Then we will do it ourselves - Community Land Trusts

Chipping CommunityLand Trust:... keeping the units affordablefor future generations... the Evolution of an AlmshouseAssociationIntroductionChipping is a picturesque village situated in the heart of Lancashire's scenic Ribble Valley, as well as lyingwithin “an Area of Outstanding Natural Beauty”. Not surprisingly house prices in the area are well abovethe average for Ribble Valley. This makes it difficult for first time buyers to access the market and placesadditional demands on the limited stock of social rented housing. The Brabin’s Trust has secured the supportof a local housing association to develop a CLT to deliver much needed affordable housing for the localcommunity.The Brabin’s Trust, based in Chipping, was founded in 1684 under the Will of dyer and cloth merchant,John Brabin. The Trust was set up to provide for the poor of Chipping and its surrounding parishes.There are two charities managed by the Trust: an Almshouse Association, which provides homes for peopleon low incomes; and an Education Foundation, which owns one of the two local schools. The Brabin’s Trustis keen to use its 330 years’ housing experience, as well as its land and financial assets, to increase theprovision of affordable housing through a Community Land Trust.The assetsThe Trust is planning to develop land it already owns – the largegardens behind a row of its rented houses (see picture below left) -together with the adjacent site of the former village hall in the centreof Chipping. The site of the recently demolished old village hall had lainderelict ever since a new multi-purpose village hall replaced it in 1999.Planning permission has been granted to develop 11 affordable unitsof houses and flats (1 x 1 bedroom flat, 6 x 2 bedroom flats and 4 x 3bedroom houses). It is proposed that seven units are sold on a sharedequity basis whilst four units are retained for rent. When the units aredeveloped, the Brabin’s Trust will be the first Almshouse Association inthe UK to renew its long-established aims through the CLT model.1 The trust provides a homeThe modelIt is anticipated that once the development is completed, the new CLTwill be set up as a company limited by guarantee to which the land willbe transferred. The company will hold the land in trust for local peoplewhilst leasing the units to members of the local community ataffordable rents or shared equity ownership. The Brabin’s Trust isconsidering making the homes more affordable by investing someof its own cash assets as equity.Interestingly the Brabin’s Trust has highlighted the importance ofkeeping the units affordable for future generations by linking anoccupier’s share of future property price increases to local rural wages.The Trust currently is working on re-sale formulae, which will take intoaccount the disparity between property price increases and wagesincreases so that future affordability can be ensured. The developmentis expected to get underway in spring 2008 and the diagram belowprovides an overview of how the proposed model would work.6 When the homeowner sells their home, thehomeowner receives the share originally boughtplus a share of the increased value during theperiod of occupation2 Valuation done5 When homeowner is readyto sell, the property is valuedand offered back to the TrustShadow Board Members of Chipping CLTHow the proposed Brabin’s Trust CLT will work3 Eligible applicant purchasesa share in a flat4 The Trust grants a sharedequity lease for a percentageof the open market place20 Community Finance SolutionsCommunity Finance Solutions21