Community Assets No 12 - 1 CPO-ing and 2 Funding the Acquisition No 1

Community groups may need to find the finance to acquire an asset of community value when exercising the right to bid provisions of the Localism Act 2011, section 98.

Circular 06/04 (as amended with the addition of Appendix AK, p57) advises that local authorities when seeking confirmation of a CPO to must provide details of funding. The expected sources cited elsewhere in the Circular include:

• full funding by the LA itself;
• full or partial funding by the requesting group; and,
• contribution from the private sector. 

Much of the detail is in paragraphs 20 to 23 of Part 1 of the memorandum to the Circular. The paragraphs also explains the need to give details of  possible "impediments" to the project. (See link below.)

http://www.communities.gov.uk/documents/planningandbuilding/pdf/1918885.pdf

It is pretty obvious that the group will have their work cut out in meeting the deadlines of both:

• the compulsory purchase procedures;
• any moratorium and right to bid (Localism Act 2011, ss 95 to 99) resulting from the owner's intended disposal; and,
• grant application procedures if say, a grant from the National Lottery or other body might be sought.

An important point is that all the details should, it seems, be upfront at the time of preparing the draft CPO; the Minister needs to know!