Advocacy
The intention of this section of the Website is to provide examples of Advocacy being undertaken in the Community Sector on the issues of "Security of Tenure" for Community Centres and Village Halls.The first such example is a Report of a Conference "Leases and Community Associations" held in 2000 (nonetheless still highly relevant), organised by a consortium of Community Associations in Camden (Patch Resource Services - now trading under the name REAL RESOURCES).This Report contains many of the arguments needed to advance advocacy. The Report is also strategic in that it assisted in broadening the debate with the outcome of a Review of Policy regarding the Voluntary and Community Sector Occupation of Local Authority owned premises and private sector owned premises.Please send any examples you have. Go to menu button contact us.Community Associations And Leases Current Case for Advocacy and Report of February 2001 Conference Produced by: Patch Resource Services Patch Resources Services is a Charity/Company Consortium of Abbey Community Centre, Kingsgate Community Association, Sidings Community Centre, The Winchester Project, West Hampstead Community Association, St. Mary's Community HallPreface A considerable period of time has elapsed between the Leasing Conference held in February 2001 and the production of this Report. It was decided, therefore, to produce a record of the Conference combined with an update of the current situation on Leasing matters.This Report commences with an analysis of the current circumstances of Community Associations in regard to Leases and the priorities in Advocacy.Five Community Associations in North West Camden, known as "The Patch," took the initiative to organise a Conference on the subject of "Community Associations and Leases," held at Camden Town Hall - Friday 2nd February 2001.The primary objective of the Conference was to bring together as many of the parties with an interest and information on the subject to ensure informed debate as the basis for partnership consultation on future Policy Initiatives.Invitations were sent to:-
- Camden Community Associations,
- Camden Voluntary Sector Agencies,
- Camden Councillors,
- Camden Local Authority Officers.
The Conference reflected attendance from each of these category groups - 17 Community Associations were represented. Conference attendance was smaller than hoped for but understandable for a full week-day Conference. There were many apologies for absence and statements of particular continuing interest received.The Conference was a success and achieved its primary aims. An enormous amount of information was shared and all attending agreed that this Conference was strategic as the first stage in partnership consultation to develop an appropriate Policy on Leases for Community Associations.The Keynote Speakers brought attention to the many Legal issues and Community Development issues to be considered in Policy Development. Workshop Leaders, (Voluntary Sector Legal Advisers) were able to provide practical, technical advice and information. Community Association Representatives were able to share the huge diversity of circumstances regarding Tenancies of Community Centres in Camden and the extent of problems experienced.Conference agreed to the following action priorities:-• An early Report of the Conference to be widely circulated,• An audit of the Occupation/Tenancy arrangements of each Community Association to emphasise the diversity of circumstances and problems,• The development of a continuing programme of training on the subject,• The urgent development of a programme of Joint Consultation with Camden on the need for substantial policy review. Community Associations and LeasesUpdate on Current PositionPOLICY REVIEW • The Lease Conference clearly identified the diverse circumstances of Community Associations in Camden in regard to lease negotiations and lease agreements. Whilst Conference was advised of an overarching Camden Policy it is clear that departments apply the policy in different ways.• Community Associations seek a Policy Review based on Neighbourhood Renewal Strategy. Community Associations seek to establish a policy for the introduction of "Partnership Lease Agreements" which reflect the community development relations of Community Associations and Camden Council. Community Associations seek a special case that is allowed for in the Local Government (Miscellaneous Provisions) Act in the positive use of discretionary powers regarding rent and length of terms of lease.• In the process of Best Value, Community Centres Review, Community Associations Management and Staff representatives argued strongly for a Review of Lease Policy and property condition to be included in the Community Centres Review. The lead officer for this work is Rachel Lund.• West Hampstead Community Association has been involved for the past two years in intensive lease consultation on the three premises comprising a split site Community Centre. WHCA has achieved considerable progress in appropriate terms of lease for community associations. However, it now faces a request to enter agreement based on tapered funding of commercial market rents over a 5 year period to the point where the association is expected to finance the full rent costs.• WHCA are now seeking an Executive Review of their particular circumstances and an effective Policy Review for Community Associations generally.• At the next Community Associations' Network Meeting scheduled for 4th December 2001 the issues of Community Associations and Leases will be raised as a priority Agenda item.PARTNERSHIP LEASES - The Advocacy Case Community Associations cannot undertake the current liabilities associated with existing Lease Policy.