Community Land Trusts -What is going on behind the tomatoes?

Stephen Hill

National CLT Board MemberChurchill Fellow 2014-15

stephenhill@futureplanners.net

DTNI

Garvagh

24th March 2016

The First Enclosures against commoners1792 The first CLT – Enclosure for the Common GoodColton Parish Land Trust

Colton Enclosure Act 1792 proposed by the Bishop of Bangor

‘An Act for enclosing and leasing or letting certain Commons or Waste Grounds lying within

the Parish of Colton, in the County of Stafford, and applying the Profits thereof in Aid of the

Poor's Rates in the said Parish, and for making Exchanges of Lands within the said Parish’

The Latest Enclosures against commoners2015 The first CLT – Enclosure for the Common Good?????Colton Parish Land Trust

further the economic, social and environmental

interests of a local community by acquiring and

managing land and other assets to:

• provide benefit to the local community

• ensure that the assets are not sold or developed except to benefit the local community

Housing & Regeneration Act 2008, Cl. 79

40…

2010A CLT must…

ensure that:

• any profits from its activities will be used to benefit the local community

• individuals who live or work in the specified area have the opportunity to become members of the trust …others can also become members

• the members of a trust control it.

170…

2015A CLT must…

2007 Cornwall CLT Programme 155+ homes completed100+ in the pipeline

Unique partnerships…

enabling district councils, their communities, local landowners,

Carnegie UK Trust & a housing association

St Minver CLT, Rock, Cornwall

Use of private land

not normally available

for housing

by Rural Exceptions Sites

policy for affordable housing

to meet very local needs

St. Minver CLT

Average house price £650,000

Market value £360,000

Cost with land £120,000

Shared Equity 33%

Affordability ‘in perpetuity’

“It’s more important that

I have a home in the place

that I grew up in,

where my family are,

where I work,

than make a lot of money

out of my house”Charlie

Community Leadership and Enabling Partners

• Political lobbying…show, not tell

• CLT Fund ‘See it and Believe It’

• Cornwall Council £4m

Revolving Fund

• Programme momentum

• Capital and revenue cost

recovery

Partnerships around LandAlignment of interests…

CLT

Council

Landowner

Community

Enabling Developer

…doubling the rate of supply in village locations

Champlain Housing Trust - Burlington, Vermont Embedded in Vermont’s political culture since 1770s

“CLTs are the BEST WAY to…”• Spend State Dollars responsibly

• Make homes genuinely affordable for ever

• Protect citizens from predatory lenders

• Prevent lives being ruined by debt

• Rescue failing neighbourhoods

• Build stable new communities

• Win local support for more housing

Senator Bernie

SandersED Brenda Torpy

3500 +

Homes

Vermont Housing & Conservation BoardTwin Goals – Affordable Housing and Sustainable Agriculture

“In the best interests of all of its citizens and in order to improve the quality of life for Vermonters and to maintain for the benefit of future generations the essential characteristics of the Vermont countryside, and to support farm, forest, and related enterprises, Vermont should encourage and assist in creating affordable housing and in preserving the State's agricultural land, forestland, historic properties, important natural areas and recreational lands, and in keeping conserved agricultural land in production and affordable for future generations of farmers.” (State Ordinance)

http://www.vhcb.org

Eco-system of small businesses, farms, housing projects

“We won’t be destroyed by Wall St again. They can do this mad stuff if they have to, but they won’t destroy our lives again.”

Lyvennet Community Trust, Cumbria

Community buy-out

of village pub

due to close

for conversion to flats.

CLT housing group

took lead on

Community Share Issue

to raise £360,000

Wilton CLT, Wiltshire

Community

ownership

of former

Ministry of Defence

land and buildings

for mixed tenure

redevelopment

Glendale Gateway Trust

Community

response

to closure of

Council owned

nursing home.

Reuse of a range of

public and private

unused buildings

High Bickington Community Property Trust, Devon

County Council and community

response to aftermath of

the ‘Foot & Mouth’ outbreak.

Rebuilding the community

and rural economy

using County Council

farm land and buildings.

• Land

• Homes

• Pub

• Shop

• Car park

• Public toilets

• Post office

• Allotments

• Orchard

• Office space

• Workshops

• Solar power

• Hydro power

Range of housing & non-housing projects

Options for Delivering

Affordable Rental Homes through a CLT

1. Stand-Alone CLT (earlier)

2. CLT/Housing Association or Developer Partnership (later)

Dorset - Buckland

Newton CLT

Devon – High

Bickington CPT

Pre-financial crash…Stand-alone CLTs

– inspirational and challenging!

