community land trusts (clts) qualities of & how to set up

Community Land Trusts (CLTs) Qualities of & How To set Up

Andy Lloyd Cumbria Rural Housing Trust

Part of the Investing In Communities Initiative & ‘Under One Roof’ Project

Contributing partners: Lake District National Park Authority;South Lakeland District Council; Eden Housing Association

What are CLTs?• Another option for affordable housing delivery

• Owning assets on behalf of a communitynot for profitbased in and run by the communityfocus on permanence & long term benefit

(alms house trusts still provide housing after hundreds of years)

• Common legal formsCharitable Companyor Industrial & Provident Society

Andy Lloyd Cumbria Rural Housing Trust www.crht.org.uk 2

They can be• Based in

existing organisations, or formed as new ones

• Referred to as ‘land’, ‘property’ or ‘development’ trusts

• And are versatileaffordable Housing to rent or part buy

& retail, work & community spaces & farms


Advantages offered?Focus on getting results for your community

Involvement & permanence • increasing community & landowner confidence – that homes

will remain locally affordable • better partnerships between communities & Local Authorities• reinforcing planning agreements – constitution & trustees

Long term regeneration• through diversity & permanence

Sustainable design• what people need – living space & low running costs


A potted history1678 Brabins Trust, Lancs - Alms house trust now expanding as a CLT

supported by Great Places HA1903 Letchworth Garden City - Trust based housing, none sold off,

permanent re-investment income for community1923 Isle of Lewis put into community ownership by Lord Leverhulme.

Still going strong.1950’s India ‘village trusteeship’ launched by Ghandi1967 USA CLT farms established through work of Martin Luther king1983 UK Stonesfield Trust, Oxfordshire -11 rented homes. More

planned1994 Threlkeld HA (a local trust) 14 part ownership homes v successful1997 Community Land Unit, Scotland - case studies at

www.hie.co.uk/community-case-studies.html2008 America – more than 220 CLTs, large urban to small rural. Federal

assistance. CLT academy2009 England & Wales 1st 100 CLT homes coming through


Experience in the US Anchoring communities during difficult times

Michael Brown, Burlington CLT, August 2008

• Very safe loan to income multiples (say 2.5 x income)

• Resale values linked to wage inflation

• Training & support

• Consequently very low CLT default rate of 0.6%

• American banks support CLT mortgages


Government support?

• Community Empowerment White Paper – ‘Real People Real Power’• CLT definition in 2008 Housing & Regeneration Act• CLT Consultation due to report

Housing Grant?

• Can’t do affordable homes without subsidy!• Homes & Communities Agency (HCA) recognises ‘community friendly’

application process needed• Holy Island CLT piloting the new process• Supported by the Development Trust Association• NE Regional Office supporting bid• 3 Rivers Housing Association as partner


Support for Cumbrian communities?

CLT Community Support Officer January 2008• Advice & support• Info’ & resources at crht.org.uk• Funded by LDNPA, SLDC, Eden DC, Eden HA

Housing Association partners• Advice & support• Project development & management• Low cost finance• Partners to acquire HCA grant

The Development Trust Association www.dta.org.uk• Advice & support• 450 community trusts with £490m of assets


for Cumbria continued..

The national CLT Facilitation Fund• Technical support grants • Preliminary development costs grants and loans• Capital development match funding• www.esmeefairbairn.org.uk/significant-cltdf.html• Cumbria CLT workshops planned

Revolving Loan Fund• Low cost loans towards preliminary costs• For LDNPA & SLDC areas so far


http://www.esmeefairbairn.org.uk/significant-cltdf.html

Scheme examplesWitherslack, Cumbria

• Dispersed but vibrant settlement

• Community saved village pub and set up a community shop

• High local housing need

• Self built housing planned

• Land gifted by local landowner


Shop before & after

Threlkeld, Cumbria


• 14 homes built in 1994, also workshops

• Land donated by ARC Ltd

• The company provided manager for one year to set the scheme up

• Homes jointly owned by the occupants and the trust

• Support provided by Eden Housing Association

Glendale Gateway Trust, Wooler, NorthumberlandVisiting 25th February 09

• Renovated community and workspace building• Revitalised town center acquiring unoccupied shops and flats• Acquired and turned around towns Youth Hostel• Enabled development of social housing Wooller town centre• Now master-plan to identify opportunities long term


