Planning Obligations and Affordable Housing SPD

3. Negotiating Planning Obligations in the Chichester Local Plan Area Comment

3.1The process for negotiating and securing planning obligations is set within the framework of national legislation and guidance, and local policy and guidance, and other material considerations relevant in each particular case. When carrying out negotiations for planning obligations, the council must meet the statutory tests set out in the 2010 CIL Regulations(as amended).

Pre-Application Stage

3.2Applicants, agents and developers are encouraged to seek pre-application advice prior to the formal submission of development proposals within the Local Plan area. The pre-application process offers a valuable service for potential developers and allows dialogue to resolve any initial concerns which officers envisage may arise during the formal application stage. The pre-application stage also offers an opportunity for officers to discuss the infrastructure and CIL requirements expected on any given development site.

3.3It is essential that housing proposals and the issue of affordable housing are discussed with the council well in advance of an application being submitted to ensure that the proposals address local housing need and demand for both market and affordable housing and are supported by robust evidence.

3.4Applicants should use this SPD alongside an analysis of their proposed development to consider the impacts of the proposed scheme and any planning obligations likely to be required to mitigate the impacts of development.

Application Stage

3.5Applications for new housing should include a Housing Statement confirming the extent to which the proposal meets local need and demand for market and affordable housing and evidence supporting any deviation from policy requirements. Full and reserved mattersplanning applications must also incorporate a detailed Housing Mix Schedule, including the type, size (Gross Internal Floor Area (GIA) in square metres) of the market housing and the type, size (GIA in square metres), tenure and proposed delivery vehicle for the affordable housing (see section 4).

Viability

3.6In certain circumstances, it may be considered that the viability of a scheme is jeopardised due to site constraints or other factors and that this would justify a reduction in the amount of affordable housing or other planning obligations. It is recommended in such cases that applicants seek pre-application advice from the Local Planning Authority prior to the formal submission of a planning application.

3.7Viability assessments to be submitted as evidence in negotiations must be capable of independent expert verification carried out by a qualified (RICS) surveyor/valuer. Any abnormal or exceptional development costs should be supported with robust and costed specialist reports and technical data.

3.8Where viability is affected by large costs associated with bringing a heritage asset back into beneficial use, any enabling development and/or costs of the repairs will need to be supported with robust and costed specialist reports and technical data, sufficient to enable independent expert verification.

3.9The council will appoint independent qualified RICS surveyor/valuers with specialist skills to investigate the whole, or selected elements of submitted viability assessments. Any expenditure incurred by the council in carrying out external verification of financial viability appraisals and assessing evidence must be reimbursed by the Applicant. Prior to instructing an external report and to ensure value for money and meet due diligence obligations, the council will either appoint the District Valuer or obtain three cost limited estimates from appropriately qualified valuers/surveyors who are capable of acting on the matter without a conflict of interest, and agree the external expert with the applicant. The applicant will be required to provide a written undertaking to cover the costs before the valuer is appointed. Viability reports will be shared with the applicants.

3.10Where such reports result in conflicts of opinion necessitating additional work and fees, supplementary undertakings to reimburse the council will be sought. Any disputes between the council and the applicant will be referred to an independent arbitrator (in accordance with RICS guidance).

3.11Financial viability evidence will usually be required to reflect current day values and costs. Where proposals include phases of development that are expected to come forward over a number of years, assessments will be required to take account of projected changes in the value of development, or costs. Appropriate mechanisms may be required within s106 agreements to address the consequences of such changes over time.

3.12RICS guidance, Financial viability in planning: conduct and reporting (2023) and Financial Viability in Planning (2012) provides more detailed guidance on current approaches to viability assessment in the planning context and appropriate methodologies.