London Empty Property Officers Forum Social Enterprises Legal Structures 2 March 2011 Sarah Lines Legal Director
In substance: social not commercial enterprise not for profit asset lock Social Enterprises Legal Structures
In legal form: community interest company charity company limited by guarantee company limited by shares Social Enterprises Legal Structures
Legal models: Local authority sponsored social enterprise Collaborative structures Enabling structures Social Enterprises Legal Structures
Social Enterprise Co ABC Council Joint owner for equity interests for works, letting and sale with uplift in value Investment model dependant on primary funding and recycling Lease arrangement for “meanwhile use” arrangement Funding Model 1: Single Local Authority Owned or Sponsored Social Enterprise
Social Enterprises Legal Structures Social Enterprise Co Equal Shares Consortium Agreement for governance and funding of Joint owner for equity interests for works, letting and sale with uplift in value Investment model dependant on primary funding and recycling Lease arrangement for “meanwhile use” arrangement Funding Model 2: Consortium of Local Authorities Owned or Sponsored Social Enterprise ABC Council DEF Council ABC Council
Model 3: Enabling Structure for Localism Social Enterprises Legal Structures Social Enterprise Co CLT Local Authority
Social Enterprises Legal Structures Model 4: Joint Venture SPV – for Profit Project Co Joint Venture SPV ABC Council (DEF Council) (HCA) Private entity and/or Housing Association Expertise/knowle dge of empty properties/empty properties acquired Finance
Funding Streams funding from any existing local authority budgets for private sector empty houses rental income streams from properties being managed capital contributions from empty property owners £100 m from HCA expected 2012 – 13 new homes bonus equity/debt loans combining private empty homes with new affordable homes being built/renovated Social Enterprises Legal Structures
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