Governance Group

Governance

 

Preface

The Governance Group thought that this section might contain parts that are unfamiliar to potential members of the CLT, so have produced a Question and Answer format to help breakthrough the technical jargon.

 

What is a Community Land Trust (CLT)?

CLTs are owned and run by local people, called Members. Their assets – land, houses etc – must be used for a community benefit. They cannot distribute profits, but must use any made for a community benefit.

There are some other ways of delivering community led housing, for example the Housing Co-Operative model, where the residents of the houses own them collectively, but we feel that the CLT model is best for responding to a village wide support for affordable housing.

CLTs have a tried and tested legal framework.

There are some 500 CLTs across the UK, mainly used as vehicles for the provision of affordable housing. CLTs can also provide other assets than affordable housing – communal areas and shops, for example.

 

Are there different types of CLT?

Yes, there are. Thorverton CLT, like the great majority of CLTs, is a Community Benefit Society (CBS), which is best suited to our needs. These CLTs are regulated by the Financial Conduct Authority.

There are some alternatives legal structures – for example Community Interest Company, Charitable Company – but these are quite niche arrangements and are not used by many.

 

Is the CLT a charity?

CLTs can choose whether or not to be a charity. Thorverton CLT, again like the great majority of CLTs, is not a charity because we want to retain the flexibility to do things which might not be allowed if we were a charity; for example, provide a small amount of open market housing to generate some income that can then subsidise some affordable housing.

 

CLTs and Housing Associations (also called Registered Providers)

A Housing Association is a non-profit regulated organisation that provides Affordable Housing in the UK, supplementing the role traditionally provided by Council Housing.  CLTs can choose whether to work ‘in partnership’ with an existing Housing Association or instead become a Housing Association in their own right. We have not yet made a decision about this.

 

How is Thorverton CLT run?

Its Members are the ultimate controlling group. They elect 5-12 Directors, who are then responsible for the day-to-day running of the CLT.

 

How do I become a Member of TCLT?

Any local resident can become a Member – it costs just £1 – as long as they support the CLT’s overall objectives and meet some other very basic criteria. For membership information see the ‘My CLT’ section.

 

Could I become a Director of TCLT?

Yes, members of the CLT appoint the Directors.

 

What is the current position?

At the Open Meeting held on 11 April it was agreed that The Governance Group should proceed with the registration of Thorverton CLT. Most CLTs choose to incorporate as a Community Benefit Society (CBS) using the National CLT Network’s simple service. This is a cost-effective option which uses tried and tested Model Rules; the CLT Network completes the application forms and act as the liaison with the Financial Conduct Authority (FCA).

The completed application was sent to the FCA on 3 May.

 

In the meantime, if you would like to know more about Thorverton Community Land Trust please contact us here