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Learn about the rights and processes under the Community Empowerment Act to transfer public assets to benefit communities in Scotland. Find out how to navigate asset transfer, the key criteria for success, rights for community groups, and obligations for public bodies. Discover the steps, requirements, and assessments involved in the asset transfer process.
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Community Ownership of Assets New “rights” under the Community Empowerment Act Lynn Molleson COSS Advisor
Development Trusts: building sustainable communities DTA Scotland is a Scottish CharitableIncorporated Organisation (SCIO) No. SC034231
Community Ownership Support Service • COSS is part of the Development Trusts Association for Scotland (DTAS) • COSS is a Scottish government funded programme, adviser led across all 32 LA areas, set up to : • help community-based groups take ownership of assets for community benefit – asset transfer • support local authorities and other public agencies (relevant authorities) to transfer assets into community ownership.
What is (Community) Asset Transfer? A process to allow a community organisation to take over publicly-owned land or buildings, in a way that recognises the public benefits that the community use will bring. That may be a discounted price, a grant or other support, or simply the agreement to transfer something the public authority did not plan to sell. If the land is put up for sale or lease and a community body offers the best (or the only) bid, that is just a commercial transaction. Assets are land and any buildings or other structures on the land, like bridges, walls or piers. (It does not include vehicles or equipment.)
Characteristics of success • based on genuine community need –Actions Plans • the right asset sought to meet those needs • learning from others who have done it already • the business plan shows how the asset can ‘wash its face’ (grants, revenue – is there a market In that gap, SLAs) • Demonstrating economic/social/health/environmental value – the added value • being realistic about the condition of the building/land (contaminated. beyond reasonable repair) • making good use of free help and support ( COSS, local support - TSIs, Business Gateway, Funders, SE networks)
Key questions to ask before you start: • what is the need/demand? How do we know? • do we require an asset to deliver on the need? • have we looked at every asset option? • Do we want to buy, lease or manage? • will the project promote or improve: economic development, regeneration, public health, social wellbeing, environmental wellbeing. • will it reduce inequalities? • is it all financially viable? • will it be sustainable in to the future?
Key “Rights” for community groups Right to • request information on any public asset that interests you • request the transfer of a public asset (doesn’t have to be surplus) – manage, lease, ownership • acquire that asset if the public body cannot offer a good reason not to (i.e. a presumption in favour of transfer) • to appeal any adverse decision
Key “obligations” for Public Bodies (relevant authorities) • To create/maintain an Asset Transfer Policy, and a register of all assets • To respond to requests for information on assets • Not to dispose of asset once transfer request received (unless already begun a disposal process!) • To acknowledge receipt of asset transfer request / notify “validation date” (only once satisfied request is complete) • To take a decision within 6mths of “validation date”
Content of “Asset Transfer Request” A very comprehensive written request - 15 criteria to be considered, including: • the land/ buildings concerned • the proposed terms of the transfer (eg ownership, lease etc) • the purchase price or rent/duration of lease • the reasons for the request & how the community would use the asset • the community benefits that would arise compared to other possible options • how the transfer / development / enterprise will be funded • Evidence of community support
How your request will be assessed • Public benefits of the transfer proposal must be demonstrably greater than that of an alternative proposal • economic development; regeneration; public health; social wellbeing; environmental wellbeing • Best value (discounting market valuation) • Ability of the group / project to deliver • Impact on the public body’s functions & any conflict with wider obligations • Level of community support / conflict with other community interests
Who can make a request - Community Transfer Body • Community of geography or community of interest • Open membership/controlled by that community • Community benefit purpose • Surplus applied to benefit of community • May be unincorporated if no transfer of ownership (but think carefully!)
Full Title Transfer: For transfer of full title the community body must also be: • A limited company with a Dissolution Clause (i) to another community transfer body (ii) to a charity. • A Scottish Charitable Incorporated Organisation (SCIO) • A Community Benefit Society (BenComm) All with no fewer than 20 members. If a community group can’t change its rules to fit the requirements, it can ask the Scottish Ministers to make it a community transfer body by law. This is called being “designated”.
Reasons for community going for lease • interim lease • Phased approach to full title AT is completely legitimate • to build up confidence and experience • to test their business ideas • must check heads of terms • break clauses in favour of ownership
BUT……… • short term lease can cause funding issues • Usually full repairing • Groups being offered market leases • Burdens
Maud Story • Develop a centrepiece for the village • Generate a sense of community and ownership • Encourage social inclusion of all groups in the village • Create sustainable and financially viable facilities for the benefit of the community • Create local employment opportunities • Give the village back its heart
Over 850 members – age range 12-80! 4 Qualified Fitness Instructors, Gym Kids Teen Classes Exercise Referral Chair-based exercises Circuits Spin Classes health referrals
Phase 4 – Community Cafe Opened June 2010 5 permanent & 4 temporary staff
Benefits to the Community and area • New centre of the village • Employment opportunities – Cornerstone, Dial-a-bus, Venture Support & Care, Buchan Agricultural consultants, Resource Centre, Gym , Cafe (MVT employs 17) • Wider access to services • Created financially viable businesses • Working in partnership with NHS & Aberdeenshire Council gives the community a chance to influence service provision in their area • Social Inclusion for a number of groups in the communiy e.g. mental health, learning disabilities • New families are encouraged to live there • The village now well and truly has its HEART back!
The Mart Site Today Community Resource Centre Community Service Centre
Who can help you? • COSS can help if the asset is publicly owned. • Scottish Land Fund and the Community Land Team at Scot Gov can help if the asset is privately owned. • For help with Board training and capacity building – CLD teams; TSIs • Specialist business planning help from Enterprise Accelerator, Just Enterprise or Business Gateway.
Key Funders • Scottish Land Fund – for feasibility , design, business plan for viability and purchase. Geographic fund only. • Community Assets – BIG Lottery. For purchase and development • Raising money through Community Shares – Community Shares Scotland. Must be a CBS. Can be a charitable CBS.
Thank you Lynn MollesonAdvisor Normal working days Wednesday, Thursday, Friday Community Ownership Support Service, 1B Washington Lane, Edinburgh, EH11 2HA T: 0131 225 2080 | M: 07985211428 |W:www.dtascommunityownership.org.uk @dtascot_COSS
