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A review of urban Community
Land Trusts in England
Lessons and practical advice
December 2011
This paper reviews the experience of urban community land trusts in
England. It identifies practical lessons about how to establish a
community land trust and investigates common issues and obstacles to
success.

This work was produced as part of the Young Foundation’s
Future Communities programme to explore the potential for
community land trusts to be established in key neighbourhoods in the
city as a vehicle for on-going community regeneration.
This paper reviews:
1. National policy on asset transfer
2. The benefits of asset based community development and
community asset ownership
3. Development Trusts or Community Land Trusts as a
vehicle for asset transfer
4. Current examples of urban Community Land Trusts in
England
5. Case studies: Shoreditch, Headingley, Moseley
6. Managing the risks of a CLT
7. Practical lessons for communities
Questions for the review
1.  What can be learnt from the experience of
    planned and existing development trusts and
    community land trusts in the UK and
    internationally?
2.  What role can development trusts and land trusts
    play in building community social capital?
3.  What are the developments costs incurred in
    setting up a community land trust, and the
    timescales involved?
1. Community
asset transfer:
policy context
National policy context
1. Decentralisation & Localism Bill – focus on enabling community asset
transfer, promoting community ‘right to build’, ‘right to reclaim
land’, and ‘right to challenge’ to take over community facilities
2. Local government interest in community development trusts and
community land trusts as succession vehicles for public regeneration
partnerships
3. Interest in social and community enterprise as route to sustainable
regeneration and economic development
4. Evidence to show local third sector and community capacity and
influence over local decision-making, and services strengthened
through community asset transfer
5. Recognised importance of social capital in building cohesive,
empowered communities
Community Asset Transfer:
Quirk Review
Three firm conclusions:

1. Transfer must realise social or community benefits without
risks to wider public concerns, or community interests becoming
overly burdened by operational concerns
2.  Benefits of community ownership can outweigh risks and
opportunity costs in certain circumstances, and there are no
substantive obstacles or impediments to transfer
3.  Risks exist, but can be minimised and managed. Requires
political will, managerial imagination and a more business-
focused approach by public and voluntary sectors
Advancing assets 2007 - 2011
• Creation of the Asset Transfer Unit
(ATU) – information, advice and
resource hub
• 4th round of national demonstration
programme
• ATU estimates 1000 community asset
transfer (CAT) projects in progress
• ATU believes CAT activity already
empowering beneficiary communities
• CAT takes time: 5 years (when
creating new receiving third sector
organisation)
2.Benefits of
asset based
community
development
and community
asset ownership
What is Asset Based Community
Development (ABCD)?
• Strategic approach & method to community-driven development and
regeneration
• Pioneered in North America and internationally in developing
countries
• Builds on community/VCS strengths (physical assets, skills and
capabilities) - not negatives as common in traditional regeneration
• In UK ABCD has focussed on physical assets put to use through
community ownership and enterprise via a Community Anchor
Organisation (CAO)
The benefits of asset ownership
to the community anchor organisation

Journey towards asset ownership can bring sense of achievement and
confidence
Successful transfer gives the organisation status, recognition, power and
support within the community and among local stakeholders
Transfer process leads to qualitative transformation of organisation’s
culture and management capacity
Ownership of capital asset provides basis for social enterprise and trading
activity: generating surpluses to finance new activities and further growth;
helping lever in additional assets; providing collateral for loan finance
Benefits of community asset
ownership to local stakeholders

Local stakeholders have a new partner to work with
Community partner to support local authority and service providers in
service design and delivery
Work on a variety of projects on terms that don’t involve maximising
shareholder profit
Base for providing joint or complementary services that are closer, more
responsive and accountable, and tailored to community needs
Third sector development body able to access funds inaccessible to the
public sector and achieve greater investment into the locality
Community benefits can lead to reduction in pressures on public services:
health, welfare support, criminal justice system
Benefits of community asset
ownership to the wider community
Direct and indirect benefits: communities have greater influence
Enable communities to solve their own problems through self-help,
community action and social enterprise
Wealth creation activities brings income into the community (e.g.
employment opportunities for young people). Wealth created is retained
and recycled within the community: new projects and further benefits
‘Multiplier effect’ brings wider range of benefits: boosting business viability,
restoring land values and attracting new investment
Promoting community cohesion through bringing people from different
backgrounds building bridging and bonding social capital: using latent skills
and talents
Generate confidence, hope, civic pride: significant psychological boost
Creating a cohesive, confident
community in control?
                           Coping
                           community:
                           gradual change




Downwards spiral of a                       Upwards spiral: assets,
marginalised                                action and solutions
community: crisis event,                    leads to continual
lacking hope and                            improvement and
confidence                                  significant change
3. Vehicles for
asset
transfer:
development
trusts or
community
land trusts
Choices and options for a community
anchor organisation
•    What type of Community Anchor Organisation (CAO)?
•    Community development trust or community land trust?
•    What level of community and stakeholder involvement?
•    What legal form to constitute as: CLG, ISP, CIC?
Legal vehicles for a CAO
•  Incorporation is essential if CAO is to own assets
•  No correct legal vehicle, and more than one possibility
•  Legal form provides operating framework for the organisation:
   how it is set up, managed and governed
•  Form follows function: legal arrangements dependent on
   objectives of the organisation, and mechanisms to further
   community and other stakeholder involvement in its governance
   and decision making processes
•  Organisational form: reflects ownership and power structures,
   ultimately determining who has final control over direction of its
   resources and use of its assets
•  Legal form needs to protect not just the social mission but the
   assets of the CAO
Legal options
Legal Form                             Suitable   Reason
Association                            No         Unincorporated
Trust                                  No         Unincorporated
Limited Liability Partnership          No         Profit-distributing vehicle
Company Limited by Shares              No         Uncommon in third sector
Company Limited by Guarantee           Yes        Common usage
Industrial and Provident Society       Yes        Common usage
(Community Benefit Society)
Industrial and Provident Society       No         Profit/dividend distributing
(co-operative)
Community Interest Company             Yes        Specific third sector vehicle
Charitable Incorporated Organisation   ?          New legal vehicle
Key features
                           Company Limited by       Industrial and Provident   Community Interest
                           Guarantee                Society (Ben Com)          Company

