Meeting to discuss progress on the provision of affordable housing in Great Staughton using the CLT framework
February 15 2017
Present: Debbie Wildridge (East Cambs CLT), Sir H Duberly, P Yates, F Backhouse, A Withers
Our proposal to build affordable housing on charity-owned land had stalled because of the government’s right to buy (RTB) proposals, which originally covered CLT projects.
The meeting was to obtain an update on the situation and hopefully move forward. DW was able to assure us that CLTs would be exempt.
The primary objective of the scheme is to ensure an income for the Parish Charities in perpetuity.
Our proposal is as follows:
A Community Beneficial Society (CBS) would be set up, otherwise known as the Great Staughton Community Land Trust.
The CBS would be run by trustees appointed by village residents, who would hold shares in the CBS. The CBS would secure an income from ground rent on the houses built.
Luminus would be responsible for the building and management of the scheme. The land would be made available free of charge by the Parish Charities. It is proposed that 8 affordable and two “market” houses would be built.(However, DW pointed out that funding for such schemes via housing associations like Luminus has been cut and this may mean that more “market” houses need to be built to make the scheme viable. This may cause problems.)
The land would be offered on a long lease – 125 years is suggested, and CBS / Gt Staughton CLT would hold the head lease, with Luminus the sub-lessee, and the houses would be owned by the CLT.
At the same time as negotiations with Luminus are entered into, confirmation would be obtained from HDC planning that all is in order.
Tenants would ultimately be part of the organisational structure.
The Parish Charities and the Parish Council would maintain oversight of all aspects of the scheme as the negotiations unfold to ensure that the best interests of both were upheld.
It would be good to complete by April 19 (APA). AW is away March 10 – 17.
Arrange meeting with Luminus and HDC planning. FB and AW to attend.
Unlock £4k funding from CLT body to recruit lawyers and reimburse DW. DW will complete the necessary forms.
Establish board of trustees for the CBS. This will be the present steering group. Ideal number would be 5.
In all the negotiations, the Parish Charities must receive an annual income at least equivalent to the present amount.
If you have any comments please let me have them by email, not in the document itself please.
Meeting No. 2 to establish a Great Staughton CLT
Held at the Village Hall, March 22 2017
Present: D Wildridge, CLT East (DW), Frank Mastreandrea, HDC Planning (FM), Andy Chapman, Luminus (AC)
Sir H Duberly (HD), Frank Backhouse (FB), Anthony Withers (AW)
Apologies: Tracey Stokes (TS), Philip Yates (PY), Bob Jewell (RJ)
At Meeting No. 1 a basic Agenda was compiled outlining the various stages to be followed to establish a CLT for Great Staughton.
Meeting No. 2 brought together the principal players to take the project forward with a detailed action plan.
DW led the discussions.
DW confirmed the Right to Buy proposals by the government (which had stalled progress on the CLT) now no longer apply to CLTs.
Luminus confirmed their interest and capability in taking part in the CLT project. Their current workload would allow them to proceed without delay, using their own funds.
HDC Planning anticipated no problem in resuscitating the scheme originally drawn up three years ago for the building of 8 affordable and 2 market houses on the site.
Mechanics of the scheme
The Parish Charities will cede the charity field on Perry Road to the newly formed Great Staughton CLT (to be known as a Community Benefit Society), under a 150 year lease.
Note that the Parish Charities will not incur any charges involved in setting up the lease agreement. It may be possible to adapt the CLT – Luminus lease.
The GS CLT will grant the land to Luminus under a 99 year lease. The GS CLT will own the houses. These arrangements need to be verified with solicitors.
Luminus will build and manage the houses. Apart from 2 market houses, the remainder will be for rent.
Income for the Parish Charities
A prime objective for the Parish Charities is to secure an income from the scheme at least equal to current levels (£250 approx. per year). This will be secured via a peppercorn ground rent on the properties, probably amounting to £1000, of which £500 would help defray necessary CLT expenses, and £500 would go to the Parish Charities. Both figures (which are notional at this stage) would increase by the annual rate of inflation, and after 20 years, a complete upward review and possible overhaul of the income would be undertaken.
Time scale action list
CLT East is submitting our application to the National CLT network by April 6 2017.
Action required: lawyers to set up CLT, to be activated as soon as practicable after April 2017.
Following the successful application to the National CLT a lease will be drawn up specifically adapted to Great Staughton. FM distributed an example of such an agreement between Council, Luminus and the CLT.
Action required: Lawyers to be appointed to draw up the lease.
HDC Planning – Luminus will give the green light to the existing scheme, updating where necessary.
Action required: By mid – end April a detailed plan of the scheme to be submitted.
Building projections (caution advised!)
- GS CLT received funding to set up CLT by April 2017.
- Lease agreements in place July – August 2017.
- HDC Planning gives the go-ahead by end 2017.
- Work starts New Year 2018, completed end 2018.
- The houses are being built for people with a local connection. Standard agreements are available specifying exact terms and conditions should no applicants for the affordable housing come forward from Great Staughton at any time, then the surrounding villages of ……, ….., and …… would be considered under the same allocations criteria’
2. Allocations Policy
This is a key issue and to ensure the “right people” are selected the Allocations Cttee would consist of CLT trustees, the Parish Charities, Luminus, and HDC Housing.
3. Houses are likely to be 2 bedroom, and available for rent only. This would be a market rent, defined as 80% of current market levels for the area.
The APA on April 19 will provide an opportunity to update residents on progress so far and to take account of any comments, expressions of interest and objections.
A constitution for the CLT needs to be established. This can be done simultaneously with the creation of the CLT.
Initially, the current steering group would act as trustees.
This will be open to all residents who express an interest and who may be asked to pay a nominal sum for a share. Only Great Staughton residents will be eligible. On moving from the village, their membership would lapse.