Community Management of Assets Policy

1.1 Calderdale Council has a long track record of supporting the community management of assets, ranging from licenses for pitches, offering vacant land to be used for community growing, to supporting community asset transfers (CATs) where local voluntary, community, and social enterprise (VCSE) organisations have taken on a building at below the market rate via a long lease for 25 years or more. Most of these assets have been surplus to Council requirements and released for disposal, prompting a response from the community.

1.2 However, over more recent years, we have needed to adapt processes to enable us to consider proactive interest from communities and local VSCE organisations in assets which potentially could be brought back into use or used more fully if managed by the local community. Therefore, our refreshed Community Management of Assets Policy enables us to respond effectively to both reactive and proactive interest from communities i.e. be both demand and supply led.

1.3 Through the Council’s work with communities, we have seen the creation of some nationally celebrated community managed buildings running a range of services and supporting communities across the Borough, and we want to build on that record. But we are also realistic and have experience of the challenges when the transfer of an asset has not gone to plan. This has had an impact on communities and the Council.

1.4 Achievement of our Vision for Calderdale requires the Council to work differently with residents and communities, working with places and communities to unlock capacity and use our resources in proactive and creative ways to do this. However, we need to balance this with ensuring good value for money for all our residents and robust honest processes to ensure community run assets have sustainable, long-term futures. This refreshed Policy aims to get that balance right.

1.5 Through our approach we want to emphasise some key principles in how we want to work with partners and communities:

• Outcomes led: focusing on achieving the best possible outcomes for communities, ensuring that we regularly review the progress being made. We will do this by placing agreed, evidence-based outcomes at the heart of our decision making, priority setting and resource allocation to ensure positive change occurs because of our activity.
• Outward and engaging: engaging with people and organisations in our local places, towns and communities; ensuring there are opportunities to shape the decisions which will affect their lives and neighbourhoods and key assets that are important to them. We will proactively connect and work with the people we serve to shape what is delivered, how and where, based on what matters to them.
• Cooperative and collaborative: working with people, not doing to them. We will collaborate with people and communities to help them solve problems and leverage their strengths and opportunities. We will work with partners, sharing knowledge, skills, and resources to work more effectively together.

2.1 Calderdale has strong, vibrant communities with active citizens who are ready and able to get involved and make a difference to their local area. Working together allows us to build shared experience and a growing understanding of how best to make them work for the longer-term benefit of our communities.

2.2 The Council’s Community Management of Assets Policy is a discretionary process to help connect community groups with resources and opportunities which will help them become more effective in providing services and opportunities in their own neighbourhoods.

2.3 Community management of assets, including asset transfer, enables this approach by transferring the management, and responsibility of community assets such as council owned buildings and land to community organisations, putting local resources into the hands of the community to empower their work.

2.4 Community management of assets may take place through:

• a management agreement.
• a licence to occupy.
• a short lease or tenancy.
• a long lease.

2.5 This policy will complement the Council's Land and Property Asset Management Strategy. This aims to ensure that Calderdale Council’s land and property assets are fit for purpose, deliver value for money, and enable service delivery by:

• ensuring a coherent organisational approach to the management of the Council’s land and property assets;
• optimising the estate to meet current and future service requirements;
• taking a more holistic approach to managing the estate, through appropriate delivery arrangements; and
• enabling communities to design and deliver services that meet local need and aspirations.

3.1 The purpose of this policy is to provide a clear understanding of the Council’s approach to community management of assets, including community asset transfer, and demonstrate that it is an open, fair, transparent, consistent, and collaborative process. The policy provides a framework within which transfers are considered rather than a prescriptive rule book as it is recognised that every community and community asset transfer proposal is different.

3.2 This policy sets out that framework for elected members, council officers and local communities to provide a consistent approach to dealing with projects that can be supported and those that can’t.

Please note this policy does not in any way affect the process for dealing with Right to Bid (Assets of Community Value) nominations or other Localism Act provisions.

Community management of assets must be balanced against other Council priorities and ensure that the resource required is proportionate compared to the benefits received.

4.1 The Council defines a community asset as a building and/or land from which a community-based activity or service is delivered. Asset transfer means moving the long-term responsibility for the management and running of assets from the Council to a community organisation. By working together in this way community asset transfer has the potential to enable community groups to realise our shared vision for the future of Calderdale.

4.2 The aims and objectives of community management of assets therefore are to provide additional community benefits including:

• strengthen communities by contributing to the ongoing development of high impact, sustainable community organisations;
• ensure effective use of public assets;
• encourage and support more community management of public assets where this is deemed in the best interests of the local community and the Council; and
• improve and extend access to services within different localities, whether delivered by the Council, other public sector agencies or by the third sector.

