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Community Land Trusts What they are, how to ‘do’ them

Community Land Trusts What they are, how to ‘do’ them. Geoff Phillpotts, Wickham Community Land Trust, Winchester ( general slides: Tom Chance, D irector NCLT) National CLT Network. What are Community Land Trusts?. What are Community Land Trusts?.

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Community Land Trusts What they are, how to ‘do’ them

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  1. Community Land TrustsWhat they are, how to ‘do’ them Geoff Phillpotts, Wickham Community Land Trust, Winchester ( general slides: Tom Chance, Director NCLT) National CLT Network

  2. What are Community Land Trusts?

  3. What are Community Land Trusts? • Housing & Regeneration Act 2008, Part 2, Chapter 1, Clause 79 • A Community Land Trust is a corporate body which: • 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 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.

  4. Growth in CLTs 2016 2013 2010

  5. Different strokes…

  6. Different strokes…

  7. Different strokes…

  8. WCLT’s affordable homes in Wickham

  9. Why support Commmunity Land Trusts? It’s about community solutions to community problems It unlocks land, support and resources to support affordable housing It can be innovative and ground breaking It builds community understanding and support for affordable housing It spends locally It retains community assets & surpluses within the community in perpetuity It helps create sustainable, caring, balanced communities

  10. 2. How do you ‘do’ a CLT?

  11. Routes to delivery Who starts it? New start up group Existing community organisation Council, HA or developer How is it developed? Group self-builds Group partners with a housing association or developer Group Plan Site Live Build

  12. Wickham Community Land Trust • A local charity with objective to provide affordable housing in perpetuity for local people • Trustees: local volunteers with appropriate skills • Company Limited by Guarantee • Intermediate affordable housing – 80% of market rents/50% shared ownership • Manage own application and allocation processes • Current status: 8 houses/flats at Houghton Gardens, Wickham

  13. Making it happen: organisation Wickham Community Land Trust • 8 Trustees: experience of business, (legal), finance, HA housing, regeneration, IT • Hard won support of RH Enabler, PC and WCC • Independent applications & allocations processes, agreed & approved by District Council • Detailed business plan, rigorous management and governance processes • Sophisticated financial model: 4 rental properties at 80% of private rents; and 4 shared ownership (50% equity) • Approved RSL with HCA • Close co-operation and support with Hyde HA • Day to day management: 3 Trustees, local letting agent

  14. National CLT Network • Available funding and support • CLT Start-up Fund • Locality Early Stage Support (£2.2k) • Big Lottery Awards for All (£10k) • BUT limited support for other forms of CLH Group Site • ‘Community Housing and Buildings Fund’ + Pre-development loans from CAF Venturesome • BUT funding available not suitable for large schemes and has restrictions Plan • Ecosystem of lenders (Charity Bank, Ecology, Triodos) but no access to commercial lenders. • Affordable Homes Programme grant not available for innovative products. Build

  15. Making it happen: funding Wickham Community Land Trust • Development/purchase: £1.1m raised from: • HCA grants; • Commercial loans (Parity Trust, CAF, Charity Bank); • Patient loans from Winchester City Council, Hyde HA; • local donors. • Sales of 50% equity in 4 homes (restricted to 80% “staircasing”) • Rents from tenants/owner occupiers

  16. National CLT Network • £300m Community Housing Fund • £60m a year for LAs to build capacity and resources from Dec 2016 to April 2022 (aimed at high “second home areas”). Hubs have been forming across the country in order to take on the funding • £163m announced July 2018. Phase 1 for infrastructure costs (not development). Open for bids from “eligible organisations” for grants via HE • Phase 2 announced Sept 2018. Bids sought for land acquisition and development for homes for rent/shared ownership and which are “affordable in perpetuity”. Fund closes end 2019 (or earlier) • See https://www.gov.uk/government/collections/community-housing-fund

  17. How the National CLT Network helps • Support for new groups • Free online resources • Incorporation service as a Community Benefit Society • Support for members • CLT Handbook • Example policies and procedures • General advice line • Legal advice line (up to 15 mins) • Discount on incorporation • Discount on Directors and Officers insurance • Sector development • Advocacy & liaison with government, funders, housebuilding industry Group Plan Site Live Build

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