7 - DirApp CAT Process Report - A&S 31.10.24
North Ayrshire Council · 31 October 2024
Back to Audit and Scrutiny Committee — 31 October 2024 and its agenda
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NORTH AYRSHIRE COUNCIL 31 October 2024 Audit and Scrutiny Committee Title: Community Asset Transfer Process Purpose: To provide the Committee with an update on the process for Community Asset Transfer applications. Recommendation: That the Committee: a) notes the legal requirements around Community Asset Transfer (CAT); b) notes the North Ayrshire process for supporting Community Asset Transfer requests in line with these requirements as outlined in Appendices 1 and 2; c) notes that CAT is one of a range of tools used to support communities in North Ayrshire; and d) notes the ongoing programme of work aligned to the CAT application and delivery process. 1. Executive Summary 1.1 Community Asset Transfers were introduced as part of the Community Empowerment (Scotland) Act 2015. The Act enshrined a right for community bodies to make requests to all local authorities, Scottish Ministers and a range of other public bodies for any land or buildings they feel they could make better use of. They can request ownership, lease or other rights as they wish. 1.2 Within North Ayrshire, we work closely with our community bodies to facilitate their ambitions, including the use of Community Asset Transfer (CAT) where appropriate. This is part of a range of supports we offer and an area of work where we continue to learn and develop our processes over time. This paper follows a request by the Audit & Scrutiny Committee, at its meeting of 21st March 2024, for an update on the CAT process. The report outlines the legal process we are required to follow, the supports we offer our community bodies around this, and the programme of work aligned to the application and delivery process. 2. Background 2.1 The Community Empowerment (Scotland) Act 2015 introduced a right for community bodies to make requests to all local authorities, Scottish Ministers and a range of other public bodies for any land or buildings they feel they could make better use of. They can request ownership, lease or other rights as they wish.
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2.2 At the core of a Community Asset Transfer is the right to take over a public asset and use it to better serve the local community. A key benefit to the community body is that the costs associated with the transfer or lease will usually be considerably less than market value. The CAT process allows the Council to consider the social value of the proposed use of the asset and offer a reduction on market value based on that, while still fulfilling their responsibility of maintaining Best Value on the use of public assets. 2.3 North Ayrshire Council had an Asset Transfer Policy in place prior to the enactment of the legislation and has been actively supporting our communities to develop their social capital and organisational capacity, including to undertake the management of community facilities, for many years. The Community Empowerment Act and its subsequent guidance provided an endorsement of our policy of individual and community capacity building, leading to more active, resilient and responsible communities where people provide a wide range of services to meet people’s expressed need. 2.4 To date, eight CATs have been fully completed. 11 are currently progressing through the full application stage and a further 12 Expressions of Interest are being supported. We are also aware of a further four groups considering making a formal approach. All of these groups are provided with appropriate support as detailed below. An example of a completed CAT is Irvine Tennis Club’s redevelopment of local tennis facilities. Securing this community asset transfer provided the required legal status for the Club to attract external funding, including £100,000 from SportScotland, which was invested to develop the courts and deliver a range of opportunities to the local community. 2.5 The use of Asset Transfer can have many benefits for communities, such as: • To help meet a group's aspirations in the provision of services to the local community • It can support a group's development and business planning • A group may be able to use an asset it in a more creative way that better meets community needs • Owning or long-term leasing an asset might allow a group to access funding for other projects • Providing the opportunity for an under-utilised Council asset which a group could invest in for their community • Ownership of an asset can develop a sense of pride in place and support sustainability within communities 2.6 Community Asset Transfer is one of many tools which the Council use to support community groups to fulfil their aspirations. The approach supports the Council Plan priority of Communities and Local Democracy by placing greater control in the hands of communities. Community Asset Transfers are requested by a community group, meaning that the control over the speed of the process, and whether or not it proceeds to completion, often sits with the group. The process involved in a CAT itself can form an important component of a group’s capacity building and helps them develop the skills needed to run a community asset. 2.7 The Act means that the Council must consider any requests made. Some assets are exempt, such as castles and graveyards. Assets that are needed for the delivery of critical Council services can be deemed unavailable, for example those where key services are delivered. Assets which are in the process of being marketed can also be deemed unavailable.
