Community Spaces, a £50m open grants programme for neighbourhood groups wanting to improve their local green and open spaces, has distributed its first funding package.

The Big Lottery funded programme, managed by Groundwork UK, is part of a larger £200m scheme called Changing Spaces, which also focuses on improving community enterprise and the natural environment.

The Fern Gore Community Wildlife project in Accrington, Lancashire, has been awarded £50,000 to help fund the conversion of a disused lodge site into a recreational and educational facility. The project will include the restoration of three ponds, general maintenance of the site and is aimed to improve habitats and increase local biodiversity.

Lancashire County Council's Environmental Projects Team and Groundwork Pennine Lancashire will be working in partnership with the grant applicants and site owners, Fern Gore Residents Association, to deliver the improvements.

John Drinkwater, chair of the association, said: "This award will help us transform our neighbourhood. Places where the community can come together to relax, have fun and even learn a little about their environment ."

Community Space grants range from £10,000 to £49,999 up until January 2011, but is also offering a one chance bid opportunity for £450,000 – applications must be submitted for the larger grant by January 2009.

A spokesperson for Groundwork UK, said: "A lot of people have good ideas but need a little help to get started so, in addition to funding, Community Spaces is providing a network of facilitators to help groups turn ideas into reality."

The programme is also being run by a consortium of environmental organisations including Natural England, Civic Trust, Greenspace, The Wildlife Trusts and Federation of City Farms and Community Gardens.