affordable housing viability assessment
Affordable Housing Viability Assessment. AUV of the land may be informative in establishing benchmark land value. This could be through the use of on-site signage, local authority websites, or development-specific websites, for example. EUV is the value of the land in its existing use. Annual Monitoring Reports assess the effectiveness of the London Plan. The role for viability assessment is primarily at the plan making stage. For all applications where the proposal does not meet policy compliant requirements or developer contributions and this is being justified on viability grounds a detailed viability assessment is required to be submitted with the planning application. 1.3 As a consequence the Inspector stated that: ‘It may be necessary for the Council to revise STU/51 to look at alternatives which will be clearly viable in … This is a dynamic search form and results will populate below the input as you type. Gross development value is an assessment of the value of development. In March 2012, Uttlesford District Council requested that Levvel undertake an 'update' of the Affordable Housing Viability Assessment (Levvel, August 2010) [2.62MB] in order to assess: 1. Latest report and previous versions available. Market evidence can include benchmark land values from other viability assessments. Viability assessments are financial appraisals of the amount of profit a developer can expect to make on a scheme. Affordable Housing Economic Viability Assessment - 2009. Policy compliant means development which fully complies with up to date plan policies. Where this is necessary the costs of such specialist advice will be additional to the GLA officer costs. A viability assessment is not just about affordable housing on market sites, a viability report can also be used for a range of other development issues such as justifying a minimum site density, enabling development to fund the retention of a historic existing building or making the case a particular tenure mix on a … Paragraph: 018 Reference ID: 10-018-20190509. Sources of data can include (but are not limited to): land registry records of transactions; real estate licensed software packages; real estate market reports; real estate research; estate agent websites; property auction results; valuation office agency data; public sector estate/property teams’ locally held evidence. Paragraph: 006 Reference ID: 10-006-20190509. When is an affordable housing financial viability assessment required? See related policy: National Planning Policy Framework paragraph 34, Paragraph: 001 Reference ID: 10-001-20190509, Revision date: 09 05 2019 See previous version. The Department for Education has published guidance for local education authorities on developer contributions for education. Further details regarding the Mayor’s approach to affordable housing and viability in the Mayor's intend to publish London Plan and Affordable Housing and Viability Supplementary Planning Guidance are available here . We also use cookies set by other sites to help us deliver content from their services. Plan makers should establish a reasonable premium to the landowner for the purpose of assessing the viability of their plan. Plan makers can set out in which circumstances alternative uses can be used. Added new paragraph 029. It is the role of developers, not plan makers or decision makers, to mitigate these risks. The premium should provide a reasonable incentive for a land owner to bring forward land for development while allowing a sufficient contribution to fully comply with policy requirements. In particular the Council has requested this study assesses: An Affordable Housing Viability Assessment (AHVA) was commissioned by the council in 2010. This National Planning Guidance sets out the government’s recommended approach to viability assessment for planning. It will also help us if you tell us which assistive technology you use. an informed assessment of the viability of any such percentage figure is a central feature of the Planning Policy Statement (PPS3) on affordable housing. Information from other evidence informing the plan (such as Strategic Housing Land Availability Assessments) can also help to inform viability assessment. Affordable Housing Viability Assessment – Additional Analysis. The Charnwood Affordable Housing Viability Assessment 2018 provides an assessment of viability to inform the development of affordable housing policies in the new Charnwood Local Plan. Local authorities are required to keep a copy of any planning obligation together with details of any modification or discharge of the planning obligation and make these publicly available on their planning register. Viability assessment should not compromise sustainable development but should be used to ensure that policies are realistic, and that the total cumulative cost of all relevant policies will not undermine deliverability of the plan. This will be an iterative process informed by professional judgement and must be based upon the best available evidence informed by cross sector collaboration. Viability assessments should be undertaken using benchmark land values derived in accordance with this guidance. ANALYSIS: A recent High Court judgment gives important guidance on valuation evidence for the purposes of viability assessments in planning applications and appeals. From 1st February 2020 an upfront payment of £10,000 plus VAT is required to meet the cost of case officer project management, specialist viability officer review and management team input. It is the responsibility of site promoters to engage in plan making, take into account any costs including their own profit expectations and risks, and ensure that proposals for development are policy compliant. Authorities can charge a monitoring fee through section 106 planning obligations, to cover the cost of monitoring and reporting on delivery of that section 106 obligation. Paragraph: 014 Reference ID: 10-014-20190509. Policy requirements, particularly for affordable housing, should be set at a level that takes account of affordable housing and infrastructure needs and allows for the planned types of sites and development to be deliverable, without the need for further viability assessment at the decision making stage. In order to establish benchmark land