Introduction: Assets of Community Value in a Nutshell
Author | Simon Adamyk |
Pages | 1-10 |
BIRTH OF ASSETS OF COMMUNITY VALUE
1.1 Assets of community value (ACVs) are a recent statutory creation. The Localism Act 2011 (which is referred to in this book as the Act) received Royal Assent on 15 November 2011, and ACVs first came into existence in England on
21 September 2012 when Chapter 3 of Part 5 of the Act (sections 87 to 108) came into force in England. These provisions of the Act are supported by the Assets of Community Value (England) Regulations (SI 2012/2421) (as amended) (which are referred to in this book as the Regulations). Together, these provisions of the Act and the Regulations are referred to in this book as the ACV provisions.
1.2 The assets of community value scheme is also commonly known as the ‘community right to bid’.
ASSETS OF COMMUNITY VALUE IN A NUTSHELL
1.3 In very broad outline, ACVs are buildings or other land nominated by a voluntary or community body with a local connection and listed by the relevant local authority because their use is considered to further the social wellbeing or social interests of the local community. If a building or other land is listed as an ACV, a number of legislative provisions come into play to provide various forms of protection to that asset. The main consequences of a building or other land being listed as an ACV are fourfold.
1.4 First, there are various provisions which are designed to provide local community groups with time to organise a bid and raise money to try to buy the
2 Assets of Community Value: Law and Practice
ACV if the owner decides to dispose of it, as these local community groups often need more time to do so than the private businesses against whom they may be bidding. The process in outline is as follows:
(a) A local community group can nominate a local building or land for listing by the local authority as an ACV.
(b) If the local authority lists it, the ACV is listed for (in principle) 5 years.
(c) Listing gives local people an opportunity to bid for the ACV if the owner decides to sell, as this can trigger a 6-month moratorium during which time the asset cannot be sold except to a community bidder.
(d) The 6-month period includes an initial 6-week window in which local groups, if they wish to bid, must express an interest.
(e) Local groups then have the remainder of the 6-month period to organise the bid.
(f) At the end of the 6 months, the owner may sell, but he does not have to sell to a community bidder.
1.5 Secondly, there are various legislative provisions and also government guidance under which the status of land as an ACV potentially raises various significant planning issues.
1.6 Thirdly, there are provisions which entitle private owners of an ACV to compensation in respect of certain loss or expense which they have incurred as a consequence of the listing.
1.7 Fourthly, there is some (very limited) guidance to local authorities which may receive requests from community or local bodies to use their compulsory purchase powers to acquire ACVs.
TYPES OF ASSET OF COMMUNITY VALUE
1.8 The largest single category of ACVs listed so far consists of pubs.
shops, village halls, town halls, open land, green lanes, markets, bowls clubs, post offices and sub-post offices, scout huts, gyms, bingo halls, allotments, swimming pools, community centres, cinemas, playing fields, public spaces, town or village greens, car parks, schools, sports grounds, parks, churches and football stadia.
1.9 There are a number of high profile examples of ACVs. These include (to name but a few): The Ivy House pub in Nunhead, south-east London (which was the first ACV to be purchased by a local community group under the ACV provisions), various football stadia (including Old Trafford (Manchester United FC), Anfield (Liverpool FC), The Valley (Charlton Athletic FC) and the Kassam Stadium (Oxford United FC)), Blencathra (the famous mountain in the Lake District), the iconic cold war era control tower at the former RAF Greenham Common air base, and the Undercroft beneath the Queen Elizabeth Hall on the Southbank in London (famed for its use by skateboarders and BMX-ers).
GOVERNMENT POLICY UNDERLYING THE ASSETS OF COMMUNITY VALUE PROVISIONS
1.10 The Government’s A plain English guide to the Localism Act summarised the background to the power as follows:
Community right to bid (assets of community value)
Every town, village or neighbourhood is home to buildings or amenities that play a vital role in local life. They might include community centres, libraries, swimming pools, village shops, markets or pubs. Local life would not be the same without them, and if they are closed or sold into private use, it can be a real loss to the community.
In many places across the country, when local amenities have been threatened with sale or closure, community groups have taken them over. In some cases, however, community groups who have attempted to take assets over have faced significant challenges. They often need more time to organise a bid and raise...
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