Policy for council community properties, rent subsidy and rate - - PowerPoint PPT Presentation

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Policy for council community properties, rent subsidy and rate - - PowerPoint PPT Presentation

Policy for council community properties, rent subsidy and rate relief Councillor Hamida Ali Cabinet Member for Safer Croydon & Communities 17 December 2019 Introducing a fair, open and transparent policy Councillor Hamida Ali 1.


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Policy for council community properties, rent subsidy and rate relief

Councillor Hamida Ali Cabinet Member for Safer Croydon & Communities

17 December 2019

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Councillor Hamida Ali

Introducing a fair, open and transparent policy

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  • 1. Context, objectives and drivers
  • 2. Summary of policy proposals
  • 3. Timetable and next steps
  • 4. Discussion points
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Councillor Hamida Ali

Current context

  • Premises are critical for VCS, but expensive
  • Suitable, affordable premises in short supply
  • Council provides more than £0.5m a year in

premises support

  • Council committed to maintain support for VCS
  • New VCS Strategy adopted in March 2019
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Councillor Hamida Ali

Why change?

  • No formal policy or procedure

in place

  • Funding awarded based on

historical decisions

  • No opportunity for new
  • rganisations to apply
  • VCS organisations want

transparency, guidelines, criteria

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Councillor Hamida Ali

Objectives

  • Focus funding on VCS organisations with
  • most community impact; and
  • greatest need
  • Provide transparency
  • Spread funding as widely as possible
  • Rent subsidy, at least until 2024, available to
  • rganisations in council owned properties
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  • 1. Context, objectives and drivers
  • 2. Summary of policy proposals
  • 3. Timetable and next steps
  • 4. Discussion points
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Councillor Hamida Ali

Rent subsidy: £276k pa

  • Introduces open, transparent process, clear criteria
  • Gives financial sustainability – 3 year funding
  • Open to organisations in council owned properties
  • Option to widen to any property in 2024 (review)
  • Exclusions include profit making organisations, faith

groups (where mainly used for religious purposes), restrictive memberships

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Councillor Hamida Ali

Rent subsidy: priority criteria

  • Targeting funding for buildings / organisations that:
  • Frequently used / shared
  • Delivering against priority outcomes in VCS

strategy

  • Delivering in areas of need
  • Delivering critical services
  • Lower levels of funding / reserves
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Councillor Hamida Ali

Discretionary business rate relief: £157k pa

  • Introducing open, transparent process, clear criteria
  • Annual application
  • Only those eligible for mandatory (80%) relief
  • Croydon based and services benefit of Croydon

residents

  • Same exclusions as rent subsidy, plus charity trading

arms, housing associations, empty properties

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Councillor Hamida Ali

Discretionary rate relief: allocation

  • Targeting funding for

buildings with lower rateable values (favours smaller

  • rganisations)
  • Allocate to
  • rganisations until

budget fully allocated

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Councillor Hamida Ali

Property allocation and rent

  • Clarity on priorities for our building allocations
  • Publicise availability
  • Invite business cases
  • New rent setting framework – fair and consistent
  • Income from additional rent will fund VCS rent

subsidy – open and transparent

  • Criteria for reviewing occupancy at end of lease
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  • 1. Context, objectives and drivers
  • 2. Summary of policy proposals
  • 3. Timetable and next steps
  • 4. Discussion points
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Councillor Hamida Ali

Proposed timetable

Rent subsidy

  • pens
  • Feb

2020

Applications reviewed

  • March

2020

Organisati

  • n

informed

  • April

2020

New funding arrangement starts

  • April

2021

Rate relief

  • pens
  • Oct

2020

Applications reviewed

  • Nov / Dec

2020

Organisati

  • n

informed

  • March

2021

New funding arrangement starts

  • April

2021

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  • 1. Context, objectives and drivers
  • 2. Summary of policy proposals
  • 3. Timetable and next steps
  • 4. Discussion points
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Councillor Hamida Ali

Welcome comments, questions on policy, eligibility and criteria Two areas where feedback is particularly sought….

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Councillor Hamida Ali

Discretionary business rate relief

  • Difficult to give early decision
  • Rates ‘multiplier’ not set until February
  • Rates subject to revaluation (e.g. in 2021)
  • Therefore intend to inform organisations in March
  • Provides definitive decision – but late
  • Could take decision based on previous rates bill
  • Earlier decision – but organisation will have to top

up

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Councillor Hamida Ali

Eligibility

  • Rent subsidy: Proposal to exclude profit making
  • rganisations
  • This will exclude social enterprises and (profit

making) cooperatives

  • If allow social enterprise / cooperatives, should there

be any exclusions?

  • Rate relief: only eligible to organisations receiving

80% relief, so social enterprises would be excluded

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Thank you

Councillor Hamida Ali Cabinet Member for Safer Croydon & Communities