• Commercial Market RentThere are no legal requirements to charge Community Associations Commercial Market Rents - quite the contrary, there are explicit discretionary powers available to Local Government particularly in regard to Community Associations.Even if Camden had an overarching policy to grant aid commercial market rents for Community Associations (clearly the WHCA case challenges this) there would be no guarantee for the whole length of the lease contract term. Whilst having a lease will assist Community Associations in bids to Trusts for Capital Grant Aid, there are no Trusts who would take on Grant Aid for rent. Community Associations, by their nature and mission, have no self-generation income capacity to ever afford London Commercial Market Rents, nor significant contributions.Community Associations seek nominal/peppercorn rents. Camden has the discretionary powers to grant this.• Long LeasePolicy should reflect the differing needs and circumstances of Community Associations. To identify a period of 20 years maximum is to miss the important issue of "Wasting Asset" depreciation period related to Capital Expenditure of charity trust funds. Currently Camden seem to base the 20 year period on the requirements of the Community Fund - Charity Law presents Trustees with different requirements.Length of Lease should reflect differing needs and circumstances of Community Associations.• Short Term LeaseThe minimum period should be 7 years. Shorter periods will not assist Community Associations in either small capital or revenue grant aid bids to Trusts, nor will they assist realistic Business Plan development. In addition shorter term leases present unwarrantable extra labour costs and conveyancing costs to both landlord and tenant.Short term leases should be for a minimum 7 year period.• Maintenance and Repair CovenantsOnce again, diverse experience of Community Associations identify that there is no application of an overarching policy. For Community Associations to take on full repair and maintenance leases of properties in the poor condition they are is a liability that no reasoning tenant could undertake. At the least Leases should always contain a Schedule of Dilapidations and covenants on maintenance and repair responsibilities which reflect this Schedule. Such a Schedule should always be agreed by Assets Assessors appointed by both parties.Leases should not include Tenant's Covenant for Full Maintenance and Repair. Introduction - Conference ReportCommunity Associations in Camden are extremely concerned about their position in regard to "security of tenure" issues and other matters relating to their "occupation" and "management" of premises - "Community Centres."A Camden wide Conference "Community Associations and Leases" was organised and held at Camden Town Hall on the 2nd February 2001. This is a Report of that Conference.Community Associations are Charities. They occupy and manage Community Centres. As autonomous lay volunteer managed local community sector charities, Community Associations provide pioneering active partnership opportunities to Local Authorities, Central Government and Agencies, in the provision of Leisure, Recreational, Educational, Social Welfare Services to the local community. Community Associations in Camden are responsible for a plethora of legal requirements in the occupation, management, maintenance and development of "Public Community Premises" for "Charitable Recreational Purposes." Their interest in Local Authority owned property seems to be characteristically either as "Tenant at Will," or "Management Agreement," or "Occupation Licence," or a combination of these. Without real "security of tenure" Community Associations are in a "Catch 22" situation. They do not have the financial resources to maintain and develop the premises or appropriately manage and maintain the legally required conditions for use of public premises. Camden does not have the financial resources to assist. Without clear "security of tenure" (Leases) the Community Associations are unable to satisfy the requirements of potential grant making bodies. Without clear "security of tenure" charities are unable to use their own funds in capital investment in buildings - potential breach of trust in charity law. "Catch 22."Very few Camden Community Associations actually have Leases and most Boards of Trustees of these charities will be inhibited (quite rightly) from entering Lease Agreements under what is understood to be current Camden Lease Policies. Of those that have entered Lease Agreements there seems, ironically, to be major differences in terms of agreements - not supportive of the idea that a consistent set of policies actually exists corporately across all Departments of Local Government.The Conference brought "the players" together - all the parties and agencies with an interest in the subject of Community Associations and Leases. This Conference Report identifies the importance of all the contributions made. In sharing this information Community Associations seek to establish urgent channels of communication with Camden to progress joint consultation on the subject with the objective of establishing clear and appropriate Lease Policies reflecting the Partnership relations between Camden and Community Associations. Community Associations and LeasesConferenceINTRODUCTION David Howell Conference Chair(On behalf of The Patch - North West Camden Community Associations Consortium)OBJECTIVES OF THE CONFERENCE
- To address the issues of Leases between Local Authority Landlords and Charity Tenants where the premises are for charitable recreational use,
- To provide a forum for all the "key interested parties" to share information,
- To provide a first stage in community consultation to assist in the process of "Policy Development,"
- To place the issues of "security of tenure" for "community sector" and "voluntary sector" organisations on the Agendas of Partnership Consultation both with Local Authorities and Private Sector Landlords.
