Togra tithíochta Uíbh Ráthaigh - Project Exhibition

TOGRA TITHÍOCHTA

UÍBH RÁTHAIGH

COMMUNITY-LED HOUSING PILOT PROJECT

PROJECT EXHIBITION

THIS EXHIBITION HAS BEEN INSPIRED BY id22, BERLIN AND ADAPTED BY SOA FOR THE IRISH CONTEXT

TOGRA TITHÍOCHTA UÍBH RÁTHAIGH COMMUNITY-LED HOUSING PILOT PROJECT

Community-Led Housing is about “communities playing a leading and lasting role in solving local housing problems, creating genuinely affordable homes and strong communities in ways that are difficult to achieve through mainstream housing.”

Tascfhórsa Ghaeltacht Uíbh Ráthaigh and Údarás na Gaeltachta are working together with SOA Research to roadmap a new Pilot CommunityLed Housing Initiative to support the sustainable development of affordable homes in Gaeltacht Uíbh Ráthaigh.

The aim of the Pilot project is to increase the stock of available affordable housing by 10-12 units. These homes are intended to meet the needs of both existing and re-locating households in need of affordable housing in Gaeltacht Uíbh Ráthaigh.

The project has two strands: one strand is intended to support potential future residents and local property owners to bring empty houses back into use for affordable rental. The second strand will enable the construction of new and permanently affordable community-led homes.

To provide a framework for the following development phase, SOA and the Tascfhórsa are engaging with potential future residents, civil society and community organisations as well as local property owners. This process will inform and explore the needs of future residents. Input from further stakeholders such as Kerry County Council, government departments, and the finance and AHB sector will support the development of affordable housing by, and for, the community.

SOA SELF ORGANISED ARCHITECTURE IRELAND

SOA SELF ORGANISED ARCHITECTURE IRELAND

SOA is a non-profit action research collaborative formed to promote the possibilities for self-organised, cooperative and community-led approaches to housing in Ireland. We contend that the creation of housing can be a participatory, non-speculative, affordable and democratic process, and that such a process has the potential for positive social transformation.

SOA’s work aims to influence a changed attitude to neighbourhood and housing development in Ireland. We hope to inspire Irish people as to the possibilities for participating in the creation of high quality resilient neighbourhoods, as well as the potential for self-organised development. We further aim to challenge the notion of homes and land as speculative commodities, instead focusing on how they can best benefit our citizens.

Inspired by the work of id22 and others, SOA was founded in May 2018. Our members and collaborators represent a growing diversity of skills and expertise, and we are always open to new contributions and ideas.

Projects to date have included the organisation of the ‘CoHousing Here’ international conference (2019), and publication of our ‘Roadmapping Community-Led Housing in Ireland’ handbook series (2021). In parallel, SOA continue to support Community-Led Housing groups in Ireland to advance pilot projects (such as those profiled here), and is a founding member of the European Community Land Trust Network, which is developing a Community Land Trust infrastructure for the EU region.

ROADMAPPING A VIABLE COMMUNITY-LED HOUSING SECTOR FOR IRELAND

Self-organised and Community-Led Housing models (Cohousing) and the Community Land Trust as a basis for enabling democratic and permanently affordable housing and urban renewal in Ireland

STAKEHOLDERS

AUTHORS

Padraig Fly nn

Tom O’Donnell

STAKEHOLDERS/CONTRIBUTORS (ORGANISATIONS)

Credit Unio n Development Association (CUDA)

Dublin City Council

Housing Agency

Housing Finance Agency

INTERVIEWEES/CASE STUDIES - INTERNATIONAL Archipel (Switzerland)

Agentur fur Baugemeinschaften (Hamburg)

CAF Venturesome (UK)

Camden Council (London)

SPONSORS

The Ho using Agency

The Land Development Agency

Ó Cualann CoHousing Alliance

The Goethe Institut Irland

The Housing Finance Agency

IRISH CLH GROUPS

ARTHO USE

Cloughjordan CoHousing

Collaborative Housing Ireland

Common Ground CLH

Cork City CoHousing

Hope & Homes Cooperative

Inclusive Neighbourhoods

Irish Regenerative Land Trust

Irish Council for Social Housing (ICSH)

Land Development Agency (LDA)

Local Government Management Agency (LGMA)

London Community Led Housing Hub

Ó Cualann CoHousing Alliance

UCC Centre for Cooperative Studies

Allied Irish Bank

Clann Credo

Community Finance Ireland

Cooperative Housing Ireland

Dept. of Housing, Local Government & Heritage

Home Building Finance Ireland (HBFI)

