Affordable Housing

Affordable Housing
Carmarthenshire County Council


         Draft
Supplementary        Affordable
      Planning       Housing
     Guidance




July 2013
  Produced by the Forward Planning Section
Affordable Housing
Carmarthenshire Local Development Plan


   Draft Affordable Housing Supplementary Planning
                       Guidance
                                    Content


1. Introduction

2. Policy Context

3. Deposit LDP Policy Framework

4. Process
      o Information required for developer viability appraisals
      o Affordable Housing Requirement
           o On Site provision
           o Low Cost Home Ownership / Affordable Homes
           o Affordable Rent
           o Self build / Exception sites
           o Off site Provision

5. Commuted Sums
     o Proposals above the thresholds
     o Proposals below the thresholds
     o Legal Agreements for on-site contributions, off-site contributions and
       commuted sums


6. Design


7. Appendices
      o Appendix 1 - Map indicating Viability targets within Sub market areas
      o Appendix 2 - Process
      o Appendix 3 - Glossary
      o Appendix 4 - Eligibility to Affordable Housing
      o Appendix 5 - Mechanism for pooling commuted sums on sites of two or
                     more dwellings up to the threshold level
      o Appendix 6 - Template Section 106 agreement




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Carmarthenshire Local Development Plan




1.    Introduction

1.1   Carmarthenshire County Council (CCC) is in the process of preparing a Local
      Development Plan for its area (excluding that part contained within the Brecon
      Beacons National Park). The aim of the new Local Development Plan (LDP) is to make
      the Development Plan system more relevant, inclusive and engaging to local
      communities.

1.2   This Supplementary Planning Guidance (SPG) has been prepared within the context
      of the Local Development Plan (LDP) to give greater guidance on how policies and
      proposals within the LDP which are aimed at increasing the supply of affordable
      housing will be implemented. On adoption the LDP and SPG will be material
      considerations in the determination of planning applications and appeals.

1.3   Carmarthenshire County Council aims to ensure that everyone in the county has
      access to a good quality home that meets their housing requirements. The Council
      therefore has an important strategic and enabling role in aiming to provide an
      increasing supply of affordable housing through different mechanisms.

1.4   It should be noted that planning only has a limited role in achieving affordable housing,
      however the evidence and policy approach used for the LDP tries to maximise the
      potential of Planning’s role in gaining affordable homes.

1.5   The consultation on the Deposit LDP prompted a number of responses to the
      Affordable Housing Policies. In light of this, the Affordable Housing Topic Paper has
      been updated and expanded to take into account some of the issues and evidence
      that were highlighted. This Supplementary Planning Guidance is not a document to
      respond to individual issues raised within the consultation responses; however it does
      address and elaborates upon the common concerns expressed.




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2.    Policy Context
2.1   The policy framework for decision-making in Planning comprises policies, advice notes
      and guidance issued at a national level by the Welsh Government

2.2   Technical Advice Note (TAN) 2: Planning and Affordable Housing (2006), defines the
      term affordable housing as:

      “…housing where there are secure mechanisms in place to ensure that it is accessible
      to those who cannot afford market housing, both on first occupation and for
      subsequent occupiers …” (TAN 2, 2006)

      There are two main types of affordable housing as defined by TAN 2:

      • Social Rented Housing – provided by local authorities and Registered Social
      Landlords where rent levels have regard to the Welsh Government’s guideline rents
      and benchmark rents;

      • Intermediate Housing – where prices or rents are above those of social rented
      housing but below market house prices and rents. This includes low cost home
      ownership models such as shared equity or assisted purchase schemes.

2.3   Annex B of the TAN also indicates that affordable housing should:

      • meet the needs of eligible households, including availability at low enough cost for
      them to afford, determined with regard to local incomes and local house prices; and

      • include provision for the home to remain affordable for future eligible households, or
      if a home ceases to be affordable or staircasing to full ownership takes place, any
      subsidy should generally be recycled to provide replacement affordable housing.

2.4   All other housing is classified as ‘market’ housing, which includes private rent or sale in
      the open market, where no occupancy restrictions are in place.



3.    Deposit LDP Policy Framework
3.1   The delivery of affordable housing through the planning system will be through the
      implementation of Policy SP6, AH1, AH2 and AH3 of the Deposit LDP and are as
      follows:

3.2   Policy SP6 has been subject to a focused change in light of emerging evidence and
      representation. Focused change FCT26 now applies. It now states:

      Provision will be made for 2,915 affordable homes to be delivered through the
      LDP. The delivery of affordable homes will contribute to the creation of
      sustainable communities within the Plan area.




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3.3    Policy AH1 has been subject to a focused change in light of emerging evidence and
       representation. Focused Change FCT61 now applies. It now states:

Provision for affordable housing for local needs will be required on all housing
proposals. The Authority will seek an affordable housing target of 30% in the higher
viability sub market areas and a 20% affordable target in all other sub market areas.
The sub market areas are identified in the Affordable Housing Supplementary
Planning Guidance. The targets will apply on sites of ten or more dwellings within the
defined Growth Areas and on proposals for five or more dwellings within the Service
Centres, Local Service Centres and Sustainable Communities. Specific site targets
may vary subject to viability and negotiation.

Where adjacent and related proposals result in combined numbers exceeding the
above threshold provision for affordable housing, the Council will seek an element of
affordable units to be provided on site.

Proposals for affordable units will be required to ensure that the benefits of the initial
affordability will be retained for all subsequent occupants.

