42 legal focus
Can you afford affordable housing?
New provisions came into force on April 25 that should assist developers and landowners struggling with affordable housing obligations in Section 106 planning obligations, writes Simon Dimmick, partner, planning department, Blandy & Blandy LLP
The Growth and Infrastructure Act 2013 amends the Town & Country Planning Act 1990 to create the right for developers to apply to the local authority to modify or even remove affordable housing provisions in planning obligations. The only hurdle on the first application is for the applicant to prove that the scheme is not “viable” unless the change is made.
This is potentially of great value to developers and landowners. The Council, in responding to an application for modification, can consider viability only.
It may not
review the planning merits of the scheme. All the developer
needs to do is to formulate a scheme that would be viable to submit to the authority. Then, of course, the fun will start. (NB This procedure does not apply to rural exception sites where planning permission for housing is specifically to enable provision of affordable housing.)
Should the initial application be refused, or remain undecided, the developer has a right of appeal to the planning inspectorate. This may proceed by written representations. Unlike in a planning appeal, the sole focus will be the viability question. The planning merits of the scheme would not be reviewed.
Developers should however be cautious not to use the review frivolously. On a first application if the council is satisfied as to the viability case then there is no discretion to refuse. On further applications however, the authority has discretion to refuse, even if viability remains an issue.
In
addition, developers cautious about their commercial confidentiality should remember that government guidance advises that the process should be undertaken as an “open book” review.
Overall, these provisions should be welcomed by developers. Although affordable housing provisions may not be the only
factor holding up development, it may be a key factor in some cases. The ability to review the requirements should encourage the deliverability of much needed housing.
Details: Simon Dimmick
simon.dimmick@blandy.co.uk 0118-9516922
Clarkslegal advises local charity on Islamic financing
Clarkslegal LLP has advised a Reading charity on obtaining finance for its acquisition of a prominent former corporate HQ building in Reading. The deal was based on Islamic financing, structured around the principles of diminishing Musharakah.
Led by corporate partner Ashan Arif, Clarkslegal worked closely with a leading London-based Islamic finance scholar to put together a deal structure that satisfied both the client’s key objective (Sharia compliance) as well as being acceptable to the lender. Clarkslegal drafted and negotiated the key finance and
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security documents and also advised the trustees of the charity on the requirements of the Charities Act 2011.
The general secretary of the charity thanked Clarkslegal for its contribution: “This was a groundbreaking deal for us. Clarkslegal, through Ashan Arif, was instrumental in helping to put together a Sharia- compliant financing structure; the only basis upon which we would do this deal.
"This involved complex documents and negotiations with the funder and throughout the entire process Clarkslegal
was very supportive and innovative.”
Commenting on his team’s handling of the complex negotiations, Arif said: “From the outset, we were fully aware of how important this deal was for our client. Negotiations were sometimes tricky and there was real pressure from the seller to complete the sale. Yet again, my team excelled in understanding and delivering on the client’s key objectives to achieve an outstanding result.”
City lawyer SNR Denton acted for the lender. Maclay Murray and Spens acted for the seller.
Parental leave
increased Employers should be aware that the amount of unpaid parental leave that can be taken by parents for each child under five years of age, or in the case of an adopted child, in the five years after the placement, has increased. It rose in March from 13 to 18 weeks.
Shaun Underhill, a partner at Shentons Solicitors, added that parents of children who qualify for disability living allowance are also entitled to 18 weeks’ parental leave until the child’s 18th birthday. “To qualify for parental leave, an employee must have worked for their employer for more than one year,“ said Underhill.
“Where an employee has more than one child, he or she has the right to take unpaid parental leave in respect of each child, but the limit in any one year is four weeks, unless the employer agrees otherwise. Also, unless an employer agrees otherwise or the child is disabled, parental leave should be taken in blocks of one week.“
THE BUSINESS MAGAZINE – THAMES VALLEY – JUNE 2013
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