Limerick City & County Council

National CLT Network (UK)

Permanent TSB

Triodos UK

Community Land Trust Brussels

GLS Bank (Berlin)

id22 (Berlin)

London Community Land Trust

Power to Change (UK)

Stattbau (Berlin)

Ville de Lille (France)

Wessex CLH Hub (England)

INTERVIEWEES/CASE STUDIES - IRELAND

Cooperative Housing Ireland

Dept. of Housing, Local Government & Heritage

Department of Finance

Housing Agency

Housing Finance Agency

Ó Cualann CoHousing Alliance

SOA - ADVANCING COMMUNITY-LED HOUSING IN IRELAND

How stable have you found CLH groups as clients, in terms of repayment of loans?

“Very very stable. Really I have never had a project defaulting on me, and I’ve worked at this bank for 10 years. Sometimes people see only the risk, because it seems “Oh, they don’t know what they’re doing, they are not experts in this area.” But no, they put the time in to become experts. Because it’s their building, they want to know what’s going on, and they put the effort in.”

“Housing, whether public or private, can be discussed and examined from economic, social, planning and political perspectives. However, the human aspect of housing is the paramount one. It is the one which, while inextricably intertwined with all the others, at the same time takes priority over them. It is for the betterment of the human aspect that all other aspects should be considered and made to conform.”

FRANK MOLONEY

DOROTHEE ROEGER CLIENT ADVISOR GLS BANK, BERLIN 2020

“Community-Led Housing is an example of bottom-up, active citizenship at its best, with the potential to put the humanistic perspective of housing provision centre stage, with communities and citizens at the heart of neighbourhood development, embracing the idea of homes as a social good.”

MICHAEL D. HIGGINS PRESIDENT OF IRELAND FOREWORD TO SOA PUBLICATION

Land Transfer Roadmap

SITE TRANSFER and conditions are approved by the local authority.

Ministerial consent (DPER) to the transfer is obtained if exchange price is not ‘best reasonably obtainable.

Local authority provides a guarantee for development finance, if necessary.

PROJECT IS CONSTRUCTED Debt is rolled up into long-term finance

CLH Group abides by any COVENANT in the case of RESALE

HOMES/BUSINESSES ARE OCCUPIED

PROFESSIONAL SERVICES REQUIRED BY CLH GROUP:

• A solicitor for conveyance of the land/property, inputting on price negotiation and future contingency payments

• An accountant to ensure the transaction is structured in tax efficient way to cover VAT, stamp duty and capital gains taxes

• An architect to develop proposals for planning approval, tender and construction, and financial appraisal

• A financial advisor to develop a financing concept, and to negotiate and secure financing

Early-Stage Roadmap

A CHECKLIST TO PREPARE YOUR CLH GROUP

ESTABLISHING A ROBUST ORGANISATION

MEETING AND COMMUNICATION

FORMING YOUR GROUP

ESTABLISH A SHARED VISION

Prepare Vision Statement with aims, motivations and priorities

RESIDENTS AND MEMBERS

Decide whether your project will be ‘Resident’- or ‘Community’-governed

DEFINING AFFORDABILITY

Clarify an understanding as to what affordability means for your group

Establish processes to ensure meetings are efficiently run and recorded

SHARE ROLES AND RESPONSIBILITIES

Assign key roles early on, such as Chairperson, Secretary, Treasurer etc.

LEGAL INCORPORATION

Incorporate as a legal entity. Consider appropriate legal form carefully

SET UP A BANK ACCOUNT

Record all transactions from the outset

DOCUMENTATION

Make sure everything is documented and accessible to group members

FOCUS ON A SITE

DECIDE ON SITE PROCUREMENT

Will site be purchased, leased, or part of a larger development?

A SITE FINDING BRIEF

May be helpful to prepare a brief for locating an appropriate site INVESTIGATING SITES

Before securing site, confirm suitability, finances and that you can get planning permission

OBTAIN AN OPTION ON THE SITE

Allows your group to secure planning before committing to buy

SECURING THE SITE OR BUILDING

When negotiating purchase, you will likely need the expertise of a solicitor, accountant and architect

GETTING ORGANISED

MEMBER RECRUITMENT AND RETENTION

Develop a member recruitment strategy with transparent criteria for membership

INTRODUCE YOUR GROUP AND VISION

To potential members and supporters via appropriate communication platforms

CARRY OUT A SKILLS AUDIT

Assess skills required and capabilityof your members/networks to contribute these skills

TRANSPARENT DECISION-MAKING PROCESS

NOTE:

This checklist refers to the Early Stages of a Community-Led Housing project.