OptionsStand-alone

CLT

Partnership

CLT/+AN

Other

Community

ownership

Yes

Freeholder and

direct landlord

Yes

Freeholder and

reversionary

interest

Financial riskCommunity

Land Trust

Housing

Association or

Developer

0%

25%

50%

75%

100%

Old GrantRegime

New GrantRegime

Zero GrantOptions

Market sales

Grant

Loan fromrented homes

Funding affordable homes for rent

in a riskier world ...

Post-financial Crash

2009: The first Partnerships

Dorset 2009 – Worth Matravers CLT and Synergy Housing

Dorset 2010 – Symene CLT and Hastoe Housing

COMMUNITY

LAND TRUST

Housing

Assn.

LAND

2. CLT grants

long lease to

HA

4. HA finances, builds

and manages homes

1. CLT selects

site & acquires

freehold

5. HA pays

ground rent

to CLT

7. CLT can

break lease

with HA

6. CLT is party to

S. 106 agreement

3. CLT leads on design,

numbers of homes,

allocation criteria etc

Somerset – Norton CLT and Yarlington Housing

Blackdown Hills – Upper Culm CLT and Hastoe Housing

Homebaked CLT, Anfield, Liverpool“We want to take back control of our neighbourhood”

Reuse of homes and land

bought by council

for demolition and

redevelopment

• Purchase of Council school land

• 34 homes

• 1-bed flats to 4-bed houses

• Social rent

• Affordable rent

• Shared equity

• Shared ownership

• Training opportunities through

the construction of shared-flats

for young people

RUSS

Rents @ 30% Discount for ‘Sweat Equity’:• 1 bed 2 person flat £92

• 2 bed 4 person house £118

• 4 bed 6 person house £134

• 6 bed 6 person shared house £70

Shared ownership• 2 bed 4 person house MV £320,000 @ 30-40% shares

• 4 bed 6 person house MV £630,000 @ 15-50% shares

• Rent @ 2% of equity balance eg £52-80 per week

Homes for Sale @ 20% Discount:• 1 bed 2 person flat £198,000

• 2 bed 3 person flat £288,000

RUSS

East London CLT, St Clement’sCommunity Organising made it happen

Listening

Campaigns

and holding

politicians to

account:

Communities

should be able to

take more

responsibility

for their own

areas.

Housing must be really

affordable…based on what

local people actually earn.

Reclaiming a ‘public asset’ for the communitySt. Clement’s Hospital, East London CLT

Urban CLT Programme

• Support 20 demonstration urban CLTs

• Round 2 bids closed November 2nd

• Advocate for urban CLTs

• Address the barriers to urban CLTs

• Design replicable delivery models

• Demonstrate versatility and persistence

• Political narrative

• Communities under threat

• Councils looking for new partners

1. What does this area need? What can local people really afford?

2. What is or isn’t the market or policy offering?

3. What part of the need are you trying to meet?

4. Who do you think will come…and why?

5. What do you need and want out of the tenure option(s) you choose?

6. What will potential residents need and want out of their tenure choice?

7. Can you achieve all your objectives?

8. Are some more important than others?

Tenure & Affordability Options: The ‘Why US?’ question

Our campaign

Policy and Market

are not

delivering…

Make CLTs a

key part of the

solution to the

housing crisis!

A strong case

A strong case

A strong case

Public Policy Context - Now

• Custom Build Initiative 2009…

• National Planning Policy Framework 2011emphasis on people who want to build their own homes

• Localism Act 2011 incl. Neighbourhood Planning and Community Right-to-Build

• Self Build and Custom Build Act 2015 open a register for ‘people who want’ etc

• Housing and Planning Bill 2016land supply through councils…extended to group schemes…double supply of custom build by 2020LILAC Cohousing CLT Project in Leeds

What has this meant for community projects?

£25m Affordable Homes Programme Community-led

programme in 2013-2015

£14m Community-led Project Support Fund to 2015

£3m Community Buildings and Housing Fund to 2018

£150m Custom Build Serviced Plots Loan Fund to 2020

for LAs and partners to get projects ‘shovel ready’ for

5+ plot sites

1. Diagnostic and project shaping support

2. Feasibility and technical support to get to

planning

3. Access to revolving fund development

finance at sensible cost

4. Conventional and Social Impact Investment

long term loans…guaranteed by

Government to reduce risk

5. Increased lending on mortgage products that

incorporate a ‘perpetuity’ arrangement;

6. Exemption from unhelpful ‘national’ policies

eg the Right to Buy

WOW! £60m…Practical things for getting started

What’s special about CLTs?•Witness to political and market failure

•Genuine and permanent affordability

• Long term vision and responsibility

• Social and technical innovation

•Unlocking creativity

•Humanising social and physical change

•Civic partnerships: citizens and state achieving more than they could on their own

A welcome route out of marketand policy failure?

What are CLTs really about?