5. Organisations who may apply for community management of assets or CATs

5.1 Local community-based organisations whose activities are wholly or primarily concerned within Calderdale, may apply for a community management of asset arrangement or community asset transfer, but such organisations must not be for profit. Only incorporated organisations with legal rights and responsibilities can complete a transfer; the Council will not complete a lease to individuals acting as trustees, although we do acknowledge that sometimes a request for a community asset transfer may be made by an organisation which proposes to become incorporated during the process.

5.2 There are various types of incorporated bodies which may complete a transfer. Each must be established as not for profit. These include but are not limited to:

• A Community Interest Company (CIC)
• A Charitable Incorporated Organisation (CIO)
• A Town/ Parish Council or Community Council
• A Co-operative

5.3 Organisations need to determine what is the best type of incorporation for them and this may vary from organisation to organisation. To assist, the Council will signpost resources that may provide help and advice.

5.4 A community organisation applying for a community asset transfer can be of any size, but must demonstrate that it:

• generates social, economic or environmental benefits which directly benefit the people of Calderdale;
• has stated community benefit objectives;
• has robust systems, governance and policies as evidenced by a management structure, constitution and appropriate assurance;
• has the capacity to manage the asset and has directors, committee members and/or employees who have the relevant experience and skills;
• has a viable & resourced financial plan; and
• operates through open and accountable co-operative processes with appropriate monitoring, evaluation, performance and financial management systems in place.

5.5 Where proposals are restricted to a particular group or have limited local community use, the Council will need to consider, on a case-by-case basis, the rationale for the transition to ensure it contributes towards achieving our shared vision for Calderdale.

5.6 A community organisation taking control of a property must be able to demonstrate and ensure ongoing compliance with equalities and other relevant legislation.

6.1 Land and property assets usually considered suitable for community asset transfer are ones the Council proposes to release for this purpose or where a community organisation enquires about a specific piece of land or property and a decision is taken to consider that request further based on the potential benefits to the local community.

6.2 The Council will consider transferring assets in the following circumstances:

1. Assets must be in the ownership of the Council.
2. Assets which are currently being used to deliver community-based services or are capable of being used to deliver community-based services where there is a demonstrable need for the asset and associated services to take place or continue.
3. Assets that the Council has identified as potentially surplus to requirements or where there is no clear rationale for the retention to continue due to factors including cost of maintenance, condition of the building or low levels of usage.
4. Assets which are under-utilised or dormant in current ownership but could be put to a more productive use.

6.3 The Council will not consider applications for community asset transfer in the following circumstances:

• Assets which accommodate fixed or core services which the Council intends to continue to operate (e.g. schools, social care establishments, sheltered accommodation, etc. - this is not an exhaustive list).
• Assets which have already been identified as having a potential significant capital receipt, or where a significant amount of income would be lost to the Council.
• Assets which are held in the investment portfolio.
• Assets which have been identified as being required for strategic, planning or redevelopment/regeneration reasons.
• Transfers to organisations to be used purely as a vehicle for commercial ventures. This does not include, for example, charitable organisations with trading arms, where profits are reinvested in communities.
• Transfers to individuals.
• Where transfers contravene procurement rules.
• Assets which may be used solely for religious or political purposes/activities.

7.1 There are four key principles underpinning the Community Management of Assets Policy (the “Policy”):

1. a proactive and positive approach;
2. a strategic response to asset management;
3. a clear, transparent, effective, and fair process; and
4. a sustainable outcome for long term community benefit.

7.2 A proactive and positive approach – Public assets owned by the Council and the community are a major strength and resource for the Borough. They can be an important tool in helping to meet the Council’s overall objectives and in meeting local need. The Council is committed to involving residents in the planning, shaping and delivery of services and is committed to ensuring that residents can take responsibility for developing their own solutions to the challenges faced.

7.3 The Council will raise awareness of the potential opportunity for community management of assets, through outreach, support and appropriate publicity, and link them into the ongoing programmes of support available.

7.4 Strategic approach to asset management – The Council takes a strategic approach to asset management through regular reviews of the asset register. This is especially important in times of financial constraint and changing service needs. Community management of assets will be considered as an option within the Council’s overall aim to improve assets and facilities management and the Council will consider proposals and agree contractual terms on a case-by-case basis.

7.5 A clear, transparent, effective, and fair process - All information relating to the community management of assets will be available for all to access with ease. This policy links to a set of clear procedures for managing applications to manage community assets. This includes a single point of contact, clear stages and indicative timescales.