Limited Liability          Yes                      Yes                        Yes
Constitution               Mem and Arts             Registered Rules           Mem and Arts
Regulator                  Companies House          FSA                        Companies House
Organisational structure   Two-tier or one-tier     Two-tier or one-tier       Two-tier or one-tier
Governing body             Board of Directors       Management Committee       Board of Directors
Membership                 Open or discretionary    Open or discretionary      Open or discretionary
Stakeholder i              Possible                 Possible                   Possible
Voting                     Usually OMOV             Usually OMOV               Usually OMOV
Charitable                 Can be                   Can be                     No
Asset Lock                 Via charitable status    Yes                        Yes
Special Features           Flexible structure for   Membership via Shares      Community Interest
                           third sector;            (1-20k)                    Statement
                           Community Bond Issue     Community Share Issue
What are Development Trusts?
•  No legal definition for development trusts (DTs)
•  No single organisational / constitutional form:
   - Company Limited by Guarantee (CLG)
   - Industrial and Provident Society (IPS)
   - Community Interest Companies (CIC)
•  Can have charitable status, and trading subsidiaries
•  Members can be drawn from local community, local stakeholders
   and partners, such as the Local Authority
•  Can arise from grass-roots community campaigns or state-funded
   partnerships and agencies
•  Membership open to all – or closed and selective
Third sector, market-orientated vehicles
    providing services to local people
                                        Third
                                                 Four underlying principles:
                                        sector
                                                 • Engaged in the economic,
                                                 environmental and social
Private                                          regeneration of a defined area
sector                                           •  Independent, aiming for self-
                   Community
                                Development      sufficiency and not for private
                   enterprise
                                Trusts           profit
                                                 •  Community-based, owned and
                                                 managed
                   Social
                                                 •  Actively involved in
                   enterprise
                                                 partnerships between the
                                                 community, voluntary, private
Source: DTA 2010
                                                 and public sector
                                    Public
                                    sector
Development Trusts in 2010
•    492 DTs in the UK
•    Generating £272m combined income; £157m earned
•    £565m assets in community ownership
•    43% urban and suburban; 38% rural; 19% mixed
•    90% CLGs, 4% CICs, 6% IPS or unincorporated
•    Over 70% registered charities
•    55% have 5 or fewer staff
•    Over 50% have more than 10 volunteers
•    One third of DTs in areas with 10% BME population
•    One in ten DTs in areas with 50%+ BME population
     (Boards reflect this demographic)
Finding solutions to local problems




      Source: DTA 2010
DTs: top down or bottom up?
Bottom up community-led campaigns:
•  against something: loss of local facilities
•  in favour of something: saving local iconic building, improving
   local economy and environment.

Top down:
•  Succession vehicles for publicly-funded interventions: Housing
   Action Trusts, New Deal for Communities
•  Formalisation of partnership and stakeholder arrangements: Local
   Strategic Partnership

Social entrepreneurial activity:
•  Driven by small core of entrepreneurs
What are community land trusts (CLTs)?
Statutory definition:
Housing and Regeneration Act 2008, Part 2, Chapter 1, Clause 79:
A Community Land Trust is a corporate body which:
1)  is established for the express purpose of furthering the social, economic and
     environmental interests of a local community by acquiring and managing land and
     other assets in order -  to provide a benefit to the local community, to ensure that
     the assets are not sold or developed except in a manner which the trust's
     members think benefits the local community
2)  is established under arrangements which are expressly designed to ensure that:
•  any profits from its activities will be used to benefit the local community
     (otherwise than by being paid directly to members)
•  individuals who live or work in the specified area have the opportunity to become
     members of the trust (whether or not others can also become members)
•  the members of a trust control it.
What does this mean?
•  Mechanism for landowners to give land to meet local housing and
   other needs
•  Legal definition assures landowner that no-one is going to get a
   windfall (particularly relevant if land is at unrestricted market
   use value) and land values are retained for the community
•  Mechanism for positively engaging communities in ‘place-shaping’:
   the development of their locality, and maximising the
   development of land and assets
•  Unlike RSLs and some DTs, membership should be open and not
   restricted
CLTs = genuine local democracy
•  Individuals who live or work in the area must be able to become
   members
•  Members must control the organisation
•  But: no regulator of CLT brand – reliant on legal interpretation of
   membership requirement
•  Membership-based place-shaping tool and way of bringing
   community together to drive area-based change
•  Genuine model of community empowerment: neighbourhood
   governance, service delivery and provision of facilities
•  Through ownership of land and assets captures benefits of rising
   land values for the whole community and recycles wealth
•  Puts community in the driving seat over development
   opportunities
Control of a CLT
“Classic” CLT model (USA) – tripartite Board structure



                Tenants of     People
                   CLT          living
                housing /      locally
                 property

                      Stakeholders
                     Third + public
                         sector
                       members
CLTs – primarily rural model
•    CLTs largely a rural phenomenon: now a ‘social movement’
•    Not only rural ‘exception’ sites
•    CLT National Demonstration project and CLT Fund
•    Lindesfarne CLT first to access HCA grant funding: although
     achieved at huge cost
•    Still immense bureaucratic and financial obstacles but not
     insurmountable
•    Intermediate housing provision is key driver but variety of uses:
     farms, workplaces, community facilities
•    Builds on track record of community ownership: community halls,
     pubs, shops, etc
•    Most successful CLTs in remoter, more peripheral areas
The theory:
To CLT or not to CLT?
      CAO             Organisational        Legal form
                          type

                                       •  Company Limited by
  Aspiration for                       Guarantee (CLG)
   membership Yes          CLT         •  Industrial and Provident
  to be open to           or DT        Society (IPS)
                                       •  Community Interest
  all living and                       Company (CIC)
     working
   locally, and                        •  Company Limited by
  democraticall                        Guarantee (CLG)
   y controlled  No        DT          •  Industrial and Provident
                                       Society (IPS)
  by members?
                                       •  Community Interest
                                       Company (CIC)
The practice:
 a democratic deficit?
                    Set up a vehicle
       Social       to meet vision/            Apply to join
 entrepreneurs /    objectives                 ‘CLT’               Members of
   community                                                          local
 activists with a                      “CLT”                      community /
     ‘vision’ /                                                       local
   community        Vehicle controlled         ‘CLT’ launches     organisations
    objectives      by founders                community Bond
                                               or Share issue

    Initiation                  Development                    Operational

   TIME: CLT develops democratic features as it evolves
Options for deciding on levels of
community and stakeholder
involvement
Membership-based democracy:
Board elected by and from members

                            Board elected         Experts

             Join           from membership
                                                Can co-opt
People       CAO
living and             CAO               CAO
working in          membership          Board
local area
                                                Can co-opt

                                                Stakeholders
Neighbourhood democracy: Board
elected by and from local residents

                                                         Experts
                Neighbourhood ballot for
                Board membership                        Co-opts
People living
and working                                 CAO
in local area                              Board
                Board membership
                elected from citizenry                  Appointed

                                             Co-opts   Stakeholders
Hybrid two-tier structure: Board
elected by membership, including
stakeholders
                                       Elects               Experts
People                                 Board
living and     Join                                        Co-opts
working in     CAO
                            CAO
local area                                       CAO
                       membership
                       : residents +            Board
                       stakeholders

                                       Board drawn from members,
Stakeholder     Appointed              including appointed
membership      members                stakeholders
constituency
Oligarchy: Members of the CAO and
Board are the same
                                                      Experts

      CAO
  constitution Entry                              Co-opts to Board
   defines its                CAO
   members,                Members
   e.g. initial           function as
                                                   Application by
    founders               the Board
                                                   prospective
                                                   members