For a full project Roadmap please refer to the accompanying Overview handbook.

Agree a process to ensure that all members have the opportunity to voice their opinion

ENGAGE A FACILITATOR

For expertise not within your group, as identified in your skills audit

FINANCIAL PLANNING & AUDITING

DEVELOP A BUSINESS PLAN

This is an evolving document, but important to sketch out full plan early on

DEVELOP A FINANCIAL CONCEPT

Useful to estimate key metrics such as project scale, proportions and financing at an early stage

MILESTONE PAYMENTS

These can be a valuable way to focus minds, demonstrate member commitment, and set timelines project deliverables

Finance Roadmaps

FINANCE ROADMAP NO 1

FINAANCE ROADMAP NO 3

COHOUSING GROUP FORMS A DAC OR COMPANY WITH COOP RULES (NOT AN AHB)

CO-OP ENGAGES A PROFESSIONAL TEAM TO MANAGE THE PROCUREMENT PROCESS Co-op takes out loan for project development and professional fees (Credit Union Community Loan or other)

INDIVIDUAL RESIDENTS RAISE C.10-20% DEPOSIT/EQUITY

Co-op buys land on planning approval with own equity/loan from Clann Credo /CFI/HBFI

COMMUNITY LAND TRUST (CLT) REGISTERS AS A DAC AND/OR A CLG WITH CHARITABLE STATUS (POSSIBLY AN AHB)

Tenure model: Standalone Cooperative 01 02 03 04 05 06 07 08 09

CO-OP OBTAINS LONG-TERM LOAN APPROVAL FROM BANK: LOAN SECURED ON THE FUTURE VALUE OF THE HOMES AND THE LAND Individual ‘rents’ (repayment+ maintenance) include proportional cost of shared spaces and will finance the long-term loan

CO-OP COMPLETES MEMBERSHIP AND ORGANISES WAITING LIST TO REPLACE MEMBERS WHO LEAVE

CO-OP CONSTRUCTS PROJECT ON COMPLETION Co-op begins repaying loan with 'rent' from residents

CO-OP MAINTAINS PROPERTY/ MANAGES SINKING FUND RENT MAY DECREASE ON LOAN REPAYMENT Residents’ equity accumulates as loan is repaid to a pre-agreed maximum value. Default by resident results in co-op recovering individual home. Individual home is re-allocated to persons on its waiting list. Project default results in homes and land reverting to lender

CLT TAKES OUT TERM LOAN/ HAS REVOLVING FUND FOR PROJECT DEVELOPMENT AND PROFESSIONAL FEES

(Credit Union Community Loan for fees/Commercial development loan) CLT BUYS LAND ON PLANNING APPROVAL

INDIVIDUAL RESIDENTS RAISE 10-20% DEPOSIT/EQUITY AND ORGANISE OWN MORTGAGE APPROVAL FROM OWN LENDER

Land purchased with residents' equity (deposits) and/or community shares and/ or with a loan from Clann Credo/CFI

Individual mortgages include proportional cost of shared spaces. Mortgages secured on the leasehold of the completed homes CLT RAISES DEVELOPMENT FINANCE FROM BANK / HBFI WITH LAND AS SECURITY

CLT CONSTRUCTS PROJECT ON COMPLETION

CLT sells leasehold homes to individual households (apartments) or agrees co-ownership structure of individual houses with residents. Term and development loans are repaid by CLT from proceeds of sale

RESIDENTS + CLT FORM OWNER MANAGEMENT COMPANY TO MAINTAIN PROPERTY/MANAGE SINKING FUND

Residents pay rent if scheme has a shared ownership structure. Otherwise residents pay a service charge.

Tenure model: CLT + Owner-Occupier 01 02 03 04 05 06 07 08 09

RESIDENTS REPAY INDIVIDUAL MORTGAGES.

Default results in CLT having first right of buy-back or individual home reverts to lender. Individual home is reallocated to persons on CLT waiting list/ re-marketed by lender (worst-case)

Steps to Establish a Viable Sector Policy Roadmap

Acknowledging that policy development is unlikely to be a direct linear process, this Roadmap outlines an initially sequential series of measures to advance ‘demonstrator’ projects, followed by key steps to developing the Community-Led Housing sector (in non-sequential order).

01

• Clarify what is meant by Community-Led Housing (CLH) in the Irish context, and why it is worthy of consideration as a complementary housing model.

