Agenda item

(Minute 88)

The report of the Assistant Director City Development was submitted, seeking Executive’s support for the adoption of the Exeter Community Infrastructure Levy (CIL) and for revision of the Affordable Housing Supplementary Planning Document (SPD) that was adopted in February 2013.

The Assistant Director City Development advised that the Community Infrastructure Levy would be a new form of charge that allows authorities to raise funds from developers and would replace Section 106 Agreements in respect of strategic infrastructure although the latter could still be used for securing affordable housing and site specific elements in association with developments.

The Community Infrastructure Levy Examiner had found that the City Council should seek 35% affordable housing as well as charging the proposed residential CIL rate of £80 per square metre. Whilst the requirement for 35% affordable housing would be applied irrespective of the recently adopted Affordable Housing SPD's stated interim figure of 25%, it would be more transparent to remove reference to 25% from the SPD.  Instead it was proposed that the whole of the SPD be revoked and replaced with an amended version and this would be brought forward in due course.

The Assistant Director City Development advised of an amendment to the implementation date of 1 December 2013.

Councillor Leadbetter spoke on this item under Standing Order no.44. He raised concerns regarding the 35% affordable housing contributions and the unintended consequences of this putting off developers, questioned how the distribution of CIL would be decided; and if the items on the list could be added to.

The Assistant Director clarified that the Regulation 123 list could be changed and the Council was at liberty to revise it at any time although monies could still be secured through a Section 106 Agreement for more site specific infrastructure projects.  

Members discussed the 35% affordable housing contribution and the need to ensure that this did not deter development coming forward; who and how the CIL funds would be allocated; District Heating Systems and if they should be included on the Regulation List 123.

The Chief Executive & Growth Director highlighted the challenges ahead of how and when to allocate the capital receipts and that the cost of any infrastructure required may exceed the value of the funds at any one given time. Governance arrangements for CIL funds would be brought to Executive in due course. He advised that, whilst District Heating Systems were desirable, they were not essential.

The Assistant Director City Development clarified that if a District Heating System would be an advantageous on a site the monies could still be collected through a Section 106 Agreement as site specific infrastructure.

The Portfolio Holder for City Development thanks officers for their hard work undertaken on the CIL.

The Portfolio Holder for Housing and Customer Access proposed an amendment to

recommendation F that the Portfolio Holders for Housing and Customer Access and City Development be delegated authority to agree amendments to paras 3.8-10 of the Draft SPD (P82-3) with regard to affordable housing mix plus any consequential amendments such as the example in appendix 3 (P89-90). This was to ensure that the right mix of affordable housing was achieved given the Council’s needs at the time and was agreed.

Executive recommended that Council notes and approves:-

a)         the Community Infrastructure Levy Charging Schedule at Appendix 1 for adoption and implementation from 1 December 2013; and

Executive resolved that:-

b)         the Payment Schedule at Appendix 2 for implementation in conjunction with the Charging Schedule be approved;

c)         the Regulation 123 List at Appendix 3 as a list of infrastructure that the Council intends to provide funding support for through CIL be approved;

d)         the requirement for 35% affordable housing on sites of 3 dwellings or more apply to all relevant approvals of planning permission, except where there has been a Planning Committee resolution to grant planning permission, be approved. Subject to where such a resolution has been passed, the requirement applies if planning permission has not been granted before the date on which the Community Infrastructure Levy is implemented;

e)         the Council continue to apply the February 2013 Affordable Housing SPD except paragraphs 3.4 - 3.6 and in other instances where 25% affordable housing and a threshold of 15 dwellings are mentioned; and

f)          the revised Affordable Housing Supplementary Planning Document at Appendix 4 for public consultation with the intention of replacing the current version be approved and that the Portfolio Holders for Housing and Customer Access and City Development be delegated authority to agree amendments to paras 3.8-10 of the Draft SPD (P82-3) with regard to affordable housing mix plus any consequential amendments such as the example in appendix 3 (P89-90)

The report of the Assistant Director City Development was submitted, seeking Executive’s support for the adoption of the Exeter Community Infrastructure Levy (CIL) and for revision of the Affordable Housing Supplementary Planning Document (SPD) that was adopted in February 2013.