CONFERENCE KEYNOTE SPEAKERSINTRODUCTION:Olive Bolton Assistant Director Community Matters(National Federation of Community Organisations)• Community Matters represents the interests of Community Associations particularly and community sector organisations generally across England and Wales.• Community Matters is a National Voice for Community Sector Organisations and has been particularly a lead research organisation and advocate on issues relating to "Occupying Community Premises."• Olive will give a presentation bringing to the fore the importance of Community Development and Partnership Relations as the basis of security of tenure of Community Premises for "Community Sector" organisations.• Later we will be joined by Jonathan Dawson, Legal Adviser to Community Matters, who will be able to deal with very specific issues relating to the discretionary powers of Local Authorities leasing premises to "Community Sector" organisations for charitable recreational purposes. Paul Johns Charity Commission• In Camden, Community Associations generally have been encouraged to incorporate as Companies Limited by Guarantee. • Paul will draw attention to the fact that these organisations are Charities and everyone elected to the "Management Committee," "Board," "Council of Management," etc. are "Managing Charity Trustees."• Managing Charity Trustees have particular responsibilities in how they expend "Public Trust Funds" on property. A Lease is a "Wasting Asset" and any capital expenditure investment must have an appropriate period of "security of tenure."• Community Associations, Village Halls and Women's Institutes find their status as charities under The Recreational Charities Act 1958 (still in operation). This Act specifically enjoins Charity Premises and Recreational Activities as the objectives of these charities. Keith Dickens National Lottery Charities Board(The Community Fund - from 1st April)• What are the requirements of the NLCB regarding applications for Building Works Capital Grant Aid vis a vis "Security of Tenure?"• Is NLCB Capital Grant Aid an investment in Local Authority owned buildings?• Keith will introduce us to the new Form for Capital Building Works Grant Aid Applications and the NLCB policy considerations on issues of "security of tenure" and Grants to Charities. Robin Stratton Property Services Camden• With so many Departments responsible for Landlord/Tenant Relations with "Community Sector" and "Voluntary Sector" organisations, how does the Local Authority address security of tenure policy?• Robin will introduce us to the current policies and the grounds for implementation. ENJOY YOUR CONFERENCE• Welcome to all participants - Community Association Staff, Trustees, Other Volunteers, Voluntary Sector and Community Sector representatives, Councillors, Local Government Officers, Keynote Speakers, Workshop Leaders and Recorders, organisers and Guests.• Many Apologies for Absence have been recorded - it is always difficult to identify the "best time" to meet particularly when there are so many diverse interested parties.• Please remember to record your attendance on the Attendance List.• Please visit the Bookstall - primarily an opportunity of identifying and ordering appropriate materials and making contacts with Key Agencies at this Conference.• Anyone who has not already booked in and wants to stay for the whole conference (including lunch) please advise Sue Measures.• A Report of this Conference will be produced and widely circulated as the basis for continuing partnership and consultation.• Questions will be taken at the Speakers Panel Question Time. Question Slips are available from Sue MeasuresI now ask your first Keynote Speaker to make her presentation - please welcome Olive Bolton.Notes from the SpeakersOlive Bolton Community Matters• Community Associations are in a unique position. The recreational charities providing a multipurpose umbrella organisation in touch with communities. Most usually involve a Community Building, there may be trading activities.• With consultation being more important than ever Community associations are more important than ever as the link between local government and the community.• There are 18,800 voluntarily managed buildings in England and Wales.• Successful ones are: welcoming, attractive, have leadership, vision access to support, and security of tenure.• Why are Community Buildings a key in partnership? Independent, well-managed community buildings are in the interest of Local authorities, they can lever in other funds. They provide security they are developmental. Without security there is no money or energy to plan and they concentrate on short tern aims.• Partnership - Community buildings provide a base for community activity. They are a mechanism for capacity building. Community buildings build confidence in the community they provide a focus for consultation and community planning. They provide a voice.