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13. In summary, the Policy states that an element of affordable homes will be negotiated where residential development is proposed: -
14. On qualifying sites as set out above the willingness of the developer to provide an element of affordable housing will be taken into account in deciding whether to approve or refuse planning permission for the entire scheme. The developer would also be expected to demonstrate how the affordable element would be made available to households in need of it and will usually be required to enter a binding agreement to secure this before planning permission is granted.
15. 30% of the dwellings on each development site will be expected to be affordable. The developer will be expected to deliver the affordable housing element without any public subsidy. The developer will therefore need to ensure that the requirement to deliver grant free affordable housing is factored into the land acquisition price
16. The affordable housing would usually need to be provided on the development site. However, the Council may consider proposals for the affordable housing provision to be made on an alternative site provided by the developer within his/her control and ownership. In such cases it would be anticipated that developers will provide alternative more appropriately located sites for affordable housing to the agreed level of number of homes to be provided on the original site. Alternative sites would have to be acceptable to the Council as planning authority, and suitably located to meet local need. However if these sites are also above the thresholds an additional requirement may apply.
17. Exceptionally the Council may consider a commuted payment instead of provision where this would contribute to the objectives of its housing strategy. The commuted sum would need to be sufficient to enable the Council to make the provision at an appropriate location in conjunction with a social housing provider, without the need for public subsidy. The sum would usually comprise a land value together with construction cost per unit.
18. The policy expectation of a 30% affordable element was established in recognition of national guidance, the high level of local need and the limited capacity for new dwellings on large sites in the District. Because this target will not offset the total outstanding level of need, the Council will apply negotiations under this policy as vigorously as it reasonably can.
19. The nature and level of need for affordable housing varies over time and the type of housing that will best satisfy requirements will be kept under review. The Councils’ planning and strategic housing team officers can give further advice and should be contacted at the earliest possible stage.
20. The remaining sections of this guidance provide more detailed information.
1.1 The delivery of affordable housing is a Thanet Council Corporate Plan target and the Council does not wish to delay planning applications. It is therefore committed to making developers aware of their obligations in respect of affordable housing and providing the information they will require in order to do so early in the development planning process. Early consultation enables developers to take account of the cost of providing affordable housing within the land purchase price and overall development costs. The Planning and Strategic Housing teams are fully prepared to enter into pre-application discussions on all relevant sites.
1.2 It is important to note that policy and guidance on the level and type of affordable housing that will be negotiated will be reviewed to reflect the changing nature and level of housing need. Again, developers are advised to discuss proposals with the Council’s officers at the outset.
1.3 Where an application is received for a relevant site and pre-application discussions have not taken place, the planning case officer will arrange a meeting with a strategic housing officer and the developer to begin affordable housing discussions.
1.4 Government advice in “Deliverable Affordable Housing” expects the Council to promote high quality housing designs, to the highest “eco-standards”, that help integrate affordable and market housing units in a mixed community. The Council’s expectation is that the affordable homes will be integrated into the wider development, and located throughout the layout of the scheme, rather than all being located on one part of the site.
1.5 Provision on an alternative site or a commuted sum may be appropriate where there are no planning policy objections and where for example the wider development scheme is for
1.6 Again, early discussion with the Council’s officers is advised to assess the most suitable options for delivering an element of affordable homes that will help meet local needs in the District.
1.7 In considering planning applications on relevant sites the assumption will be that schemes will provide for 30% of total housing units to be affordable. The Council recognises that exceptionally, site-specific circumstances may arise whereby it is not economically feasible to deliver or contribute to enable delivery of this percentage. Developers will in any event wish to research conditions and policy requirements that may affect the economic viability of site development before seeking planning permission and before committing to land purchase. Developers are strongly advised to include inspection of the Local Plan (setting out various policies that may affect sites) as part of such research. The Council would also expect developers proposing to acquire land to factor in costs associated with the need for contaminated land clean up, flood prevention and drainage, archaeological investigation work, heritage and nature conservation issues, demolition and landscaping into proposed development schemes.
1.8 The provision of affordable homes is one of a number of requirements that may be imposed upon residential developments, including transport infrastructure, education and community facilities, open space and public realm provision and public art. The Council expects that land value should reflect the true cost of development including the above requirements and developers should ensure that they do not contract to purchase sites at land values that fail to take account of the requirements of the Council’s affordable housing policy.
1.9 In exceptional circumstances where a development may not prove to be viable if full developer contributions are sought the Council will require the developer to appoint an independent advisor to carry out an “open book” economic appraisal of development viability to establish the level of developer contribution appropriate. Where the development does not support the full range of contributions an assessment of the relative need of each contribution will be undertaken, and the level of affordable housing provision will be identified in that context.
1.10 Proof of purchase of a site prior to adoption of Policy H14 (June 2006) at a price that means the development would not proceed because the profit margin is below an appropriate figure (usually about 15%) if 30% of the site is required for affordable housing will inform scrutiny of viability by the Council. In this case the developer would still be expected to provide an economic appraisal, for assessment by the Valuation Office including details of the validated site purchase price and date of purchase, anticipated build costs (including all fees and abnormal costs) and anticipated sale prices from at least 3 independent sources.
1.11 Only if it can be shown that exceptional circumstances prevail will a reduced level of contribution be considered, and this is at the discretion of the Council.
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housing@thanet.gov.uk
Tel: 01843 577280