Q & A

 

What is a CLT?

They are non-profit, community-based organisations run by volunteers that develop housing, workspaces, community facilities or other assets . They are owned and controlled by the community and are made available at permanently affordable levels

How is Broadhempston CLT financed?

Broadhempston CLT initially obtained pre-development funding from CAF Venturesome’s CLT fund. This provided Broadhempston CLT with enough funds to submit a detailed planning application and employ the relevant professional involved in this process e.g Architect, Ecologist, Engineer etc..

Once Broadhempston CLT had obtained full planing they approached Resonance and applied for their Affordable Homes Rental Fund. In October 2014 a loan was granted from Resonance which enabled the construction of the 6 affordable eco-homes to begin.

Will Broadhempston CLT own the 6 houses?

Broadhempston CLT will own the freehold of the land and 25% of the value of the houses in perpetuity. This will ensure the houses remain  affordable for local people with a housing need.

How do the residents come to own the properties?

The residents will own 25% of the equity in their house by virtue of having put in the labour (sweat equity) to build it. They will then have the option to buy another 50% on a ‘rent to buy’ arrangement, gradually buying further equity in the property up to 75%. This is funded by a Resonance Affordable Homes Rental Fund. No rent will be payable on the 25% owned by the CLT. If residents wish to move on, they will only be able to sell their equity to people meeting the Allocation Policy.

How did Broadhempston CLT obtain planning permission?

The planning consent obtained by Broadhempston CLT is controlled by a Section 106 agreement under the Town & Country Planning Act 1990. This is an agreement between the local authority and Broadhempston CLT and defines what is meant by “affordable” and “local housing need”. The section 106 is also supported by Broadhempston CLT’s allocation policy which ensures that only local people with a housing need can occupy one of the houses.

The plot of land obtained by Broadhempston CLT is considered a Rural Exception site. Our local authority also has a Rural Exception policy.  The allowance for small scale developments with an emphasis on local needs means rural exception sites provide ideal opportunities for rural CLTs to identify land they can use. A rural exception site is a plot of land on the edge of (or “well situated” in relation to) the defined development boundary of the settlement but which may not have been allocated for housing development in the Local Development Framework (although there are sometimes steps taken to designate sites which are seen as more suitable for this process). These may be suitable for small schemes of affordable housing to meet identified local needs.

Can anyone become a resident of Broadhempston CLT?

Only individuals with a housing need and who meet the allocation policy can become a resident of one of Broadhempston CLTs affordable homes.

Can anyone join Broadhempston CLT?

Broadhempston CLT has an open membership policy, so  anyone who is interested in providing affordable housing is welcome to join.