information note - Hackney Council

LONDON BOROUGH OF HACKNEY


COMMUNITY RIGHT TO BID


ASSETS OF COMMUNITY VALUE
–

INFORMATION NOTE



INTRODUCTION


This information note
provides
local community and voluntary sector

interest groups,
property owners
and members of the public
with
details of t
he Community Right to
Bid for Assets of Community Value provisions introduced under the Localism Act
2011.


The note also outlines how the London Borough of Hackney will manage the scheme
and
, through the web site,

directs community and voluntary interest
groups and
property owners to a nomination form and guidance notes.



INTENTION OF THE LEGISLATION


T
he
intention of the
leg
islation is to provide local voluntary and community
organisations or bodies or individuals with an opportunity to buy identified co
mmunity
assets when they are to be sold.

These assets can be nominated by such groups
onto a local List managed by the Council.


Assets are defined
land, buildings and

structures. Certain assets, such as residential
properties and land used for transport i
nfrastructure and related purposes b
y
specified statutory bodies are

exempt.

The assets might be owned by either t
he
Council, other public body (
eg the Health Service) or a private individual or company



In summary, the legislation requires

a moratorium o
n

an
owner’s sale of

a

Listed
community asset
, so
that it cannot be sold

until
local groups have been given an
opportunity to express an interest, prepare a business and raise funding to purchase
the asset. If an expression of interest is not received by t
he Council within 6 weeks or
a subsequent purchase is not forthcoming or agreed then, after 6 months, the owner
is free to sell the asset.


Nominating bodies and owners should acquaint themselves with:




Sections 87
-
108 Localism Act 2011



The Assets of Commu
nity Value (England) Regulations 2012



COUNCIL MANAGEMENT PROCEDURES


The Council will manage n
omination and listing
s (see Chart 1)

in the following
manner
:


Land
and buildings can only be

included on the L
ist in response to

a
nomination by a
community
g
roup or
oth
er prescribed local persons or bodies.
These

can include
d
esignated neighbourhood forum, a parish council, an unincorporated not for profit
body including at least 21 individuals, an incorporated not for profit company, a
charity, community inte
rest company or industrial and provident socie
ty which have a
primary purpose concerned

with the area.


The Council’s Nomination Form an
d Guidance Notes are available through the web
-
site. Address……………………………………


The Council is

required
to
determine, in acc
ordance with the Regulations, whether a
nominated asset has Community Value.
In deciding whether a nominated asset
should be listed, the Council will need to exercise its general duty to take all relevant
matters into conside
ration
.


I
f a nomin
ation is rec
eived, the Council

must

notify all those with an interest in the
asset, ensure that the asset is in its area and
consider
whether it is of Community
Value. Community Value could include buildings or land where the actual use or use
sometime in the future
c
ould

realistically

further

the social wellbeing or social
inter
ests of the local community.


The Council has some discretion as to the determination of what is relevant in its
area.
Each case will be decided on its own particular merits

taking into account

the
:




Case made by the nominating body



Representations made by the owner



Past and proposed f
unction and use of the asset



Suitability and sufficiency of l
ocal alternative
s



Planning and regeneration proposals affecting the asset


The decision will be made b
y a
Community Right to Bid
Panel of key officers

from the
Council’s Planning, Property, Legal, Strategic Investment and P
artnerships Services
and chaired by the Corporate Director of Finance and Resources.


If the nomination is accepted then the asset is e
ntered
and advertised on the List and

the decision communicated to the nominating body and
owner.

At the same time a
charge will be placed on the Local Land Charges register to legally restrain the
disposal of the asset within prescribed moratorium period
s.


Notice of the Council’s

decision must be given

within 8 weeks
and there will be a
right for owners to challenge

by way of internal Council

review and then by way

of
appeal to the

First
-
Tier Tribunal. Owners are those with a freehold interest or
leaseho
ld interest of at least 25 years.


If a nom
ination is not successful the Council

must provide written reasons for this.
There are no statutory provisions for

challenging the Council’s decision
.


As well as a list of successful nominations the

Council

will
have to maintain a list of
unsuccessful

community nominations (with reasons). An

unsuccessful community
nomination must

remain on th
e list for five years.


The owner(s) may object to the proposed listing and the Council will take the grounds
of the objecti
on into account in making a decision. If the owner(s) disagrees with the
decision then they can, within 6 weeks of the decision, request a Review which will
be heard by an independent Council manager. If the owner(s) are still dissatisfied
with the decisio
n then they can lodge a formal appeal to the First Tier Tribunal

(contact details set out below).




The Council will manage disposals

(see Chart 2)

in the following manner
:


It an

owner
(s)

wants to

sell a Listed Asset

they must
immediately
inform the Coun
cil.


