Community Asset Transfer Policy 2024 to 2026

The Community Asset Transfer (CAT) policy provides the process by which community groups and organisations can apply to the council to manage an asset locally.

A CAT would be classed as a disposal at less than best consideration (i.e. transfer for a nominal or reduced purchase price – less than market value).

In order for an asset to be considered for transfer under Community Asset Transfer Policy it would need to provide one or more of the following benefits:

• the transfer of the asset can provide social, economic, or environmental well-being benefits to the local community
• the asset has the potential to provide a community facility which the applicant has demonstrated they have the skills, drive, and access to resources to deliver 
• the transfer of the asset will enable the continuation of a service or use of a facility to the local community that Dorset Council is no longer able to provide that is of community value as above
• a community partnership can be entered into based on public access to and use of an asset
• it is believed that the applicant would be able to secure grant funding and/or have access to funding streams not available to Dorset Council

The Quirk Review “Making Assets Work” 2007 which outlined the potential benefits of local ownership and management of public assets where appropriate.

The Localism Act 2011 which built on the concept of local communities taking more control of assets in their area.

The Local Government Act 1972 s123 sets out that Local Authorities must obtain best consideration for all disposals.

The General Disposal Consent 2003 gives permission for Council’s to dispose at less than best consideration provided the value foregone is less than £2m (in capital terms) and the transaction benefits the economic, social, or environmental well-being of the area. If the value foregone is greater than £2m approval from the Secretary of State is required.

Other legislation or guidance documents that Dorset Council will need to be mindful of when assessing any application which includes but is not limited to:

• Subsidy Control Act 2022
• Local Government Finance Act (1988)
• RICS Valuation – “Red Book” valuation defines market value when considering a disposal.
• Dorset Council Procurement Framework

Dorset Council’s Plan 2024-2029 supports the principles behind this Community Asset Transfer policy.

Dorset Council values state ‘we work together with our communities and our partners to make things happen’. This feeds into the principle of local communities having control over appropriate assets and working with organisations to ensure services and benefits are not lost.

Dorset Council’s long-term vision is underpinned by a transformation plan which focuses on six priorities one of which is ‘making the best use of our assets and leading economic growth.

Dorset Council has 4 strategic priorities:

• provide affordable and high-quality housing 
• grow our economy 
• communities for all 
• respond to the climate and nature crisis

This policy seeks to assist in achieving the growth of our economy and promoting the ethos of communities for all.

This is separate to Assets of Community Value (ACVs) which allows local communities to identify and nominate land and buildings that are important to them to be included on a list.

Dorset Council wants to achieve community empowerment by ensuring that assets are locally controlled for the benefit of the local community in accordance with the findings of the Quirk Review 2007. CATs can protect local services, allows delivery of social and economic benefits that may not be available through other means, and can provide local people with a meaningful stake in the development of their community.

CATs involve the transferring of land, buildings, or other property assets (referred to as assets throughout this policy) from Dorset Council to a Town or Parish Council or community organisation in order to achieve public benefit.

If CAT application is successful, then one of the following types of transfer will be recommended on a case-by-case basis:

• short term leasehold – 12-month management agreement to 7-year leases
• longer leasehold – lease of more than 7 years
• freehold transfer – asset permanently transferred

Freehold transfer will only be recommended where appropriate. Leases longer than 7 years will normally only be granted to organisations that have governance in place to prevent distribution of assets to members (asset lock) and will contain clauses that prevent the asset being used for other than community benefit.

Transfer documents will contain clauses to ensure the return of the asset to Dorset Council if it ceases to be used for Community benefit. Or if a change of use increases the value of the property, Dorset Council is to be compensated.

If a disposal is not deemed appropriate the CAT application will be refused but Dorset Council may recommend one of the following alternative types of agreements if they would like to support the proposal:

• Community Use Agreement – protects community use of an asset
• Management Contract – leasing asset along with contract and service specification
• Service Delegation Agreements – these are usually used where there are a number of small non-strategic assets

Assets will be transferred in their current condition with no capital or other funding provided as part of the transfer and all future costs to be covered by the organisation taking on the asset.

No works or funding will be provided to adapt buildings or assets to be appropriate for the use proposed as part of the Community Asset Transfer application.

The council will as standard include conditions on any transfer to protect future community use of the asset this could include but not limited to:

• restrictions
• preferential arrangements for Dorset Council use
• right of first refusal on buy back
• use of reversionary mechanisms

No rents or fees will be applied for use by Dorset Council where there be any potential ongoing or temporary space requirement by the Council, provided the requirement for such space is not unreasonable and does not exceed 25% of net internal area or of the available hours.

For assets to be available for transfer via this process they must be owned by Dorset Council. Dorset Council reserves the right not to make available assets for CATs for reasons including but not limited to:

• assets that are used operationally by Dorset Council to deliver council services (e.g. school, care homes, etc)
• assets that are part of a wider area of land owned/controlled by Dorset Council
• assets that have the potential for redevelopment either with or without Dorset Council land
• assets that provide or have the potential to provide significant income for Dorset Council
• transfer is to an individual or business and it is to be used solely for commercial purposes
• where there is a more appropriate route to achieve the outcomes desired
• if there is a statutory responsibility and any transfer would also require the transfer or undertaking of any service responsibilities

Principles of the CAT policy

• being transparent in our process for CATs including timescales and decision-making processes and providing accessible information, including publication online
• providing timely information to applicants
• assessing asset transfer requests fairly through the application of this policy

The CAT policy is open to the following types of organisations:

• parish or town councils
• voluntary and community sector organisations
• charities

These organisations must be:

• legal entities
• not-for-profit organisations
• have community and/or social objectives
• be located within the boundaries of Dorset Council area or can demonstrate that they provide services within the area to Dorset residents

The asset must remain open to the wider public. This does not disqualify special interest proposals or groups; however, evidence must be provided of how the asset will be used in an inclusive way.