                                        Selects     New Board
  Leaving the Board    Exit
                                                     members
  means leaving CAO
    membership
Representative oligarchy: Board
represents stakeholding members

                  Appoints individuals to Board

  CAO Members
      are                  CAO Board
  stakeholding             represents                 Experts
  organisations           stakeholders
                                                  Co-opts to Board
4. Review of urban
  community land
  trusts in England
Sources for the review
Interviews with CLT experts                Interviews with CLT
                                           practitioners
David Rodgers, CDS Co-operatives;          Micheal Pyner, Shoreditch Trust;
Bob Patterson, Community Finance           Peter Bojar, Bolton
Solutions;                                 Richard Tyler, Headingley Development
Stephen Hill, Futurebuilders;              Trust
Kate Braithwaite, Carnegie UK Trust        Karen Leach, Digbeth CLT
Tony Rich, Rich Regeneration               Geoff Philpotts, Portsmouth
Martin Large, Gloucester Land for People   Alison Parfit, Cashes Green CLT
                                           Dave Smith, London Citizens CLT


    Desk-based research into CLT theory and practice
Review –
summary findings
Status of English urban CLT projects
Cashes Green                 Final planning permission submitted.
Bolton                       Model ‘on the shelf’. Unlikely to be used.
London Citizens CLT          CLT formed. Tender process underway.
Digbeth Ecohub               Site now unavailable. Project on hold until new
                             site is found.
Headingley Homes CLT         DT operating as CLT and letting small portfolio
                             of homes. Looking to acquire further
                             properties and establish autonomous CLT.
Shoreditch Property Equity   Model developed and abandoned due to
Trust                        political decision not to adopt.
Portsmouth                   HCA model akin to management company.
Brixton Green                Working proposals outlined. Selling shares to
                             local stakeholders to support development.
English urban CLTs – state of play
•  CLT projects scattered across urban England at various stages of
   development
•  No significant breakthrough made as yet, although some projects
   at key stages of development
•  Tension between democratic, membership based models open to
   the community and social entrepreneurial-driven and paternalistic
   projects controlling activity
•  Tension between representative and participative democracy
•  Changing investment structures: need for range of investment
   partners and CLT hosting site-wide management function
Rationale and objectives
•  Provision of affordable housing: social rented, sub-market rented,
   shared-equity, MHOT
•  Provision of mixed use facilities
•  Regeneration of areas of significant deprivation and poor housing
•  Community empowerment
•  Agent to deliver Local Strategic Partnership/Local Area Agreement
   priorities
•  Extended functions: social and community enterprise; space for
   commercial enterprise to maximise revenue streams; employment
   objectives: links with schools and CYP into work
Community Land Trust Fund
•  £2m fund to support fledging CLT projects
•  Provides funding alongside expert professional and technical
   advice
•  From initial scoping – identifying need and developing solution -
   through to the construction of affordable homes
•  Four stages of support:
     1.    Feasibility study - one day of expert consultancy
     2.    Technical assistance - small grant to cover initial costs
     3.    Pre-development - funding prior to planning permission
     4.    Development finance – funding the costs of construction
CLTs building social capital?
•  Local people see CLT as means for engagement and getting
   involved: self-help and mutuality, not charity
•  Works well with areas of high social capital among residents
•  Not by giving people the opportunity to acquire new skills but by
   recognising skills people already have: formalisation of experience
•  Community capacity building is vital
•  Sensitivity needed in areas with community tensions
Problems encountered
•  Limited funding for CLT projects
•  Lack of political support
•  Numerous community stakeholders
•  Inability to ground in LSP priorities
•  Authorities reluctant to actually transfer assets
•  CLT seen as competitor to traditional social housing
•  CLT seen as means to prevent local development
•  Community Asset Transfer seen as problematic due to uncertainty
   over political affiliation of local community groups
•  Market crash
•  Time consuming for volunteers
Leaseholder Enfranchisement
•  Leaseholder Enfranchisement under the 1967 Leasehold Reform
   Act stalled development of CLTs where not a rural ‘exception’ site
•  Leaseholders who own a share of their home on land owned and
   provided by a CLT have the right to buy the freehold of the land 
•  In theory prevents creation of permanently affordable leasehold
•  Further legislation needed to prevent enfranchisement
•  In meantime:
    −  Mutual Home Ownership Trust model of co-operative housing
    −  Equity mortgage split between individual and CLT with
       statutory right of redemption
    −  Deed of Trust
Factors for success
•  Anchored in the local community
•  Right governance and strong leadership
•  Solid Business Plan from day 1
•  Commitment of time, enthusiasm
•  Basic skills of members
•  Access to excellent financial advice/ pro-bono work by local
   professionals
•  Sympathetic local authority
•  Geared to meet LSP priorities and LAA outcomes
•  Supportive partners, e.g. RSLs
5. Urban
CLTs: case
studies
A tale of three Trusts
Shoreditch DT, London
New Deal for Communities succession vehicle
Exemplar approach to asset-based development

Headingley Development Trust, Leeds
Membership-based DT also functioning as a CLT
800 members makes it one of the largest DTs

Moseley Community Development Trust, Birmingham
Steering group drawn from neighbourhood associations
Shoreditch Trust
•  Not just another regeneration vehicle or municipal service
   provision: need other ways to alleviate poverty and regenerate
   people
•  Asset ownership as means for community to have power: £22m
•  Use social enterprise to generate income and address local issues
•  Partnership-led: community is an equal partner with a range of
   others in service delivery and shaping strategic direction
•  12 members of board originally elected from community: 38%
   turnout (as well as Borough Commander and PCT)
•  Now Board of 7 local people and youth rep voted by schools and 5
   co-optees to address skills gaps (including LBH). Police and PCT
   involvement through projects
Shoreditch Trust Organisational
Structure                                           Charity
                                                    Trustees


                                       Shoreditch              Shoreditch
                                       Trust Board             Executive


    Social                                       Communications and                                    Shoreditch Spa
  Enterprise                                        Partnerships


                Shoreditch
                                                       Arts and
                 Property      Communications                               Skills for Life   Healthy Goals
                 Company                               Culture


                  Social
                                    Shoreditch           Shoreditch              Community
                Enterprise                                                                    Peace of Mind
                 Services              Star               Festivals               Cohesion


                                                                                 Shoreditch
                                                                                              Complementary
               Conferencing                                                      Community
                                                                                   School       Therapies


               Environmental
                                                                                  Bursaries   Healthy Eating
                Innovations


