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!

Community Assets No 9 CPOs for Community Assets (Update No 1 - 18 November 2011)

The Localism Act 2011 (15 November 2011)) has possibly made it more likely that more than one community group is going to be asking their local authorities (LAs) to compulsorily acquire a private (or public?) asset which the community group regard as a being a land of  community value. [Note: This post assumes that the bits and pieces of the Act are operating - that is as time lordsladies we are in the future after the regulations are approved by Parliament.]

Initial steps before the CPO is likely to be considered are:

• if the LA has not put the asset on its list, a "person"  aka  the community group nominate the land (and buildings) as an addition to the LA's list of assets of community value.
• it then requires a notification of disposal of the owner; and
• a moratorium on the disposal.

In the past such groups have sometimes been able to purchase privately a local post office, shop, pub etc which is threatened with closure and hence cease to exist. At other times they have failed - perhaps for lack of time. It might be expected that a CPO will enable due process (and delays) - if successful, it will lead to the creation of a community-owned asset


The main purpose of this post is only to identify the main steps in the practice and procedures of obtaining a compulsory purchase order in the context of the Localism Act 2011 as they might be applied to creating an asset of community value. (Later posts will examine the steps in more detail.)


In outline the steps involve the following:

1. Initiation and relevant community body in operation;
2. Community body prepares and demonstrates the "case" to the LA and other stakeholders;
3. Relevant public body and authority to obtain powers to acquire land;
4. Making and submitting (if necessary) a compulsory purchase order;
5. Confirmation of the CPO and possible action in the High Court;
6. Notice to treat and possession against the owner (and occupier if different);
7. Assessing compensation for those entitled;
8. Completion and payment of compensation; and,
9. Commissioning as an asset of community value.