• Identify a policy ‘base’ by evaluating potential demand for CLH. ‘Demand’ to be estimated in terms of Need. What has CLH to offer that other approaches do not, what market failures can CLH help to remedy, what social and environmental benefits can CLH deliver?

ROADMAPPING STUDY 02

• Identify Key Roadblocks to be addressed. What specific roadblocks is CLH facing in Ireland, and how have these been addressed elsewhere?

• Establish specific policy supports required. What are the recommended policy measures to address roadblocks?

• Propose a definition of Community-Led Housing for the Irish context. Synthesising UK and EU best-practice examples.

Moving beyond the creation of ‘demonstrator’ projects, the following key steps would enable the development of a viable Community-Led sector, capable of expanding and replicating a range of community-led approaches.

• Identify areas where there is clear demand for CLH, and assess availability for public sites for CLH in these areas.

• Establish processes for bidding for public sites which take account of Social Value as criteria for allocation in open tender processes.

• Explore mechanisms for long-term leasing of State-owned land.

AGREE NEED FOR POLICY ACTION

• Agreement among key stakeholders on value and need for policy action on Community-Led Housing.

• Agreement on key policy areas which CLH can contribute to.

• Agreement as to what constitutes Community-Led Housing in the Irish context.

• Agreement on key policy measures which can and should be implemented to address roadblocks.

• To support CLH groups with technical and organisational expertise

• To administer start-up/feasibility funding (if available).

• To spread awareness of CLH and to evaluate and quantify demand for CLH in Ireland.

• To feed back and support policy development for CLH, liaising with policymakers for continuous policy and practice improvement.

• Commission additional research on specific areas (as required.)

• Insert a statutory definition of the Community Land Trust in legislation.

• Committment of key stakeholders to support execution of a ‘demonstrator’ project(s)

• Identify public site(s) for a first Irish CLH pilot. Establishment bid criteria which meet SGEI requirements.

• To design and develop specific workshop modules for local authorities via a professional development learning programme for best practice in CLH. 03

ALLOCATE RESOURCES

• Establish a Community-Led Housing Start-Up Fund. To support projects at feasibility stage.

• Facilitate access to Capital Funding for CLH projects which meet SGEI criteria.

• Establish programme of CLH training for local authorities Potentially provided by, or in association with, a CLH Hub.

• Commitment and allocation of funding for an Irish Community-Led Housing ‘Hub’. Post Feasibility Study if required.

ADDRESS LONG-TERM FINANCING

• Empower credit unions to lend to CLH via a Special Purpose Fund (SPF).

• Address barriers to lending to cooperatives with commercial banks and other lenders.

• Establish a low-interest loan product for sustainable development

Modelled on the KfW in Germany, or on Ireland’s own ISIF (Irish Strategic Investment Fund) for SMEs.

• Inclusion of CLH in Capital funding schemes for social and affordable housing.

EVOLVE LAND MANAGEMENT POLICY

WHAT IS COMMUNITY-LED HOUSING?

Inspired by the growing international Community-Led Housing movement, as well as traditional meitheal and cooperative approaches to community building in Ireland, groups of people are coming together to take initiative in solving their local housing needs.

These needs are multi-faceted, and acknowledge that quality housing must address multiple factors, including, but not limited to, long-term affordability. Social cohesion, innovative environmental design, self-help and skills training, empowerment of marginalised groups and addressing loneliness are just some of the concerns that these groups are striving to solve on their own terms.

Community-Led Housing builds on a tradition of independent cooperative and communitybuild housing, which was a feature of Irish housing creation until the mid 1980s. This tradition pre-dates the formation of the Irish State, encompassing for example the ‘meitheal’ tradition of community building, and the building societies of the late 19th century.

Community-Led Housing can include approaches such as Cooperative Housing, OwnerOccupied Cohousing and the Community Land Trust.

The following description for Community- Led Housing in the Irish context has been agreed by the various stakeholders participating in the Roadmapping a viable Community-Led Housing Sector for Ireland project:

Community-Led Housing is a socially, environmentally and economically sustainable approach to housing, with the following features:

1. Meaningful community engagement and consent throughout the process. The community does not necessarily have to initiate and manage the development process, or build the homes themselves, though many do

2. The local community group or organisation owns, manages or stewards the homes in a manner of their choosing

3. Benefits to the local area and/or specified community are clearly defined

THE COMMUNITY LAND TRUST

Community Land Trusts (CLTs) are non-profit, democratic, community-led organisations. They develop and manage homes that are affordable to low and median income households, as well as other assets that contribute to thriving local communities. They act as long-term stewards of these assets, ensuring they remain permanently affordable. This is achieved through mechanisms that ensure that any additional value generated is retained within the CLT.