For residential sites which fall below the thresholds, the Council will seek a
commuted sum contribution to support other affordable schemes within the county.
The commuted sum contributions apply on sites of 2 or more dwellings and placed on
all new open market dwellings. The SPG clarifies the make-up of the commuted sum
payments.


3.4      Policy AH2 of the Deposit Plan is identified as:

      Proposals for 100% affordable housing development on sites immediately
      adjacent to the Development Limits of defined settlements (Policy SP3), will in
      exceptional circumstances be permitted where it is to meet a genuine identified
      local need (as defined within the Glossary of Terms) and where:

      a) The site represents a logical extension to the Development Limits and is of a
         scale appropriate and in keeping with the character of the settlement;
      b) The benefits of the initial affordability will be retained for all subsequent
         occupants;
      c) It is of a size, scale and design compatible with an affordable dwelling and
         available to low or moderate income groups;
      d) There are no market housing schemes within the settlement being, or
         projected to be developed which include a requirement for affordable housing.


3.5      Policy AH3 of the Deposit Plan states

Proposals in the open countryside for affordable housing for a single dwelling will be
permitted within settlements, hamlets and groups of dwellings without Development
Limits where it is to meet a genuine identified local need (as defined within the
Glossary of Terms) and provided that:

a) It represents sensitive infill development of a small gap within an otherwise
continuous built up frontage; or, a minor extension which does not result in ribbon
development or perpetuate existing ribbon development;

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b) It is of a scale and size appropriate to, and in keeping with (and not detrimental to)
the character (including landscape and townscape) of the area;
c) The benefits of the initial affordability will be retained for all subsequent occupants;
d) It is of a size, scale and design compatible with an affordable dwelling and is
available to those on low or moderate incomes.




4.    Process
4.1   The requirement to provide affordable housing is a material consideration in
      determining all planning applications for residential developments within
      Carmarthenshire.

4.2   The delivery of affordable housing through the planning system is to be through three
      policy mechanisms:

      • The provision of an appropriate proportion of affordable housing on site;
      • Commuted Sums for on and off site provision;
      • The development of affordable dwellings through exception sites.

4.3   Prior to an application being submitted, developers are encouraged to contact the
      Planning Division and Housing Division, as appropriate, to determine site-specific
      requirements. The requirement to contribute towards other planning obligations such
      as education and parks does not negate the need to provide affordable housing.
      Developers should take into account the costs associated with the provision of
      affordable housing (and its affect on land values) before entering into land
      negotiations.

Information required for developer viability appraisals

4.4    Where a developer believes that delivering the level of affordable housing stipulated
       in the LDP policies are not viable, they will be required to demonstrate to the
       Council’s satisfaction why the policy requirements cannot be achieved, and indicate
       what level of affordability would make a scheme viable and deliverable. A full and
       detailed appraisal would need to show:

       •   the acquisition price of the site

       •   projected construction costs – Build costs per square metre (with either reference
           to industry standard BCIS or comparable evidence based contract prices). The
           build cost should include the allowance for Code for Sustainable Homes,
           Sprinkler Systems etc. (These should not identified as exceptional costs)

       •   Exceptional Costs attached to the development – These costs are identified as
           unforeseen costs, which have come to light subsequent to the purchase and / or
           start of development, i.e archaeological findings, unknown mine shafts, utilities
           provisions. This list is not exhaustive. The list of abnormal costs would need to be
           broken down and highlighted within any assessment.
               o Costs such as demolition of buildings on site, or works to the topography
                   of the site are not unforeseen / abnormal and should be factored into build
                   costs / site purchase.
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       •   Proposed final sales values per unit
       •   the applicant’s profit requirement
       •   unit types
       •   finance costs
       •   Professional Fees
       •   Costs of other planning obligations
       •   any other relevant information

4.5    The Council will then use a Development Appraisal Toolkit to examine the economics
       of the development and determine the viability of affordable housing provision.
       Where the developer can demonstrate that the provision of affordable housing
       required would not be viable, a lower percentage may be negotiated. In the event of
       a dispute over site viability, the local authority will commission an independent
       consultant for a third party appraisal. The cost of this independent appraisal will be
       met by the developer.

4.6    Affordable housing will be required on all outline, full, or change of use planning
       applications for housing which meet the thresholds. In situations where affordable
       housing has been secured at outline planning stage, any change in numbers as a
       consequence of a subsequent application may result in an increase or decrease in
       affordable housing provision.

4.7    As a result of changes in the policy context, affordable housing provision will be
       sought on planning applications for the renewal of planning consent for housing
       which meet the thresholds. This would take effect even if there were no previous
       affordable housing obligations.

4.8    Where the Council identifies that developers have sub-divided sites in order to avoid
       affordable housing provision, the total residential unit provision will be calculated and
       the affordable housing policy will be applied accordingly. This approach will also
       apply where planning applications are staggered over a period of time.

4.9    On most development sites, the affordable housing provided by a developer will need
       to include both types of affordable housing: affordable housing for rent and Low Cost
       Homes Ownership.

4.10   Policy AH1 makes reference to the need of ensuring that the benefits of the initial
       affordability will be retained for all subsequent occupants. The means of ensuring
       affordability in perpetuity will be through legal agreements (Section 106 agreements)
       between the Planning Authority and the developer. This is important to ensure that
       future generations have suitable housing choices available to them.

4.11   It is the Council’s preference for a Registered Social Landlord (RSL) to be involved in
       the development and management of affordable housing where possible to ensure
       control that the units remain affordable in perpetuity.