• What should a Community Association for the 21st Century be like:• Confidence to speak• Incorporate principles of best value• Be a service provider/partner• An initiator in the process• Builder of partnerships• Part of a local network - and part of a national network• Engage local people in the community• A vital part of this is a "partnership lease" - i.e. not a commercial lease• Charity Trustees must:• Act in the interests of the charity• Secure the best terms reasonably obtainable for the charity• Professional advice on matters that require it• Protect the integrity in the present or the future of the charity's assets - a short term lease is a very quickly wasting asset.• Community Matters recommends to community associations whenever possible to secure a long lease at a nominal rent• Paper exercises of commercial rents covered by grant aid is also seen as bad practice. Community Matters has fought against this practice. How can community associations know how long the grant will last for. Is it not bad management if charities can not meet the actual rent. - Assets of the local authority can be recorded without it actually charged to the charity. Many Local Authorities have backtracked on this and it works.• Community Associations are multipurpose charitable community facilities - a lease gives them a clear reason to act in partnership with local authorities. Paul Jones The Charity CommissionHead of Business Planning• Charity Commission's role has changed - placing more emphasis on the accountability of Trustees (Trustee Act 2000)• The Commission wishes to place the responsibilities of how charities operate more firmly in the hands of the trustees. For example, the duties of registration, submission of accounts and annual reports.• There are moves to create a new hybrid type of type of charitable company - removing the need to register with Companies House.• According to the Trustees Act 2000, all charities have the power to acquire, dispose of and insure property.• It is a statutory duty of care for trustees to act in the best interest of the charity. Borrowing• Prior to January 1997 - the power to borrow went back to the Land Act 1925.• 1996 legislation updated this provision• Charities can borrow for land and buildings, maintenance and charge land as security for the borrowing. This may require an order from the Commission (s.38 Charities Act 1993)• Charities need to obtain written advice of whether a loan is necessary, if the terms are reasonable and if they are able to repay on the terms proposed.• Proper advice means someone the Trustees reasonably believe to be qualified and has no financial interest in the loan.Leases• Community Associations are perfectly able to purchase leases. They should however be a permanent endowment and should not be spent on a wasting asset. This can be done by a sinking fund to replace the capital.• The Commission believe that it is vital to obtain professional advice. This can be surveyor or a solicitor. It is very reasonable to use general funds. However they must ensure value for money in the agreement. - There is a duty to obtain the best possible terms for the lease.• Leases must be for proper purposes - They can be used for other purposes though if the proper legal structure is in place.• Being a trustee today post Trustees Act 2000 is no more arduous it just seems the knowledge of the responsibility is greater.• When concerned take advice. Keith Dickens National Lottery Charities Board• NLCB interested in people not properties• Meeting the needs of the community• Will give grants to organisations who they believe will deliver it on time, on budget, well planned and within the law.• If have yet to find a property then will accept 3 estate agents details of possible purchases.• If given the go ahead - organisations can go ahead and find the property and will increase the cost by up to 25%• Minimum leases on new propertiesBelow £30,000 5 years (draft to be included with the application)£30 - 100,000 10 years£100,000 + 20 years• Minimum on altered propertiesBelow £30,000 5 years£30 - 100,000 10 years£100,000 15 years• NLCB requires that organisations asking for capital build grants:• Consult professionals• Find out the approvals needed• How much it will costs to run• Comply with construction regulations• For grants below £30,000 - a professional should estimate costs.• Above £30,000 - will require 2 quotes and a feasibility study.• The Feasibility Study can be done as a separate application (up to £25,000) - however there is no guarantee NLCB will fund the larger bid. However the feasibility study can be enough for other funders to consider the project.