value, plan makers, landowners, developers, infrastructure and affordable housing providers should engage and provide evidence to inform this iterative and collaborative process. Paragraph: 027 Reference ID: 10-027-20180724. It is based upon the contribution that the developer would have made if an on-site affordable … approach to local Affordable Housing policies. Any local authority that has received developer contributions is required to publish an infrastructure funding statement at least annually. Paragraph: 028 Reference ID: 10-028-20180724. However it is likely that if such a study were done, it Under no circumstances will the price paid for land be relevant justification for failing to accord with relevant policies in the plan. Affordable Housing Viability Assessment. However, in all cases, monitoring fees must be proportionate and reasonable and reflect the actual cost of monitoring. These costs should be taken into account when defining benchmark land value, general finance costs including those incurred through loans, professional, project management, sales, marketing and legal costs incorporating organisational overheads associated with the site. It will take only 2 minutes to fill in. Paragraph: 017 Reference ID: 10-017-20190509. A decision maker can give appropriate weight to emerging policies. Paragraph: 008 Reference ID: 10-008-20190509. As can be imagined, nearly all developers opt to submit a ‘financial viability assessment’. The Viability Study will be used by the Council to inform the development of policies in its Core Strategy, Local Plan or other Local Development Documents. Information used in viability assessment is not usually specific to that developer and thereby need not contain commercially sensitive data. In decision making, the cost implications of all relevant policy requirements, including planning obligations and, where relevant, any Community Infrastructure Levy (CIL) charge should be taken into account. For the purpose of viability assessment alternative use value (AUV) refers to the value of land for uses other than its existing use. Paragraph: 004 Reference ID: 10-004-20190509. Updated viability planning practice guidance makes it clear that development plans should set out what contributions should be expected from a development, including the levels and types of affordable housing … This is a background document produced to look at the economic viability of providing affordable housing on a range of sites in the Borough. For viability assessment of a specific site or development, market evidence (rather than average figures) from the actual site or from existing developments can be used. The Council wishes to assess the viability of a range of policy options for the delivery of affordable housing to inform the emerging Local Development Framework (LDF) policies. This might include information relating to negotiations, such as ongoing negotiations over land purchase, and information relating to compensation that may be due to individuals, such as right to light compensation. use values, a higher affordable housing quantum is more likely to be viable. Affordable Housing Viability Assessments Affordable Housing can be a significant cost to Residential and Mixed Use development schemes and providing Affordable Housing in compliance with the Local Authority’s target can render some development schemes unviable. In particular, we will be addressing those core policies that are concerned with affordable housing and sustainability. Any viability assessment should be supported by appropriate available evidence informed by engagement with developers, landowners, and infrastructure and affordable housing providers. Local authorities can request data on the price paid for land (or the price expected to be paid through an option or promotion agreement). Paragraph: 005 Reference ID: 10-005-20180724. Existing use value is not the price paid and should disregard hope value. Plan makers may then revise their proposed policy requirements to ensure that they are creating realistic, deliverable policies. The weight to be given to a viability assessment is a matter for the decision maker, having regard to all the circumstances in the case, including whether the plan and viability evidence underpinning the plan is up to date, and site circumstances including any changes since the plan was brought into force, and the transparency of assumptions behind evidence submitted as part of the viability assessment. This is where the justification is on the grounds of financial viability. These costs should be taken into account when defining benchmark land value, the total cost of all relevant policy requirements including contributions towards affordable housing and infrastructure, Community Infrastructure Levy charges, and any other relevant policies or standards. As the potential risk to developers is already accounted for in the assumptions for developer return in viability assessment, realisation of risk does not in itself necessitate further viability assessment or trigger a review mechanism. These policy requirements should be informed by evidence of infrastructure and affordable housing need, and a proportionate assessment of viability that takes into account all relevant policies, and local and national standards, including the cost implications of the Community Infrastructure Levy (CIL) and section 106. Affordable Housing Viability Assessment Prepared for London Borough of Ealing October 2010 . This could include, for example, large sites, sites that provide a significant proportion of planned supply, sites that enable or unlock other development sites or sites within priority regeneration areas. For information on what an infrastructure funding statement must contain see ‘What data should be in an infrastructure funding statement?’. When is an affordable housing financial viability assessment required? In plan making and decision making viability helps to strike a balance between the aspirations of developers and landowners, in terms of returns against risk, and the aims of the planning system to secure maximum benefits in the public interest through the granting of planning permission. The viability assessment of recommended affordable housing contribution rates was premised on the equivalent monetary contribution of affordable housing.