Community Finance Solutions

Jennifer Aird MSc BSC

Research Assistant

Community Finance Solutions

•CFS – a research and development unit at Salford University

• National CLT demonstration programme – 14 urban and rural pilots

•Website www.communitylandtrust.org.uk

1. CLT - Origins

• Ruskin and the garden city movement

1870s – 1920s• Indian land gift movement 1950s• Bob Swann and US model 1960s to now• Land reform in Scotland – first buy-outs 1990s

Land Fund set up 2001 legislation passed 2003• 1980s – Stonesfield CLT set up

2. CLT Legal Definition (July 2008)

A corporate body which aims to further the social, economic and environmental interests of a local community by acquiring and managing land and other assets.

In addition:• It must not sell or develop the assets except to benefit the

community.• It is controlled by its members, and membership must be open

to people who live and work in the community. • All profits made are reinvested in the community

3. CLTs – key characteristics

• Keep housing affordable in perpetuity• Democratically run and community-led• Aim to be self-financing• Aim to exist for a very long time• Exist to build sustainable communities, ie

can also look at business space, parks, allotments, farms, etc

4. CLT – keeping housing affordable

• Land is held in perpetuity• House prices kept affordable by a resale

formula or other conditions in lease• Aim is to benefit those with a local

connection who can’t afford a home• Promotes benefits of homeownership but

profit to individuals is capped• Self-financing

5. CLTs – examples of models

• US – classic model• Development trusts• Urban regeneration areas• Housing/almshouse trust• MoD/Forestry land• Conservation/Agriculture/Farm Land

Trusts

• Formed in 2006 as an outcome of the Market & Coastal Towns Initiative

• Company ltd by guarantee registered as a charity• Provides 9 shared equity homes (Sept 08)• Funders – Council (2nd home C Tax), Charity Bank,

Venturesome• Future plans – achieving a further 50 shared

equity/rental homes in next 2/3 years

6. Holsworthy Community Property

Trust – key facts

• Legal definition

• Policy environment

• Asset Transfer Unit

• CFS Facilitation Fund

• Precedents in Scotland and Wales

• Credit Crunch?

7. Opportunities…

• Work of CFS

• Facilitation Fund…?

• Regional support – Land for People, Foundation East, Cornwall CLT, Cumbria, Northumberland

• Housing Corporation

• Templates, case studies and tools at www.communitylandtrust.org.uk

8. Support available