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2.8 Groups have to meet the legal definition of a community body as set out within the Act. This means they must meet minimum standards of membership and have a constitution which is compliant with the requirements of the Act before they can be considered for a formal CAT. 2.9 The delivery of the CAT process requires support across a range of Council services and partners. This includes Connected Communities, Estates, Legal, Finance, the Business Support Team, Streetscene, Property Management and Investment (PMI) and the Third Sector Interface (TACT). Other services will also be involved as required e.g. Housing where there is an implication for that service area. A Community Asset Transfer Working Group meets regularly to review and update progress against live CAT interest and to ensure that any learning is captured and the process adapted to reflect this. 2.10 Not all CAT interests will proceed in the same manner. As explained above, much of the control over the speed of the process is dependent on the group’s desire and capacity to proceed. In addition, some assets are more complicated than others, for example those which sit in the Common Good require an additional legal process to obtain Sherriff Court approval to alienate them in order for a CAT to be concluded. The process for assets which are part of the Council’s general fund assets is shown at Appendix 1, and the process for those which are Common Good is detailed in Appendix 2 for information. 2.11 Groups who are interested in a CAT are required to have robust business planning and plans for their future sustainability in place. There is a range of support which is available to them to help with this and to help navigate the process. Across the Connected Communities Team there is experience and advice on capacity building and what they might need and expect if they decide to undertake an application. Once an Expression of Interest is received, they will be allocated a Single Point of Contact in the service to route their queries and communication. This will be someone who has local knowledge of the area they are operating in and potentially experience of their sector, for example the Active Schools Team supporting interest in sporting facilities. 2.12 External and independent support is also available to groups and signposted as required. TACT have an officer funded through the Council who is a source of advice and expertise on CAT for all groups. DTAS (Development Trust Association Scotland) have a local advisor through their Community Ownership Support Service who can also offer independent advice as well as a range of resources which groups can use. The Scottish Government offer a range of guidance including a model constitution which groups are encouraged to adopt. Thematic and umbrella organisations, for example sports governing bodies or the Scottish Mens’ Shed Association, can be another source of support. Finally, it is recommended that all groups appoint their own legal representative to support them through the process and ensure they have impartial advice. 2.13 Learning from previous CAT applications has been adopted and the progress adapted to reflect this. The first piece of learning is to always explore options as a CAT may not always be the best for a group. Understanding what the group wants to achieve can at times lead to a more suitable and sustainable solution which does not require either party to undertake the extensive process associated with a formal CAT.