Affordable Housing Requirements

On-site provision

4.12   A contribution to affordable housing must be provided on all housing allocations in
       accordance with the requirements of LDP Policy AH1. Affordable housing should be
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       provided on the development site except in circumstances where a financial
       contribution is more appropriate.

4.13   On all housing developments in the Growth Areas, the site threshold for affordable
       units is based on 10 or more dwellings. Within the Service Centres, Local Centres
       and Sustainable Communities this is based on 5 or more dwellings. The affordable
       housing target is set by a settlement’s location within a sub market area. The
       submarket areas are identified within Table 3.1 of the Carmarthenshire County
       Council Affordable Housing Viability Study Update Report - May 2013. In the higher
       viable areas, the maximum target is set at 30%, and in all other areas, the maximum
       target is set at 20%. Appendix 1 delineates these target areas on a county wide map.
       The red areas indicate the 30% target areas and the green the 20% target areas.

4.14   Where the calculation for affordable housing results in a fraction of a unit, the
       contribution via a commuted sum based on that fraction will be required. For
       example, on a development of 25 new dwellings: 30% of 25 dwellings = 7.5
       dwellings, therefore 7 dwellings would need to be on site and a commuted sum worth
       0.5 of an affordable home. The calculation for a Commuted Sum is shown in
       Paragraph 5.2.

4.15   Where the delivery of affordable housing are to be provided on-site by a developer it
       is the preference of the LPA that the homes be transferred to an RSL approved by
       WG to operate in the Local Authority area. The LPA does acknowledge however that
       developers may sell completed homes to private rental companies, or manage
       themselves, provided that the rent is affordable (benchmark or intermediate rents)
       and that the tenants or occupants are selected from the Common Housing Register,
       and assessed as being in need by the Housing Authority.

       Low Cost Home Ownership / Affordable Homes

4.16   Affordable homes are those which can be bought at below open market value or
       open market rents, and which are within the means of households on typical or below
       average incomes for the area.

4.17   Affordable homes for sale are aimed at people who can get a mortgage, but cannot
       afford a suitable home at open market prices.

4.18   These homes are usually delivered through the planning system on new private
       housing developments; on council owned land;        or by housing associations.
       These are usually sold on a shared equity basis, with applicants purchasing a %
       share and the Council or housing association taking the remaining share up to the
       market value of the home as a second charge.

4.19   The Housing Section of the Local Authority has undertaken a report for developers
       on the sale value of affordable homes within different areas of the County.

4.20   The agreement with Low Cost Home Ownership will also show how the sale prices of
       affordable homes will be restricted, both at initial sale and at all future sales. This is
       based on multiples of the gross median household income in the six community
       network areas of Carmarthenshire.

4.21   Prices vary according to the size of the property. The table below indicates the
       variance in house values for LCHOs.

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               Median                          2 bedroom
Community      household         1 bedroom     apartment or       3 bedroom         4 bedroom
Area           income            apartment     house              house             house

Aman                   £23,459       £49,387            £61,734           £74,081             £86,428
Gwendraeth             £23,817       £50,141            £62,676           £75,212             £87,747
Llanelli               £21,756       £45,802            £57,253           £68,703             £80,154
Taf Myrddin            £24,542       £51,667            £64,584           £77,501             £90,418
Teifi                  £21,467       £45,194            £56,492           £67,791             £79,089
Tywi                   £24,176       £50,897            £63,621           £76,345             £89,069

Notes
1) Based on household incomes data supplied by postcode by CACI Paycheck, December
2012
2) Based on 3 times median income plus 5% deposit for 'typical' 3 bedroom house



4.22   The type, size and mix of affordable housing on a particular site will be determined
       according to local needs, and as identified in the LHMA.

4.23   LCHO is intended to provide a housing ownership option for local people in housing
       need. People on the Affordable Homes Register can express an interest in buying a
       LCHO property, while in addition developers and home owners can advertise for
       other potential buyers. The eligibility of households which are not already on the
       Affordable Homes Register will be assessed by officers from the Local Housing
       Authority in accordance with the affordable homes policy


Affordable Rent

4.24   This is usually called intermediate renting which aims to provide a housing solution to
       people who are in regular work but are unable to buy a house due to financial
       circumstances such as no deposit being available to them, their income is not high
       enough or there may be problems with their credit score and mortgage companies
       will not accept them for a mortgage.

4.25   The intermediate rent is normally above the social rents usually charged by the
       Council or housing associations, but below open market rents. This is at 80% of the
       market rent, and normally within Local Housing Allowance for the type of property.

4.26   This scheme could lead to low cost home ownership as the housing association will
       sell for below open market value in the future as long as the value has increased
       above the cost of the development.

4.27   There is eligibility criteria set out by the council for both schemes under the
       affordable homes policy. This is identified in Appendix 4.


Self Build / Exception sites

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4.28    Where an individual wishes to build an affordable unit for themselves or members of
        their family as an exceptions site, the applicant must provide sufficient evidence to
        indicate the need to build an affordable dwelling, as identified in the criteria of LDP
        Policy AH2. The individual must sign a legal agreement (section 106 agreement)
        which would restrict, in perpetuity, all future sale prices to an affordable level and
        occupancy to local people in housing need.

Off Site Provision

4.29    It is the Council’s preference for on-site provision of affordable housing to encourage
        mixed, balanced and inclusive communities. Off-site provision will only be considered
        in lieu of on-site provision in exceptional circumstances, to be considered on a site-
        by-site basis. In such instances, the affordable housing provided should be of the
        same quantity, type and quality as that which would have been provided on-site. The
        onus will be on the developer to set out the exceptional circumstances as to why the
        provision should not be on site and how their alternative proposal will address the
        affordable housing need identified by the LPA.

