Issue - items at meetings - s106 Developer Contributions Technical Guidance - update

Report of the Executive Director for Economy, Environment & Culture (copy attached).

RESOLVED:

i)             That the Committee approves the updated Developer Contributions Technical Guidance attached as Appendix 1.

ii)            That the Committee authorises officers to annually update the figures within the Affordable Housing Schedule of Commuted Sums Payments in accordance with advice received from the District Valuer and allow this Schedule to be included as a separate Appendix in the updated Developer Contributions Technical Guidance and viewed via a webpage link within the main document.

63.1      The Committee considered a report of the Executive Director for Economy, Environment & Culture in relation to s106 Developer Contributions Technical Guidance – Update. The report further updated the Developer Contributions Technical Guidance that set out how and when Section 106 developer contributions were sought on new development proposals. The Technical Guidance approved by the Committee on 16 June 2016 (first approved by Cabinet 17 February 2011) now required further update to provide wider clarification and advice in respect of contributions sought for Affordable Housing and Local Employment.

63.2      In response to Councillor Morris it was explained that developers always had the option to challenge the level of contributions on the basis of viability, this was assessed by the District Valuer.

63.3      Councillor Nemeth noted that the Conservative Group could not support the report on the basis of the contributions for schemes with five to nine units.

63.4      In response to Councillor Allen it was explained that commuted sums were an option on sites of 10-13 units where it was not always practical to have one or two managed units. The policy was worded to be on sliding scale, such that, there was an expectation that on larger sites of 14 units or over the units would be provided on site; as you moved down the scale there was recognition that it was difficult to manage fewer units with a registered provider.

63.5      In response to Councillor Druitt the following was explained. Commuted sums could be used where management with impractical, and could be put towards Council owned housing; before a commuted sum route was agreed the Council would ask the developer to prove that the option to provide housing on the site had been explored in full. Where developers were not able to achieve 40% affordable housing (as set out in policy) they had to undertake a vigorous, independently assessed process. Some authorities in London had moved towards disclosure of studies by the District Valuer a validation requirement; the Council was currently exploring this option.

63.6      Councillor Cattell noted the excellent work under by Planning Officers in relation to viability, and highlighted the difficulties of achieving rented, rather than shared ownership, units on a development with a small number of units.

63.7      Councillor Druitt proposed an additional recommendation that a report be brought to a future meeting on the work that had been undertaken in relation to mandatory disclosure of viability assessments.

63.8      The amendment was seconded by Councillor Greenbaum.

63.9      The Chair put the proposed amendment to the vote. It was not carried.

63.10   The Chair then put the recommendations to the vote. These were carried.

63.11   RESOLVED:

i)          That the Committee approves the updated Developer Contributions Technical Guidance attached as Appendix 1.

ii)        That the Committee authorises officers to annually update the figures within the Affordable Housing Schedule of Commuted Sums Payments in accordance with advice received from the District Valuer and allow this Schedule to be included as a separate Appendix in the updated Developer Contributions Technical Guidance and viewed via a webpage link within the main document.