Community Asset Transfer Policy

What is Community Asset Transfer?

Community Asset Transfer is the transfer of management and/or ownership of public land and/or buildings to a community organisation usually at less than market value to achieve an economic, social or environmental benefit.

Policy statement on Community Asset Transfer

A core principle of North Lincolnshire Council is to help people and communities to help themselves. An effective way of achieving this is to empower community organisations so that they may deliver their own solutions to meet local needs and demands. As part of this, the council is committed to using its land and property assets to effect positive change and noticeable benefits to local communities by entering into partnerships with community and voluntary organisations.

Community Asset Transfer will not be suitable for all property assets or all organisations, and the council will continue to work with local organisations to ensure that a range of initiatives are in place to support the development of enabled, excellent, and sustainable communities.

National policy context

There is now high-level support and recognition from government that asset transfer can create more confident and empowered communities with access to strong and sustainable infrastructure and facilities. The government wish to see Local Authorities empowering local people and organisations to transform land and buildings into vibrant community spaces and support a thriving third sector.

Subsequent government documents have further recognised the significant potential benefits that may be realised through council’s creating and supporting community partnerships. The Localism Act (2011) devolves decision making powers to neighbourhood level and advocates new rights and powers for communities and individuals such as the “Community Right to Challenge” and “Community Right to Bid”.

Legal framework and enabling powers

Section 123 of the Local Government Act 1972 requires that all disposals to be at the best consideration reasonably obtainable under the circumstances. This applies to the disposal of any interest in land and property.

However, this was subsequently amended under the Local Government Act 1972 General Disposal Consent Order (England) 2003, which gave council’s wider powers to dispose of land and property assets at less than market value where it could be demonstrated that they promoted the economic, social and environmental well-being of the area; and provided that the unrestricted undervalue of the asset to be disposed of and the consideration for the disposal does not exceed £2,000,000 (two million pounds).

Potential benefits of Community Asset Transfer

• Enabling the delivery of the Council’s Plan
• Enabled and empowered communities
• Facilities and services which are more responsive to local needs
• Improved management of buildings
• Additional investment as community groups and third sector organisations may access funding streams not accessible to local authorities
• Provide a catalyst for regeneration of local areas
• Greater ownership and pride in facility by local community
• Improves the economic and environmental wellbeing of the area
• Decision making devolved to a local level
• Enabling communities to come together.

Potential risks of Community Asset Transfer

• Competing applications between different community organisations
• The community organisation taking ownership of the asset lacks adequate experience or financial means to deliver the service.

To minimise potential risks and achieve a successful Community Asset Transfer, the council will have a Community Asset Transfer Executive Board and working group that brings together the essential skill base required to assess potential transfers.

The structure will ensure that the potential risks will be avoided or managed, and the success of the transfer be realised.

Asset Board

The purpose of the Asset Board will review recommendations of the council Strategic Asset Management Group.

Community Asset Transfer officer working group (sub-group of the CSAMG)

The purpose/remit of the group will be:

• To engage with local community organisations to understand the needs of the local area and determine if these align to the corporate aims of the council
• Advertise suitable available assets to the wider community
• Consider applications for the transfer of assets and ensure the applicant has adhered to and submitted the relevant documentation and evidence in order that their application may be fully assessed
• Review the group’s application and evaluate them on the agreed criteria. Having standard and transparent criteria will be essential in appraising applications, especially where there may be competing applications
• If the application is considered to adequately meet the criteria, to implement the transfer based on the principles within this policy
• To determine the appropriate means of transfer and agree the terms of the joint working agreement with the successful applicant
• To provide the appropriate level of support and advice to the successful applicant in moving the project forward to conclusion
• Where there has been competing applications, to inform the unsuccessful applicant(s) on why they were not successful
• To determine the level of subsidy the transfer represents to the council
• To make a recommendation to the Asset Board.