4.30    A sequential approach to the location of off site provision will be appropriate with the
        preference being for the provision of affordable housing within the same settlement. If
        this is not achievable then provision should be made within the same sub-market
        area and then, only if no other options are available, provision may be acceptable
        elsewhere in the county where there is evidence of need.


5.     Commuted Sums

Proposals above the threshold

5.1    In exceptional circumstances where on-site provision is not considered appropriate
       and off-site units cannot be delivered on an alternative site, the Council will consider
       whether a commuted payment in lieu of on site affordable housing provision would be
       appropriate.

5.2    The commuted sum should be of equivalent value to the developer contribution if the
       affordable housing was provided on site. This will be determined by calculating the
       difference between the residual value of providing 100% market housing and the
       residual value of providing the required levels and mixes of housing.

       RV (100%) – RV (AH%) = financial contribution

       RV 100% - The residual value of a site with 100% market housing

       RV (AH%) – The residual value of a site after the area-specific target for affordable
       housing is applied e.g. 20% affordable housing

5.3    This provides the Local Authority with a strong case to utilise the ability of commuted
       sums to fund affordable housing schemes, projects and initiatives within the locality of
       the development site or within the sub market areas.

5.4    This may include, but does not limit, the use of these financial contributions to provide:


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      •        The purchase and refurbishment of long-term empty properties by a RSL, which
               will be managed as affordable housing

      •        Delivery of Mortgage Rescue;

      •        To top up any existing Social Housing Grant Scheme or match fund any other
               scheme to maximise their delivery;

      •        Development of Supported or Adapted Housing;

      •        Purchase of land for affordable housing;

      •        Any other method identified strategically that will increase the supply of
               affordable housing in the County.

5.5        Where the contributions secured would fund less than a whole dwelling, contributions
           can be pooled until sufficient funding has been secured for the provision of one or
           more dwellings. The provision of affordable units should then be provided in the
           same settlement as the application site. Should no suitable options for the provision
           of affordable housing be available within a specific settlement, provision should be
           made within the same sub-market area. If neither of the options is achievable within a
           period of three years, the Local Authority retains the right to spend the money
           elsewhere in the County. The Council will monitor the expenditure of received funds
           and make this information available should a request be submitted.


Proposals below the thresholds

5.6       The Deposit LDP policy AH1 states that ‘For residential sites which fall below the
          thresholds as stated above, the Council will seek a commuted sum contribution to
          support other affordable schemes within the county.’ The threshold is based on two or
          more dwellings and the commuted sum will take effect up to the thresholds until on-site
          provision is required.

5.7       It is considered in the main that developments on single plots are built for an
          affordable, local provision, which is commonly seen in all settlements within the
          county. It would be prudent therefore not to expect a contribution from self-build single
          plot developers.

5.8       However for developments of two or more dwellings on a site, all new market dwellings
          should be expected to make a contribution towards affordable housing provision, as at
          least one of those properties could be deemed to be developed for profit making,
          resulting in the provision of new dwellings being outside the scope for those seeking
          affordable units within their community.

5.9       This SPG recognises that a balance is required between the viability of small site
          developments and the need to provide an element of contributions for future affordable
          housing contributions. Due to the variance in house prices throughout the county a
          clear distinction is made between the charge in the lower viable areas and higher
          viable areas. These have been calculated separately in Appendix 5.




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5.10 Money will be pooled until sufficient funding is secured to develop an affordable unit or
     units within a larger scheme. The Local Authority will reserve the right to develop new
     units in conjunction with the sequential approach adopted in paragraph 5.5.

5.11 The Council will monitor the expenditure of received funds and make this information
     available should a request be submitted. The Council will also review the suitability of
     these commuted sums in light of market changes, and will be amended as, and when
     necessary.


Legal Agreements for on-site contributions, off-site contributions and
commuted sums

5.12 Developers will be required to enter into a legal agreement with the Authority that
     ensures that affordable housing will be available to local people in need and at an
     affordable rent or price for the lifetime of the home. A template legal agreement is
     provided in Appendix 6. To avoid unnecessary delay with the processing and
     negotiations within the planning application cycle, an application will not be validated
     until the following information is submitted as part of any planning application which
     falls within the remit of providing contributions.

       •     Certificate of Title – proof of ownership of all the property and/or land affected
             by the application site edged red, because planning obligations run with the
             land, all owners, lessees and mortgagees must be signatories;
       •     Details of the solicitor that will be handling the case;
       •     Any valuation to prove eligibility for reduced contributions, accompanied by
             information detailing how costs were derived;
       •     All other requirements outlined by the application form checklist


5.13 The County Council will seek contributions towards both the legal fees and
     administrative costs of planning obligations. Such costs will be relatively limited as a
     proportion of the overall contributions, but it will enable the County Council to resource
     the process effectively. In addition to meeting legal costs, such contributions will help
     to fund systems which manage and co-ordinate the process of handling applications
     liable to result in developer contributions from start to finish.

5.14 Should an application be approved subject to the signing of a Section 106 agreement,
     it should be determined within 9 months from the date of the resolution to approve.
     Should this not be forthcoming, the Local Planning Authority has the scope to refuse
     the application based on the non-completion of the S106 agreement.


6.    Design
6.1   Developers should refer to national guidance on design in Technical Advice Notes 12
      ‘Design’ and Tan 22 ‘Planning for Sustainable Buildings’ and to other relevant policies
      in the Local Development Plan.

