Putting a Community Asset Transfer into practice
Priority for existing users
Priority for the opportunity to have a community asset transfer will be given to the asset's existing users and community organisations.
Competitive process
Where there are several interested parties for an asset, a competitive evaluation process will be used to decide the preferred organisation, if any.
Fair and equitable
There is no guarantee of exclusivity on a first-come, first-served basis when considering asset transfers, and other expressions of interest will be considered as appropriate.
Collaboration and sharing
Collaboration between community-based organisations and the sharing of assets to optimise social value and value for money across the borough will be encouraged.
Case-by-case management
Proposed asset transfers will be managed on a case-by-case basis within the guidance framework, and any decision to transfer an asset should not be regarded as setting a precedent.
Transparency and information sharing
The council will share information regarding the condition and operating costs of the asset with the interested party.
As-is transfer
It cannot be assumed that the council will make good any minor defects with the asset before the transfer.
Financial responsibility
The community organisation will be responsible for the running costs, including repairs, maintenance, and insurances.
No financial support
The council does not give financial support for community asset transfers.
Leasehold basis
Any transfer for community use should be on a leasehold basis. This protects the future of these assets and ensures the council can determine any future changes in use and occupation during the lifetime of the lease.
Lease duration
The length of the lease should be appropriate to the business case and where appropriate, long enough to attract funders and investments.
Protection of existing user groups
Where an element of wider community usage is retained after the transfer, there will be a requirement to protect existing user groups in terms of usage and charges for a limited period.
Management agreement
The social value and outcomes to be delivered, along with any other conditions or grants, will form part of a management agreement.
Compliance monitoring
Compliance with the management agreement will be monitored by the council as specified in the agreement.
Below-market value transfers
If a below-market value transfer is acceptable, the council will apply appropriate legal restrictions to the lease and management agreement to ensure the asset remains a community benefit and for the purposes agreed.
Consequences of non-compliance
Failure to comply with the management agreement can result in the management agreement ceasing and the lease will automatically terminate at the same time.
Third-Party Control
Where control is passed to a third-party organisation for any purpose other than community use and benefit, this relationship will be on a commercial basis.
Additional notes
When an agreed Asset Transfer is confirmed, new leaseholders will be required to maintain current user groups hire rates for the first 12 months. New user group hire rates can be determined by the new leaseholder.