In more detail
Community Asset Transfer (CAT) is the process by which publicly owned land and buildings can be sold either freehold or leasehold to non-profit bodies at less than market value. CAT can lead to the rejuvenation of neglected public assets - run-down buildings and unloved patches of land.
The video above which suggests how community asset transfer can build community and improve neighbourhoods is also featured in this presentation on CAT made by Hannah Senior in 2013:
The enthusiasm of volunteers and residents to improve these assets when they are transferred to community owenrship has been matched in some cases by the ability of the new owners to attract capital investment from charitable sources including the National Lottery. The real ongoing benefit, however, is the value of the services which community groups are able to provide using previously tired assets.
Linda Hines of Witton Lodge Community Association interviewed on site, by Nick Booth of podnosh, at Perry Common Community Hall which was transferred through CAT to community ownership and has been transformed as a result.
Economic Justification
CAT is justified economically by comparing the additional economic value which the public body would get from the sale of the asset on the open market with the social value which the public body is able to enable by transferring it through CAT.
For example, a patch of disused health service land could be sold on the open market for £5000 to provide two car parking spaces. Alternatively, it could be transferred through CAT to a community group that would pay £500 for it. The group would turn it into a community garden which would produce benefits for local people and a local mental health project and might lead to greater neighbourliness, improved community safety and better recovery from mental ill-health. If the health service trust and its police and council partners value these benefits as being worth more than £4500, then they should choose use CAT to sell it to the community group.
The video below is about CAT in Penny Lane, Liverpool. It was produced by the Asset Transfer Unit (which was set up the Development Trusts Association, which was one of the bodies that came together to form Locality):
Transparency, Fairness and Social Valuation
CAT is potentially open to abuse where it involves transferring public assets to private (albeit non-profit and local) organisations without having a robust means for valuing social worth in place; without sufficient transparency; and without advertising opportunities to a wide range of potential bidders.
For example, a patch of land worth £5000 is sold to a community trust which is in fact a non-profit company owned by members of a local family for £500 on the basis that they will use it for 'community benefit'. What they actually do with it is to create car parking spaces for visitors to their office base from which they provide mental health services on contract with an NHS trust. The person who made the decision to sell them the land at 10% of the full market value is a friend of the family.
Support
The video below presents help and support available for CAT from My Community:
| Key Facts:
Community Asset Transfer (CAT) is the process by which underused publicly owned land and buildings may be sold to non-profit organisations at less than market value in return for providing increased social value in the form of services to the local community. CAT has successfully turned ailing assets around, but there is potential for abuse. A robust approach to calculating social value, transparency and advertising opportunities to acquire assets widely all help to prevent abuse. |
Page Links from here
Birmingham City Council's Community Asset Transfer website describes one council's approach to CAT
The My Community Rights site section on Community Asset Transfer presents an overview and a link to the toolkit on CAT
More videos about CAT are available on the Asset Transfer Unit YouTube channel
Housing Association Charitable Trust has produced a toolkit for housing providers on Asset Transfer
Have a look at Coin Street Community Builders on the South Bank in London which was one of the groups that helped to pioneer development trusts and CAT
In this toolkit see:
OR you can use the navigation menu above right to look at other parts of the toolkit.
BIRMINGHAM COMMUNITY PLANNING TOOLKIT DEFINITION SHEET This sheet may be reproduced in paper or electromic or any other form but please mention it was made by Chamberlain Forum Limited for Birmingham City Council supported by Department for Communities and Local Government.
| created: 2016-06-16 11:18:43 | by: admin | status: f published |