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2.14 Full applications can only be considered once the applicant is a "community body" and meets the definition as per the Scottish Government in relation to a CAT. This means, along with other considerations, that their constitution must meet certain requirements before the application can be progressed. Validation letters will only be issued once the application form and all supporting documents have been received in order to complete the assessment. This helps manage expectations regarding timescales for all parties and ensures that the groups are in a position to proceed without additional delays should the assessment be positive. 2.15 Where an asset is more complex, for example those held in trust by the Council or those belonging to the Housing Revenue Account or Common Good, we undertake greater internal due diligence before inviting a full application. This means that we know the asset can be released and can also advise the group of the additional process that will need to be undertaken to do so and what this might mean for any timescales. 2.16 At their meeting of 15 June 2021, the Cabinet approved the creation of a £1 million fund to support the CAT process. This CAT Start Up Fund has enabled a post to be created within The Ayrshire Community Trust (TACT), part of the North Ayrshire Third Sector Interface, to work with groups on their applications and plans. It has also enabled a series of improvement works on assets to ensure they are in a suitable condition for the group to be able to operate. In many cases groups have been able to secure match funding or in kind support to supplement the demand on this Fund. An example of this is the recent work carried out by Building Services Modern Apprentices using materials purchased through the Fund to support a group to meet Building Regulations and progress to full ownership of an asset. Other examples are a new boiler fitted prior to handover at Almswall Park as the existing boiler was at a the end of its useful life, and support to Ardrossan Community Development Trust to have a new power supply fitted when the asset was disconnected from the NAC supply on the prom. To date, 12 groups have been supported directly via the fund. In addition, the fund supports preparatory work such as checking Title Deeds of assets, securing external legal advice as and when required and the costs of the Sheriff Court process of alienation in the case of Common Good assets. 2.17 A programme of work is being delivered jointly by Connected Communities and PMI staff to identify the best use of the remaining uncommitted funds. This includes condition survey work on assets where there is live CAT interest and the identification of priorities for the best use of the remainder of the fund. Future Programme of Work 2.18 Each group which makes a CAT application and each asset itself are different and the process will vary as a result of this. This means that the support and the journey for each application will differ and the services involved need to ensure they are agile in their approach while still meeting all of the legal and due diligence requirements involved. Nonethless, there is a programme of ongoing work in place to ensure that our CAT process continues to evolve and reflects our Council Plan priority of Communities & Local Democracy, in particular the aim of ‘supporting community asset transfer and community owned and operated/managed assets’ alongside our Community Wealth Building ambitions.
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2.19 Key areas of focus include: • Continuing the extensive programme of work associated with expenditure of the CAT Fund noted at paragraph 2.16 and 2.17 above • Evaluation of the impending outcome of the review of the Community Empowerment (Scotland) Act which the Scottish Government is currently undertaking and then implementing any necessary changes as a result of this • Continued monitoring of developments through national networks and corresponding updating of processes, particularly for assets held in trusts, Common Good and Housing Revenue Accounts to see where good practice can be shared • Building capacity and resilience across the Council by having a wider group of officers who are experienced in the CAT process, with associated time to upskill and embed the new approach. This is an important part of our workforce planning approach following changes in personnel as part of the Council’'s reduced resource envelope 3. Proposals 3.1 That the Committee: a) notes the legal requirements around Community Asset Transfer (CAT): b) notes the North Ayrshire process for supporting Community Asset Transfer requests in line with these requirements as outlined in Appendices 1 and 2; c) notes that CAT is one of a range of tools used to support communities in North Ayrshire; and d) notes the ongoing programme of work aligned to the CAT application and delivery process. 4. Implications/Socio-economic Duty Financial 4.1 CAT lease or sale can assist the Council in reducing ongoing costs for buildings and assets while maintaining their continued use for communities, however this is not the main driver of the process. Human Resources 4.2 None. Legal 4.3 CAT processes follow the requirements of the Community Empowerment (Scotland) Act 2015. Equality/Socio-economic 4.4 The use of CAT can give greater control and opportunities to communities facing inequalities.
