ASSETS OF COMMUNITY VALUE – COMMUNITY RIGHT TO BUY (BID)

Assets of Community Value – Policy Statement Sept 2011

John LiddellAsset Manager

PURPOSE• Give communities right to identify building or other land that they believe to be of

importance to a community’s social well-being.

• Aim - if an asset comes up for sale, they will be given a fair chance to make a bid to buy it on the open market.

• Owner will have a right to internal review by the council, & right of appeal to independent tribunal against result of internal review.

• Nothing further will happen unless & until owner decides to dispose of asset, either through freehold sale, or grant or assignment of lease, granted for at least twenty-five years.

Provisions do not restrict who owner of a listed asset can sell his property to, or at what price.

Not a right of first refusal.

WELLBEING OR SOCIAL INTEREST?

“The asset supports the wellbeing or social interests of local community”

• Its realistic to think that there can continue to be non-ancillary use of building/land which will further (whether or not in same way) social wellbeing or social interests of local community and

• There is a time in the recent past when actual use of building/ land (not ancillary use) furthered social wellbeing or interests of local community and;

• It is realistic to think that there is a time in the next five years when there could be non-ancillary use of the building/land that would further social wellbeing or social interests of local community (not necessarily the same one)

PROCEDURE FOR INCLUDING LAND ON LIST

“Land in a local authority’s area which is of community value may be included by a local authority in its list of assets of community value only:-

• In response to a community nomination, or;

by a parish council

by a person that is a voluntary or Community Body with a local connection

• Where permitted by regulations made by the appropriate authority?”

SO WHAT IS A COMMUNITY BODY?

“We envisage that “local voluntary and community body will be defined as a body,

other than a public or local authority, which may be incorporated or unincorporated,

must not be run primarily for profit, and must have a primary purpose concerned

with the local authority’s area, or the neighbourhood in which the asset is situated

where this is in more than one authority’s area. We will set out the full definition in

regulations.”

As in September Policy Document

THE LIST – 1 LIST OR 2?

Notice of inclusion or removal

Authority must give written notice to:-

• Owner of land

• Occupier (if not owner)

• Person who made Nomination

• Additional persons as regulated

• Notices must describe the provision and Consequences

• Right to ask for review

• Notices of removal must state reasons

Community Organisation

Parish Council

Local Authority asks owner for comment

Local Authority decides not to list asset

Owners objection successful

List of land nominated by unsuccessful community nominations (5 years)

No objection from owner

Owners objection unsuccessful

Added to list of Community Value and Local Land

Charge Register (5 years)

Local Authority publicises and maintains list

List of Assets of Community Value

Neighbourhood Planning Forum

Identify Land or Building of Community

Value

Local Authority decides to list asset

LIST OF LAND NOMINATED BY UNSUCCESSFUL COMMUNITY NOMINATIONS

• Authority must maintain list

• Assets may (but not need be) removed after 5 years

• Include the reasons for rejection

PUBLICATION AND INSPECTION OF LISTS

• Local Authority must publish both lists

• Make available for free inspection

Owner decides to sell listed asset and informs Local Authority

LA informs nominator and publicises to community

Community groups express interest in bidding

Community groups prepare business plan and finance

Owner can sell to whoever they choose at end of full window of

opportunity

No community groups express interest

Owner free to sell asset after interim

window of opportunity

Window of opportunity starts

when LA is informed by

owner of intention to sell

Interim window of opportunity ends

Full window of opportunity ends

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THE LIST MORATORIUM PERIODS

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Any owner can sell to a community interest group at any time

ONCE ON THE LIST WHAT HAPPENS?

Publication of Receipt of NoticeAmend list to include:• that notice has been received in respect of the land• the date when the authority received the notice, and• the ends of the initial moratorium period, the full moratorium period and the protected period

If land is included on list in response to community nomination thenauthority must give written notice, to the person who made the nomination, with details as above

Authority must publicise details in the area where the land is situated (no details in bill how)

If there is interest from Community Group (in writing)Local Authority as soon as practicable must pass on, or inform owner of details of the request

MORATORIUM PERIODS

An owner cannot enter into a relevant disposal unless:-

Condition A• They have notified local authority

Condition B• Interim moratorium period (6 weeks) has ended without receiving a written

expression of interest from any community interest group, or

• Full moratorium period has ended

Condition C• The protected period has not ended

• Note :- At the end of the Moratorium period the asset can be sold under normal market conditions on the open market at market price! (subject to planning) BUT not constrained in any way

EXCLUSIONS AND EXCEPTIONS FROM THE LIST (AS AT SEPT 2011)

• Residential premises, including sites for mobile homes and boats. Residential premises will include land held with the residence under a single legal title ( but could include a flat above a shop)

• Operational land as defined in Part 11 of the Town and Country Planning Act 1990 – i.e. land used for transport infrastructure and some other related purposes by specified bodies with statutory powers.

• Entitlement under a will or as a gift

• By representative of deceased person to pay debts, taxes, costs, pecuniary legacies or satisfy some other entitlement under the will

• Family members (spouse/civil partner, lineal descendant of a grandparent)

(Continued)

(Continued)

• Part listed land (needs to be specified)

• Going concerns

• Occasioned by person ceasing to be, or becoming a trustee, or partner

• Entitlements under a trust, on in exercise of a power conferred by a trust

• Other description specified by regulation – i.e. they haven't thought of yet !

COMPENSATION AND WHO PAYS?

“All owners, other than public authorities, will be entitled to claim compensation for loss in Value or expense incurred as a result of listing and complying with any of the procedures required by the scheme.”

Likely that the District would have to meet claims up to £25 approx

So far under the Scottish Scheme most claims are relatively small and relate to expenses incurred by holding the property for longer as a result of the process. Claims for loss in value have not be so successful but this may relate to the depressed property market over recent years

LCC response to proposals to Transfer assets

In the event of a transfer of a LCC asset, the principal asset management concerns are that the asset is:

• Effectively and positively helps to build a more active community, with extensive and inclusive use throughout the local community

• Properly used – efficiently, effectively and in keeping with good estate management and maintained

• Represents a best value decision for the County Council (whether the transfer is permanent or temporary)

• Maintains its full market value (where the freehold continues to be owned by the County Council)

Information required by LCC to consider a transfer request (Continued)

The asset is to revert to LCC upon:

• Cessation of agreed community use

• Persistent failure to delivery Business Case benefits

• Breach of agreed Management Plan, governance arrangements, reporting requirements and any other agreed conditions

• The Community group is liable for yielding up the transferred asset in reasonable condition upon termination of the community use and

occupation, howsoever this is determined