Who Finances the Process?

Where a CLT chooses to work with a Housing Association as is the case with the Upper Coly Valley Community Land Trust, the Housing Association is

  • Fully responsible for funding the development, including arranging private borrowing and the capital grant.

The CLT is responsible for

  • Funding its own incorporation
  • The legal costs involved in purchasing the site,
  • Entering into a lease with the Housing Assocation,
  • Negotiating the Section 106 Agreement (which gives local people priority for the homes).

These CLT’s costs usually amount to some £10,000 and the Wessex Community Land Trust Project works with the CLT to raise this amount through applying for grant funding. The land purchase is arranged by the Housing Association entering into the lease with the landowner (for the land value, if there is one) just before the landowner transfers the freehold to the CLT.