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Climate Change and Carbon 4.5 Community bodies making CAT proposals are given advice on climate friendly resources and funding available to them by the Council’s Sustainability team to assist them in the future running of their asset should it proceed. Key Priorities 4.6 This work supports the Council Plan priority of Communities & Local Democracy, in particular the aim of ‘supporting community asset transfer and community owned and operated/managed assets’ Community Wealth Building 4.7 Community Asset Transfer has a direct impact upon the Community Wealth Building pillar of making the best use of assets by allowing local control and access to public sector assets which can then be utilised more effectively for the needs of the community. 5. Consultation 5.1 Each CAT requires consultation with the local community to ensure support for the proposal made by the community body. David W. Hammond Executive Director, Communities and Housing For further information please contact Rhonda Leith, Head of Service (Connected Communities), on 01294 324415. Background Papers Appendix 1 – CAT process map Appendix 2 – Common Good Assets CAT process map
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North Ayrshire Council - Community Asset Transfer Applicant Form Process Expression of Interest (EOI) Send EOI form to Applicant Completed form received from Applicant. NAC to acknowledge receipt of form Asset Suitability • Is the asset available? • Is the Applicant a compliant body? Send Asset Suitability form together with links to EOI form and plan to Estates. Form to be returned within 7 days. Asset not available for transfer Asset available for transfer Send Asset Suitability form together with links to EOI form, plan and constitution to Legal. Form to be returned within 7 days. Send Full Application to Applicant. A Single Point of Contact (SPOC) will be appointed from NAC to support Applicant. Do not support application Support application ESTATES ASSESSMENT Plan and Constitution must be returned with this form. Applicant to be notified giving reasons. Applicant to be notified giving reasons. Go to Legal LEGAL ASSESSMENT Appendix 1
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Full Application (FA) Completed form and supporting documents received from Applicant. Applicant Public Notice and Validation letter sent to Applicant. NAC – CAT -Website Public Notice and redacted FA published on website for representations. After 20 working days of notification, both documents are removed from website and any representations are copied to Applicant. Applicant has 20 working days to comment on any representations. CAT Officer’s Assessment FA assessments sent to SPOC/Estates/Legal/Finance/ Business Team (Officers’ have 8 weeks to complete). Collate Officer’s assessments and review at CAT Officer’s meeting. Approved Not Approved Public Notice displayed on asset by Applicant for 20 working Go to Cabinet SPOC to inform the Applicant and offer support to strengthen the application for resubmission where appropriate.
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Not Approved Approved Cabinet Decision notice sent to applicant. The Applicant can appeal within 20 working days. Decision notice sent to applicant. NAC Legal will develop a draft offer. The offer will be issued to the Applicant’s Solicitor. Negotiations take place between solicitors to reach a mutually agreeable decision. Contract concluded between NAC Solicitor and Applicant Solicitor. Final arrangements are made for handover. Transfer takes place.
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North Ayrshire Council - Community Asset Transfer Applicant Form Process Common Good Expression of Interest (EOI) Send EOI form to Applicant Completed form received from Applicant. NAC to acknowledge receipt of form Asset Suitability • Is the asset available? • Is the Applicant a compliant body? Send Asset Suitability form together with links to EOI form and plan to Estates. Form to be returned within 7 days. Asset not available for transfer Asset available for transfer Send Asset Suitability form together with links to EOI form, plan and constitution to Legal. Form to be returned within 7 days. Send Full Application to Applicant. A Single Point of Contact (SPOC) will be appointed from NAC to support Applicant. Do not support application Support application ESTATES ASSESSMENT Plan and Constitution must be returned with this form. Applicant to be notified giving reasons. Applicant to be notified giving reasons. Go to Legal LEGAL ASSESSMENT Appendix 2
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Full Application (FA) Completed form and supporting documents received from Applicant. Public Notice and Validation letter sent to Applicant. Public Notice displayed on asset in public buildings by NAC for 40 working days and local press. CAT Officer’s Assessment FA assessments sent to SPOC/Estates/Legal/Finance/ Business Team (Officers’ have 8 weeks to complete). Collate Officer’s assessments and review at CAT Officer’s meeting. Public Notice displayed on asset by Applicant for 40 working days. Public Notice Public Notice and plan sent to Community Council. Approved Not Approved Go to Cabinet SPOC to inform the Applicant and offer support to strengthen the application for resubmission where appropriate. Public Notice and redacted FA published on NAC website for representations. After 40 working days of notification, both documents are removed from website and any representations are copied to Applicant. Applicant has 20 working days to comment on any representations.
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Not Approved Approved Cabinet Decision notice sent to applicant. The Applicant can appeal within 20 working days. Legal to go to court for alienation. NAC Legal will develop a draft offer. The offer will be issued to the Applicant’s Solicitor. Negotiations take place between solicitors to reach a mutually agreeable decision. Contract concluded between NAC Solicitor and Applicant Solicitor. Final arrangements are made for handover. Transfer takes place. Decision notice sent to applicant.