East Suffolk Council
Community Land Trusts
Why set up a Community Land Trust (CLT)?
A CLT can protect an asset, including housing, employment, education or green space for future generations in perpetuity because it is held in ‘trust’. CLT’s are legally defined enterprises run by local people who are accountable to their community.
Who can join a CLT?
A CLT is open to anyone who lives or works in the community in which the CLT is being set up. Each member would pay £1 and have a say in how the CLT and its assets are delivered. From this membership, a Board of Trustees is set up through a democratic vote, one vote per member. Board members should be over 18 years old.
Do you need any specific qualifications to join the CLT board?
No, but a board would benefit from a variety of skilled local people such as district councilors, parish councilors, community members, land owners and professionals like town planners, accountants or solicitors.
Further support is available by contacting our Community Led Housing team.
What can a CLT deliver?
Schemes across the UK, Europe and the USA have delivered new homes in keeping with local incomes, business enterprises, space for work, education and food production.
How do we set up a CLT?
CLTs must be legally incorporated to hold the asset in trust. The form it takes depends on the objectives the group wishes the CLT to deliver. This can be done by registering the CLT as either:
- A community Benefit Society (also known as an Industrial and Provident Society for the Benefit of the Community) [Must register with the Financial Conduct Authority]
- A community Interest Company Ltd. by Guarantee (CIC) [Must register with The Company Interest Company Regulator]
- A Limited company by guarantee which is also a registered Charity [Must be registered with Companies House and the Charity Commission]
- A Limited company by guarantee (but only if it has custodian member of the constitution to ensure the asset lock cannot be voted out)
Further details can be found on the National Community Land Trust Network website but all emerging CLTs should seek independent legal advice.
How can development be financed?
Community Led Housing Fund
The council was awarded £2.2m from this fund in December 2016. Not all the funding has been allocated. We would be pleased to support eligible emerging community led housing groups. Please contact our Community Led Housing team for more details.
The National Community Land Trust Network website offer three different types of finance that can help you achieve your objectives:
- CLT Start up Fund
- CLT Social Investment Fund
- Capital development funding
Start-up funding
This fund provides up to 3 days worth of professional support and advice to scope out the project and access its feasibility.
CLT Social Investment Fund
Provides loans of up to £50,000 to get schemes to planning permission.
CLT Social Investment Fund (getting to completion stage)
This fund provides loans of up to £350,000 for development. This fund is designed to help you attract further funding from high street lenders. The loan is repayable once homes are sold or the loan is re-financed for rented homes.
Other forms of funding
- The Affordable Homes Rental Fund for CLT - This fund provides development capital and medium term finance to fund affordable housing schemes for affordable rent.
- The Community Investment Fund - This fund provides £250 - £2m for locally led organisations
- Private finance
- Charity Bank
- Ecology Building Society
- Triodos Bank
- Unity Trust Bank
- Big Issue Invest
- CAF Venturesome
- Government grant and loan programmes
- Shared Ownership and affordable homes programme 2016-21
- Funding available for CLTs that are registered with Homes England
- The Home Building Fund - Available for private developers and CLTs
- The Custom Build Serviced Plots Loan Fund - Provides up to £3m for ‘shovel ready’ self-build plots.
Are there any completed schemes we can visit?
Yes, there are several schemes in the East of England and throughout England. More details area available from the National Community Land Trust Network and Palace Green Homes.