6.2   Affordable housing should be fully integrated within a development in order to ensure
      that the units contribute towards the aim of achieving balanced and sustainable
      communities. Housing layouts should therefore be mixed and affordable dwellings

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should not be concentrated in one area of development, but dispersed in smaller
groupings.




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Appendix 2
Process
The information in this section sets out what a developer and planning officers should
consider when dealing with a planning application for housing.

Pre application – Developer

Step 1

•       Identify the site area
•       Identify the location of the site within a sub market area, and the affordable target that
        the Local Authority will look to achieve.
•       Indicate the number and type of market and affordable units to be provided on site.
•       Contact the Local Housing Authority for evidence of local need for affordable homes
        and for advice on the tenure split between rented and LCHO affordable housing.
•       The number and type of affordable rented and Low Cost Home Ownership dwellings
        required by the Authority
•       Contact the LPA and engage in Pre-application discussions and negotiations

Step 2

If you intend to sell on to a management company (either RSL or private) contact them for
an indication of:

• Willingness to purchase; and
• The price they will pay

Calculate the projected income from sales of market and affordable units.

Step 3

Calculate the viability of the scheme, taking into account costs, including required provision
of affordable housing units and other planning obligations, versus income;

Negotiate options with the land owner.

Step 4

    •    Draw up detailed proposals;
    •    Prepare an affordable housing statement;
    •    Certificate of Title – proof of ownership of all the property and/or land affected by the
         application site edged red. Because planning obligations run with the land, all
         owners, lessees and mortgagees must be signatories;
    •    Any valuation to prove eligibility for reduced contributions, accompanied by
         information detailing how costs were derived;
    •    All other requirements outlined by the application form checklist;
    •    Details of the solicitor that will be handling the case;
    •    Submit a planning application with all the supporting information set out above



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Post Submission of application – the LPA


Step 5
   •   Check that the scheme is in accordance with all relevant policies and SPG;
   •   Ensure the percentage and type of affordable housing is appropriate, and any agreed
       negotiations are highlighted by detailed evidence.
   •   Where individual properties and exception sites are proposed check housing
       needs survey and / or eligibility of nominees.

Step 6
   •   Check that the section 106 template matches the number and type of units required;

   •   Pass to legal officer to check that the agreement matches all requirements including
       for community infrastructure and / or community payments, phasing, DQR
       requirements etc.

Step 7
If all the above steps have been taken:

   •   Sign the section 106;
   •   Recommend for approval.

Post permission – the LPA

Step 8

   •   Check that the development is in accordance with the permission;
   •   Ensure that occupancy and phasing conditions are met;
   •   Ensure the transfer of homes to an RSL or management company if appropriate;
   •   Provide a list of affordable properties to estate agents and solicitors operating in the
       County.

Step 9 – The Local Housing Authority

   •   Nominate tenants for private rental and buyers for the Affordable units;
   •   Check the eligibility of any nominees that are not taken from the Common Housing
       Register.




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Appendix 3
Glossary

Affordable Housing                          The definition of ‘Affordable Housing’ for the
                                            purposes of the land use planning system is
                                            housing where there are mechanisms in
                                            place to ensure that it is accessible to those
                                            who cannot afford market housing, both on
                                            first occupation and for subsequent
                                            occupiers.
Benchmark Rents                             Rent levels set by the Welsh Government
                                            which are affordable.
Common Housing Register                     The register for people who wish to be
                                            considered        for     affordable     rented
                                            accommodation in Carmarthenshire owned
                                            by Carmarthenshire County Council or RSLs.
                                            Applicants are assessed and placed in
                                            bands on the register..
Design Quality Requirement                  Minimum space and technical standards
(DQR)                                       required of all affordable homes constructed
                                            with the benefit of Social Housing Grant.
                                            These standards are set by the Welsh
                                            Government.
Exception sites                             These are sites for 100% affordable housing
                                            to meet local needs, within or adjoining
                                            settlements, on sites where housing would
                                            not normally be permitted. Allowing housing
                                            on land with little or no development value
                                            can enable housing to be built at a low cost
                                            and sold or rented at affordable levels.
Low Cost Home Ownership                     Affordable Housing that is available to
(LCHO)                                      purchase at a price below what is provided
                                            on the open market. Low Cost Home
                                            Ownership homes in Carmarthenshire are
                                            available to purchase by eligible households.
                                            Prices vary according to the size of the
                                            property.
Nominations                                 Nomination agreements are used to ensure
                                            that the affordable housing units of the
                                            development are held for local people in
                                            affordable housing need. Those nominated
                                            for affordable housing should be listed on
                                            Common Housing Register which is
                                            operated by all social housing providers
                                            across the County.
Perpetuity                                  Affordable homes should remain affordable
                                            for the lifetime of the property. This has been
                                            described as “in perpetuity” for the purposes
                                            of this SPG.
Registered Social Landlord                  Registered Social Landlord (RSL) is the term
(RSL)                                       for a landlord registered with the Welsh
                                            Government. Most are Housing Associations