“We hide behind the

tomatoes, dear, but what we

are really about is…

Read more ‘ProPerty, Justice and reason’ http://stephenhillfutureplanning.blogspot.co.uk

Facebook:

Community Land Trusts – National CLT Network

www.communitylandtrusts.org.uk

@community_land

Catherine Harrington, Director

Catherine@communitylandtrusts.org.uk

020 3764 1842

Find out more…and join us!

NPPF Achieving sustainable development (50) and Plan Making - Housing (159)

• Prepare a Strategic Housing Market Assessment to assess their full housing needs, to identify the scale and mix of housing and the range of tenures that the local population is likely to need over the plan period.

• Plan for a mix of housing, based on current and future demographic trends, market trends, and the needs of different groups in the community:

# families with children…older people…people with disabilities…service families and

# people wishing to build their own homes

• Identify the size, type, tenure and range of housing that is required in particular locations, reflecting local demand

The Custom Build Register

• Trialled in Right to Build Vanguards

• Register wef April 1st 2016

• Open to individuals and groups

• Councils may be obliged to find and/or allocate land to meet the demand on the Register

• Nearly 30,000 people already registered

Challenges for Policy Makers

• Lack of capital and structure in ‘self-build’ and SME sector

• Gap in funding market for pooling and converting equity into capital and revenue

• Access to land and price of land

• Power of established corporate interests

• Political reserve about the personalisation of action for basic needs…shelter, food and energy

Springhill

Stroud

Alternative Narrative to Communities & HousingThe people-powered or ‘sharing’ economy

Interplay between disruptive practice and new technologies in the rebuilding of post-crash economies, based on reciprocal relationships, especially in the provision of relational goods:

• Local food systems

• Co-working hubs

• Co-operative businesses

• Local banking institutions

• Peer-to-peer platforms, and

• Collaborative forms of housing – Cohousing, CLTs, Coops, Self-Help Housing, and group custom build

Possible Sources of FundingRevenue grant for legal/start up costs CLT Start Up Fund,

Radical Roots and some councils may offer similar support

Upto £5,000

Revenue grant for pre-planning

(DCLG grant administered by Locality)

Community Buildings Pre-Feasibility

Grant:

£1,000 - £10,000

Community Buildings Project Support

Grant: £5,000 - £40,000

Capital grant for affordable housing £15,000 - £45,000/home

Capital grant for affordable housing

New Homes Bonus/2nd Homes Council Tax

Tops up Government grant

Council or donor land Market value for affordable housing

Loans and Equity

DCLG Custom Build and Small Builders Development Funds,

Private and Social Finance, and CLT/CAF Venturesome

Development period and investment

loans, (HA) mortgage or bond, social

impact bond, developer cross-subsidy

Community Equity Financing Options

• Big Society Capital: an independent financial institution with a social mission, set up to help grow the social investment market

• Radical Roots: a mutual aid organisation, offering loans through Rootstock mutual lending club.

• Community Share Issues: raising risk finance from the community which an enterprise intends to benefit, providing goods and services to meet local needs

• Crowdsourcing can access similar investors, mostly directly on line

Sources of Equity and Social Impact Finance

• Big Issue Invest can invest from £50,000 to £1,000,000 in equity.

• Bridges Ventures: Venture Funds invest between £500,000 and £10m in ambitious growth business in four investment themes: Underserved Areas, Environment, Education & Skills and Health & Well-being.

• CAF Venturesome can make equity investments when appropriate for charitable organisations.

• Key Fund can provide bespoke equity investments from £5,000 to £20,000 to support the development and growth of enterprise activities.

First, find a site

… or find a group… or find the money ?

Copper Lane Cohousing, Stoke Newington, London

Route map to developing a community housing project

Becoming the ‘intelligent’ client

DIY and appointing the right advisers at

the right time:

• Group constitution

• Group Development and Decision making

• Project management

• Cost and value plan

• Developing a design brief

• Working with planners and ‘neighbours’

• Finding enabling development partners

• Procurement options, including risk sharing

OWCH

Finding land

• Agent or self search

• Self purchase

• Public land…Market Value…or Less than best consideration?

• Private or institutional land

• Planning designations and community alliances

• Partnership purchase

• Housing associations, land developers, and house builders

Capitalising the group

• Self funded – members’ equity

and/or bank borrowing

• Government Custom Build and other Revolving Funds

• Community Right to Build Seedcorn Fund

• Grant for affordable housing

• Co-financing through ‘off-plan’ sales, partnership and turnkey contracts

OWCH Barnet

Now on site

All development is

95% PERSEVERANCE!

Main barriers: Hard work to get and co-ordinate land, project finance, mortgages, professionals and construction, culture…

Citizen inspired housing ‘Housing’ & ‘Community’ policy as we have not known it

Stephen Hill

Churchill Fellow