• For grants of more than £100,000, new or refurbishment, a Scheme Design Study (SDS) is needed. This provides all the certification for a major build scheme. NLCB will retain 10% of the grant until the scheme is complete.• Bottom line however is that NLCB will only pay for such studies if the organisation has its own lease. Robin StrattonHead of Commercial Property ServicesLondon Borough of Camden.• Camden has 1100 properties throughout the borough.• Of these between 30-40 are leased to voluntary organisations.• 1996 Report to the Property Sub Committee of the Housing Committee stated that Camden must produce an asset management plan, matching the objectives and the properties.• Income needed to be accounted for and transparent• Opportunity costs of the property must also be recorded.• Objectives this was based on:• Transparency• Other Council Strategies• Maximising Housing Income• Properties are let on a commercial basis, To give peppercorn rents would fetter the Council's ability to make financial decisions and encourages sub letting.• Repairs and maintenance - Camden will normally retain the external of the property, usually done by the form of a service charge.• Lengths of leases - there is a standard form and they are developing a simplified version. Leases are normally of short term but provide security of tenure via the Landlord and Tenants Act.• Longer term leases can be agreed in order to support bids and the lease can provide part funding on the part of London Borough of Camden. SPEAKERS PANEL - QUESTION TIME • Conference had an opportunity to raise questions with the speakers.• Olive Bolton was able to expand on the importance of Security of Tenure for Community Associations - experience showed that community partnership leases ensured that community premises were well cared for - quality, health and safety, maintenance and repair programmes, property development, were all enhanced.• Keith Dickens identified changing policy that would be introduced from 1st April 2001 - NLCB to become "The Community Fund" - Capital Grants for premise development would have a ceiling of £250,000 in general with substantial case having to be made for higher applications.• Paul Jones expanded on the issue of "wasting asset" and reminded charity trustees of their responsibility to seek professional advice on the length of lease commensurate with the capital to be invested to provide for the wasting asset - a 20 year lease for an investment of £250,000 capital in building development might be a requirement of the funder NLCB but this was not the same as requirements under charity law.• Robbin Stratton had identified "Camden Policy" on leases - however, the contributions from community associations attending the conference identified the incredible range of diverse arrangements in regard to community premises. What was also identified was the general agreement on the poor state of community premises. WORKSHOPSWorkshop Leaders: David Howell MBE MA BA (Legal Adviser, Community Associations)Jonathan Dawson MA LL.B (Legal Adviser Community Matters)Michelle Wilson MSc. (Legal Adviser Interchange)It was agreed by Conference that Workshops planned be replaced by a continuing Panel of Experts Question and Answer Time. The following is a Summary of the main points discussed:COMMERCIAL MARKET RENT• Few Community Associations had entered into Lease Agreements - for those who had there was considerable diversity in terms of contract - commercial market rents were offset by grant aid - some were being charged a "Service Charge" for maintenance and repair - different Departments seem to have different policies.• Many Community Associations seemed to occupy premises either on the basis of a formal "Occupation Licence" or "Management Agreement", others seemed to have no formal agreement and occupied premises basically on "a tenancy at will".• The main Question arose - "Why should a move to formal Lease involve a Commercial Market Rent?"• There are no legal imperatives to charge a commercial market rent to charities who use premises for "charitable leisure and recreational purposes" - in fact quite the reverse - there are specific discretionary powers available to ensure Lease Partnership Support.• Local Authorities continue to have discretionary powers to charge a peppercorn/nominal rent under powers set out in the Local Government Act 1972 (General Disposal Consent Sections 123 and 127), and Section 19 of the Local Government (Miscellaneous Provisions) Act 1976 Appendix A and B - leases can be for as long a period as desired without requiring a consent from the Minister.• Community Associations, Women's Institutes, and Village Hall Associations are specifically covered by these discretionary powers and this is particularly related to the legislation which clearly identified Community Centres, Women's Institutes and Village Halls as having charitable objects and powers i.e. Recreational Charities Act 1958. (Legal discretions are not available broadly to the voluntary sector).