The Assistant Director City Development advised that the Community Infrastructure Levy would be a new form of charge that allows authorities to raise funds from developers and would replace Section 106 Agreements in respect of strategic infrastructure although the latter could still be used for securing affordable housing and site specific elements in association with developments.

The Community Infrastructure Levy Examiner had found that the City Council should seek 35% affordable housing as well as charging the proposed residential CIL rate of £80 per square metre. Whilst the requirement for 35% affordable housing would be applied irrespective of the recently adopted Affordable Housing SPD's stated interim figure of 25%, it would be more transparent to remove reference to 25% from the SPD.  Instead it was proposed that the whole of the SPD be replaced with an amended version and this would be brought forward in due course.

The Assistant Director City Development advised of an amendment to the implementation date of 1 December 2013.

Councillor Leadbetter spoke on this item under Standing Order no.44. He raised concerns regarding the 35% affordable housing contributions and the unintended consequences of this putting off developers, questioned how the distribution of CIL would be decided; and if the items on the list could be added to.

The Assistant Director clarified that the Regulation 123 list could be changed and the Council was at liberty to revise it at any time although monies could still be secured through a Section 106 Agreement for more site specific infrastructure projects.  

Members discussed the 35% affordable housing contribution and the need to ensure that this did not deter development coming forward; who and how the CIL funds would be allocated; District Heating Systems and if they should be included on the Regulation List 123.

The Chief Executive & Growth Director highlighted the challenges ahead of how and when to allocate the capital receipts and that the cost of any infrastructure required may exceed the value of the funds at any one given time. Governance arrangements for CIL funds would be brought to Executive in due course. 

The Assistant Director City Development clarified that if a District Heating System would be an advantageous on a site the monies could still be collected through a Section 106 Agreement as site specific infrastructure.

The Portfolio Holder for City Development thanks officers for their hard work undertaken on the CIL.

The Portfolio Holder for Housing and Customer Access proposed an amendment to

recommendation F that the Portfolio Holders for Housing and Customer Access and City Development be delegated authority to agree amendments to paras 3.8-10 of the Draft SPD (P82-3) with regard to affordable housing mix plus any consequential amendments such as the example in appendix 3 (P89-90). This was to ensure that the right mix of affordable housing was achieved given the Council’s needs at the time and was agreed.

RECOMMENDED that Council:-

a)         approves the Community Infrastructure Levy Charging Schedule at Appendix 1 for adoption and implementation from 1 December 2013;

RESOLVED that:-

b)         the Payment Schedule at Appendix 2 for implementation in conjunction with the Charging Schedule be approved;

c)         the Regulation 123 List at Appendix 3 as a list of infrastructure that the Council intends to provide funding support for through CIL be approved;

d)         the requirement for 35% affordable housing on sites of 3 dwellings or more apply to all relevant approvals of planning permission, except where there has been a Planning Committee resolution to grant planning permission, be approved. Subject to where such a resolution has been passed, the requirement applies if planning permission has not been granted before the date on which the Community Infrastructure Levy is implemented;

e)         the Council continue to apply the February 2013 Affordable Housing SPD except paragraphs 3.4 - 3.6 and in other instances where 25% affordable housing and a threshold of 15 dwellings are mentioned; and

f)          the revised Affordable Housing Supplementary Planning Document at Appendix 4 for public consultation with the intention of replacing the current version be approved and that the Portfolio Holders for Housing and Customer Access and City Development be delegated authority to agree amendments to paras 3.8-10 of the Draft SPD (P82-3) with regard to affordable housing mix plus any consequential amendments such as the example in appendix 3 (P89-90)

(Report circulated)