Yorkshire Forward, the regional development agency (RDA), and Royds Community Association, a development trust in Bradford, have an arrangement which strengthens the sustainability of the development trust and provides the RDA with a viable partner, delivering outputs against the regional economic strategy in a deprived area of Bradford.

Royds Community Association, a resident-led community organization which acted as the accountable body for Single Regeneration Budget (SRB) Rounds 1 and 6, has developed an office building, a healthy living centre and an enterprise park. Yorkshire Forward has a charge over the assets but this is limited to the value of grant paid. It is also for a defined period, based on Yorkshire Forward’s assessment of when the benefits will be derived.

As the market value increases, and assuming the grant was no more than the original market value, Royds Community Association may use the increasing equity (in this case the difference between the original grant after taking account of inflation and current market value) to support borrowing.

Yorkshire Forward has adapted its clawback conditions in order to help third sector organisations move away from a ‘grant culture’, and sets a clawback condition in such a way that will enable the assets to be used later as security for obtaining loans.