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Contents Page - Issue 17 - Affordable Housing

1. Schedule 4

2. Representations

Homes for Scotland (CLDP041k)
GVA James Barr for Diageo Scotland Ltd. (CLDP061b)
Dollar Community Council (CLDP077d)
Muckhart Community Council (CLDP174h)

3. Supporting Documents

CD001 Scottish Planning Policy (February 2010)
CD012 Planning Advice Note 2/2010 - Affordable Housing and
Housing Land Audits (August 2010)
CD016 Letter from Chief Planner 'Planning for Affordable Housing'
(15th March 2011)
CD039 Proposed Supplementary Guidance 5 - Affordable Housing
(November 2013)
CD050 Clackmannanshire Council Housing Needs and Demand
Assessment 2011
CD051 Clackmannanshire Council Housing Needs and Demand
Assessment Summary 2011
CD053 Clackmannanshire Housing Strategy 2012-2017
SD16 Homes for Scotland (CLDP041k) - Cover Letter
SD18 GVA James Barr for Diageo Scotland Ltd. (CLDP061b) -
Supporting Statement
SD19 GVA James Barr for Diageo Scotland Ltd. (CLDP061b) -
Supporting Documentation




















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Issue 17 Affordable Housing
Development Plan
reference:
Policy SC2 - Affordable Housing
(Page 38)
Reporter:
Body or person(s) submitting a representation raising the issue
(including reference number):

Homes for Scotland (CLDP041k)
GVA James Barr for Diageo Scotland Ltd. (CLDP061b)
Dollar Community Council (CLDP077d)
Muckhart Community Council (CLDP174h)

Provision of the development
plan to which the issue relates:
Policy detailing how Affordable Housing
will be delivered through the LDP.
Planning Authoritys summary of the representation(s):

Homes for Scotland (CLDP041k) believe that the Policy should be re-written
as it is currently confusing. It is unclear whether the policy kicks in for all
residential developments above 1 housing unit or if there is another threshold
between 1 unit and 20 units. It is unrealistic to require the affordable element
to be fully completed and made available for occupancy before the final 25%
of the open market housing is released for sale. The affordable housing
element is usually subject to the availability of Scottish Government funding
and the delivery of market housing can not be delayed because of this. The
Chief Planners letter dated March 2011 (CD016) is clear on this and this
requirement of the policy is an unnecessary burden, which penalises market
housing providers, and must be removed. SPP (paragraph 87) (CD001)
makes clear reference to the importance of development viability.

GVA James Barr for Diageo Scotland Ltd. (CLDP061b) believe that the
Policy should be modified to include provision for the removal or reduction of
developer contributions and affordable housing on sites where there is a
development viability justification for doing so. In this context, there should be
a clear provision for affordable housing to be removed or reduced for housing
development that is being delivered on brownfield and that has additional
financial burdens via the Development Plan or abnormal costs.

Dollar Community Council (CLDP077d) welcome and support this Policy
and the associated Supplementary Guidance SG5 (CD039).

Muckhart Community Council (CLDP174h) support this Policy.

Modifications sought by those submitting representations:

Homes for Scotland (CLDP041k) believe the Policy should state at what
threshold the policy is expected to start; the requirement in the third bullet
point that the affordable housing element is fully completed before the last
25% of the market housing be removed; a bullet point inserted recognising the
importance of the development viability of a site and how the Council will
assess this, especially with regard to cumulative impact of developer
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contributions on the viability.

Suggest the policy wording is replaced with that below:
Residential development, including conversions, consisting of 10 or more
units should include provision of an affordable housing contribution amounting
to an equivalent of 25% of the total number of units proposed. Whenever
practical, the affordable housing should be integrated with and
indistinguishable from the market housing.

If the provision of the affordable on-site is not possible the Council will seek
off-site provision. Failing that and in appropriate circumstances, a commuted
sum will be required from developers.

The details of provision, including tenure, house size and type, will be a matter
for agreement between the developer and the Council and based upon local
housing need and individual site characteristics.

Supplementary Guidance sets out how the Council aims to implement the
above policy in line with the provision of the SPP and PAN 02/2010.

