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 community not for profit based in and run by the community focus on permanence & long term benefit (alms house trusts still provide housing after hundreds of years) Common legal forms Charitable Company or Industrial & Provident Society Andy Lloyd Cumbria Rural Housing Trust 2

They can be Based in existing organisations, or formed as new ones Referred to as ‘land’, ‘property’ or ‘development’ trusts And are versatile affordable Housing to rent or part buy & retail, work & community spaces & farms Andy Lloyd Cumbria Rural Housing Trust 3

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 w hat people need – living space & low running costs Andy Lloyd Cumbria Rural Housing Trust 4

A potted history 1678 Brabins Trust, Lancs - Alms house trust now expanding as a CLT supported by Great Places HA 1903 Letchworth Garden City - Trust based housing, none sold off, permanent re-investment income for community 1923Isle of Lewis put into community ownership by Lord Leverhulme. Still going strong. 1950’s India ‘village trusteeship’ launched by Ghandi 1967 USA CLT farms established through work of Martin Luther king 1983UK Stonesfield Trust, Oxfordshire -11 rented homes. More planned 1994Threlkeld HA (a local trust) 14 part ownership homes v successful 1997Community Land Unit, Scotland - case studies at America – more than 220 CLTs, large urban to small rural. Federal assistance. CLT academy 2009England & Wales 1 st 100 CLT homes coming through Andy Lloyd Cumbria Rural Housing Trust 5

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 Andy Lloyd Cumbria Rural Housing Trust 6

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 Andy Lloyd Cumbria Rural Housing Trust 7

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 Advice & support 450 community trusts with £490m of assets Andy Lloyd Cumbria Rural Housing Trust 8

for Cumbria continued.. The national CLT Facilitation Fund Technical support grants Preliminary development costs grants and loans Capital development match funding Cumbria CLT workshops planned Revolving Loan Fund Low cost loans towards preliminary costs For LDNPA & SLDC areas so far Andy Lloyd Cumbria Rural Housing Trust 9

Scheme examples Witherslack, 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 Andy Lloyd Cumbria Rural Housing Trust 10 Shop before & after

Threlkeld, Cumbria Andy Lloyd Cumbria Rural Housing Trust 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, Northumberland Visiting 25 th 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 Andy Lloyd Cumbria Rural Housing Trust 12 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 Andy Lloyd Cumbria Rural Housing Trust 13

Buckland Newton, West Dorset Andy Lloyd Cumbria Rural Housing Trust 14 Arco2 architects – prefab’ local timber / straw bale insulation - £1,050m2 Magna Housing Association - advice and scrutiny Land £5,000 per plot – landowner as a trustee 8 shared ownership 2 rent £160,000 of subsidy from the HCA £16,000 grant per unit District 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 partner Great Places Housing Group Andy Lloyd Cumbria Rural Housing Trust 15

St Minver, N Cornwall Andy Lloyd Cumbria Rural Housing Trust 16 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 Andy Lloyd Cumbria Rural Housing Trust 17 Mr Chisholm with Mr and Mrs Gillies, whose home was funded with a rural home ownership grant

Funding affordable homes All in cost of developing an affordable home Around £120,000 Income from occupants from low rent £50,000 + (could be higher through part buying) Shortfall met through subsidy around £70,000 Andy Lloyd Cumbria Rural Housing Trust 18

Subsidy options Social Housing Grant – available in near future Fundraising / share issues Communities often have considerable resources & want to help Where planning allows – ‘cross subsidy’ Plot or house sold by the CLT could subsidise affordable units Andy Lloyd Cumbria Rural Housing Trust 19

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 Andy Lloyd Cumbria Rural Housing Trust 20

Site opportunities Existing charitably owned land Private gifts & legacies Renovation 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 Andy Lloyd Cumbria Rural Housing Trust 21

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 Andy Lloyd Cumbria Rural Housing Trust 22

Contact Andy Lloyd Community Land Trust Project Officer Cumbria Rural Housing Trust Redhills House, Redhills Penrith, Cumbria, CA11 0DT Tel Mobile: Andy Lloyd Cumbria Rural Housing Trust 23 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