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Stephen Rolph Locality [email protected] 0845 345 4564 Locality • Locality is the leading nationwide network of settlements, development trusts, social action centres and community enterprises. • Locality was formed through the merger of bassac and the Development Trusts Association, two leading networks of community owned and led organisations. Locality membership • 423 trusts in England • (Over 700 trusts across the UK) • • • • Members have a combined income of £325m of which £172m is earned income £660 million community owned assets Employ 5,500 staff and engage 20,000 volunteers • 82 members in London Locality Members grant funding assets enterprise New Community Rights BUILD BID CHALLENGE Right to Bid is one of the options for Community Asset Acquisition • • • • • • • Community Purchase. Community Asset Transfer. Multiple Asset Transfer – the Supply Side. Community Right to Bid. Community Right to Reclaim Land. Community Right to Build. Compulsory Purchase for Communities. Empowering Communities: Making the Most of Local Assets http://tinyurl.com/9kfc8xl Our Experience: Headlines Asset Transfer: • Advancing Assets / Community Assets Programme / The ATU • 85% councils aware of agenda • 1,500 transfers underway each year, 40% increase during 2011-12 • £100m+ investment Right to Bid: • 1,800+ enquiries since April 2012 (a quarter from London) • Guidance and resources developed www.mycommunityrights.org.uk • Grants programme launched (Social Investment Business) • Provisions formally commenced in Sept 2012 • 476 nominations / 387 listed (34 nominated / listed in London) The Ivy House Pub, Nunhead, LB Southwark The Ivy House pub in South London 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! BID The LA’s role • LAs manage a list of ‘assets of community value’. • Public, private, and VCS owned. • Nominations - Parish Council or a locally connected voluntary or community body. • LA must inform owner and nominee. • Right of appeal for landowner, but not the nominee! • 5 year listing. • 9 London Boroughs still haven’t got anything on their website. The Pub? The Post Office? The Village Hall? The Corner Shop? The School? The Allotments? Your House? BID Contents of a nomination • Description of land/buildings. • Details of known occupants/owner. • Reason(s) why the nominee thinks it’s an asset of community value. • Evidence that nominee is eligible to nominate. BID Definition Current/recent past use furthers the “social well-being” or “social interests” of the community, and likely to continue to do so (or could do so again). Social well-being is not defined. Recent past is not defined (5 years?) Social interests defined as: ‘cultural, recreational or sporting interests’. Must be its principal use. Some exclusions – the main one is residential. BID Moratorium Periods • Triggered when owner wants to sell – freehold/25 year lease. • Owner cannot conclude sale – illegal to do so. • 6 weeks for community group to notify LA they wish to make a non-legally binding bid. • A further 4.5 months to raise capital to purchase (6 months in total). • Followed by a protected (18 month) period to protect owner from repeated attempts to block sale. BID Moratorium exemptions • Housing, NHS and ‘land of statutory undertakers’. • If the disposal of the asset is a gift or is made between members of the same family. • If the land or building being disposed of is part of a bigger estate. • Binding agreement entered into before listing. • If the disposal is made to a new owner to continue the same business. BID The opportunity • Owners view assets in a different way – as valuable community resources. • A legal duty upon councils and a right for communities. • Effects on planning – material consideration? • Applicable to privately owned assets. • Makes ownership visible. • A stimulus to community asset mapping – creates a sense of urgency/fundraising focus. BID Challenges • Will it discourage discounted asset transfer? • Communities of interest as compared with communities of place? • Definition of an ACV - postcode lottery? • Access to capital finance? • 6 months (development time is usually 18-36 months). • It’s not a right to buy - the owner does not have to sell to the group. Right to Bid vs Asset Transfer Right to Bid Asset Transfer Basis Statutory Local policy Type of asset Defined in Localism Act Any council owned asset Ownership Any owner Public sector only Process Defined in Localism Act By negotiation Value Market value Undervalue Terms Freehold or lease of 25+ years By negotiation Community assets grants from SIB • Available from Social Investment Business: • Pre-feasibility grants - £5k to £10k. • Feasibility grants - £10k to £100k. • Capital (Round 2 coming soon!) • Applies to Right to Bid and Asset Transfer. • For consortia building, training, expertise, business planning, market research, etc. • Not intended for equipment, building costs or running costs. Grants 140 120 Millions 100 80 60 40 20 0 No. of Successful applications 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Emerging social finance market • The Investment & Contract Readiness Fund www.beinvestmentready.org.uk • The Big Venture Challenge www.bigventurechallenge.com • Key Fund Yorkshire http://www.thekeyfund.co.uk/ • Esmee Fairbairn http://esmeefairbairn.org.uk/ • Unity Trust Bank http://www.unity.co.uk/ • Charity Bank http://www.charitybank.org/charity-loans • Triodos Bank http://www.triodos.co.uk/ • Cooperative and Community Finance http://www.coopfinance.coop/ • Big Issue Invest www.biginvest.co.uk • Venturesome https://www.cafonline.org/charity-finance-fundraising/banking-and-investments/loans-and-capital.aspx Advice, support and services • Find out about some of the projects Locality has assisted: www.locality.org.uk/assets • Take advantage of our Community Asset Mapping Platform: www.theplacestation.org.uk • Obtain further information about the Community Rights Support Service: www.mycommunityrights.org.uk • 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 Community Right to Bid BID Any questions? www.locality.org.uk www.mycommunityrights.org.uk