Dorset Council will not consider applications from organisations which are political or with political affiliations, organisations engaged in supporting candidates for political office, individuals or businesses who intend to primarily run the service or use the asset for commercial gain.

The applications will be assessed against the following criteria areas:

• community benefit
• local control
• sustainability
• governance
• financial standing
• ability to maintain and manage the asset
• commitment to maintain the proposed use of the asset

The CAT application is a two-stage process:

1. Expression of interest (EOI) application form
2. Business case

Stage 1: Expression of interest application form

This form sets out the following information which will enable Dorset Council to make an initial assessment on whether the asset is potentially suitable for transfer and if the organisations and proposed use meets the eligibility criteria.

• who is applying for the CAT
• information on the organisation
• what asset is being applied for
• basic details on the asset (Land Registry No, location plan)
• proposed use of the asset
• benefit of the asset being transferred

EOI applications can be made online.

Dorset Council will then carry out initial checks including but not limited to:

• is the asset owned by Dorset Council and any restrictions on ownership?
• is the asset potentially eligible for CAT?
• is the organisation eligible for CAT?
• does the proposed use meet the criteria of CAT policy?
• are there any application specific difficulties?

The applicant will be notified of whether their application has passed stage 1 within two months of their application being received. If the application does not pass stage 1, the applicant will be provided with the reasons for this decision. If the application passes stage 1, the applicant will be asked to prepare a business case or provide such further information as appropriate to the particular application as stage 2 of the application process.

There is no charge for an initial EOI, but the applicant will be required to cover the costs of obtaining the title documentation necessary to make the initial evaluation (HM Land Registry currently charge £7 per document and most properties have at least 3 documents noted in their titles, sometimes considerably more)

Stage 2: Business case

Once an application has successfully passed stage 1 of the process, we will request such further information as we require on a case-specific basis. Generally, we will require applicants to submit a business case. This will set out how the asset will be used, the social, economic, environmental and well-being benefits of the asset being transferred, the organisation’s ability to maintain and manage the asset, etc. A robust strategy is key for organisations to demonstrate their ability to successfully operate an asset and deliver the proposed community benefits.

The business case will be assessed on how it will benefit the community and Dorset Council will liaise with local Councillors and other departments within Dorset Council for their views on the proposed transfer. A surveyor will undertake a survey and valuation of the asset. The application  will be assessed in accordance with the assessment criteria and a recommendation report will be produced. This will outline whether the disposition should be made and why, what type of disposition should be utilised, i.e. a transfer of the freehold title or a short- or long-term lease, and whether any conditions should be attached to the disposal. The Council may need to balance the competing interests of more than one community group and assess which option will deliver most sustainable benefit to the local community.

We are in some circumstances able to offer assistance to applicants in the completion of the business case if required. For example, we may hold relevant information such as the maintenance costs of the building, the value of the asset, a condition report etc. Where appropriate, it may be possible to supply this information to the applicant upon request.

The recommendation report will then be submitted to the usual property disposals decision making process of the Council in line with the scheme of delegation, which will vary depending on the value of the asset being transferred. For example, where it is recommended that an asset is transferred and the asset in question is valued to be worth over £500,000, the disposal will require Cabinet approval. 

Dorset Council reserve the right to charge for the second stage of the application process in order to cover the cost of valuation of the asset, officer time and resources required to assess the application including legal work. The level of the fee will be indicated at the commencement of Stage 2. If your application is successful, you will also need to pay the Council’s legal fees to transfer the asset which will be between £750 and £1500. Organisations will be responsible for their own due diligence in relation to taking on any asset.

If we do not receive a business case and/or the further information we have requested within six months of an applicant being notified that their EOI stage 1 application is successful, we will close the application without further notification. We aim to carry out stage 2 of the process with three months of receiving the information requested. However, there may be circumstances in which it may take longer than this to progress to the final approval stage, e.g. if the asset is of high value or there are complex legal matters to address before the asset would be transferable. Applicants will be kept informed on the status of their application and the recommendations being presented.

If an application is successful and transfer is agreed, the disposition will then be actioned by Dorset Council Estates & Legal teams. The target timescale for this is 12 weeks from decision to completion of transfer, however this will depend on the type of transfer and the legal work required.

The Council reserve the right to undertake ad hoc reviews to ensure that the community benefits are being delivered as per the bid submission and reserve the right to resume ownership of the property if the proposed benefits have not materialised or ceased.

All applicants are entitled to appeal against any decision made through the CAT process if they feel that a decision has been unfair and/or there has been a breach of policy. Appeals should be made in writing via the Complaints Team within 28 days from the date decision is made. Written appeals must provide sufficient information to enable the matter to be fully assessed, e.g. if a breach of policy is claimed, the appellant must state what policy they are claiming has been breached and how. Appeals will be managed in line with the Council’s complaints procedure. 

This policy should be reviewed and updated to ensure it stays aligned with council priorities. It is anticipated that review will be required when a revised or new Dorset Council Plan is approved.