                Blue Marble
                  Group:
                Restaurants
Headingley Development Trust and
Headingly Homes CLT
•  Resident-led and member controlled vehicle set up to respond to
   local social stress, rebalance local economy and housing market
•  Social enterprise as means to provide local services and facilities
•  Asset-ownership as means for community to shape development
•  CLT as means to provide family homes
•  Community share issue raised £100,000 to purchase Natural Food
   Store; now run as a co-operative
•  Raised another £100,000 by share issue towards HEART
   (Headingley Enterprise and Arts Centre) project; former primary
   school acquired, refurbished, and recently opened for operation
Headingley Development Trust and
Headingly Homes CLT (cont.)
•  Industrial and Provident Society for Community Benefit
•  Community-owned, membership open to organisations and
   individuals aged 16 and over (no resident qualification)
•  Board elected by membership at AGM by one member, one vote
•  Completed a Neighbourhood Design Statement for the area,
   commissioned by the Council
•  Other projects include a Farmers’ Market, a community orchard
   and Café Scientific
Moseley CDT
•  CLG and Registered Charity
•  Origins in Moseley Society (est. 1979) and Moseley Forum (est.
   1998)
•  CDT seen as suitable vehicle to tackle problems faced in the
   neighbourhood: inflated property prices; expensive housing;
   employment problems for young people
•  Steering Group to establish CDT drawn from MS and MNF, involving
   local experts
•  Three years funding for a Development Officer (2000)
•  Steering Group constituted as Board of Directors and Trustees for
   CDT in 2001
Organisational Structure
                                             Moseley Residents



                                     Moseley Society and Moseley Forum



                                            Moseley CDT Board Members
                                 13 places – 4 appointed, 4 elected and 5 co-opted



                                                   Sub Committees
Finance & General Purposes, Property Group, Personnel and Volunteering Group, Moseley Regeneration Group, Exchange Sub
                                                         Group




                                       Moseley CDT staff and Volunteers
Operational Structure

                               Projects


                                                        Community
 Post Office       Moseley Street     Moseley the
                                                         Cohesion
  Building           Wardens        creative village
                                                          Centre

   Information &                          The Moseley
      Resource                             Exchange
       Centre                               project
6. Managing
risk: lessons
and practical
approaches
Risks
•  This section summarises the various risks associated with
   establishing a community anchor organisation as a vehicle for
   asset transfer, and practical approaches to mitigate these risks.
•  This list is not exhaustive but identifies key issues emerging from
   the review
•  Community asset transfer is high risk but can be managed with
   good governance and business planning and systematic risk
   management
•  Key question for local authority is ‘appetite for risk’?
RISK                   WHY                      WHAT TO DO
Community              •  Organisation and      •  Further
empowerment            proposals may not        consideration of
objectives are vague   have buy in from local   objectives for asset(s)
and weak               community                •  Undertake
                                                community needs
                                                survey
                                                •  Partnership working
                                                with other
                                                organisations
Lack of skills and     •  Unrealistic           •  Organisational
capacity to manage     expectations             development plan
the asset              •  Time, effort and      •  Ongoing access to
                       money wasted             expertise and advice
                       •  Asset(s) potential    •  Viable long-term
                       wasted                   business plan
RISK                    WHY                         WHAT TO DO
Insufficient funds to   •  Failure of               •  Long-term income/
develop assets          organisation                expenditure
                        •  Waste of time, effort    consideration for asset
                        and money                   (s)
                        •  Wider community let
                        down
Community               •  Risk of                  •  Robust, long-term
organisation can’t      organisational collapse     business plan at
afford to maintain      •  Incurs financial         outset
asset on an ongoing     liabilities that can’t be   •  Produce, fund and
basis                   met                         and implement
                        • Value of asset            organisational
                        declines                    development plan
                                                    •  Use of anchor-
                                                    tenancies
RISK                     WHY                      WHAT TO DO
Lack of knowledge of     •  Costs are under-      •  Surveys on condition
the asset(s)             estimated                of assets
                         •  Asset use is          •  Employing full-time
                         undecided                project manager
                         •  Projects can be
                         jeopardised
State aid rules prevent •  Inability to process   •  Falls within areas of
public financial        CAT                       ‘permitted support’
support                 •  Time delays            •  Does not affect trade
                                                  between member
                                                  states
RISK                     WHY                      WHAT TO DO
Asset not used in the    •  Misappropriation of   •  ‘Expectations
public interest /        funds                    document’ developed
access not inclusive /   •  Asset under-used      between transferring
taken over by            •  Local resentment      and community
unrepresentative         and risk to community    organisation
minority                 cohesion                 •  Different interests
                         •  Restricted access     and communities on
                         causing other groups     Board
                         to want own asset        •  Local authority
                         •  Competition for       presence on Board
                         control of asset         •  Community
                         among groups             organisation is
                                                  genuinely open and
                                                  multi-purpose
RISK                 WHY                      WHAT TO DO
Confusion in roles   •  Unexpected or         •  ‘Expectations
between LA/public    unfunded liabilities     document’ includes
sector agency and    emerge                   legal, financial and
community            •  Breakdown in          other statutory
organisation         relationships or         liabilities
                     partnerships             •  Formal Service Level
                     •  LA /public sector     Agreement
                     expectations regarding   •  Clarity on role of
                     membership of Board      charity trustees and
                                              Board members
RISK                     WHY                    WHAT TO DO
Limited potential for    •  Asset may not       •  Access to specialist
enterprise               generate enough        business support
development based        revenue to be          •  Assistance on
on asset / in the area   financially viable     business planning and
                         •  Grant funding may   marketing
                         not be available       •  Staged transfer of
                         •  Service contracts   asset(s)
                         may not be agreed      •  Consideration of
                                                which LSP partners
                                                are integral to
                                                viability and ensure
                                                procurement of
                                                services
RISK                    WHY                      WHAT TO DO
Reliance by receiving   •  individuals           •  Management
organisation on small   overburdened and         committee given
number of volunteers    unable to maintain       overall control and
                        effort and interest      work through
                        •  lack of volunteers    collective
                        may threaten project     responsibility
                        when current             •  Rotation of
                        volunteers move on       committee members
                        •  may not be possible   •  Advice on succession
                        to keep building fully   planning
                        open, limiting its use   •  LA-wide network of
                                                 trustees
                                                 •  Work with other
                                                 CAOs
RISK                    WHY                       WHAT TO DO
Use does not fit with   •  Ability of LA/LSP to   •  Expectations
wider strategic aims    implement SCS and         Document agreed
of LA and LSP and       meet LAA targets          between LA/public
public sector           •  Community              sector and community
stakeholders            organisation unable to    organisation
                        form stable               •  Ensuring through
                        partnership with LA       service level
                                                  agreements that
                                                  changing LA priorities
                                                  do not adversely
                                                  impact delivery of
                                                  service by community
                                                  organisation
                                                  •  Monitor use of
                                                  building
7. Ten
practical
lessons for
communities
Questions for the review
 1.  What can be learnt from the experience of
     planned and existing development trusts and
     land trusts in the UK and internationally?
 2.  What role can development trusts and land trusts
     play in building community social capital?
 3.  What are the developments costs incurred in
     setting up a community land trust, and the
     timescales involved?
Findings: what English CLTs would
do differently
•  Spend more time fundraising
•  12-24 months capacity building prior to setting up
   organisation in the community
•  Address negatives and objections at the very beginning
•  Begin with long-term social enterprise model and use
   of the site
Findings: timing
•  Quirk Demonstration programme indicates 5 year
   timeframe for establishing a community anchor
   organisation for asset transfer
•  London Citizens CLT: 7 years total campaigning
•  Headingly Homes: created DT in 2005, functioning as
   CLT and leasing homes in 2008
•  Cashes Green: original Feasibility Study in 2004, final
   planning permission submitted in 2011
Findings: development costs
• Paid organiser / officer time is crucial, circa £40,000 per
annum
• From £2,500 for initial business planning, to £100-250k
needed for development of proposal
• Considerable volunteer time also required
• Plus funding for site development
Ten practical lessons
1. Bureaucratic and financial obstacles to successfully
establishing a CLT are significant but not insurmountable
2. Quirk Demonstration programme indicates 5-year
timeframe for establishing a community anchor
organisation for asset transfer
3. Public sector support, political will and community
interest, strong business planning and social enterprise
element to model are crucial conditions for success
Ten practical lessons
4. These factors need to be in place early on
5. Both public-sector driven (e.g. Shoreditch) and
community driven (e.g. Headingley) approaches can work
effectively
6. To date, rural CLTs have been most successful
7. Issues about defining community and stakeholders can be
more complex in densely populated / less cohesive urban
areas
8. Tension between open membership principle and core
group of social entrepreneurs
Ten practical lessons
9. Sensitivity to community tensions is important,
especially in areas with a history of social, ethnic, racial
tension between residents
10. Tension also exists between principle of open
membership for CLTs and core group of social
entrepreneurs often needed to get CLT started
This work was carried out between 2010-2011 by Daniel
Crowe, Saffron Woodcraft and Douglas Cochrane.