The “CLT model” is not a rigid formula that can be applied in all circumstances, but rather a “kit” in which the foundational elements can be assembled in different ways, according to the local situation. Living together on community-owned land opens new perspectives and networks that support households and individuals, and that assist in the creation of inclusive and resilient neighbourhoods.

The Community Land Trust (CLT) model is a solid base for developing new housing models that can respond to the enormous needs regarding affordable housing, as well as to social challenges such as population aging, gentrification, demand for informal care, or vulnerable communities.

Hybrid ownership model

The CLT acquires land to manage it in the interest of the community. It commits to never abandon its land.

The land is community property (because the CLT is managed by the community), while buildings erected on the land are the individual property of homeowners.

The separation of land ownership from building ownership not only makes the housing accessible first and foremost (homeowners do not pay the price of the land), but also guarantees stewardship by the CLT of the specific conditions of occupation or of the transfer of housing, for instance, the sale of housing units.

Permanently affordable prices

Affordable prices are an essential part of CLTs. The owners of CLT housing can sell their home, but with a price ceiling: the seller can recuperate what they invested, with a small additional amount. This sales price limitation guarantees that access to the property remains affordable for successive buyers, resale after resale.

In practice, CLTs use different formulas to determine the sales price. The most common formula offers to residents a certain part of their housing’s appreciation, but some CLTs propose formulas that link the change in sales price to the average income of the surrounding area.

Stewardship

The CLT assumes permanent responsibility of the land that it possesses and of the buildings constructed on the land. In order to ensure the longevity of projects, the CLT is interested in the fact that the homes are well maintained. CLTs are therefore very engaged in informing and leading residents. CLTs generally take care that homeowners do not take toxic loans by proposing training and support if necessary. CLTs are the “developers that never leave.”

Managed by the community

CLTs are accessible organisations. Occupants of CLT housing, as well as all others who live or work in the CLT neighbourhood, can become a member, participate in the development of the CLT, and elect their representatives to the CLT Board. In general, a third of administrators represent residents, another third the surrounding neighbourhood, and the last third the public interest or government.

This balanced distribution guarantees the participation of residents in the management, all while assuring that the interests of the inhabitants of the neighbourhood and the public interest are equally respected. Again, a fair balance between individual and public interest is essential.

4. Stewardship

GOVERNANCE STRUCTURE

Tripartite Board with membership open to wider community. Board has represenation from Local Govenrment, Civil Society and Community Organisations as well as Residents

:

1/3 Local Authority 1/3 Residents 1/3 Civil Society

OWNERSHIP STRUCTURE

Land is owned by the Community Land Trust on behalf of the Community. Residents and other users such as cooperatives or social enterprises own or rent their own buildings.

The last characteristic is what we call

COHOUSING

Cohousing communities are organised to foster mutual support, drawing on the skills and resources of residents to contribute to life in the scheme. In most projects, each household is self-contained, but residents collaborate in managing communal spaces, and share decision-making through a legally defined arrangement.

Shared spaces can range from a simple community garden, through to shared guest bedrooms, kitchen/dining spaces and/or communal laundry or tool-shed facilities. Many cohousing groups cultivate an ethos of sharing resources and space with a view to reducing their environmental footprint and increasing community activities and mutual support.

COOPERATIVE HOUSING

Cooperative homes are managed and owned by members of the cooperative. Residents are members of the cooperative and participate in management and decision-making. As with cohousing, mutual support, cohesion and shared activities are a feature of cooperatives.

Cooperative housing is a strong feature of the housing landscape in many European countries, for example, representing 17% of the housing stock in Sweden, the Czech Republic and Poland, and 15% in Norway. In the UK, 70,000 people nationally are cooperative members, and there are more than 300 cooperative housing schemes in London alone.

The Mutual Home Ownership (MHOS) cooperative model is a relatively new concept, designed in the UK as an alternative to conventional home ownership. Instead of individuals owning their own homes, all the properties on a development are owned by a cooperative society. Residents pay a monthly charge to the cooperative society, in return for which they build up equity in the society.

This gives residents an interest in the value of the housing assets owned by the co-op. When a resident leaves, they can take this equity with them, the value of which may be indexed to an appropriate external measure such as local wages. (See “Common Ground” and “LILAC” boards)

“Ireland must bring about a fundamental change in its system of urban development, land management and housing provision. It must evolve from a speculative and highly cyclical system to a permanently affordable, stable and more sustainable form of housing.”

