Development Viability Review

HO3: Development Viability Review 1. Proposals that meet, or exceed, the relevant affordable housing threshold and infrastructure requirements will not be subject to viability testing, subject to compliance with other policy requirements. Tested Schemes 2. Where an applicant proposes a development delivering below policy requirements, including the level of affordable housing, an open book financial viability assessment (FVA) must be submitted which: a) is fully transparent and unredacted. b) demonstrates that the scheme delivers the maximum reasonable amount of affordable housing, and infrastructure. c) should fully evidence all inputs and assumptions used in the assessment and explain any differences from those used for the viability assessment that informed the relevant plan policies, which will be subject to independent review, commissioned by the local planning authority at the applicant’s expense. 3. Viability will be assessed according to the relevant national planning guidance using: a) a residual land value approach. b) an appropriate benchmark land value, based on existing use value plus a premium; or where appropriate, an alternative use value (as set out in national planning guidance) c) c robust evidence for all inputs and assumptions. Review Mechanisms 4. Where development proposals are approved, and provision or contributions are reduced below the policy requirement following viability testing, the Council will require review mechanisms to be secured through planning obligations, to seek policy compliance arising from any improvement in viability over the lifetime of the project. 5. For phased or large-scale developments, the Council may require mid-stage or phase-specific reviews. 6. Where review mechanisms identify that the development has generated a surplus above agreed viability thresholds, the Council will require the delivery of additional on-site affordable housing, or where this is not feasible, a financial contribution in lieu, and/or contribution to the infrastructure required to mitigate the impact of the development. 7.24 National guidance identifies the circumstances in which viability can be tested; however, at the point of Local Plan adoption, planning applications that fully comply with the Plan’s policies should be assumed to be viable without the need for further assessment. This policy therefore takes account of potential changes over the lifetime of the Plan. It will be for the applicant to demonstrate whether specific circumstances justify the need for a viability assessment at the application stage. The policy also sets out the circumstances in which viability reviews will be required. Threshold 7.25 Planning applications will be checked to ensure that sites have not been sub-divided to take them below the threshold and consider whether the policy requirements should be applied on a cumulative basis. This is to ensure that applicants and sites provide the appropriate level of affordable housing contribution or affordable housing units on sites that are suitable and/or the relevant infrastructure is being delivered. If this is the case each parcel of the larger site, even if it is under ten units, will be expected to provide affordable housing or other infrastructure requirements on a pro-rata basis. 7.26 Only organisations that are registered with the Regulator of Social Housing are accepted as being registered providers (RPs). RPs own and manage affordable housing stock in Buckinghamshire. Early engagement with RPs is beneficial, as this can reduce design related issues with the dwellings. The Council maintains a list of RP partners that are known to be active in Buckinghamshire, which can be provided upon request. The Council will expect new affordable housing to be transferred to RPs, who will own and manage their stock. 7.27 The allocation of affordable housing will be made in accordance with the Council’s relevant allocations policy. Affordable homes are to remain affordable in perpetuity or, if this restriction is lifted, the subsidy should be recycled for alternative affordable housing provision within Buckinghamshire.