The Community Right to Challenge and Community Right to Buy

1. The Community Right to Challenge and Community Right to Buy Bethan Evans Partner 31 March 2011

2. Localism Bill • Introduced into Parliament 13 December 2010 • 207 Clauses, 24 Schedules • Royal Assent – November 2011 • Implementation – from April 2012 • Consultations on Community Right to Challenge and Community Right to Buy launched 4 February 2011, close 4 May 2011 • “Community Right to Reclaim Land” announced February 2011

3. Community Right to Challenge • Right to take over local services and facilities • A “Relevant Body” may submit an Expression of Interest in providing or assisting to provide a relevant service • “Relevant Service” is • any service, unless specified • provided by or on behalf of a County, District or London Borough Council (can be extended)

4. Relevant Body • “Relevant Body” is • Voluntary or community body • Body or trust for charitable purposes only • Parish Council • Two or more employees • Such other person or body as specified • “Voluntary Body” = body whose activities are carried out not for profit, or profit is used for voluntary purposes or “invested in the community” • “Community Body” = body whose activities are carried out primarily for the benefit of the community

5. Acceptance / Rejection of Expression of Interest • Secretary or State may specify permitted grounds for rejection • In considering Expression of Interest, the local authority must consider whether acceptance would promote the social, economic or environmental well-being of the area • If it accepts the Expression of Interest, the local authority must carry out a procurement exercise for the service, appropriate to nature and value of “contract”

6. Assets of Community Value • Local authority must maintain a “list of assets of community value” in its area • “Community Nominations” of building or land by Parish and Community Councils and other specified persons • Local authority may also nominate building or land as being “of community value” • Regulations will set out what constitutes “community value” – may include: • Identity of the owner • Identity of any occupier • Nature of the estates or interests in the land • Historic, current and potential use • Statutory provisions that affect the land • Price or value of this or other land

7. List of Assets of Community Value • If land is of “community value”, it must go on the “pass” list • For a period specified by the authority • Normally 5 years • Unsuccessful community nominations go on “fail” list • Both lists must be available to inspection free of charge • Notification to landowners and as local land charge

8. Community Right to Buy • If landowner wants to sell listed land – • Must notify local authority of intention to sell • Authority gives notice to person who nominated and publicise in locality • If landowner wants to “enter into a relevant disposal” – • Moratorium of up to 6 months to allow Community Interest Group to bid • No requirement to sell at all or at undervalue • “Community Interest Group” to be defined in Regulations • Regulations may provide for payment of compensation to landowner – by whom?

9. Community Right to Reclaim Land • Announced February 2011 • “Public request to order disposal” under Local Government, Planning and Land Act 1980 – power to request that empty public sector land owned by local authorities and some other public bodies is sold off • Improvements to system enabling “members of public” to request that empty public land or buildings are sold off, so they can be brought back into use • Online database with information about empty land and buildings • Regulations out by the end of May 2011