Process for Community Asset Transfer

Applications will be considered just from community and voluntary sector groups. All applicants should be able to demonstrate good governance and an appropriate legal structure.

The Applicant must:

• Be non-profit distributing – no applications will be accepted from private companies, private individuals or other organisations that do not fulfil the criteria. Any applicants that are profit making must reinvest any surpluses to further its social aims/community benefits
• Be a community or voluntary sector organisation – i.e. it must be a legal entity which is non-governmental or part of the statutory sector. However, applications will be considered from Town and Parish Council’s provided they are not part of the Government or statutory sector
• Exist for community, social and/or environmental benefit of the community
• Be appropriately constituted – for example a registered charity, a community interest company or a charitable incorporated organisation, a not for profit company or co-operative. Such constitution which can allow for the management/ownership of buildings and/or provision of services
• Demonstrate good governance – by operating through open and accountable co-operative processes, with adequate monitoring, evaluation and financial management systems and be able to provide copies of the accounts of the organisation on request
• Have well defined community benefit objectives – and can demonstrate that it has the skills and capacity within, or available to its managing body, to effectively deliver services and manage the asset
• Have experience and knowledge of property management – and can demonstrate that it understands health and safety issues and compliance with legislation/statutory requirements arising from ownership or management of the asset
• Demonstrate community engagement – by proactive involvement in economic, environmental, or social regeneration in North Lincolnshire or be providing a service of community benefit in line with the Council’s core purposes. The Applicant must also provide evidence of the need and demand for the activities being proposed within the local community
• Prove community cohesion – and embrace diversity and work to improve community cohesion and reduce inequalities. The proposed use will ensure extensive reach into the community and will be open to all
• Demonstrate sustainability – the Applicant will need to establish how the proposed use can maximise opportunities to ensure sustainability, for example through income generation, social enterprise and the hiring of space and facilities.

Assets suitable for Community Asset Transfer

Firstly, the asset must be in the freehold ownership of the council and by way of the Community Asset Transfer should assist in delivering the corporate aims of the council.

Potentially suitable assets may include the following:

• Ownership – An asset is either land or buildings or both in the ownership of the council. The policy should not specifically include or exclude any type of asset from potential transfer to a community group, allowing each case to be considered on its own merits in consideration of the exclusions below
• Proposed Use – The applicant and asset will assist in delivering the core purpose and corporate outcomes of the council
• Service Delivery – An asset that is not currently required or used for direct service delivery will be considered for transfer. Should the applicant be able to deliver the same service from the asset in question, then this asset should not be precluded from an asset transfer.

Assets that are to be excluded from Community Asset Transfer

The council will not support the transfer of an asset transfer whereby any of the following apply:

• Service delivery – the asset is required for service delivery
• Any asset where the market value or development value is greater than its existing use value at the time of application will be excluded from the Community Asset Transfer policy. This applies to assets on their own or where they form part of an amalgamated site
• Housing development – any asset that can contribute to the council’s housing plan
• Assets that are not fit for purpose and/or require significant investment will generally be excluded from the policy. Exceptions may be made where the community organisations can secure the financial resources available to bring the property back into a state of repair
• Corporate Priority – Any asset that has been identified to implement a Corporate Priority and hence service delivery which can only be delivered by the council is to be excluded from the transfer policy
• The council reserves the right to exclude Community Asset Transfer where the proposal only relates to part of an asset.

Community Asset Transfer process

Although several steps are involved in Community Asset Transfer, there are three key stages:

• Stage 1 – Expression of Interest
• Stage 2 – Full Application and Business Case
• Stage 3 – Heads of Terms and Joint Working Agreement

The process may be started by the council or by an organisation making a speculative request to manage a specific asset. In both cases it is the council who will determine whether an asset is to be made available for Community Asset Transfer or not.

If an asset is available for Community Asset Transfer the council will advertise the fact via a number of sources including (but not limited to):-

• Council website
• Council approved social media sources.

Contact

CAT@northlincs.gov.uk