For more information contact:
saffron.woodcraft@social-life.co

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Review of Community Land Trusts and Their Role in Community Development

  • 1. A review of urban Community Land Trusts in England Lessons and practical advice December 2011
  • 2. This paper reviews the experience of urban community land trusts in England. It identifies practical lessons about how to establish a community land trust and investigates common issues and obstacles to success. This work was produced as part of the Young Foundation’s Future Communities programme to explore the potential for community land trusts to be established in key neighbourhoods in the city as a vehicle for on-going community regeneration.
  • 3. This paper reviews: 1. National policy on asset transfer 2. The benefits of asset based community development and community asset ownership 3. Development Trusts or Community Land Trusts as a vehicle for asset transfer 4. Current examples of urban Community Land Trusts in England 5. Case studies: Shoreditch, Headingley, Moseley 6. Managing the risks of a CLT 7. Practical lessons for communities
  • 4. Questions for the review 1.  What can be learnt from the experience of planned and existing development trusts and community land trusts in the UK and internationally? 2.  What role can development trusts and land trusts play in building community social capital? 3.  What are the developments costs incurred in setting up a community land trust, and the timescales involved?
  • 6. National policy context 1. Decentralisation & Localism Bill – focus on enabling community asset transfer, promoting community ‘right to build’, ‘right to reclaim land’, and ‘right to challenge’ to take over community facilities 2. Local government interest in community development trusts and community land trusts as succession vehicles for public regeneration partnerships 3. Interest in social and community enterprise as route to sustainable regeneration and economic development 4. Evidence to show local third sector and community capacity and influence over local decision-making, and services strengthened through community asset transfer 5. Recognised importance of social capital in building cohesive, empowered communities
  • 7. Community Asset Transfer: Quirk Review Three firm conclusions: 1. Transfer must realise social or community benefits without risks to wider public concerns, or community interests becoming overly burdened by operational concerns 2.  Benefits of community ownership can outweigh risks and opportunity costs in certain circumstances, and there are no substantive obstacles or impediments to transfer 3.  Risks exist, but can be minimised and managed. Requires political will, managerial imagination and a more business- focused approach by public and voluntary sectors
  • 8. Advancing assets 2007 - 2011 • Creation of the Asset Transfer Unit (ATU) – information, advice and resource hub • 4th round of national demonstration programme • ATU estimates 1000 community asset transfer (CAT) projects in progress • ATU believes CAT activity already empowering beneficiary communities • CAT takes time: 5 years (when creating new receiving third sector organisation)
  • 10. What is Asset Based Community Development (ABCD)? • Strategic approach & method to community-driven development and regeneration • Pioneered in North America and internationally in developing countries • Builds on community/VCS strengths (physical assets, skills and capabilities) - not negatives as common in traditional regeneration • In UK ABCD has focussed on physical assets put to use through community ownership and enterprise via a Community Anchor Organisation (CAO)
  • 11. The benefits of asset ownership to the community anchor organisation Journey towards asset ownership can bring sense of achievement and confidence Successful transfer gives the organisation status, recognition, power and support within the community and among local stakeholders Transfer process leads to qualitative transformation of organisation’s culture and management capacity Ownership of capital asset provides basis for social enterprise and trading activity: generating surpluses to finance new activities and further growth; helping lever in additional assets; providing collateral for loan finance
  • 12. Benefits of community asset ownership to local stakeholders Local stakeholders have a new partner to work with Community partner to support local authority and service providers in service design and delivery Work on a variety of projects on terms that don’t involve maximising shareholder profit Base for providing joint or complementary services that are closer, more responsive and accountable, and tailored to community needs Third sector development body able to access funds inaccessible to the public sector and achieve greater investment into the locality Community benefits can lead to reduction in pressures on public services: health, welfare support, criminal justice system
  • 13. Benefits of community asset ownership to the wider community Direct and indirect benefits: communities have greater influence Enable communities to solve their own problems through self-help, community action and social enterprise Wealth creation activities brings income into the community (e.g. employment opportunities for young people). Wealth created is retained and recycled within the community: new projects and further benefits ‘Multiplier effect’ brings wider range of benefits: boosting business viability, restoring land values and attracting new investment Promoting community cohesion through bringing people from different backgrounds building bridging and bonding social capital: using latent skills and talents Generate confidence, hope, civic pride: significant psychological boost
  • 14. Creating a cohesive, confident community in control? Coping community: gradual change Downwards spiral of a Upwards spiral: assets, marginalised action and solutions community: crisis event, leads to continual lacking hope and improvement and confidence significant change
  • 16. Choices and options for a community anchor organisation •  What type of Community Anchor Organisation (CAO)? •  Community development trust or community land trust? •  What level of community and stakeholder involvement? •  What legal form to constitute as: CLG, ISP, CIC?
  • 17. Legal vehicles for a CAO •  Incorporation is essential if CAO is to own assets •  No correct legal vehicle, and more than one possibility •  Legal form provides operating framework for the organisation: how it is set up, managed and governed •  Form follows function: legal arrangements dependent on objectives of the organisation, and mechanisms to further community and other stakeholder involvement in its governance and decision making processes •  Organisational form: reflects ownership and power structures, ultimately determining who has final control over direction of its resources and use of its assets •  Legal form needs to protect not just the social mission but the assets of the CAO
  • 18. Legal options Legal Form Suitable Reason Association No Unincorporated Trust No Unincorporated Limited Liability Partnership No Profit-distributing vehicle Company Limited by Shares No Uncommon in third sector Company Limited by Guarantee Yes Common usage Industrial and Provident Society Yes Common usage (Community Benefit Society) Industrial and Provident Society No Profit/dividend distributing (co-operative) Community Interest Company Yes Specific third sector vehicle Charitable Incorporated Organisation ? New legal vehicle
