Community Asset Transfer guidance

The council recognises that there are potential challenges and risks associated with Community Asset Transfers that need to be carefully considered before making a decision to proceed. Therefore, all proposals will be evaluated against a comprehensive set of criteria to ensure that the benefits outweigh the potential drawbacks.

Key Challenges and Risks

Loss of capital receipt

When a community organisation takes ownership of an asset, the council forfeits the potential capital gain from selling it on the open market. This could limit the council's ability to invest in other strategic initiatives.

Loss of wider strategic benefits

The council may have identified specific strategic plans for the asset, such as redevelopment or future use for community purposes. A Community Asset Transfer could hinder these plans and potentially deprive the community of these benefits.

Value for money concerns

The council needs to ensure that the potential benefits outweigh the costs, including any ongoing maintenance or operating expenses that will be transferred to the community organisation.

Compliance with state aid and procurement rules

Community Asset Transfer must adhere to the relevant state aid and procurement regulations to ensure fair and transparent processes.

Capacity of community organisations

The council needs to assess the capacity of the proposed community organisation to effectively manage and maintain the asset, ensuring that it delivers the desired social, economic, and environmental outcomes.

Risk of community organisation failure

There is a possibility that the community organisation may experience financial difficulties or cease to exist, potentially leading to the asset's deterioration or loss.

Ongoing council liabilities

The council may still be liable for certain obligations related to the asset, even after it has been transferred.

Fit for purpose assessment

The asset must be suitable for the intended use and should not impose an unreasonable burden on the community organisation or the council.

Fairness and equity

The council should strive to ensure that Community Asset Transfers are conducted fairly and equitably, avoiding any potential unfair advantage for one group over another.

Community cohesion and reputational impact

Community Asset Transfers should be carefully evaluated to minimise any potential negative impacts on community cohesion or the council's reputation in the community.