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Legal Structures

A CLT must be an incorporated body. This means that a CLT must be established as a separate legal entity. CLTs received statutory recognition in the Housing and Regeneration Act 2008. The definition of a CLT is a relatively broad one designed to capture the aims and distinctive characterises of the CLT sector and of promoting for the benefit of the wider community. Importantly, the definition is not exclusively linked to affordable housing but to the wider regeneration interests of a local community.   

Formally setting up a CLT will bring certainty to partners and stakeholders, attract funding, give confidence to the local community and provide protection from personal liability.  legal structure is important for the following reasons:   

Please consult the CLT legal toolkit for guidance on legal structures as well as the template constitutions.