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What is a Community Asset Transfer?

Writer's picture: Dan Coast Dan Coast

Updated: Feb 7

A Community Asset Transfer (CAT) happens when a Public Sector Body transfers the management and/or ownership of a property or land asset to a community council or Third Sector/ Community Group. This will sometimes include the delivery of any associated services. 

CAT supports community empowerment by ensuring that land, buildings or services are retained or transformed and then used for public benefit through community asset ownership and management. 

The Welsh Government has a mission to deliver prosperity for all and a long-term plan to create a Wales that is prosperous and secure; healthy and active; ambitious and learning; and united and connected.  


Wales continues to face an unprecedented and difficult financial climate for its Public Services and the Third Sector with on-going cuts to the overall budget from the UK Government. This has left some communities struggling to prosper and feeling isolated and the Welsh Government has a key role in stimulating economic growth in areas of greatest need.  

When they are made available, public assets can help communities and leaders to improve local areas. The expertise within the Public and Third Sectors can secure the long-term use of property assets and services and develop thriving communities across Wales. Community and Social Enterprise Organisations are often directly engaged with the people served by our Public Sector assets and can provide a perspective that a Public Authority might not be able to develop by itself.  

There are many examples of services and enterprises across Wales that have transferred assets and as a result are run successfully by communities. As new models for public service delivery emerge, there is a need to ensure that the transfer of assets and services is done in a sustainable way. 



Benefits of CAT 

CAT can have many benefits for all parties if it is undertaken in a collaborative way. To be successful, the process needs to be well managed with appropriate timescales. 

 

Benefits to the organisation making the transfer: 

  • Protects community assets from being closed and ensures the long-term future of sport on the site 

  • Produces and develops a more sustainable business model for the site 

  • Enhances relationship between the Local Authority and the local community. 

  • Local people are involved in the running and development of the services and assets that they use. 

  • Community Groups have more opportunities to secure capital investment to develop the assets 

  • Reduced maintenance costs for the council. 

 

Benefits to sports clubs and community receiving the transfer: 

  • Provides community groups with more security and control over their facilities 

  • Improves the standards of the facility to meet the expectations of members and users 

  • Opportunities to expand the activities and grow participation levels 

  • Becomes a catalyst for more community involvement by recruiting more volunteers 

  • Enables the groups to generate additional income and become more financially sustainable with less reliance upon grants 

  • Improves management structures and governance arrangements. 

  • Provides clubs with the ability to work collaboratively and in partnership with others. 

  • Previously disused facilities are available to the community 

  • Supports the local economy through locally owned and managed assets 



Risks of CAT 

There are of course risks - especially if a transfer is poorly managed. 

These include: 

  • Do you have the capacity to manage the assets? Does it have the workforce/volunteers and the know-how to operate and maintain a facility? 

  • Can the group afford to maintain it? Can you generate enough income to cover the day-to-day costs as well as a rainy-day savings pot to invest in maintenance projects? 

  • Is the facility fit for purpose? If the facility hasn’t had any investment for a while, it may mean that serious refurbishment is needed. Usually, this type of work is not eligible for grant funding. This means that an asset should either be fit for purpose on transfer or a pot of funding should be made available by the Local Authority to cover the work required. 

  • Does the group have the volunteers and resources to manage the transfer? The actual process of CAT can take a long time, up to several years in some cases. Do you have the volunteers and resources to commit to the process over an extended period? 


How long can the process take? 

The application process will vary across Local Authorities. A typical transfer takes between one and two years to complete but in some cases has taken up to seven years. 

Usually, the application process looks like this: 

  1. CAT opportunity advertised by Local Authority to make potential interested parties aware. 

  2. Pre-application discussions take place between interested parties and the Local Authority to understand the conditions of any transfer. 

  3. Initial Expression of Interest (EOI) is submitted by the interested party to the Local Authority. There is often a standard form provided by the local authority. 

  4. Local Authority reviews the EOI and decides whether or not the application can proceed to the next stage. The review would consider if the applicant is eligible and if its objectives align with the council’s priorities. 

  5. Submission of full detailed business plan by the interested party detailing how the asset will be managed and how it will provide benefits to the local community. 

  6. Local Authority reviews the business plan and decides if transfer is to proceed. 

  7. Legal transfer of the asset proceeds via the preferred agreement route. 

Negotiation and communication between the parties is essential throughout the process to ensure everything runs smoothly. 


For more information on CATs or wider support for your group please contact your local Community Development Officer


Additional guidance is also available from Third Sector Support Wales



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