THE NATIONAL ECONOMIC & SOCIAL COUNCIL (NESC) Housing Policy: Actions to Deliver Change 2020

Cooperative (Cohousing) Roadmap

Steps to establishing a Cooperative Cohousing project in Ireland.

PLANNING PHASE ORIENTATION PHASE

01

FORM A ‘PLANNING COOPERATIVE’

• Agree on aims and philosophy of the community

• Agree membership, general location, type of homes and community spaces, target costs and tenure model

Agree with local authority on strategies to inclusively and timely incorporate Part V members if necessary

• Begin searching for Sites

• Outline Financial Concept

02

DEVELOP GOVERNANCE STRUCTURE

• Decision-making and working-group procedures agreed. Harness skills and experience of members to maximise efficacy

• Membership development

• Agree on Communications Policy

• Engage a Facilitator

• Decide on External Expertise

DECIDE ON LEGAL STRUCTURE

03 04

• Initial ‘Planning Cooperative’ association incorporated in law

• Draw up and agree the Constitution

• Register with CRO

• Agree cost parameters, private and shared space allocations indicated on developed plans

• Develop Financial Structure, (including process for repayment of equity to outgoing members)

COMPLETE DESIGN

PROCESS

• Investigate Cost-saving/ Ecological Measures

PLANNING PHASE

• Engage Professionals

• Secure an Option on a Site

• Planning Workshops

• Preparation of contracts/ preliminary agreements with consultants and between members, as required

• Agree/Confirm Financial Strategy

Source project financing

• Prepare Loan-Stock Offer

• Plan Construction Phase

• Planning Application

• On Planning Approval, secure financing for land purchase and project development

• Complete Tender Drawings and Documentation

• Tender Project

STEPS TO FINANCING

EVALUATE MEMBER FINANCES Personal Financial Evaluation for all

R OADBLOCK INFORMATION

STEP 01

It is as yet unclear to what extent a cooperative could meet its Part V housing requirement from its own membership, and to what extent this will depend on the particular local authority’s policies and housing demand.

NOTE: Please see the Recommendations section of SOA’s OVERVIEW handbook for proposals to address the roadblocks identified. Further detail is provided in the accompanying POLICY, LAND, and FINANCE handbooks.

Secure Committment For Loan-Stock

Secure Loan For Land Purchase

Contribution To Cover Professional Fees And Planning

BUY LAND

• Activate Loan-Stock

• Exercise Site Option and purchase land/property

(NOTE: If cooperative buys the site with their own funds then purchasing pre-tender may be preferable. In this case STEP 06 could happen before STEP 05.

If the cooperative borrows money from a financial institution to purchase the site, this will typically cost c.6-10% per annum at the time of writing. In this case it is preferable to purchase the site after tender design stage is complete

CONSTRUCT PROJECT

• Commencement Notice

• Construction as either own initiative, OR part of consortium with AHB or other developer

• Practical Completion

• Development loans rolled up into long-term loan OR

• Long-term loans finance construction with repayments beginning on Practical Completion

(NOTE: Loans are to co-op, not to individual members)

• Coordinate ‘Self-Finish’ Elements post Practical Completion

LIVING AND ONGOING MANAGEMENT

• Structure for managing shared spaces established

• Repayment of long-term finance commences

• Group management of common issues and planning for the future

• Confirmation and execution of process for inducting new members etc.

Draw Down Land Purchase Loan (If Required) Secure Development Finance Against Land

Draw Down Development Finance or commercial property mortgage

SECURE LONG-TERM FINANCE

Pool Member Equity/Loan-Stock To Secure Long-Term Finance

Repayment Of Long-Term Loan And Sinking Fund/ Maintenance Costs

REPAYMENT OF LOAN-STOCK according to timetable

STEP 04

There is an absence of affordable financing sources for cooperative groups to finance their project or purchase land, if they can’t do so via their own collective savings/assets.

(Depending on the nature of the project, Clann Credo could potentially lend up to a max. of €0.75m at 6% for land purchase the lowest rate to emerge from this research.)

STEPS 06, 07 + 08

A major Roadblock identified by this research is the absence of affordable development and long-term finance for cooperatives.

(See FINANCE and POLICY handbooks for further information.)

MEMBERS RAISE C.10-20% EQUITY from Own Assets and Savings and/or Loan-Stock

Owner-Occupied (Cohousing) Roadmap

Steps to establishing an Owner-Occupied Cohousing project in Ireland.

PLANNING PHASE ORIENTATION PHASE

NOTE: Many of the steps outlined in this Roadmap are identical to those described in the Cooperative Roadmap, but there are important differences in the Owner-Occupied financing and legal structures in particular. As such, all identical steps are shown faded, with key differences highlighted in bold.