GGTs thriving youth hostel

Holy Island of Lindisfarne Community Development Trust

Built 5 energy-efficient houses & 2 flats held in perpetuity• Priority to local young people• All but one of the tenants work on the island

4 more homes in planning: A pilot for HCA grant• £250k bank loan, £200k Tudor Trust, £200 needed due to

archaeology• NE HCA keen to help with grant• DTA consultant leading discussions on behalf of Trust• 3 Rivers Housing Association partnering grant application

Also• Harbour Management Plan• Lifeboat Heritage Museum & wildlife visitor centre


Buckland Newton, West Dorset


Arco2 architects – prefab’ local timber / straw bale insulation - £1,050m2Magna Housing Association - advice and scrutinyLand £5,000 per plot – landowner as a trustee8 shared ownership 2 rent

£160,000 of subsidy from the HCA£16,000 grant per unitDistrict Council providing £800,000 development phase finance

Chipping CLT, Lancs

• Extension of Brabins medieval alms house trust

• Has land and financial assets

• And 330 years’ housing experience

• Wants future resale value of homes linked to local wage inflation

• Development partnerGreat Places Housing Group


St Minver, N Cornwall


• Developed by Cornwall Rural HA

• On behalf of local CLT

• Managed self build

Do it yourself: Charlie Hibbert helps put his own home together

• Part ownership tenure

• Subsidy provided by North Cornwall District Council

Scotland - Isle of Gigha

• First local homes for 25 years built• Three dairy farms double in size• Another farm developed• Business units built and allocated• Community-owned wind farm• Facilitated by the Community Land

Unit


Mr Chisholm with Mr and Mrs Gillies, whose home was funded with a rural home ownership grant

http://www.communitiesscotland.gov.uk/

Funding affordable homes

All in cost of developing an affordable homeAround £120,000

Income from occupantsfrom low rent £50,000 +(could be higher through part buying)

Shortfall met through subsidyaround £70,000


Subsidy options

• Social Housing Grant – available in near future

• Fundraising / share issuesCommunities often have considerable resources & want to help

• Where planning allows – ‘cross subsidy’

Plot or house sold by the CLT could subsidise affordable units


Typical process:

1. Form a CLT steering group: Motivated local people

2. Invite support: CLT Officer, Planners & Housing Officers, Local Housing Association

3. Check local need: Parish / town survey (LA / Rural Enabler CRHT)

4. Research sites: New land? Modest value? Pragmatism from planners? Publicly owned land or buildings suitable for transfer at low or nil value? (Quirk)

5. Consult the community: Support for trust approach?

6. Confirm need: Invite people to register direct with steering group

7. Formalise trust: Contract with development partner (HA?). Do business plan / planning application


Site opportunities

Existing charitably owned landPrivate gifts & legaciesRenovation of existing buildings - May not need planning permission

Rural exception sites– For communities under 3,000 population where need is proved– Usually a natural extension to the existing settlement.– Prioritises local need. Must be all affordable

Transfer of publicly owned assets– Making sites and buildings available at nominal cost– Long term social & economic instead of simple cash value– Recommended by the Quirk Review / Power of Wellbeing / Disposal of

Consents Act– From LAs & public utilities

Affordable housing quotas on residential developments– Could be developed by CLTs


Tips from Chipping CLT

• Make it clear your scheme is for the benefit of your own community. This will help get local people on board

• You will need someone to drive ideas forward and move from

contemplation to achievement • Draw on the experiences of others and make use of experts to

inform the process • Involve Housing Associations. They have expertise and services and

may be able to access funding that others cannot • If the parish council submits the planning applications they only pay

half the fees! • An existing Trust may be a firm foundation on which to build. • A small committed local builder may deliver a lower build cost


Contact

Andy LloydCommunity Land Trust Project Officer

Cumbria Rural Housing TrustRedhills House, Redhills Penrith, Cumbria, CA11 0DT Tel. 01768 210265Mobile: [email protected]


CRHT resources available on web site

•Short guide to CLTs

•CLT Handbook

•Project development flow chart

•Example business plan

•Example allocations policy

•Guide to sustainable construction

mailto:[email protected]

community land trusts (clts) qualities of & how to set up

Documents

local trust

versatileaffordable

clt homes

development trust associatio

lancs alms house trust

burlington clt

affordable homes

community ownership