  • 19. Key features Company Limited by Industrial and Provident Community Interest Guarantee Society (Ben Com) Company Limited Liability Yes Yes Yes Constitution Mem and Arts Registered Rules Mem and Arts Regulator Companies House FSA Companies House Organisational structure Two-tier or one-tier Two-tier or one-tier Two-tier or one-tier Governing body Board of Directors Management Committee Board of Directors Membership Open or discretionary Open or discretionary Open or discretionary Stakeholder i Possible Possible Possible Voting Usually OMOV Usually OMOV Usually OMOV Charitable Can be Can be No Asset Lock Via charitable status Yes Yes Special Features Flexible structure for Membership via Shares Community Interest third sector; (1-20k) Statement Community Bond Issue Community Share Issue
  • 20. What are Development Trusts? •  No legal definition for development trusts (DTs) •  No single organisational / constitutional form: - Company Limited by Guarantee (CLG) - Industrial and Provident Society (IPS) - Community Interest Companies (CIC) •  Can have charitable status, and trading subsidiaries •  Members can be drawn from local community, local stakeholders and partners, such as the Local Authority •  Can arise from grass-roots community campaigns or state-funded partnerships and agencies •  Membership open to all – or closed and selective
  • 21. Third sector, market-orientated vehicles providing services to local people Third Four underlying principles: sector • Engaged in the economic, environmental and social Private regeneration of a defined area sector •  Independent, aiming for self- Community Development sufficiency and not for private enterprise Trusts profit •  Community-based, owned and managed Social •  Actively involved in enterprise partnerships between the community, voluntary, private Source: DTA 2010 and public sector Public sector
  • 22. Development Trusts in 2010 •  492 DTs in the UK •  Generating £272m combined income; £157m earned •  £565m assets in community ownership •  43% urban and suburban; 38% rural; 19% mixed •  90% CLGs, 4% CICs, 6% IPS or unincorporated •  Over 70% registered charities •  55% have 5 or fewer staff •  Over 50% have more than 10 volunteers •  One third of DTs in areas with 10% BME population •  One in ten DTs in areas with 50%+ BME population (Boards reflect this demographic)
  • 23. Finding solutions to local problems Source: DTA 2010
  • 24. DTs: top down or bottom up? Bottom up community-led campaigns: •  against something: loss of local facilities •  in favour of something: saving local iconic building, improving local economy and environment. Top down: •  Succession vehicles for publicly-funded interventions: Housing Action Trusts, New Deal for Communities •  Formalisation of partnership and stakeholder arrangements: Local Strategic Partnership Social entrepreneurial activity: •  Driven by small core of entrepreneurs
  • 25. What are community land trusts (CLTs)? Statutory definition: Housing and Regeneration Act 2008, Part 2, Chapter 1, Clause 79: A Community Land Trust is a corporate body which: 1)  is established for the express purpose of furthering the social, economic and environmental interests of a local community by acquiring and managing land and other assets in order -  to provide a benefit to the local community, to ensure that the assets are not sold or developed except in a manner which the trust's members think benefits the local community 2)  is established under arrangements which are expressly designed to ensure that: •  any profits from its activities will be used to benefit the local community (otherwise than by being paid directly to members) •  individuals who live or work in the specified area have the opportunity to become members of the trust (whether or not others can also become members) •  the members of a trust control it.
  • 26. What does this mean? •  Mechanism for landowners to give land to meet local housing and other needs •  Legal definition assures landowner that no-one is going to get a windfall (particularly relevant if land is at unrestricted market use value) and land values are retained for the community •  Mechanism for positively engaging communities in ‘place-shaping’: the development of their locality, and maximising the development of land and assets •  Unlike RSLs and some DTs, membership should be open and not restricted
  • 27. CLTs = genuine local democracy •  Individuals who live or work in the area must be able to become members •  Members must control the organisation •  But: no regulator of CLT brand – reliant on legal interpretation of membership requirement •  Membership-based place-shaping tool and way of bringing community together to drive area-based change •  Genuine model of community empowerment: neighbourhood governance, service delivery and provision of facilities •  Through ownership of land and assets captures benefits of rising land values for the whole community and recycles wealth •  Puts community in the driving seat over development opportunities
  • 28. Control of a CLT “Classic” CLT model (USA) – tripartite Board structure Tenants of People CLT living housing / locally property Stakeholders Third + public sector members
  • 29. CLTs – primarily rural model •  CLTs largely a rural phenomenon: now a ‘social movement’ •  Not only rural ‘exception’ sites •  CLT National Demonstration project and CLT Fund •  Lindesfarne CLT first to access HCA grant funding: although achieved at huge cost •  Still immense bureaucratic and financial obstacles but not insurmountable •  Intermediate housing provision is key driver but variety of uses: farms, workplaces, community facilities •  Builds on track record of community ownership: community halls, pubs, shops, etc •  Most successful CLTs in remoter, more peripheral areas
  • 30. The theory: To CLT or not to CLT? CAO Organisational Legal form type •  Company Limited by Aspiration for Guarantee (CLG) membership Yes CLT •  Industrial and Provident to be open to or DT Society (IPS) •  Community Interest all living and Company (CIC) working locally, and •  Company Limited by democraticall Guarantee (CLG) y controlled No DT •  Industrial and Provident Society (IPS) by members? •  Community Interest Company (CIC)
  • 31. The practice: a democratic deficit? Set up a vehicle Social to meet vision/ Apply to join entrepreneurs / objectives ‘CLT’ Members of community local activists with a “CLT” community / ‘vision’ / local community Vehicle controlled ‘CLT’ launches organisations objectives by founders community Bond or Share issue Initiation Development Operational TIME: CLT develops democratic features as it evolves
  • 32. Options for deciding on levels of community and stakeholder involvement
  • 33. Membership-based democracy: Board elected by and from members Board elected Experts Join from membership Can co-opt People CAO living and CAO CAO working in membership Board local area Can co-opt Stakeholders
  • 34. Neighbourhood democracy: Board elected by and from local residents Experts Neighbourhood ballot for Board membership Co-opts People living and working CAO in local area Board Board membership elected from citizenry Appointed Co-opts Stakeholders
  • 35. Hybrid two-tier structure: Board elected by membership, including stakeholders Elects Experts People Board living and Join Co-opts working in CAO CAO local area CAO membership : residents + Board stakeholders Board drawn from members, Stakeholder Appointed including appointed membership members stakeholders constituency
  • 36. Oligarchy: Members of the CAO and Board are the same Experts CAO constitution Entry Co-opts to Board defines its CAO members, Members e.g. initial function as Application by founders the Board prospective members Selects New Board Leaving the Board Exit members means leaving CAO membership
  • 37. Representative oligarchy: Board represents stakeholding members Appoints individuals to Board CAO Members are CAO Board stakeholding represents Experts organisations stakeholders Co-opts to Board
  • 38. 4. Review of urban community land trusts in England
  • 39. Sources for the review Interviews with CLT experts Interviews with CLT practitioners David Rodgers, CDS Co-operatives; Micheal Pyner, Shoreditch Trust; Bob Patterson, Community Finance Peter Bojar, Bolton Solutions; Richard Tyler, Headingley Development Stephen Hill, Futurebuilders; Trust Kate Braithwaite, Carnegie UK Trust Karen Leach, Digbeth CLT Tony Rich, Rich Regeneration Geoff Philpotts, Portsmouth Martin Large, Gloucester Land for People Alison Parfit, Cashes Green CLT Dave Smith, London Citizens CLT Desk-based research into CLT theory and practice
  • 41. Status of English urban CLT projects Cashes Green Final planning permission submitted. Bolton Model ‘on the shelf’. Unlikely to be used. London Citizens CLT CLT formed. Tender process underway. Digbeth Ecohub Site now unavailable. Project on hold until new site is found. Headingley Homes CLT DT operating as CLT and letting small portfolio of homes. Looking to acquire further properties and establish autonomous CLT. Shoreditch Property Equity Model developed and abandoned due to Trust political decision not to adopt. Portsmouth HCA model akin to management company. Brixton Green Working proposals outlined. Selling shares to local stakeholders to support development.
  • 42. English urban CLTs – state of play •  CLT projects scattered across urban England at various stages of development •  No significant breakthrough made as yet, although some projects at key stages of development •  Tension between democratic, membership based models open to the community and social entrepreneurial-driven and paternalistic projects controlling activity •  Tension between representative and participative democracy •  Changing investment structures: need for range of investment partners and CLT hosting site-wide management function
  • 43. Rationale and objectives •  Provision of affordable housing: social rented, sub-market rented, shared-equity, MHOT •  Provision of mixed use facilities •  Regeneration of areas of significant deprivation and poor housing •  Community empowerment •  Agent to deliver Local Strategic Partnership/Local Area Agreement priorities •  Extended functions: social and community enterprise; space for commercial enterprise to maximise revenue streams; employment objectives: links with schools and CYP into work
  • 44. Community Land Trust Fund •  £2m fund to support fledging CLT projects •  Provides funding alongside expert professional and technical advice •  From initial scoping – identifying need and developing solution - through to the construction of affordable homes •  Four stages of support: 1.  Feasibility study - one day of expert consultancy 2.  Technical assistance - small grant to cover initial costs 3.  Pre-development - funding prior to planning permission 4.  Development finance – funding the costs of construction
  • 45. CLTs building social capital? •  Local people see CLT as means for engagement and getting involved: self-help and mutuality, not charity •  Works well with areas of high social capital among residents •  Not by giving people the opportunity to acquire new skills but by recognising skills people already have: formalisation of experience •  Community capacity building is vital •  Sensitivity needed in areas with community tensions
  • 46. Problems encountered •  Limited funding for CLT projects •  Lack of political support •  Numerous community stakeholders •  Inability to ground in LSP priorities •  Authorities reluctant to actually transfer assets •  CLT seen as competitor to traditional social housing •  CLT seen as means to prevent local development •  Community Asset Transfer seen as problematic due to uncertainty over political affiliation of local community groups •  Market crash •  Time consuming for volunteers
  • 47. Leaseholder Enfranchisement •  Leaseholder Enfranchisement under the 1967 Leasehold Reform Act stalled development of CLTs where not a rural ‘exception’ site •  Leaseholders who own a share of their home on land owned and provided by a CLT have the right to buy the freehold of the land  •  In theory prevents creation of permanently affordable leasehold •  Further legislation needed to prevent enfranchisement •  In meantime: −  Mutual Home Ownership Trust model of co-operative housing −  Equity mortgage split between individual and CLT with statutory right of redemption −  Deed of Trust
  • 48. Factors for success •  Anchored in the local community •  Right governance and strong leadership •  Solid Business Plan from day 1 •  Commitment of time, enthusiasm •  Basic skills of members •  Access to excellent financial advice/ pro-bono work by local professionals •  Sympathetic local authority •  Geared to meet LSP priorities and LAA outcomes •  Supportive partners, e.g. RSLs
  • 50. A tale of three Trusts Shoreditch DT, London New Deal for Communities succession vehicle Exemplar approach to asset-based development Headingley Development Trust, Leeds Membership-based DT also functioning as a CLT 800 members makes it one of the largest DTs Moseley Community Development Trust, Birmingham Steering group drawn from neighbourhood associations
  • 51. Shoreditch Trust •  Not just another regeneration vehicle or municipal service provision: need other ways to alleviate poverty and regenerate people •  Asset ownership as means for community to have power: £22m •  Use social enterprise to generate income and address local issues •  Partnership-led: community is an equal partner with a range of others in service delivery and shaping strategic direction •  12 members of board originally elected from community: 38% turnout (as well as Borough Commander and PCT) •  Now Board of 7 local people and youth rep voted by schools and 5 co-optees to address skills gaps (including LBH). Police and PCT involvement through projects
  • 52. Shoreditch Trust Organisational Structure Charity Trustees Shoreditch Shoreditch Trust Board Executive Social Communications and Shoreditch Spa Enterprise Partnerships Shoreditch Arts and Property Communications Skills for Life Healthy Goals Company Culture Social Shoreditch Shoreditch Community Enterprise Peace of Mind Services Star Festivals Cohesion Shoreditch Complementary Conferencing Community School Therapies Environmental Bursaries Healthy Eating Innovations Blue Marble Group: Restaurants
  • 53. Headingley Development Trust and Headingly Homes CLT •  Resident-led and member controlled vehicle set up to respond to local social stress, rebalance local economy and housing market •  Social enterprise as means to provide local services and facilities •  Asset-ownership as means for community to shape development •  CLT as means to provide family homes •  Community share issue raised £100,000 to purchase Natural Food Store; now run as a co-operative •  Raised another £100,000 by share issue towards HEART (Headingley Enterprise and Arts Centre) project; former primary school acquired, refurbished, and recently opened for operation
  • 54. Headingley Development Trust and Headingly Homes CLT (cont.) •  Industrial and Provident Society for Community Benefit •  Community-owned, membership open to organisations and individuals aged 16 and over (no resident qualification) •  Board elected by membership at AGM by one member, one vote •  Completed a Neighbourhood Design Statement for the area, commissioned by the Council •  Other projects include a Farmers’ Market, a community orchard and Café Scientific
  • 55. Moseley CDT •  CLG and Registered Charity •  Origins in Moseley Society (est. 1979) and Moseley Forum (est. 1998) •  CDT seen as suitable vehicle to tackle problems faced in the neighbourhood: inflated property prices; expensive housing; employment problems for young people •  Steering Group to establish CDT drawn from MS and MNF, involving local experts •  Three years funding for a Development Officer (2000) •  Steering Group constituted as Board of Directors and Trustees for CDT in 2001