REALISATION PHASE

FORM A ‘PLANNING ASSOCIATION’

• Agree on aims and philosophy of the community

• Agree membership, general location, type of homes and community spaces, target costs and tenure model

Agree with local authority on strategies to inclusively and timely incorporate Part V members if necessary

• Begin searching for Sites

• Outline Financial Concept

DECIDE ON LEGAL STRUCTURE

COMPLETE DESIGN PROCESS

STEPS TO FINANCING

DEVELOP GOVERNANCE STRUCTURE

• Decision-making and working-group procedures agreed. Harness skills and experience of members to maximise efficacy

• Membership development

• Agree on Communications Policy

• Engage a Facilitator

• Decide on External Expertise and engage as necessary

• Initial ‘Planning Association’ incorporated in law as ‘Development Company’

• Draw up and agree the Constitution

• Register with CRO

• Agree cost parameters, private and shared space allocations indicated on developed plans

• Develop Financial Structure

PLANNING PHASE

• Engage Professionals

• Secure an Option on a Site

• Planning Workshops

• Preparation of contracts/ preliminary agreements with consultants and between members, as required

• Source Individual Mortgages

• Prepare Loan-Stock Offer

• Plan Construction Phase

• Planning Application

R OADBLOCK INFORMATION

STEP 01

It is as yet unclear to what extent a cohousing group could meet its Part V housing requirement from its own membership, and to what extent this will depend on the particular local authority’s policies and housing demand.

INDIVIDUAL HOUSEHOLDS RAISE 10-20% DEPOSIT/EQUITY for share in ‘Development Company’

05 06 07

• Investigate Cost-saving/ Ecological Measures

• Secure Planning Permission

• Complete Tender Drawings and Documentation

• Tender Project

CONSTRUCT

PROJECT

• Commencement Notice

BUY LAND

• Activate Loan-Stock

• Exercise Site Option and purchase land/property

• Construction as either own initiative, OR part of consortium with AHB or other developer

• Practical Completion

• Residents purchase own homes on Practical Completion

• Coordinate ‘Self-Finish’ Elements post Practical Completion

LIVING AND ONGOING MANAGEMENT

• On completion, ‘Development Company’ legal entity is dissolved

• Structure for managing shared spaces established

• CHG forms Owners’ Management Company to maintain property/ manage sinking fund

• Residents own their own individual households and have a share in OMC

• Group management of common issues and planning for the future

• Develop process for inducting new members

‘DEVELOPMENT COMPANY’ BUYS LAND

INDIVIDUAL HOUSEHOLDS OBTAIN OWN MORTGAGE APPROVAL from their own lender, with share in ‘Development Company’ as a deposit ‘DEVELOPMENT COMPANY’ SECURES AND DRAWS DOWN DEVELOPMENT FINANCE from bank/HBFI, with land as security

HOUSEHOLDS DRAW DOWN INDIVIDUAL MORTGAGES and purchase homes from the Development Company

DEVELOPMENT COMPANY

REPAYS development finance and loan-stock according to timetable

REPAYMENT OF INDIVIDUAL MORTGAGES COMMENCES

Community Land Trust (CLT) Roadmap

Steps to establishing a Community Land Trust in Ireland.

PRELIMINARY FORMATION

P ROJECT DEVELOPMENT

DETERMINE RATIONALE

• A group of people gather from within the community, with the range of skills that can help meet the defined local need and make a potential CLT proactive, credible and effective

• Form a Steering Group

• Define a clear purpose

Develop a shared vision of the proposed CLT’s core purpose and how it will go about fulfilling it. From this, develop an overarching vision for the CLT - a clearly worded, simple statement outlining the CLT’s mission

• Set goals: Steering Group should establish a set of goals, however simple, for the new CLT as early as possible

DETERMINE SPONSORSHIP

• Incorporate management company as a legal entity with a charitable or not-forprofit purpose, as outlined in its constitution

• Open a bank account and start raising funds for the CLT (set-up costs): Funding sources may include:

• Local sponsorship and larger donations

• Regional organisations

• Charitable trusts and foundations

• Government grants

• Tell the story Learn to tell your story in a way that people can identify with, to draw attention to a cause

• Technical + political support: Contact, and secure support of, key council officers, local politicians, development partners and experienced enablers early on

STEPS TO FINANCING

OPEN A BANK ACCOUNT

Access CLH Feasibility Fund

R OADBLOCK INFORMATION

NOTE: Please see the Recommendations section of this Overview handbook for proposals to address these identified roadblocks.