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                                              but they may also be trusts or co-operatives.
                                              They are run as not-for-profit businesses.
                                              Any surpluses are ploughed back into the
                                              organisation. They are run by committees or
                                              boards of management made up of
                                              volunteers.
                                              A typical board might include tenants, local
                                              authority members, business / professional
                                              people and representatives from voluntary
                                              organisations.
Section 106 Agreements                        A legal agreement made under section 106
                                              of the Town and Country Planning Act 1990,
                                              between a Local Planning Authority and the
                                              person, organisation or business that owns
                                              the land subject of a planning application,
                                              specifying, how various planning obligations
                                              are to be achieved. Section 106 agreements
                                              run with the land and apply to successive
                                              owners. The delivery of affordable housing
                                              will normally be through a section 106
                                              agreement as its future retention is often too
                                              complex to be suitable for inclusion within a
                                              planning condition.
Social Housing Grant                          The grant paid by the Welsh Government to
                                              Local Housing Authorities to aid the building
                                              of social housing programmes.
Viability                                     A development scheme is considered viable
                                              if overall revenue is greater than costs, by
                                              sufficient margin for the developer to make a
                                              reasonable profit and the landowner to be
                                              paid an acceptable residual value.
                                              Carmarthenshire County Council assesses
                                              the viability of development sites using the 3-
                                              Dragons Development Appraisal Toolkit
Welsh Housing Quality                         A standard set by the Welsh Government to
Standard (WHQS)                               ensure that dwellings are of good quality and
                                              suitable for the needs of existing and future
                                              residents. It relates to both existing and new
                                              dwellings.




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Appendix 4
Eligibility for Affordable Housing

The process and criteria for deciding who is eligible for affordable housing -
Clarification on how people get access to affordable homes for sale or intermediate rent.

How do people find out what’s available?
People must put their details on the Council’s Housing Choice Register. They can fill out a
form or apply on the Council’s website. The Local Housing Authority (LHA) will contact
people by their preferred method (letter, email, text) when affordable homes are coming up
in areas they have chosen. This applies to both homes for sale and for rent.

The LHA will also publicise affordable homes on the Council’s website, in Carmarthenshire
News, through press releases, on partner housing association websites, and through private
developers where relevant.

Who can buy an affordable home?
Applicants need to show that they cannot buy a home at full open market value, but that they
can get a mortgage and have money for a deposit and legal fees.

Applicants’ total household income before tax must be less than 3 times the open market
value price of the property.

 - Applicants must be a Carmarthenshire resident, work full-time in the County or have a long
standing local connection to Carmarthenshire such as immediate family within the area.

- Priority is given to Council and housing association tenants who live in Carmarthenshire

-The LHA do not set limits on how much of the purchase price comes from a mortgage and
how much from a deposit. Mortgage lenders will have minimum figures for a deposit.

-Applicants need to provide the Council with evidence that their savings and income are not
enough to buy a suitable home for their needs on the open market.

Applicants will not be considered if they:

- currently own or have a share in another home.

- are unwilling to provide details of their income, savings and mortgage.

- are a cash buyer.

Preference
The LHA will try to make best use of affordable homes available, and will do this in the
following way:



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   •   Specify a date by which people must tell us their income; any savings and
       demonstrate their ability to get a mortgage for the required amount. The date
       specified will be at least 2 weeks from the letter, but may be extended as appropriate,
       for example in the run-up to Christmas.

   •   If there are unsold homes after the specified date, people will be nominated who
       meet the eligibility criteria on a first-come, first-served basis.

       Size of home                                        Priority order

1 bed home                                      Couple or single person (equal priority)


2 bed home                                      1st Couple or adult & 1 child or 1 other
                                                family member

                                                2nd Couple

                                                3rd Single person

3 bed home                                      1st Couple or adult & 2 or more children or
                                                other family members

                                                2nd Couple or adult & 1 child or other
                                                family member or pregnant

                                                3rd Couple

4 bed home                                      1st Couple or adult & 3 or more children
                                                or other family members

                                                2nd Couple or adult & 2 or more children
                                                or other family members



   •   In the event of two or more families having the same priority for a home, the family
       nominated will be the family that applied on the housing choice register first.

Affordable homes for intermediate rent

This scheme aims to provide a housing solution to people who are in regular work, but are
unable to buy a house at the moment. This might be because they do not have a deposit, or
because their income is not high enough, or there may be problems with their credit score.
Rents are above social rents normally charged by the Council and housing associations, but
below open market rents. This is at or below 80% of the market rent, and normally within
Local Housing Allowance for the type of property. This is needed as a safeguard in case the


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tenant loses their income – they will be entitled to full Housing Benefit if they are fully
occupying the property.
This scheme could lead to low cost home ownership, as the housing association will sell for
below the open market value in the future, as long as the value has increased above the
cost of development.
To be eligible for the scheme, applicants must meet certain criteria – see below.

Eligibility
 - You must be a resident or be working full time in the County, or have a long standing local
connection to Carmarthenshire, such as immediate family within the area.

- Priority is given to Council and housing association tenants in Carmarthenshire

- You must be working at least 16 hours a week (or an average of 69 hours per calendar
month)

- Your income before tax should be a minimum of £15,000 a year. This figure can include
benefits other than Housing Benefit.

We will use the same priority order for household size as for low cost home ownership. In
the event of there being homes unallocated at the end of the marketing period, these should
be allocated according to the normal access to social housing policy.




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Appendix 5
Mechanism for pooling commuted sums on sites of two or more
dwellings up to the threshold levels

The following calculation indicates how commuted sums will be considered from sites of two
or more dwellings up to the threshold at which on-site contributions are required. Please
note that the commuted sum calculations on small sites differ from those required for on-site
developments as identified in paragraph 5.2.

Low viable areas

1.     An average cost of a typical 3 bedroom semi detached home in the lower viable
       areas as defined by the Affordable Housing Viability Study 2013 is £128,000.

