Community Land Trusts Conference and Exhibition 2012

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Community Land Trusts Conference and Exhibition 2012 B1: Community Rights, community assets and new community income streams Speakers: Active chair: Karen Mellanby

1 Community Land Trusts Conference and Exhibition 2012 B1: Community Rights, community assets and new community income streams Speakers: Active chair: Karen Mellanby Director of Programmes Locality Andrew Lynch Policy Lead, Community Right to Build and New Homes Bonus Communities and Local Government David Graham Chair Lyvennet Community Trust

2 Community Rights Karen Mellanby Director of Programmes Locality

4 Locality Members Community led by local people, meeting the many needs of a community. Driving social change bringing about changes to make communities fairer and more inclusive. Committed to community enterprise earning income for community benefit, not for private profit and aiming for long-term sustainability. Developing assets maximising community assets: people, land and buildings Independent working in partnership but accountable to the local community and free to determine their own objectives.

5 New Community Rights BUILD BID CHALLENGE

6 BUILD Welcome to NEIGHBOURHOOD PLANNING Please drive carefully

7 Community Right to Build BUILD small scale, site-specific developments without planning permission

8 BUILD How will it work? Identify community needs Be properly constituted Define the neighbourhood area Develop a business case Prepare and submit a Community Right to Build Order Council holds a referendum

9 BUILD Things to consider? Type and scale of development Defining community benefit Engagement with specialist bodies and developers Links with neighbourhood planning

10 Community Right to Bid BID delay the sale and bid to buy assets of community value

11 BID How will it work? Listing of assets of community value Nominated by Parish Council, community council, or a locally connected voluntary or community body LA must inform owner and nominee Right of appeal for landowner 5 year listing

12 BID Moratorium Period Triggered when owner wants to sell During which the owner cannot conclude sale 6 weeks for community group to notify LA they wish to bid 6 months to raise capital to purchase Followed by a protected period 18 months: to protect owner from repeated attempts to block sale

13 Community Right to Challenge CHALLENGE challenge and take over a council service they think can be better run

14 Who can use the right to challenge? Voluntary and community bodies Charitable bodies Parish Councils 2 or more employees of the Local Authority involved in that service CHALLENGE

15 CHALLENGE How will it work? Step 1: Express an interest Step 2: The local council considers your proposal Step 3: The council holds a procurement exercise Step 4: If successful you take over the running of the service

16 CHALLENGE Excluded services Things to consider EOI information required Grounds for rejection of an EOI For most relevant bodies the first steps will actually be to review your skills and business plans, and consult informally with the appropriate relevant authority EOI does not guarantee a right to deliver

17 LOCALISM Key Issues Localism V Growth Economic, environmental and social balance Resources and financial mechanisms Motivation of communities (time and effort) Appropriate Governance structures Capacity and skills development

18 Challenges RIGHTS Low awareness of the rights Skepticism opening the door for others Shrinking market Smaller contracts buildings not viable Potential for creating conflict with LA LAs in control and dealing with what seems like contradictory policy (Localism vs Gershon)

19 RIGHTS Opportunities Encourages local thinking and community ownership Co-design of services Breaking down contract size A catalyst for collaboration

20 Where to now? HELP

21 mycommunityrights.org.uk grants

22 WE d LIKE TO BUY THAT ME TOO

24 New Rights Support & Income Streams Andrew Lynch Department for Communities and Local Government 24

25 Overview Support for the new Rights Other funding streams which may benefit communities: New Homes Bonus What it is, how it works, some examples Community Infrastructure levy What it is, how it works, early findings 25

26 Unlocking the benefits Rights Support Funding streams Control Development / ownership Managing impacts 26

27 Support programme Committed to providing support to communities Envisage a mix of practical help advice on process, best practice, case studies Likely to be a level of financial support Watch this space! 27

28 New Homes Bonus 28

29 New Homes Bonus What is it? Recognises net increases in effective housing stock so long-term empties brought back into use as well as new units and conversions Relates to council tax receipts for 6 years Affordable Homes premium 29

30 New Homes Bonus How the Payments Add Up Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 30

31 New Homes Bonus figures Year 1-199m Year 2-199m + 233m = 432m Monies paid to LAs as unringfenced grant Govt does not specify use Govt expects LAs to consult communities Some examples: 31

32 NHB example 1 Wychavon DC consulted residents on use of NHB Published a protocol in 2011 " to ensure that the economic benefits of growth are returned to the local authorities and communities where that growth takes place" 32