Further detail is provided in the accompanying POLICY, LAND, and FINANCE handbooks.

ENGAGE THE COMMUNITY

• Inform the local community and involve them in the CLT’s development at the earliest stage. CLTs are democratically controlled by the communities they benefit. This means operating in the interests of the wider local community, rather than solely for its members)

• Engage Key Partners/ stakeholders It is important to map out early on all the different organisations (locally, regionally and nationally) that the CLT may need to work with or influence to achieve its aims

• Demonstrate Need for Affordable Homes

For example with a Housing Needs Survey or Housing Allocation Policy

05 06 07

SECURE A SITE

08

ORGANISE

Choose a Legal Form for Land Holding company (charity or not-for profit) and Establish Entity

• Project Feasibility Study

• Prepare a Business Plan

• Establish and plan sources of revenue to repay project finance costs

• Select a Tenure Option: When making homes available for sale or rent a CLT’s choice of tenure is important to secure long term affordability

• Establish assessment criteria for residents

• Establish Affordability criteria: How much will homes cost?

• Evaluate ability of future residents to make required repayments

• Engage Professional Team Key consultants will likely include an accountant, solicitor, architect and cost consultant

• Identify suitable and available potential sites

• Negotiate an Option on a suitable Site

• Decide on Development Options A CLT can opt for a variety of building contracts or to work in differing partnership models with housing associations or developers

• Develop a brief for the Site

• Obtain Planning Permission

• Acquire site and Legal Title

• Agree sale of homes to households with loan approval

DEVELOP OR IMPROVE LAND

• Develop Homes and/ or Community Facilities

• Practical Completion

• CLT sells leasehold homes to individual households (apartments) or agrees co-ownership structure of individual houses with residents. Term and development loans are repaid by CLT from proceeds of sale

ONGOING MANAGEMENT

• Manage Service Charges/ Leashold Agreements (if Ownership properties) and rental income/ Tenancy Agreements (if Rental properties)

• Manage Non-Housing Elements There are a range of non-housing elements that CLTs in other countries have undertaken - such as allotments; workshops let on renewable commercial tenancies with 3 year rent reviews; workspace let by the hour/day; or a community space let by the hour or session

• Communicate with residents and applicants

REVOLVING FUND

If it is the goal of a CLT to replicate and grow, initial surpluses and subsequent grants or subsidies can be channelled into future projects

Establish Sources Of ‘Set-Up Cost’ Funding and ‘Development Cost’ Financing

Establish And Plan Sources Of Revenue To Repay Financing

Draw Down Land Purchase Loan (If Required)

FEES For Professional Team FEES For Planning Permission

Draw Down Development Finance Repay Development Finance On Completion

SUSTAIN THE CLT AS AN ENTERPRISE: Review And Manage CLT Revenue Budget

INDIVIDUAL MORTGAGES REPAID by CLT residents

STEP 02

There is currently no start-up or feasibility stage funding stream available for Irish Community Land Trusts.

(In the UK the Community Led Housing Fund, and other grants, serve this purpose providing a vital source of early support for fledgling CLTs. See POLICY handbook for further information.)

STEP 04

1. A definitive legal study is required to determine and resolve any potential legal barriers to the formation and ongoing management of a Community Land Trust in Ireland.

2. Recognition of the CLT in legislation, as per UK, would provide clarity to stakeholders. (See POLICY handbook for further information.)

3. There is a current lack of affordable sources of development finance in Ireland which a CLT could avail of. It is possible that the Housing Finance Agency could provide this financing if a CLT were to register as an Approved Housing Body, and if CLTs were to be deemed eligible for HFA financing. (See POLICY handbook for further information.)

S TEP 05

There is a current absence of affordable sources of financing for a CLT to purchase land. (Depending on the nature of the project, Clann Credo have indicated that they could lend up to a maximum of €0.75m at 6%, the lowest rate for land purchase which has emerged from this research.)

STEP 06

There is a current absence of affordable sources of construction and long-term finance for a CLT. This is a major roadblock at present. (See FINANCE and POLICY handbooks for further information.)

STEP 08

The ability of a CLT to replicate might be dependent on an initial Capital Grant to the project, which can be recycled on sale of homes. At present there is no such Capital Grant available, but the UK CLH Fund provides a model for such a grant.

(See POLICY handbook for further information.)

NOTE: This roadmap is based on guidance set out in the UK Community Land Trust Handbook, which has been adapted by SOA to reflect the Irish context.