Affordable Housing Policy
Contents:
1. Planning Policy Statement: Housing
2. Background Information on Arun's Affordable Housing Policy
3. West Sussex Viability Toolkit
4. Arun's Affordable Housing Policy
5. Affordable Housing Legal Agreement Template 1-6 Units
1. Planning Policy Statement 3: Housing
PPS3 was published in November 2006. This introduced a national indicative minimum site size threshold for affordable housing of 15 dwellings. However, Local Planning Authorities may set lower thresholds where viable and practical.
PPS3 states that when making planning decisions for housing developments after 1st April 2007 Local Planning Authorities should have regard to the policies in this statement as material considerations which may supersede the policies in existing development plans.
PPS3 states that an informed assessment of the economic viability of any thresholds and proportions of affordable housing proposed should be undertaken. New evidence on affordable housing viability has been published in the report on ‘Affordable Housing Options - Viability Study Update 2009/10’.
You can view this report through the following link: Arun Affordable Housing Viability Study Update 2010.
2. Background Information on Arun’s Affordable Housing Policy
Arun District experiences high levels of housing need. Affordability is a major issue in the District due to the relationship between price and income. The housing market therefore excludes many people seeking access to housing in the district. As at 1st April 2010, 3,471 households were on the Council’s Housing Register. The Housing Needs Study considers housing needs in the District.
For further information about housing need in the Arun district please view the Housing Needs Study through the following links.
Sub-Regional Strategic Housing Market Assessment [pdf] 2MB
The Council has previously accepted that there will be circumstances where an on site provision of affordable housing is neither suitable nor possible and either off-site provision or a financial contribution may be considered appropriate. Where the Council confirms a commuted sum satisfies the policy conditions and is acceptable this will normally be agreed as part of the pre-application discussions.
The methodology for calculating the commuted sum is set out Appendix 11h of the Arun District Council Affordable Housing Options - Viability Study Update 2009/10 Final Report 2010. This was prepared by Adams Integra. In this methodology the Council makes use of a residual valuation method to assess any viability issues. The Council makes standard viability assumptions from site specific data collected by our consultants Adams Integra in 2010.
The following link shows the information on commuted sums in each Parish in the Arun district: Commuted Sums by Parish.
Please note all applications for permanant residential dwellings will attract an affordable housing contribution.
3. West Sussex Viability Toolkit
West Sussex Viability Toolkit Guidance Notes - August 2011
West Sussex Toolkit - August 2011
Due to compatibility issues please save the completed Toolkit as a 2003 Excel document.
If you have any queries regarding the toolkit please contact Andy Elder via telephone, mobile or email:
Tel: 01903 737714
Mobile: 07872415895
E-mail: andy.elder@arun.gov.uk
4. Arun’s Affordable Housing Policy
The Council has revised its standards for Affordable Housing. On 18 August 2010 the Council resolved that:
1. The following interim approach towards the provision of affordable housing in accordance with Planning Policy Statement 3 (
(i) the Council will seek affordable housing provision on new housing developments in accordance with
(ii) the following be adopted by way of guide figures for the purposes of negotiation, to be read in conjunction with Arun Local Plan Policy DEV17:
(a) from developments of 15 or more units an affordable housing provision of 30% across the board should be required of developments; and
(b) from developments of 1 to 14 units an affordable housing provision of 15% be sought district wide, subject to further research to ensure this is financially viable.
2. In order to introduce a degree of certainty and transparency in discussions with developers a ‘capping clause’ be sought in Section 106 agreements regarding the value of land and property sold by a developer to a Registered Social Landlord. It is proposed that this will seek that the owner or developer make an offer to a RSL. This shall include:
(a) Sale of land contract.
(b) A Draft Transfer.
(c) A price of 45% of open market value at time of offer.
Further information on the rationale for the policy is available in Arun’s Housing Strategy ’Raise the Roof’.
Please view Arun’s Housing Strategy and Enabling pages in the following link: Housing Strategy and Enabling.
5. Affordable Housing Legal Agreement Template 1-6 Units
The Council’s affordable housing policy applies to the creation of one or more residential units. For smaller proposals of 1-6 units which do not attract any other forms of planning obligation the Council has produced a simple legal agreement template.
The intention is for Applicants/Agents if they so wish to complete their own legal agreements by downloading the following documents:
- Template legal agreement [doc] 62KB
- Instructions for completion of the agreement [pdf] 44KB
- Commuted Sums by Parish [pdf] 18KB
You will need to look at the commuted sum by Parish matrix. This will identify what levels of contribution is required for what types of housing by Parish.
Once you have completed the legal agreement, please submit it with your planning application. You will need to send a cheque for £200. Alternatively you can still instruct legal services to draft the entire legal agreement in which case the fee would be £450.
Failure to provide a signed legal agreement will mean that planning applications submitted for between 1-6 units will be held invalid until receipt.
If you have any questions or queries regarding the completion of the legal agreement please contact Delwyn Jones, the Council’s Planning Solicitor on ext 37737.