We work with the people of the Calder valley to hold property and create sustainable and affordable homes in vibrant communities. We did it and survived …(so far) – a CLT’s story Richard Henderson September 2019
The Calder Valley
Upper Calder valley in West Yorkshire (joint initiative Todmorden, Hebden Bridge) Discussions 2013-2014: Local housing to meet local needs. Focus on community-led affordable housing initiatives We also hold land and buildings for the community Who are Incorporated Nov 2014 as a Community Benefit Society we? Charitable status with HMRC (exempt charity) Registered Provider status awarded May 2018 Member controlled: 150 local people as members. Ten trustees
Fielden Hall is a community space which was gifted to CVCLT by the owners. The small rent from the Hall is our only regular income. We hold the central area, the hall, which is ‘bookended’ by a house at each end. We are in negotiations to buy the houses and land. This would secure the homes on an affordable rent and provide the opportunity to develop more homes in the grounds. Fielden Hall, Todmorden The CLT is the legal custodian; centre managed by small independent charity
Our fi first development - Affordable Housing in Walsden • Six new independent living bungalows for older people • In Partnership with almshouse charity John Eastwood Homes (JEH) • Calderdale Council transferred the land • Construction began March 2019, due to be completed by end of 2019 • Funding package: Homes England, John Eastwood, Quaker Housing Trust, Calderdale MBC, community shares (c £100,000), loan from Unity Trust
Opportunities and Issues • JEH had reserves to invest but could not obtain a site. • CVCLT secured the site from the Council • A partnership was born - with a ready made house design, a long waiting list and as flat a site as we are ever going to get But… SITE • JEH is a small organisation, they are not an RP • Funding package was complex. • Risk - Costings had £20,000 contingency built in. The Build is £50,000 over budget. We have sought further investment into our Community Existing JEH Shares. homes
Affordable Housing in Hebden Bridge • Rebuilding a former street of houses • Public consultations 2016-2018 • Planning application 2018 (20 homes) • Declined at planning committee Feb 2019 • Currently seeking funding for Development of 20 affordable homes for rent -6 x 1 bed, 4 x 2 bed, 10 x 3 bed further work ‘ A well considered and considerate scheme’
Raising housing as a public issue Five public meetings, June- October 2018 • June: So what’s this about a housing crisis? • July: What can community-led housing achieve? • August: Sustainable and energy efficient new homes • September: Ethical investment in community-led housing • October: Putting the vision back into social and council housing
Promoting community-led housing • One year project • Funded by Homes England (Community Housing Fund) • In partnership with Calderdale MBC • Growing and supporting CLH in Calderdale • Provides some support for us – contribution to overheads, and we are a Calderdale CLH.
The short version: • Investment Partner • Dec 2017 • Registered Provider • Pre-application approved Autumn 2017 • Full application submitted Jan 2018 • Request for further info from Regulator, Mar 2018 • Reply (following trustee meeting) April 2018 • Further queries from Regulator May • Taken to panel and approved June 2018
Why did we do it… • Our community to own the homes we’d worked hard to Ownership build (not another, big RP) • Homes built to the standards we aspired to Control • For Walsden , JEH isn’t an RP – so somebody needed to be Necessity as we needed the HE grant to make it viable • HAs like ‘standard’ designs they understand, can cost and can build and maintain. For High St, and other possible sites, ‘standard’ won’t work • We had support from some expert resource from Locality Opportunity and a local contractor, paid for by remaining money in a Big Potential capacity building grant. • We had skills on our Board • We aim to create a sustainable organisation through our Ambition early projects and grow to deliver greater social impact • The process took way more time and effort than we’d a little naivety envisaged, over a compressed timescale, and still does.
What did it take? • 67 page application • Multiple iterations • 28 page business plan • A raft of policies to write and approve • Multiple attachments: = • Hundreds of hours of detailed work and a big learning curve
Key skills needed Finance – our treasurer is an accountant and economist and is very dedicated Business planning – to write business plans, sensitivity analysis etc. An expert in the RP process and community housing (we bought this in) Housing management experience – three of our Board are, or have worked in housing management for many years Building project management – managing contractors and tendering is a weakness for us. Policy writing - procurement, equality, data protection etc., and access to some to ‘copy’! Basically, we are running a small, highly regulated company, for free. And for some of us it is close to a full time job!
It doesn’t stop with registration… We are a Registered Provider, regulated by ROSH, run by volunteers with little income and no staff. This oversight is right because: • We have received £240,000 of public money, hopefully with more to come • We will soon have tenants who we need to service and support • We will have rent to collect and manage So….we have to adhere to prescribed standards such as: • Rent formula and standards • Homes standards – descent homes • Neighbourhood and Community Standards • Governance & Financial Viability Standards • Value for Money Standards • Tenancy standards • Tenant involvement and communication standards • And…we will be audited each year so need quality record keeping and financial systems and an audit committee
Becoming an RP vs partnering with an RP • Your partner will be experienced and can • You can build your organisation as you want deliver the homes • Can access Homes England grants directly • They already have all the regulatory • You control your sustainability, quality, overheads space and tenant management (though you • They can cash flow the development and still have to persuade the builder…) cover any unexpected costs or work • It is easier to develop MMC and homes on non-standard sites • Delivers the social benefit relatively quickly • Homes developed will remain in CLT’s legal • Lower work load, learning curve and risk ownership for the CLH trustees • But …. But…. • It comes with increased costs, governance • Difficult to impose build and design the and audit requirements standards you want • And a lot of work • Tenant management may not be as you’d • Which strains cash flow and resource for wish small volunteer organisations like us. • Only receive ground rent, don’t own the • And can slow you down when unexpected buildings money is needed
Should you do it? It depends on what future organisation you want Plus who, and what resources you have. • There is a lot of support and funding available right now • You control your designs and tenant relationships better • You will build your organisation and assets you can leverage. • Adds credibility and creates opportunity But… • Don’t underestimate the work • Or the responsibility • And we’ve found developments slower and higher risk, mainly as we have no financial reserves
www.caldervalleyclt.org.uk richard@caldervalleyclt.org.uk
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