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5.1
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Although there are a number of ways of delivering affordable housing, the Housing Needs Study supports the view that provision of Housing for rent through an RSL is the best way to address the needs of the majority of those unable to buy on the open market. Furthermore it is important that the benefits arising from affordable housing provision continues to be available to subsequent purchasers. The recommended way to ensure this is through provision of affordable dwellings on site with the involvement of Registered Social Landlords. (RSL).
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5.2
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There are a number of RSLs operating within the city who may be suitable partners in any development a list of these are attached at Appendix E. The Housing Department with the Housing Corporation have established a Plymouth Housing Partnership for Plymouth with all RSLs who manage and develop within the City. This partnership provides a framework for RSLs to operate in more formally structured area or programme based partnerships. Developers are therefore urged to discuss potential partnership arrangements with the Housing Department at the earliest opportunity.
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5.3
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In all cases the RSL should be involved at the earliest stages of discussion, in order to ensure that the development is providing the type and size of accommodation which is required. Discussions with the developer the RSL and the City Council will determine the best form of tenure to best meet the local housing needs In addition any RSL as a partner in the development will be required to be party to any subsequent planning agreement.
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5.4
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Where affordable housing is provided on site, as is the preference, this should comprise a mixture of house types and sizes, and be similar in design and materials to the development of which it forms part. The affordable units should not be placed on the least desirable part of the site, but distributed in agreement with the LPA, and the RSL partner.
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5.5
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Shared equity and shared ownership schemes are normally but not necessarily always delivered in partnership with RSLs. Shared equity schemes involve the RSL retaining a share of the property, whilst shared ownership enables an occupier to part rent part buy until they can afford to buy it outright. Property to at least the value of that which would be provided using the TCI method will be expected to be made available.
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5.6
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In order to help to simplify negotiations, and to speed the planning application process, developers are encouraged to contact the City Council with RSL partners, prior to the submission of a planning application.
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5.11
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Whilst the Government state that the presumption should be for on site provision, there may be instances where the developer and the Authority agree that it may be preferable to make provision off site. An example of such a case would be where there is already a predominance of a particular type tenure and an alternative is desirable in the interests of balanced communities. This could be either through provision of land or buildings elsewhere in the city, or as a financial contribution (commuted sum).
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5.12
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The value of the off site contribution should be no less than the value of the development if it were to be provided on site. It may also be appropriate to require a slightly higher contribution in such cases to account for the potential increase in property for sale, and increased sales value that is likely to arise as a result of not having affordable development on site. In addition there may be a cost to the LPA in finding alternative sites or houses.
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5.13
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Commuted payments should normally be made in full prior to the occupation of 50% the development to which it relates.
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5.14
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The method of calculation in the case of off site contributions or in valuing on site affordable contributions will be based on the Housing Corporation Total Cost Indicators. (TCI), and grant rates. The developer will be expected to make a financial contribution equal to 55% TCI appropriate to the type and number of dwellings proposed. An example of how such a contribution would work together with the latest information on TCI, and rates are attached at Appendix F.
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5.15
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The amount of contribution or of affordable housing will normally be in line with the above guidelines, however allowances may need to be made depending upon the cost of developing the site, and the amount of other infrastructure or community requirements. The local authority will therefore be prepared to negotiate on the level of its requirements if three are justifiable reasons for doing so which might prejudice the development.
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5.16
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The City Council realise that the 69% target or 5620 dwellings for the provision of affordable housing, as suggested by the Housing Needs Study is ambitious. The modified First Deposit Local Plan, Policy 34 identifies target of 2130 affordable dwellings to be provided within the plan period. It is accepted that even this is an ambitious target, particularly as the majority of local plan residential allocations are on previously developed sites which are likely to have high development costs. The Adopted plan has a 25 dwelling threshold, but has a target of 25 % affordable dwellings. As the deposit plan is in the early stages of its adoption process, and Policy 34 is the subject of a number of representations, the adopted plans targets will be used until the policies of the deposit plan have been more thoroughly tested.
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