2.     The average LCHO prices for those areas equates to £74,000.

3.     The difference between the values (£128,000 - £71,500) is £56,500. This notional
       figure is calculated from what a developer would receive from a Registered Social
       Landlord (RSL) on any large development over the thresholds.

4.     For onsite contributions, the target level is set at a 20%, as identified in Policy
       AH1 of the Deposit LDP, however in the interest of viability and the deliverability of
       development on smaller sites, a contribution through a 10% affordable target is
       reasonable in these lower viable areas.

5.     10% of £56,500 = £5,650

6.     The average size of a standard 3 bedroom property in these low viable areas is 92
       square metres.

7.     The cost of floor space therefore per dwelling would equate to £61.41 per square
       metre (£5,650 / 92sqm). For ease of reference, this is rounded to £60 per square
       metre.

High viable areas

1.     An average cost of a typical 3 bedroom semi detached home in the higher viable
       areas as defined by the Affordable Housing Viability Study is £155,000

2.     The average LCHO prices for those areas equates to £77,000.

3.     The difference between the values (£155,000 - £77,000) is £78,000. This notional
       figure is calculated from what a developer would receive from a Registered Social
       Landlord (RSL) on any larger development over the thresholds.

4.     For onsite contributions, the target level is set at a 30%, as identified in Policy
       AH1 of the Deposit LDP, however in the interest of viability and the deliverability of
       development on smaller sites, a contribution through a 10% affordable target is
       reasonable in these higher viable areas.

5.     10% of £78,000 = £7,800

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6.   The average size of a standard 3 bedroom property in these low viable areas is 92
     square metres.

7.   The cost of floor space therefore per dwelling would equate to £84.78 per square
     metre (£7,800 / 92sqm). For ease of reference, this is rounded to £85 per square
     metre.




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Appendix 6
Template Section 106 agreement

                                    AGREEMENT


DATE:


(1)     CARMARTHENSHIRE COUNTY COUNCIL whose Offices are at

        County Hall, Carmarthen Carmarthenshire (“the Council”)


(2)                                                            (“the Owner/s”)


(3)                                                          (“the Mortgagee”)


AGREEMENT:


1.      Definitions and interpretation

1.1     In this Undertaking and the Schedule the following words and

        expressions shall have the following meanings unless the context

        requires otherwise:-

        “the Act”                         the Town and Country Planning Act

                                          1990, as amended by the Planning and

                                          Compensation Act 1991;

        “the Council”                     the party so described at the head of

                                          this Agreement

        [“Disposition”                    means      Conveyance,       Transfer     of   the

                                          freehold Sale of Legal Interest, Lease

                                          Licence or Tenancy and transfer by way

                                          of gift and sale at undervalue and
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                                  assent of any of the dwellings to be

                                  constructed        on     the    Red   land       as

                                  authorised by the Planning Permission]


“the Mortgagee”                   the party so described at the head of

                                  this Agreement

“the Owner/s”                     the party/parties so described at the

                                  head of this Agreement

“the Plan”                        the plan annexed to this Agreement

“the Planning Application”        the    Planning         Application       for    the

                                  …………………………………………………

                                  …………………………………………………

                                  …………………………

“the Planning Permission”         the     Planning         Permission        granted

                                  pursuant to the Planning Application

                                  subject to the conditions contained

                                  therein and in the form of the draft

                                  annexed hereto


“the Red Land”                    the land shown edged red on the Plan

                                  and referred to in Planning Application

                                  No. ………………… dated …………………

                                  and known as ……………………………

“Same Settlement”                 the     Same Settlement of -----------as

                                  defined       in        the     Deposit         Local

                                  Development Plan
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        “Same Sub-Market Area”          the Same Sub Market Area of

                                        --------------     as      defined      in     the

                                        Carmarthenshire           County       Council’s

                                        Affordable Housing Viability Study 2013

                                        by reference to house price differentials

                                        and    areas     defined    by    reference     to

                                        postcode sectors or amalgams thereof

        “SPG”                           the Affordable Housing Supplementary

                                        Planning Guidance

1.2     Unless the context requires otherwise, references:-

1.2.1   to a Schedule or Clause are references respectively to a Schedule to

        or a Clause of this Agreement

1.2.2   in a Schedule to paragraphs are references to paragraphs of that

        Schedule

1.3     The expressions “the Council”, “the Owner/s” and “the Mortgagee”

        shall include their respective successors in title and assigns




2.      Statutory Authority

2.1     This Agreement is made in pursuance of Section 106 of the Act and it

        is hereby agreed that the obligations contained in Clause 4 and the

        Schedule shall be planning obligations for the purpose of Section

        106(9) of the Act

2.2     The Council is the enforcing authority for the purpose of Section

        106(9)(d) of the Act

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3.    Recitals

3.1   The Council is the Local Planning Authority for the purpose of the

      Act for the area within which the Red Land is situated

3.2   The Owner/s is/are the registered proprietor/s with Title Absolute of

      the Red Land subject to the matters referred to in the Charges

      Register(s) of Title Number(s)………………………… /owner/s in fee

      simple absolute in possession of the Red Land [by virtue of a

      conveyance dated the             day of

            and made between                               of the first part and the

      Owner/s of the second part] subject to the Legal Charge referred to

      in Clause 3.3


3.3   The Mortgagee is the Proprietor of the Registered Charge(s) contained

      in the Charges Register of the Title Number(s) referred to in 3.2

      above/a Legal Charge dated the ………… day of ………………………

      One thousand nine hundred and …………………… secured on the

      Red Land or part thereof in respect of the repayment of certain

      monies with interest thereon

3.4   Conditionally upon the Council granting the Planning Permission

      and the Owner/s implementing the Planning Permission the

      Owner/s and the Mortgagee hereby enter into the planning

      obligations contained in Clause 4 and the Schedule to this

      Agreement

4.    Obligations of the Owner/s and the Mortgagee

4.1   The provisions of this Clause 4 are conditional upon:-

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4.1.1   the grant of the Planning Permission by the Council; and

