to be listed as an asset of community value using the Community Right to Bid. And the fight to save this historic pub has paid off, with the pub being brought into community ownership in March 2013!
  • 55. Step 1: Have an enterprising idea for running a local asset or community project Step 2: Make the case and galvanise community support ... Step 5: Develop a share offer document setting out why your community should invest Step 6: Launch and promote share offer to attract investors ... Step 3: To issue shares: register community organisation as an Industrial Provident Society ... Step 4: Set your funding target based on your business case £700,000 The Bell Inn, Bath: Community Shares investment
  • 56. Part 4. Help and support
  • 57. The website http://mycommunityrights.org.uk/
  • 58. Grants • Pre-feasibility grants - £5k to £10k. • Feasibility grants - £10k to £100k. • Eligible whether you use the right or not. • Revenue only - consortia building, training, expertise, business planning, market research, etc. • Not intended for equipment, building costs or running costs. • Capital available from May 1st 2014
  • 59. • Find out more about community asset projects: www.locality.org.uk/assets • Take advantage of our Community Asset Mapping Platform: www.theplacestation.org.uk • Obtain further information about the Community Rights: www.mycommunityrights.org.uk Tel: 0845 345 4564 • Follow our pilot work with private sector property professionals: www.localitybrokers.org.uk/ • Use our Whole Life Costing tool for communities: www.buildingcalculator.org.uk Advice and support