Deducting demolitions from a site with market and affordable housing

Planning Advisory Service (PAS)

Open group | Started - July 2012 | Last activity - Yesterday

Former Member, modified 8 Years ago.

Deducting demolitions from a site with market and affordable housing

Hi All

We are in pre-app discussion with a developer and there is dispute about how demolitions are deducted from a development containing both market housing (MH) and affordable housing (AH). Let’s say the MH = 2,000m2, the AH = 500m2, the demolitions = 1,000m2 and the rate is £50m2.

a) If the demolitions are deducted from the total floorspace (2,500m2) that leaves 1,500m2 for calculating CIL: 1,500 x £50 = £75,000. The developer then claims relief for the 500m2 of AH so the CIL payable is: 1,000 x £50 = £50,000.

b) If the demolitions are deducted in proportion to the MH and AH, (ie. 4:1), then we deduct 800m2 of demolitions from the MH leaving 1,200m2 for calculating CIL: 1,200 x £50 = £60,000. Then we deduct 200m2 of demolitions from the AH leaving 300m2 for calculating CIL. The developer will claim relief anyway so the CIL payable is as for the MH, ie. £60,000.

The developer says it should be (a), we say (b).

Who is correct?

Tim.

Former Member, modified 8 Years ago.

RE: Deducting demolitions from a site with market and affordable housing

We have been apportioning demolition floorspace between the market and affordable floorspace as we believe that is the way the Regs are supposed to work - and that should work correctly in a clawback situation .

Alison

Former Member, modified 8 Years ago.

RE: Deducting demolitions from a site with market and affordable housing

Thanks Alison - makes sense regarding the clawback. Also, we have apportioned demolitions across mixed use in the past (eg. retail/residential) which is why we propose to do the same for MH/AH.

Does everybody else do it this way?

Tim.

Former Member, modified 8 Years ago.

RE: Deducting demolitions from a site with market and affordable housing

Thinking back there was a CIL Relief Information document back in 2011 that suggested that methodology which is why we adopted it in the first place... but of course the Regulation clauses have been varied since then.

Alison

Former Member, modified 8 Years ago.

RE: Deducting demolitions from a site with market and affordable housing

I wasn't aware of this document and it would certainly help my cause if the subsequent variations to the Regs have not affected the basic assumptions of the methodology.

Can anybody else confirm that this is the right way to deduct the demolitions?

Tim.

Former Member, modified 8 Years ago.

RE: Deducting demolitions from a site with market and affordable housing

I agree with b) that deductions should be proportional otherwise a developer will always unfairly take the deductions from the use with the highest charge. This is certainly how Uniform deals with the CIL Regs formula:-

Total Demolition: 1000sqm

Liability Calculation:

Market Housing 2000 sqm - Chargeable Area 1200sqm (Charge 1200sqm x £50)

Social/Affordable Housing 500sqm - Chargeable Area 300sqm (Social Housing Relief granted for 300sqm x £50)