  • 56. Organisational Structure Moseley Residents Moseley Society and Moseley Forum Moseley CDT Board Members 13 places – 4 appointed, 4 elected and 5 co-opted Sub Committees Finance & General Purposes, Property Group, Personnel and Volunteering Group, Moseley Regeneration Group, Exchange Sub Group Moseley CDT staff and Volunteers
  • 57. Operational Structure Projects Community Post Office Moseley Street Moseley the Cohesion Building Wardens creative village Centre Information & The Moseley Resource Exchange Centre project
  • 58. 6. Managing risk: lessons and practical approaches
  • 59. Risks •  This section summarises the various risks associated with establishing a community anchor organisation as a vehicle for asset transfer, and practical approaches to mitigate these risks. •  This list is not exhaustive but identifies key issues emerging from the review •  Community asset transfer is high risk but can be managed with good governance and business planning and systematic risk management •  Key question for local authority is ‘appetite for risk’?
  • 60. RISK WHY WHAT TO DO Community •  Organisation and •  Further empowerment proposals may not consideration of objectives are vague have buy in from local objectives for asset(s) and weak community •  Undertake community needs survey •  Partnership working with other organisations Lack of skills and •  Unrealistic •  Organisational capacity to manage expectations development plan the asset •  Time, effort and •  Ongoing access to money wasted expertise and advice •  Asset(s) potential •  Viable long-term wasted business plan
  • 61. RISK WHY WHAT TO DO Insufficient funds to •  Failure of •  Long-term income/ develop assets organisation expenditure •  Waste of time, effort consideration for asset and money (s) •  Wider community let down Community •  Risk of •  Robust, long-term organisation can’t organisational collapse business plan at afford to maintain •  Incurs financial outset asset on an ongoing liabilities that can’t be •  Produce, fund and basis met and implement • Value of asset organisational declines development plan •  Use of anchor- tenancies
  • 62. RISK WHY WHAT TO DO Lack of knowledge of •  Costs are under- •  Surveys on condition the asset(s) estimated of assets •  Asset use is •  Employing full-time undecided project manager •  Projects can be jeopardised State aid rules prevent •  Inability to process •  Falls within areas of public financial CAT ‘permitted support’ support •  Time delays •  Does not affect trade between member states
  • 63. RISK WHY WHAT TO DO Asset not used in the •  Misappropriation of •  ‘Expectations public interest / funds document’ developed access not inclusive / •  Asset under-used between transferring taken over by •  Local resentment and community unrepresentative and risk to community organisation minority cohesion •  Different interests •  Restricted access and communities on causing other groups Board to want own asset •  Local authority •  Competition for presence on Board control of asset •  Community among groups organisation is genuinely open and multi-purpose
  • 64. RISK WHY WHAT TO DO Confusion in roles •  Unexpected or •  ‘Expectations between LA/public unfunded liabilities document’ includes sector agency and emerge legal, financial and community •  Breakdown in other statutory organisation relationships or liabilities partnerships •  Formal Service Level •  LA /public sector Agreement expectations regarding •  Clarity on role of membership of Board charity trustees and Board members
  • 65. RISK WHY WHAT TO DO Limited potential for •  Asset may not •  Access to specialist enterprise generate enough business support development based revenue to be •  Assistance on on asset / in the area financially viable business planning and •  Grant funding may marketing not be available •  Staged transfer of •  Service contracts asset(s) may not be agreed •  Consideration of which LSP partners are integral to viability and ensure procurement of services
  • 66. RISK WHY WHAT TO DO Reliance by receiving •  individuals •  Management organisation on small overburdened and committee given number of volunteers unable to maintain overall control and effort and interest work through •  lack of volunteers collective may threaten project responsibility when current •  Rotation of volunteers move on committee members •  may not be possible •  Advice on succession to keep building fully planning open, limiting its use •  LA-wide network of trustees •  Work with other CAOs
  • 67. RISK WHY WHAT TO DO Use does not fit with •  Ability of LA/LSP to •  Expectations wider strategic aims implement SCS and Document agreed of LA and LSP and meet LAA targets between LA/public public sector •  Community sector and community stakeholders organisation unable to organisation form stable •  Ensuring through partnership with LA service level agreements that changing LA priorities do not adversely impact delivery of service by community organisation •  Monitor use of building
  • 69. Questions for the review 1.  What can be learnt from the experience of planned and existing development trusts and land trusts in the UK and internationally? 2.  What role can development trusts and land trusts play in building community social capital? 3.  What are the developments costs incurred in setting up a community land trust, and the timescales involved?
  • 70. Findings: what English CLTs would do differently •  Spend more time fundraising •  12-24 months capacity building prior to setting up organisation in the community •  Address negatives and objections at the very beginning •  Begin with long-term social enterprise model and use of the site
  • 71. Findings: timing •  Quirk Demonstration programme indicates 5 year timeframe for establishing a community anchor organisation for asset transfer •  London Citizens CLT: 7 years total campaigning •  Headingly Homes: created DT in 2005, functioning as CLT and leasing homes in 2008 •  Cashes Green: original Feasibility Study in 2004, final planning permission submitted in 2011
  • 72. Findings: development costs • Paid organiser / officer time is crucial, circa £40,000 per annum • From £2,500 for initial business planning, to £100-250k needed for development of proposal • Considerable volunteer time also required • Plus funding for site development
  • 73. Ten practical lessons 1. Bureaucratic and financial obstacles to successfully establishing a CLT are significant but not insurmountable 2. Quirk Demonstration programme indicates 5-year timeframe for establishing a community anchor organisation for asset transfer 3. Public sector support, political will and community interest, strong business planning and social enterprise element to model are crucial conditions for success
  • 74. Ten practical lessons 4. These factors need to be in place early on 5. Both public-sector driven (e.g. Shoreditch) and community driven (e.g. Headingley) approaches can work effectively 6. To date, rural CLTs have been most successful 7. Issues about defining community and stakeholders can be more complex in densely populated / less cohesive urban areas 8. Tension between open membership principle and core group of social entrepreneurs
  • 75. Ten practical lessons 9. Sensitivity to community tensions is important, especially in areas with a history of social, ethnic, racial tension between residents 10. Tension also exists between principle of open membership for CLTs and core group of social entrepreneurs often needed to get CLT started
  • 76. This work was carried out between 2010-2011 by Daniel Crowe, Saffron Woodcraft and Douglas Cochrane. For more information contact: saffron.woodcraft@social-life.co