• Why doesn't Camden take up its Discretionary Powers to support its Partnership with Community Associations?• There seem to be many answers to this question - based on "Shifting Goalposts" - none being substantive.• First Proposition: Local Authorities must charge Commercial Market Rents as a result of Compulsory Competitive Tendering Legislation.Not True: Compulsory Competitive Tendering Legislation did not remove the Discretionary Powers under the Local Government Act 1972 or the Local Government (Miscellaneous Provisions) Act 1976.• Second Proposition: The Capital Accounting Rules (SORP - Statement of Recommended Practice) introduced by the Chartered Institute of Public Finance and Accountancy (CIPFA) requires Local Authorities to produce information about the value of public assets and the real costs to the Local Authority of using those assets or enabling others to use those assets to provide services - "PUBLIC ACCOUNTING TRANSPARENCY". Thus a requirement to charge commercial market rent.Not True: CIPFA has gone on national record that its recommendations were not to require local authorities to charge recreational charities commercial market rents (it certainly has no such powers and certainly cannot overturn existing discretionary powers contained in continuing law under Government Acts). There are many ways in which Local Authorities can publicly account for "Nominal Rent Lease Partnerships" with local community, leisure/recreational/charities that will accord with SORP requirements - many local authorities across the country have opted for these quite proper Public Accounting Transparency methods.• Third Proposition: Peppercorn Rents would fetter the Council's ability to make financial decisions - and peppercorn rents encourages sub-letting.Not True: Leases should contain a covenant for Rent Review (even where a discretion for nominal rent has been applied) - thus Council's ability to make financial decisions is not fettered. Rent reviews are based on periodic covenant requirement reviewsCovenants would properly be included in a Lease (as indeed they are in "Occupation Licences") to ensure that no demise of premises occurs, no sub-lets are made, no sub tenancy arrangements are made.• Fourth Proposition: An agreement for peppercorn lease rents with community associations would become a precedent for the whole voluntary and community sector.Not True: Community Associations are a special case under legislation (Local Government Miscellaneous Provisions Act 1976). Other Voluntary and Community Sector Organisations are not covered by this legislation - it will be for them to make partnership case negotiations (possibly under the Local Government Act 2000) to progress their legitimate partnership claims. The Local Government (Miscellaneous Provisions) Act 1976 is quite specific - it does not of itself invoke precedents.• Fifth Proposition: The Council's need to maximise Housing Income.Who could not agree with finding all ways to increase housing income to finance new housing stock and address homelessness!HOWEVER:• Whilst the differences between local government and past 1980/90's central government policies may have seen the charging of commercial market rents to community associations (then grant aiding rent to those community associations) as a means to transfer finance from rent precepts to Housing, thus circumventing central government intentions, as positive political action - surely time has now given an opportunity to positively, politically reflect on the possible damage of such policies to the community associations who serve local communities!• Surely, if more and more community associations move to taking on leases, charging commercial market rents and then providing grant aid to rents will mean a diminishing grant aid budget to support community association work. Would this not mean that a new policy would evolve i.e. to stop grant aiding rents for community associations! This would produce a ridiculous situation - community associations would either not take on leases - go into insolvency because they were incapable of paying commercial rents - support to Housing Finance from community association rent would cease! Everyone would be a loser!!• The sooner this non-progressive policy ends the better for all concerned.LEASE POLICYThe Conference showed considerable concern at the reasons supporting a move to leases emanating from Camden:• The rationale for entering lease contracts should surely be based on good community development policy and practice (in line with the Guidance for Good Practice nationally recognised by the Association of Local Authorities, Community Matters (NFCO), ACRE, BASSAC, CDF, Standing Conference for Community Development, and Charity Commission).