Assets of Community Value(Community Right to Bid)

Alison Lyon and Richard Watkins

Department for Communities and Local Government

Building the Big Society throughthe Localism Act

Decentralisation – giving away power to individuals, professionals and communities

Big Society - people, neighbourhoods and communities have more power and responsibility and use it to

create better services and outcomes

Right to BidRight to Challenge

Right to Build &

neighbourhood planning

Current situation

Local authorities asset transfer less than market value • Around 80% of local authorities in process of transferring assets at less than market value (87 of 113 interviewed)*

• 350 transfers in pipeline, equating to 1000 across all local authorities*

• 278 rural community shops have opened in the last 25 years (only 10 closed) – Plunkett Foundation

• But… valued community assets can be sold without community knowing or having time to bid. • Community Right to Bid to provide initiative to help to level the playing field

* From SQW survey November 2010.

Case Study

Hebden Bridge Town Hall

•Previously Calderdale Council had sold Adult Education building at auction

•Greatly valued by community

•No time to bid!

•One of first communities to take control of its Town Hall

•Community led campaign

•LA transferred building on 125 yr lease

•Underused, poorly maintained building becomes community hub

Definition of ‘Asset of Community Value’

“Asset of community Value” is building or other land which:

• Furthers social wellbeing and interests* of local community

• as it’s current use, or in recent past

• main use, not ancillary

• realistic to think will continue to further social wellbeing and interests; and

• not excluded listing

• *includes cultural, recreational and sporting interests

Exclusions from listing: • Residential premises and associated land (except where the living accommodation is integral to the use of the asset) and caravan sites• Operational land

List of Assets of Community Value

List of land nominated by unsuccessful

community nominations

Community Organisation

Neighbourhood Planning Forum

Parish Council

Local Authority decides to list asset

Local Authority asks owner for comment

No objection from owner

Owners objection unsuccessful

Owner’s objection successful

Local Authority decides not to list

asset

Added to list of Community Value

Local Authority publicises and maintains list

Owner decides to sell listed asset and informs Local

Authority

LA informs nominator and publicises to community

Window starts when owner tells LA of intention to sellInterim window of opportunity ends

6 w

eeks

Full window of opportunity ends

6 m

on

ths

Owner can sell to community

group

The Nomination and Listing Process

Who can nominate?•Voluntary and community organisations with a local connection•Parish Councils

Procedure for Listing •Local authorities are required to publish and maintain a list of assets of community value and a list of unsuccessful nominations and to notify the owner(s), occupier(s) and nominator(s) of changes to the lists.

Review of a Listing Decision and Right of Appeal•Owner will have a right to request an internal review of a local authority’s decision to list an asset and a further right of appeal if dissatisfied with the outcome of the review.

The Windows of Opportunity

Moratorium periods• An interim window of 6 weeks• A full window of 6 months (in total)• A protected period of 18 months (in total)

Relevant Disposal• Is the sale of the freehold or assignment of a lease granted for 25 years or more with 100% vacant possession• Does not fall within one of the exemptions• Owner’s notification to the local authority of intention to sell triggers the interim window

The full window of opportunity can only be triggered by:

• A parish council• A community interest group

Assets of Community Value

What the provisions do NOT do

The Asset of Community Value provisions do NOT…

• Restrict who the owner of a listed asset sells to

• Restrict the price the owner sells at

• Restrict what the owner can do with their property once listed

Exempt relevant disposals

Disposals that are exempt from triggering the window of opportunity:

• Transfers made as a gift• Transfers between family members • Transfers due to inheritance• Transfers between trustees• Transfers of ‘going concern’ businesses• Transfers where the listed asset forms part of a larger estate

Others to be defined in regulations, including:• Transfers made between connected companies• Transfers made by a lender or through insolvency• Transfers for provision of ongoing public service delivery

Issues for regulations

Community Nominations and local connection• “voluntary and community body” includes unconstituted groups and Neighbourhood Forums.• “Local connection” – group’s activities wholly or partly concerned with local authority area or the neighbouring authority area.

Compensation • Owners entitled to claim compensation for loss or expense as result of complying with procedures of scheme

Enforcement • All listed assets to be included on the local land charges register• exploring simple and strong approach to non-compliance, where the fault of the owner, for example, by making non compliant sale “void”.

Support Programme• We are developing our plans… want to build on support and sources of advice which already exist.

Assets of Community ValueTimetable

•Public Consultation happened March – May •Localism Bill Royal Assent - November 2011

• Commencement of the Regulations – April/October 2012

• Launch of support package to coincide with commencement of the Regulations

Questions for discussion

Preparation and Support…

• What kind of support do you need to be prepared to implement the scheme?

• What are important things to consider to support community to ensure the Right can be taken up most effectively and fairly?

•Other issues for clarification or around the regulations??