6  Planning Permission and Building Regulation 

6.1 General

6.1.1 RSLs must:
1. have a valid planning permission before starting building works (one with conditions and reserved matters is acceptable so long as the conditions / reserved matters are capable of resolution during the course of construction)
2. have obtained building regulation approval prior to the completion of the development
3. have had any planning conditions and / or reserved matters signed off by the planners prior to the completion of the development.

6.1.2  This section provides guidance on:

• the Agency’s Requirements for SHG funding;
• the treatment of developer contributions towards the costs of SHG funded housing.

6.1.3  RSLs should ensure that they are aware of the current guidance on planning produced by Communities and Local Government, Planning Policy Statement 3 (Housing).

 
6.2  Planning Conditions and Obligations 

6.2.1  In circumstances where the planning authority grants planning permission subject to conditions or makes the development subject to Planning Obligations (set out in a section 106 Agreement or Unilateral Undertaking) the RSL must ensure that any such Obligations do not make the development ineligible for SHG funding including (but not limited to):

1. The quality of the housing provided
2. Suitable nomination rights to local authorities are preserved 
3. Nominees (whether for housing for rent or Low Cost Home Ownership) are consistent with national policy  
4. Consents that are made personal to the applicant RSL and/or voluntary agency managing the scheme to the exclusion of other RSLs
5. Consents that restrict the letting/sale of property in contradiction of any national policy of Government or the Homes and Communities Agency. For an example click on the asterisk
6. Restrictions on use or sale of the property which make them unmortgageable
7. Restrictions on Grant Recovery that contradict HCA policy, e.g. by restricting the location of spend of recycled receipts, or of requiring recycling to the LA in a way which jeopardises the Agency's interest. For an example click on the asterisk.  

 
6.2.2  If the RSL is uncertain as to whether a particular planning condition or obligation will make the development ineligible, it should contact the Corporation’s local Investment Officer for guidance.
 
6.2.3  Local planning authorities may attach s106 Obligations for off site works and financial contributions to planning permissions obtained by the RSL. This may include, for example, the provision of community centres not primarily for the RSL’s tenants, or financial contributions for non-housing purposes. 
 
6.2.4 RSLs must ensure that they are acting within their own rules in complying with such Obligations. by obtaining legal advice as to whether the proposed activity is within their rules.  The Agency will not dispute that advice unless there are strong grounds for doing so. RSLs will also need to seek legal advice about the extent of their potential future legal liabilities to the local authority or other third parties relating to off-site works and also about any limitation measures that it might be prudent for RSLs to undertake.

  
6.3  Planning Subsidy 

6.3.1  Planners will often require the developer/landowner to provide affordable housing as a Planning Obligation.  The purpose is to provide additional affordable housing, either directly or by reducing the SHG requirement for those dwellings so the Grant thereby saved can be used elsewhere for more affordable housing.  

6.3.2  RSLs must ensure that the Planning Subsidy that they receive through such Planning Obligations is clearly quantified (in agreement with the local planners), and apportioned to the properties in a manner that is consistent with the Requirements for apportionment of Grant.