7.6 A sustainable outcome for long term community benefit – The Council is committed to supporting sustainable and viable community management of assets including community asset transfers for long term community benefit. That is why this process is robust but fair to ensure that community applicants are clear about what they are proposing, understand and can manage the responsibilities that they are taking on, and have the skills, and financial and people resources to deliver community benefits for the long term.

7.7 Land and property owned by the Council has a value. This value may be measured in monetary terms or social output; quite often the value is a mixture of both measurements. Either way there are duties upon those handling public resources to work to high standards of probity. The standards community groups and the Council must observe include:

• Honesty
• Impartiality
• Openness
• Accountability
• Accuracy
• Fairness
• Integrity
• Transparency
• Objectivity
• Reliability
• Value for Money

7.8 The Council has a responsibility, as far as reasonably practicable, to ensure that a transfer of the asset achieves not only the objectives for the transfer but, in addition to this, that the community organisation has demonstrated that they have the skills and financial ability to become the new custodian of the facility.

7.9 New opportunities for community managements of assets and community asset transfers may be identified by the Council and advertised through the relevant page of the Council’s web site as a minimum.

7.10 The Council may also consider requests from local community organisations for transfer of existing community assets that it is not necessarily considering disposing of, but these will be considered purely on a discretionary basis.

7.11 Before entering into community management arrangements, the Council will need to determine that the financial standing of the organisation is satisfactory. This may include (but is not limited to) a review of: financial statements, owned assets and bank accounts, audited accounts, current and intended business activities and any other assets managed by the organisation, including linked organisations or its group. Should a period of 6 months elapse between financial review and completion of the community asset transfer, the financial standing of the organisation may need to be re-assessed prior to completion.

7.12 This policy will need to comply with the relevant legislation and the council’s policy that relates to the disposal of land or property and all disposals need to comply with procurement rules (assistance from public resources on a selective basis that can distort competition among organisations engaging in economic activity).

7.13 The Council will assess the market value of any property being considered for community management as part of the decision-making process. This is so that any proposal for a community management arrangement or transfer at ‘less than Best Consideration’ for the asset is transparent, with the value of the subsidy known alongside the service value or gain that becomes possible because of the transfer.

7.14 The Council will need to balance the potential gain against the potential loss of any revenue from the asset and potential loss of a capital receipt. Any subsidy will need to be balanced by commitments to ensure the intended outcomes continue to be delivered.

7.15 Community asset transfer aims to benefit local community organisations. Charities and social enterprises that are not established for wider local community benefit will not be able to benefit from community asset transfer.

7.16 It is important to note that the grant of a lease to land and property is the grant of the right to exclusive possession of land to the tenant for the duration of the lease. To mitigate the risks of leasing land, the Council needs to ensure that the lease provisions provide a balance between what the community organisation reasonably requires as tenant and what the Council requires to ensure that the land and property remains available for the benefit of the community as intended. This also means that it is essential that community groups fully understand and can resource their responsibilities under the lease of the property and can meet the meet the full range of contractual and statutory responsibilities that this entails, including repairs, maintenance and running costs.

8.1 Risk is an everyday part of charitable and community group activity and managing it effectively is essential if organisations are to achieve their key objectives and safeguard their funds and assets. 

It is important that both the Council and the community organisation are sufficiently equipped to understand, assess, and manage the risks that are inherent in the process; and that community organisations understand, and are prepared to manage, the risks associated with the ongoing management and operation of a community asset. Therefore, from the outset, it is critical that areas of risk are assessed and effective mechanisms are put in place to manage them.

9.1 The Council welcomes applications from all community groups and organisations that can proactively engage in the application process.

9.2 Guiding Principles:

I. Collaborative  and consultative

Consultation within the local community is essential as part of developing any community asset transfer proposal. Community organisations will need to demonstrate that consultation has taken place with local people and the results of such consultation must be included within the business plan. Consultation must be unrestricted and not limited to just those people who have a positive interest in the proposal. Elected ward members must be included as part of any such consultation exercise. The Council’s Neighbourhoods Teams should be engaged at an early stage in this process.

II. Process 

The process will be fair, robust, and proportionate with clear timescales for both parties for the submission and consideration of information at different stages. Information will be available from the outset to allow community groups to understand the level of responsibility being taken on.

Assets available for community asset transfer are advertised and interested parties are required to submit an expression of interest. Occasionally more than one eligible community group may be interested in taking over an asset. Where this is the case, organisations are encouraged to work together.