• The rationale should surely be, additionally, based on Neighbourhood Renewal Poliocy - particularly as Camden was one of the 88 pilot projects.• Sadly, it would seem, that the initiatives for lease arrangements were based on a specific objective support to community associations to enable them to seek "Capital Grant Aid" to support maintenance and development programmes for local authority owned premises!• Some community associations were extremely concerned that it seemed that local government sought to find a way for other public bodies to grant aid Landlord neglect in maintenance and development of community premises and possibly in the future even to seek external public finance to fund commercial market rents that were not necessary to charge!• The Conference considered that Lease Policy should be based on "Partnership Community Development Policy" and particularly related to "Neighbourhood Renewal Policy".LEASES AND LIABILITIESCommunity Associations in Camden have now, overwhelmingly, become incorporated - "Charity/Companies Limited by Guarantee". Unfortunately, there remains both at a local council level, and CA management level a misapprehension of what this means. Unfortunately the idea of "Limited Liability" seems to give a belief that personal liabilities have been entirely limited - NOT TRUE.• As companies, community associations now come under the full rigorous regulations of the Insolvency Act - the individuals forming the "management Committees" (as trustee/directors) are required to ensure that their organisations are "Viable Going Concerns" under the requirements of the Insolvency Act. Trustee/Directors can be held personally financially responsible for "Wrongful Trading".• As charities, community associations are regulated by Charity Law. Incorporated or unincorporated - the Managing Charity Trustees are still responsible (and have personal liabilities) in Charity Trust.• Lease Contracts are, therefore, particularly important issues for the individual who manage community associations - the charity trustees/company directors.• Local inhabitants who become "active citizens" as "Trustee/Directors" of Community Associations deserve the respect, positive support action, and protection of their partner Council in every way possible to assist them to carry out their duties without incurring personal liability traps. Leases, as currently framed, present major personal liabil;ity and organisational liability TRAPS.RESTRICTIVE LEASE COVENANTSAll community associations who had received draft terms of lease complained of the following:• Complicated terms formulated in legal jargon making it impossible for "ordinary local lay voluntary managers (Trustee/Directors)" to understand. The Panel reminded Community Associations of the Charity Law requirement that they must seek professional advice - a new on-cost not funded!• Community Associations were being offered leases with "full maintenance and Repair" cost obligations. Recommendation - resist/negotiate out of such restrictive covenants. At the least ensure a "Schedule of Dilapidation's" and ensure this is agreed both by the Local Authority and an Independent Assets Manager Adviser to the charity.• Restrictive short term period of lease. Resist/negotiate anything below a 7 year lease term as a short term lease. These days, all grant funders (even for revenue grant aid) seek to establish you have a 7 year term of security of tenure. Seek to establish the longest period of lease, particularly where you are seeking major capital grant aid. Remember the issue of "wasting Asset" and trustee liabilities under charity law.• An unfortunate attitude to present a "model policy" lease with entirely inappropriate covenants. Whilst it is clear from experience that there is no "model policy" lease in Camden, even if there were it should be based on a policy of "application and relevance to circumstances of each potential tenant".• A requirement to appoint three individuals as Guarantors for the lease. "Preposterous!" Resist entirely. It would seem that legal advice to Camden is entirely wanting on this and other associated matters. This seems to be a "throw-back" to the days of an unincorporated association when three Holding Charity Trustees might be required to hold the title of property on behalf of the unincorporated charity. Now that CA's are companies - that piece of "legal lego" is no longer applicable.PRIVATE TENANCY ARRANGEMENTSIt was clear that many Community Associations operated entirely or partially from premises owned by private sector landlords. The Experts Panel were able to field a number of answers to questions but it was agreed that this was an entirely separate dimension requiring its own consideration.