GVA James Barr for Diageo Scotland Ltd. (CLDP061b) want the Policy to
be modified to include provision for the removal or reduction of affordable
housing on sites where there is a development viability justification for doing
so.

Summary of responses (including reasons) by Planning Authority:

In relation to Homes for Scotland's (CLDP041k) points, it is considered that
the Policy clearly states that on-site provision of affordable homes will
normally be sought on sites of 20 or more units (as per PAN 02/2010)
(CD012) or for 1 hectare or more of land. On sites smaller than this, a
commuted sum will be sought. No changes are therefore sought to the
LDP.

It is accepted that there may be instances where a requirement for all of the
affordable element of a housing development to be completed and made
available for occupancy before the final 25% of the open housing market is
released for sale may not be practical. This could include cases where the
affordable element is being spread throughout the development or where the
housing developer has transferred land to a third party who are responsible
for delivering the affordable housing. PAN 02/2010 paragraph 28 (CD012)
states "Where the development of a large site is phased, the implications for
the supply of affordable housing should be considered. For example, it may
be appropriate to include some affordable housing in each phase or to allow
solely market development in the first phase in order to generate a positive
cash flow where this can be justified. It may be appropriate to address these
issues in a development brief and in any legal agreement associated with the
planning permission.". If the Reporter is therefore minded, bullet point three
could be amended to identify that the phasing of the delivery of any affordable
housing element will be considered on a site by site basis and identified as
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part of a development brief or masterplan or through the conditions or
agreements attached to any planning permissions for the development.

Homes for Scotland (CLDP041k) and GVA James Barr for Diageo
Scotland Ltd. (CLDP061b) both request recognition of the importance of the
development viability of a site and changes to the Policy wording to
acknowledge this, with GVA James Barr suggesting that the Policy could
include provision for the removal of the requirement for affordable housing on
sites where there is a development viability justification for doing so.

PAN 02/2010 (CD012) recognises that this as an issue and advises at
paragraph 27 that "Planning authorities will also need to be aware of other
issues which may affect the viability of developing a site. In some cases there
may be a requirement for the developer to either provide or make a financial
contribution to other major supporting and infrastructure elements, such as a
new school or expansion of an existing school, drainage and road
improvements. On particular sites there may be high costs to remediate
contamination or address poor ground conditions. In determining an
application, local authorities may consider all these issues and the strategic
priorities for a site holistically. This will be particularly the case where the
developer can demonstrate and clearly justify that there are exceptional costs,
unknown when the initial offer of purchase was made, which render the
development of the site unviable as originally proposed.".

Policy SC2 refers to provision being "...determined according to...local
circumstances..." and that "...the nature of these contributions will vary from
site to site...". There is therefore scope to vary the level of contribution based
on this, but, as PAN 02/2010 (CD012) advises, consideration of such issues
and the strategic priorities for a site holistically will be considered at the
planning application determination stage.

It is expected that developers will take into account the affordable homes
requirement as part of their viability considerations and reflect this in their offer
to purchase land. As PAN 02/2010 (CD012) states, only where exceptional
costs which were unknown when the initial offer of purchase was made arise,
and can be demonstrated and clearly justified, may levels of provision may be
re-negotiated.

Clackmannanshire Council has undertaken a detailed HNDA (CD050 &
CD051) which has been confirmed by the Scottish Government as robust and
credible. The HNDA shows that, at the date of the assessment, there was a
significant shortfall in the provision of affordable housing in the area, resulting
in a need for 454 affordable and 118 private houses each year. In the current
climate, this is not considered to be realistic and achievable, therefore the
LHS (CD053) recognises the outstanding need to provide additional
affordable housing and it identifies a housing supply target of 31 affordable
housing units per year within the LDP area. The need for affordable housing
will therefore continue to be greater than overall supply over the period of the
Local Development Plan (LDP) which increases the importance of maximising
the provision of affordable housing on each site. No changes are sought to
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the Plan as variations to the provision of affordable housing will be
determined at the planning application stage, on a site by site basis, and
be fully demonstrated and justified. The wording of Policy SC2 allows
for this.

Dollar and Muckhart Community Council's support for this Policy is noted.

Reporters conclusions:

Reporters recommendations: