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Council Strategies

This article summaries the learning from local authorities gained over four years of the Advancing Assets programme which supported local authorities to develop asset transfer policies and procedures and to pilot them with community partners. Whilst the learning is from work with local authorities, it is more widely applicable to any organisation considering transferring assets to community or voluntary organisations.

Community asset transfer is the transfer of a property asset (either freehold or a long leasehold of more than 25 years) to an community or voluntary organisation at less than market value.Local authorities benefit from the General Disposal Consent which allows transfer of assets worth up to £2 million at less than market value if the disposal contributes to the economic, social or environmental well-being of the area . Other parts of Government, such as central government departments, can undertake community asset transfers even though they do not benefit from the General Disposal Consent, although the process is more complex due to the need to get permission from the relevant Secretary of State.

Transfer of an asset is usually based on the proviso that the asset will be available for community use in the long term. To ensure this, the organisation receiving the asset is usually  expected to have an asset lock, so that there are rigorous safeguards covering any disposal of the asset by the recipient organisation.

In the main, the learning below is from community asset transfer work with local authorities.It is, however, applicable to any authority, department or agency working on community asset transfer.

Reasons for developing a Strategy

We found that community asset transfer strategies were developed in order to:

  • set out the strategic position on community asset transfer
  • detail the ways in which community asset transfer supports the vision, policies and priorities of the transferring organisation
  • allow for a proactive approach to community asset transfer, actively working with community and voluntary organisations to make best use of buildings and land 
  • ensure consistency in dealing with community asset transfers
  • ensure equal access for all community and voluntary organisations
  • detail which assets the authority will transfer and on what terms, including when the property would revert back to the local authority
  • set out characteristics of community and voluntary organisations which would be eligible to receive a community asset transfer, for example that the organisation has an “asset lock” to safeguard the asset for community benefit, has limited liability to protect its Board, has a robust business plan and can demonstrate its accountability to its community.
  • establish key principles, for example that the aim is to transfer assets not liabilities, that any transfer should be supported by the local community and/or user groups, that the transfer should financially strengthen the organisation taking the transfer
  • detail links to the asset management strategy
  • set out the approach to implementation of the policy.

Whilst some local authorities develop policies around particular types of building – for example; community centres or sports centres, we strongly advise developing a Community Asset Transfer Strategy for the whole authority.  This is so that the policy covers all requests for community asset transfer (and does not have to be continually revised) and to avoid challenges around lack of consistency where different criteria are used for different types of land or buildings.

You can find model strategy guidance hereThis builds on learning from a range of local authority strategies to give a basis upon which local authorities and other transferring organisations can prepare their own strategy.

How to Implement a Community Asset Transfer strategy

We see development of a strategy as an essential element – but it is only the first stage.  The following section sets out key questions for the consistent implementation of the strategy.

Process

  • How will requests for community asset transfer be dealt with?
  • How will the process of community asset transfer be initiated – for example the creation of community hubs, disposal of surplus property, etc.
  • Which departments should be involved in dealing with applications?
  • In local authorities, how will elected members be involved in the process?
  • What local and national voluntary and community infrastructure bodies such as CVS’s, Rural Community Councils, Locality, etc. are available to support community asset transfers?

Process tips

  • We recommend a “single gateway” – one post which has oversight of all the community asset transfers which are on-going.  This helps to ensure that the strategy and processes are applied consistently and that timescales are adhered to.
  • We recommend that understanding of community asset transfer is built across the organisation – rather than making it the sole responsibility of one department. Finance, legal and property services (if they are not the lead department) should be involved at an early stage – but community asset transfer will be relevant to a range of departments and services.  For example in local authorities these could include leisure services, children’s services, economic development, adult education.

Assets

  • Which assets can be subject to a community asset transfer?Are there specific exclusions – for housing, operational buildings, etc.?
  • In the case of any individual asset, how will its suitability for community asset transfer be determined?
  • How will community asset transfer be dealt with in relation to surplus assets?
  • On what terms will assets be transferred – freehold, long leasehold?
  • What are the key characteristics of the community or voluntary organisation? – e.g. asset locked, not for private profit, meeting the needs of local people?
  • Under what circumstances would the asset ownership revert back to the transferring organisation (i.e. local authority, government department etc.)?

Tips

  • We recommend keeping the range of assets which could potentially be transferred as wide as possible, to prevent the need for revision in the light of subsequent requests.   Many assets are unlikely to be transferred – e.g. operational buildings – but this will change over time.   Drawing the eligibility broadly means that decisions can be made on a case by case basis with the process providing an easy and speedy response where transfer would not be considered.

Objectives

  • What is the transferring organisation seeking to achieve through community asset transfer?
  • What are seen as the potential benefits of community asset transfer?
  • What are the principles which underpin  the implementation of the  strategy? For example, strengthening local community and voluntary organisations, integration with other services, transferring assets rather than liabilities, creating service hubs

Tip

  • Experience shows that community asset transfer is most effective where the transferring organisation and community or voluntary organisation agree the objectives and benefits of the transfer and work effectively together to achieve them.

Strategic Fit

  • How does community asset transfer fit with the asset management strategy?
  • How does community asset transfer fit with the wider objectives, policies and priorities of the transferring organisation?

Documentation

  • How will community and voluntary organisations register an interest in community asset transfer?
  • What information will be required from the community or voluntary organisation?
  • What should be included in legal transfer documentation?{A model lease can be found at  here)
  • Will the transferring organisation seek to develop a partnership agreement or service level agreement around service delivery, management and monitoring post transfer ? 

Tips

  • We recommend that a transferring organisation and community or voluntary organisation look to put together an “expectations agreement” as soon as they start working together.  A model document can be found here
  • We recommend a two stage process in order to avoid unnecessary work for both the transferring organisation and the community or voluntary organisation.   Stage 1 is a broad brush approach looking at whether the asset could potentially be transferred, the proposed uses of the building and whether the community or voluntary organisation meets the criteria for asset transfer. Stage 2 is much more intensive, usually requiring detailed business, financial and management plans – but is only undertaken where there is a realistic chance of the transfer going ahead.

Assessment process

  • How will the application be assessed – i.e. governance, business plan, community benefit?
  • How will potential risks be assessed?
  • How will competing bids for the same asset be dealt with?
  • What are the timescales for making decisions?

Tip

  • We recommend careful and detailed assessment of issues like governance and on-going viability.  These are key factors in achieving a successful long-term transfer and should be explored in depth as part of the assessment process.

Post transfer

  • How will the transferring organisation continue to support and work with the community or voluntary organisation after the transfer?
  • How will the transferring organisation ensure that the community benefits identified at the transfer stage are realised?

Tips

  • Community asset transfer is part of building a long term mutually beneficial relationship. The involvement of the transferring organisation should not end with signing the agreement or handing over the keys.
  • Use the benefits identified at the assessment stage as the basis for developing proposals for on-going monitoring and support.