If the asset is already run by a community group, the Council may negotiate on a ‘one to one’ basis directly with that group and generally, in such circumstances, a transfer to a third party would not be considered.

External resources to help community groups are available and these will be signposted on the Council’s community asset transfer webpages to assist groups intending to make an application.

III. Single point of contact 

Single point of contact and process coordination will be undertaken by the Council’s Community Management of Assets Officer.

IV. Appropriate support 

Throughout the process groups can access support from organisations such as VSI Alliance or any other organisation offering advice to the voluntary community organisations or experienced locally in community asset transfer. 

The Council’s Public Services Directorate, via the Neighbourhoods Teams can offer honest, experienced, knowledgeable advice. Meetings will be held with groups to allow them the opportunity to discuss their proposal with relevant Council officers.

V. Clear, robust and proportionate assessments 

Members of Community Management of Assets Group (CMAG), comprising of officers from Asset & Facilities Management, Legal, Finance, Inclusive Economy and Voluntary Sector, will assess applications and, if satisfied, make a recommendation to Cabinet to accept a proposal. Groups will be notified in writing of the outcome of their application and informed of the next stage of the process if applicable.

VI. A spectrum of operating models 

Due to the distinct nature of each asset and proposal there will be different arrangements relating to finance, maintenance, lease / licence, and an appropriate Joint Working Agreement in place. Each case will be assessed on individual merit and an appropriate way forward agreed. This may include:

• a management agreement;
• a licence to occupy;
• a short lease or tenancy; or
• a long lease.

Care will need to be taken to ensure there is no breach of Subsidy Control rules especially when groups take on Council assets on a nil or reduced cost basis.

VII. Ongoing compliance and monitoring activity

Implementing a Joint Working Agreement will allow for the monitoring of compliance and community outcomes in line with the original business case and will enable groups requiring further support to access it. The responsibility on community organisations will include:

• keeping in regular contact with the Council.
• demonstrating good governance through open and accountable processes.
• maintaining adequate monitoring, compliance, evaluation, and financial management systems.
• making themselves available for monitoring visits.
• supplying information and evidence that outcomes have been delivered in line with the business plan.
• reporting any change in circumstances or activities to the Council, particularly that alters the business case, trustees, or impacts the sustainability of the organisation or asset.

Experience confirms that ongoing open communication between the community group and Council is essential for the long-term success of a community asset transfer.

This ensures that outcomes are in line with the business plan and that both parties benefit from an enabling approach that facilitates open dialogue, shared learning, improved sustainability, and networking opportunities.

VIII. Clear exit plan

It is important that an exit strategy is considered from the beginning of the application process and included in all business plans as sometimes things don’t go to plan. For example, this could cover circumstances including:

• Insolvency
• Unlawful activity
• If the anticipated benefits of transfer are not realised
• If the organisation wishes to develop and move into bigger premises#
• If the organisation can’t continue – (e.g. the organisation is no longer viable through loss of trustees)

9.3 To ensure consistency and for interested parties to understand how an application is progressing, the application will go through several stages of dialogue. These stages are outlined in the Community Management of Assets Process.

10.1 All applications will be assessed against five criteria, which will result in a red, amber or green (RAG) rating based on the professional knowledge and experience of the completing officer.

The five criteria are:

1. The community group – capacity, skills, and knowledge.
2. The project - Impact on wider community and Calderdale objectives.
3. The asset – building or land appropriateness and viability.
4. Risk – are risks understood and assessed and can they be managed?
5. Financial assessment – are plans financially viable, well researched, with appropriate governance in place?

The policy is supported by detailed process documents including templates and guidance for each stage of the process, signposting to support and good practice guides.

11.1 Community management of assets and CATs are not for everyone. The process can be time-consuming and requires significant effort to complete the transfer, which is just the beginning. 

Fundraising, if necessary, is challenging, and the asset will require ongoing time, effort, and funds for successful management and operation. Some organisations excel at fundraising and initial setup, while others are better at operations and delivery. Therefore, it is crucial for community groups to identify and secure the right blend of skills and experience for their project. 

Consulting with those who have previously gone through the process can be very beneficial before starting the journey.

For many, community management of assets and CATs can be a rewarding and fulfilling endeavour, bringing significant benefits to the community. It is essential to carefully balance the risks and rewards. The Council and its community partners are ready and willing to advise organisations considering this option.

Community Management of Assets Policy 2025-2030

• Policy owners: CAFM
• Last updated: October 2024
• Version: 1.0
• Policy status: This Policy is non contractual and may be updated or changed by the Council subject to consultation (if required).