NHB example 2 At the request of local traders VWH Council used the Bonus to introduce free car parking to three market towns: Abingdon, Faringdon and Wantage Aim

33 NHB example 2 At the request of local traders VWH Council used the Bonus to introduce free car parking to three market towns: Abingdon, Faringdon and Wantage Aim to boost town centre vitality. Was supported by local communities and will increase the importance of the three market towns as centres of local community activity 33

34 NHB example 3 Woking Borough Council set the Bonus aside for enabling development of Community Assets, such as community halls and recreational facilities. Residents and community associations consulted about the facilities they require. 34

35 And there are other ideas out there Support Apprenticeships Support development of local / neighbourhood plans Pairing with growth funding to support regeneration schemes Private sector decent homes 35

36 Community Infrastructure Levy (CIL) 36

37 CIL What is it? A single, flexible pot for infrastructure funding. Charged on most new build development and collected by local authority. Can be spent on any infrastructure and includes on-going costs. Can be spent across or even outside a local authority area. 37

38 CIL Progress to date 5 Authorities are now charging CIL (Newark and Sherwood, Shropshire, Redbridge, Portsmouth and Huntingdonshire) Predicted take up 70% of local authorities by Forecast 1billion raised by

39 CIL Next steps Ministers have committed to requiring a meaningful proportion of CIL to be passed directly to parishes which receive development. Parishes will be free to spend their CIL on anything to support the development of their area. Where there are no parishes, the local authority will retain the CIL but must spend the meaningful proportion in accordance with the neighbourhood s wishes. Regulations will be laid later in 2012 which will define the % of CIL to be passed to parishes. 39

40 Early evidence from frontrunners Too early for cast-iron examples, but Indications are of a focus on transport and education Shropshire passing significant amounts to communities 40

41 Contacts / Information newhomesbonus@communities.gsi.gov.uk CIL@communities.gsi.gov.uk Andrew Lynch andrew.lynch@communities.gsi.gov.uk 41

42 QUESTIONS? 42

43 Community rights, community assets and new community income streams How will it work in practice David Graham 22 nd May 2012

44 Agenda National + Local picture The benefits + challenges Learning so far Key messages

45 CLT Network England + Wales 80No. Red - Ambition Purple Constituted Yellow scheme progress Green On-site Blue completed Pink position unknown

46 Lyvennet Community Trust On site building completion June Rented 2 shared ownership 8 self-build Land Open market National company

47 Stoneworks Garth Funding HCA - 660k Mortgage - 500k Sale self-build plots - 600k Grants - 50k CAF - 330k loan Charity Bank Loan - 1m Fundraising 8k

48 Lyvennet Community Pub

49 Butchers Arms Shareholders 300k Grants / Loan Key Fund Cumbria County Council Eden District Council Coops 45k Total 345k Purchase 290, , , , ,000 50,000

50 Brampton & Beyond Community Trust Successful Community Centre County lease site support asset transfer for 1 if Trust can facilitate Extra Care Housing circa 38 units Impact HA providing project development and management Scheme value 4m grant approx 1/3 rd

shared ownership 5 rented Funding HCA grant (230k)

51 Keswick Community Housing Trust Initiated Churches Together Diocese land Impact HA project managing 5 shared ownership 5 rented Funding HCA grant (230k) Community bond (50k) Shared ownership sales Mortgage ( 186k)

52 Community control Benefits Guarantee local priorities Control + communication = confidence + support Can meet local housing need even in areas with very high house prices Gives the community an asset for the future Fit for purpose local solution Housing decide scale, appearance, tenure + local occupancy criteria

53 Challenges

54 Make the connections Have a good plan Utilise the Network Never accept NO Think out of the box Keep trying do not give up There is money out there you just have to find it Every little helps Community support is crucial Review, review, review Lyvennet learning HAVE SOME FUN as well

55 Government Messages Provide community access to land HCA Review + remodel funding streams Provide low interest cash-flow loans Support community aspirations the Eden way Planners work with communities New Homes Bonus earmark for CLT s and their communities Think CLT s

Funding New Homes with HCA Grant and Other Sources Risks and Regulations JOHN PATERSON

Funding New Homes with HCA Grant and Other Sources Risks and Regulations JOHN PATERSON Purpose and Structure of the Session Highlight the key criteria applying to grant funding in the AHP 2015-18 Explore