The Council will then notify

the

relevant voluntary and communi
ty organisation

of the
proposed disposal

and
generally
advertise the proposed disposal on the web site. A
period of 6 weeks (initial moratorium)
will be allowed for the submission to the

Council of an

Intention to B
id for the asset.


The

start

and finish dates

of the 6 week initial moratorium period will be the date
s set
out in

the notification letter
. These dates will also

be

published

on the web site.

The
notification letter will be desp
atched by recorded delivery

to
the
Nominating
Group
Representative
’s

Correspondence Address

described on the Nomi
nation Form and
e
-
mail address
.


An Intention to Bid

can be registered on the web
-
site.
Alternati
vely, a recorded
delivery Intention to Bid let
ter

may be sent

to the Council
address below. A late
notification of an Intention to Bid
will not be accepted

by the Council
.

If
a
N
otification
is
not
received

by 5.00pm on the
date that the moratorium ends, or if this is a
weekend or Bank Holiday, by 12 n
oon on
first working
day
after
,

then the

owner can
immediately
proceed to disposal.


The Intention to Bid should include the addr
ess of the asset, proposed use of the
asset, name of group, constitutional status, contact details, date of submission and
sign
ature of the chair or leader of the group.


The Council will immediately inform

the owner of the asset and provide necessary
contact details.


Certain disposals are exempt. These may include transfers between family members,
trustees, business transfers of

going concerns, transfers resulting from other
legislative powers, court orders or pre
-
existing arrangements, compulsory purchase
orders or transfers between publicly owned bodies
for on
-
going service delivery.

The
owner will need to inform the Council if

it is believed that the disposal should be
exempted.


If a valid

Intention to B
id is received then a period of up to 6 months (full moratorium)
is allowed for the bodies to conclude purchase. If a sale to the body is not agreed in
that 6 month period then

the owner is free to sell within the following 12 months. After
that the asset will remain on the List for 5 years, under the same terms of the original
nomination
.

Again, key dates will be published on the web
-
site.


It will be the responsibility of the
purchasing group or organisation to arrange funding,
come to an agreement with the owner and pay all legal and survey costs. The
Council is unable to assist in

negotiations with private owners or accept responsibility
for
the cost of purchase.


In summary,

the Listing and consequential moratorium on the disposal of an asset is
to simply provide qualifying groups and bodies with the time to decide whether to bid,
develop a business plan and arrange of funding. The legislation does not:




make any assumption t
hat any listed property will ever be sold



give local community groups and organisations a first right of refusal



restrict who the owner should sell the asset to



determine the price at which the asset can be sold



place any express restrictions on the owner’
s use of the land



CONTACTS


John Burrow

Property Project Manager

john.burrow@hackney.gov.uk


or


Karon West
-
Clarke

Head of Corporate Property and Asset Management

karon.westclarke@hackney.gov.uk



London Borough of Hackney

Strategic Property Services

Keltan House

89
-
115 Mare Street

London E8 4RU


ASSETS OF COMMUNITY VALUE - CHART 1
NOMINATION AND LISTING PROCESS
No
Yes
REVIEW AND APPEAL PROCESS
No
Yes
No
Yes
No
Yes
Community Interest Group CIG)
identifies an Asset that it wishes
to nominate
CIG submit completed
nomination form to the Council
CIG status checked, asset
information verified and
nomination acknowledged - if
complete, 8 week period starts
Council considers Asset against
ACV definition, criteria and any
grounds of objection
Council liaises with CIG to clarify
and confirm details, if necessary
Community Interest Group
notified of decision, reasons
published and added to List as
unsuccessful
Council consults owner(s) and
occupiers of asset
Asset does not qualify as an
Asset of Community Value
Building or land added to List and
Local Land Charge is registered,
CIG and owner notified of
decision
Listing Stands and CIG and
owner notified of outcome
Owner requests Internal Review
(within 8 weeks of decision) to be
chaired by independent manager
Does Asset qualify
as an ACV?
Owner objects to nominaton
Review upholds
original Listing
decision?
Asset is removed from List, Local
Land Charge is released and
CIG notified
Is Appeal
Successful?
Owner lodges a
formal appeal within
28 day for Tribunal
Hearing?
ASSETS OF COMMUNITY VALUE - CHART 2
ASSET DISPOSAL PROCESS
6 week
moratorium
No
6 month
Yes
moratorium
No
Yes
Owner decides to sell a Listed
Asset and informs the Council
The Council informs the
nominating Community Interest
Group (CIG) and publicises on
web site
Council registers the intention to
bid and date received
No interest so owner can sell
after 6 week interim window to
any purchaser
The CIG express
an intention to
purchase within in 6
weeks?
Interested CIG(s) prepare
business plan, raise funding and
negotiate purchase with Owner
Has purchase been
completed after 6
month?
No interest after 6 months from
orignal notification so owner can
sell to any purchaser
Asset in Community Interest
Group ownership