4.1.2   the implementation of any of the development authorised by the

        Planning Permission

4.2     Subject to the occurrence of both the events specified in Clauses

        4.1.1 and 4.1.2 the Owner/s and the Mortgagees enter into the

        following obligations with the Council that:-


4.2.1   the Red Land shall be subject to the covenant(s) regulating the

        development and the use of it specified in the Schedule


4.2.2   the Mortgagee agrees that the Red Land shall be bound by such

        covenant(s) and that the security of its legal charge(s) shall take

        effect subject thereto


4.3     No person shall be liable for any breach of this Clause 4 or be bound

        by any of the obligations contained in this Clause 4 or the Schedule

        in respect of any period during which he no longer has an interest in

        the Red Land or any part thereof

5.      The Owner/s hereby agree/s to apply to the Land Registrar for a

        restriction to be entered in the proprietorship register of the title to

        the Red Land with regard to the restrictions set out in the Schedule

        that


        “no disposition of the registered estate by a proprietor of a registered

        estate is to be registered without a certificate signed by the

        Carmarthenshire County Council, County Hall, Carmarthen that the

        provisions of the Schedule to a Section 106 Agreement dated the ----
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      day of ------- and made between -----------(1)---------------(2) and -------

      -------(3) have been complied with”


[Unregistered Land


5.    Acknowledgement for Production


      The Owner acknowledges the right of the Council to the production of

      the conveyance specified in Recital 3.2 above and to delivery of copies

      of it.


6.    Protection of Rights


      The Owner agrees to the Council registering a Land Charge under

      Section 2 of the Land Charges Act 1972 against the Owner’s title in

      order to protect the restrictions set out in the Schedule hereto]




6.    This Agreement is a Local Land Charge and shall be registered as

      such upon completion of this Agreement


7.    The Owner/s hereby agree/s to pay the Council’s legal fees of

      £……………… for the preparation of this Agreement




EXECUTED as a deed and delivered on the date set out at the head of this

Agreement




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THE SCHEDULE


 [The Owner/s covenant/s with the Council to pay to the Council the sum

 of ………………………………………………..(£……………………) towards the

 provision of Affordable Housing within the within the Same Settlement or

 if not applicable the Same Sub Market Area or within the area of the

 County of Carmarthenshire in accordance with Paragraph 5.5 of the SPG

 such payment to be made prior to the commencement of any development

 authorised by the Planning Permission] OR




 [The Owner/s covenant/s with the Council:-


1.     to pay to the Council the sum of ……………………………………………

       (£……………)towards the provision of Affordable Housing within the

       within the Same Settlement or if not applicable the Same Sub

       Market Area or within the area of the County of Carmarthenshire in

       accordance with Paragraph 5.5 of the SPG

2.     that the said payment of £………………shall be paid in …………..

       equal instalments of ………………………with the first instalment being

       paid to the Council [prior to the commencement of any development

       as authorised by the Planning Permission] [within 7 days of the

       Disposition or occupation whichever is the sooner of the first

       dwelling] and the [second] [each subsequent] instalment being paid

       to the Council within 7 days of the Disposition or occupation of the

       ………… dwelling whichever is the sooner] OR
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[ The Owner/s covenant/s with the Council:-


1.    to pay to the Council a commuted sum towards the provision of

      Affordable Housing within the within the Same Settlement or if not

      applicable the Same Sub Market Area or within the area of the

      County of Carmarthenshire in accordance with Paragraph 5.5 of the

      SPG and


2.    that the commuted sum referred to in Paragraph 1 above [shall be

      paid to the Council prior to the commencement of any development

      authorised by the Planning Permission] OR [ shall be paid to the

      Council in ………….. equal instalments of ………………………with the

      first instalment being paid to the Council [prior to the

      commencement of any development as authorised by the Planning

      Permission] [within 7 days of the Disposition or occupation

      whichever is the sooner of the first dwelling] and the [second] [each

      subsequent] instalment being paid to the Council within 7 days of

      the Disposition or occupation of the ………… dwelling whichever is

      the sooner]


      The amount of the commuted sum payable in Paragraphs 1 & 2

      above will be determined following the application for Reserved

      Matters Approval being submitted and approved by the Council and

      will be calculated in accordance with the following formula:-



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Total number of dwellings to be constructed on the Red Land multiplied by

 £------------]




THE COMMON SEAL of                      )


CARMARTHENSHIRE COUNTY                  )


COUNCIL was hereunto affixed as         )


a DEED in the presence of:-             )




___________________________________

HEAD OF ADMINISTRATION AND LAW




SIGNED and DELIVERED AS A DEED                  )


by the said………………………………….                       )


in the presence of:-                            )


Witness:


Address:




Occupation:



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SIGNED and DELIVERED AS A DEED                  )


by the said………………………………….                       )


in the presence of:-                            )


Witness:


Address:




Occupation:




THE COMMON SEAL of                              )


…………………………………………………                             )


was hereunto affixed as a DEED                  )


in the presence of:-                            )




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                       Draft Affordable Housing Supplementary Planning Guidance – July 2013
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